Accounts are classified in the ledger
A) do not reflect money amounts
B) are not used by entities that manufacture products
C) are records of increases and decreases in individual accounting equation elements
D) are only used by large entities with many transactions

Question

Quizplus · Accepted Answer

Accounts are records of increases and decreases in each element of the accounting equation. They are used to track financial transactions and their impact on the company's financial status. Option A is incorrect because accounts do reflect money amounts. Option B is incorrect because entities that manufacture products may require accounts to track their financial transactions. Option D is incorrect because accounts are used by entities of all sizes to track financial transactions.

Accounts Are Classified in the Ledger