Marcus observes that the bank overdraft account is a liability account and has a credit balance. He also notices that the accounts payable account is a liability account and has a credit balance. Therefore, Marcus comes to the conclusion that all liability accounts have a credit balance. Which approach is Marcus using in developing his theory that all liability accounts having credit balances?
A) Conceptual reasoning.
B) Conclusive reasoning.
C) Inductive reasoning.
D) Deductive reasoning.

Question

Quizplus · Accepted Answer

The Answer is C

Marcus Observes That the Bank Overdraft Account Is a Liability