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) Drawing account.
B) Balance column sheet.
C) Withdrawals account.
D) Capital account.
E) T-account.

Question

Quizplus · Accepted Answer

A T-account is a standard tool used in accounting to represent a ledger account visually. It is called a T-account because it looks like a "T" with debits on the left side and credits on the right side. By using T-accounts, accountants can easily see how debits and credits affect the balance of an account.

A Simple Tool That Is Widely Used in Accounting to Represent