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.

Question

Quizplus · Accepted Answer

A T-account is a simple visual representation of a ledger account that is used to understand how debit and credit transactions will affect the account balance. It has two sides, the debit side and the credit side, which are separated by a vertical line resembling the letter "T". Transactions are recorded on the appropriate side of the T-account to reflect whether they increase or decrease the balance of the account.

A Simple Tool That Is Widely Used in Accounting to Represent