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.

Comprehend the role of subsidiary ledgers and control accounts.

Grasp the concept and implications of e-commerce in accounting.

Understand how computerized accounting systems enhance record-keeping and reporting.

Identify the structure and use of a purchases journal.

---

Definitions:

Labor Cost

The total expenses associated with employing labor, including wages, benefits, and taxes.

Cash Budget

A financial plan that estimates cash inflows and outflows over a certain period of time, often used for managing liquidity.

Cash Receipts

are documents or records of the actual cash received by a business from transactions, including sales, loans, or asset disposals.

Cash Disbursements

Refers to the outflow of cash to pay for expenses or investments made by a company or individual.