An Account Is a Part of the Financial Information System

question 155

Multiple Choice

An account is a part of the financial information system and is described by each one of the following except

• A)an account has a debit and credit side.
• B)an account is a source document.
• C)an account consists of three parts.
• D)an account has a title.

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Definitions:

Income Statement

A financial statement that reports a company’s financial performance over a specific accounting period, detailing revenues, expenses, and profits or losses.

Unadjusted Trial Balance

A preliminary report that lists all accounts and their balances before any adjustments are made for accruals, deferrals, and errors.

Proper Order

A systematic arrangement or sequence that things follow which conforms to a set of rules or a standard procedure.

Accounts

Records within financial accounting that track financial transactions of a specific type, such as assets, liabilities, equity, expenses, and revenues.