Accounts
A) do not reflect money amounts
B) are not used by entities that manufacture products
C) are records of increases and decreases in individual financial statement items
D) are only used by large entities with many transactions

Question

Quizplus · Accepted Answer

Accounts are records of increases and decreases in individual financial statement items, such as assets, liabilities, equity, revenues, and expenses. They reflect changes in money amounts and are used by all types of entities, including those that manufacture products. The size of the entity does not determine the need for accounts, as every business needs to keep track of its financial transactions.