A Simple Tool That Is Widely Used in Accounting to Represent

question 233

Multiple Choice

A simple tool that is widely used in accounting to represent a ledger account and to understand how debits and credits affect an account balance is called a:

• A)Dividends account.
• B)Common Stock account.
• C)Asset account.
• D)T-account.
• E)Balance column sheet.

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Definitions:

Standard Costs

Represents the expected cost of producing or purchasing items, used for budgeting and cost control purposes.

General Ledger

A ledger that contains all asset, liability, and owner’s equity accounts.

Normal Standards

Predetermined costs or benchmarks that are established based on the historical performance and expected future costs, used to measure production efficiency and budget compliance.

Rigorous

Characterized by strict precision, accuracy, and careful attention to detail.