April works in the accounting department at Henson's Tire & Auto.She is concerned that the company has been placing too many orders for office supplies and wants to look at all of the transactions involving the purchase of office supplies for the past several months.April could find such information by looking at the supplies account in the:
A)cash flow statement.
B)journal.
C)account debit book.
D)ledger.

Question

Quizplus · Accepted Answer

The ledger is a bookkeeping tool that contains all of the accounts used by a company, including the supplies account. This account will contain all transactions related to the purchase of office supplies and will provide April with the information she is looking for. The cash flow statement tracks the flow of cash in and out of a company, but does not provide detailed information on individual transactions. The journal and account debit book are also useful tools for bookkeeping, but do not contain the comprehensive information found in the ledger.

April Works in the Accounting Department at Henson's Tire