BUISENESS MANAGEMENT
MERCHANDISING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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An account has a debit and credit side.
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An account is a source document.
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An account may be part of a manual or a computerized accounting system.
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An account has a title.
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Detailed explanation-1: -An account is a part of the financial information system and is described by each one of the following except: b. an account is a source document. The source document is the evidence of business transaction. The information from the source document is extracted and recorded into accounts.
Detailed explanation-2: -3 Different types of accounts in accounting are Real, Personal and Nominal Account. Real account is then classified in two subcategories – Intangible real account, Tangible real account. Also, three different sub-types of Personal account are Natural, Representative and Artificial.
Detailed explanation-3: -Your accounting records are vitally important because the resulting financial statements and reports help you plan and make decisions. These statements and reports may be used by some third parties like bankers, investors or creditors, and are needed to provide information to government agencies, such as the IRS.
Detailed explanation-4: -T-accounts are commonly used to prepare adjusting entries. The matching principle in accrual accounting states that all expenses must match with revenues generated during the period. The T-account guides accountants on what to enter in a ledger to get an adjusting balance so that revenues equal expenses.