Regarding T-Accounts,which of the Following Statements Is Correct

question 170

Multiple Choice

Regarding T-accounts,which of the following statements is correct?

• A) A T-account is a more detailed form of an account in the journal.
• B) The right side of a T-account is a debit for asset accounts and a credit for equity accounts.
• C) Debits are posted on the right side of the vertical line.
• D) A T-account is a summary device with credits posted on the right side of the vertical line.

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Definitions:

Entity's Risks

Various uncertainties and potential adverse effects that can impact an organization's financial performance or operations.

Past Performance

Historical operational or financial results of an individual or organization, often used as an indicator or benchmark for future potentials.

Operating Segments

Components of an enterprise engaged in business activities from which it may earn revenues and incur expenses, including discrete financial information available.

Gross Margins

The difference between revenue and cost of goods sold, divided by revenue, expressed as a percentage, indicating the efficiency of sales relative to production costs.