59. Deduction or valuation accounts that accumulate amounts subtracted from other accounts are called _____________________. Answers: a. contra accounts b. depreciation accounts c. asset accounts d. Owners Equity 60. From the following list of selected account balances, determine the total for the shareholders equity section of the Balance Sheet for XYZ Company.

$2,500 Investment in Stock of ABC Company $5,000 Retained Earnings $3,000 Cash $2,000 Note Payable to Suppliers $10,000 Common Stock $7,500 8% Preferred Stock Answers: a. $20,500 b. $22,500 c. $24,500 d. $25,500 61. The balance in the _________________ account reflects the cumulative depreciation of an asset since its acquisition. Answers: a. Depreciation Expense b. Income Tax Liability c. Rent Expense d. Accumulated Depreciation 62. The amount subtracted from the cost of a fixed asset to get the Net Book Value is called the ___________________. Answers: a. Asset Base b. Tax Liability c. Accumulated Depreciation d. Cash 63. The Balance Sheet reflects the application of various valuation methods. Which of the following methods may be used on a Balance Sheet that follows generally accepted accounting principles? Answers: a. Acquisition cost b. Current cash equivalent value c. Present value of future cash flows d. All of the above