The accounting system uses a device called an account.An account
A)is created each time a transaction takes place.
B)accumulates the increases and decreases that occur during the period for a single item.
C)is created only for income statement items.
D)is created only for balance sheet items.
E)None of these answer choices is correct.

Question

Quizplus · Accepted Answer

An account is a record that accumulates the increases and decreases that occur during the period for a single item, such as an asset, liability, equity, revenue or expense. It is used to keep track of the financial transactions of a business.

The Accounting System Uses a Device Called an Account