Question

Under non-integrated accounting system, the account made to ________?

1) Cash account
2) Bank account
3) Sales account
4) Purchase account

Answer 1

In a non-integrated accounting system, 2) a 'Bank account' is created to manage transactions separately from cost accounts. Banks provide services such as direct withdrawals and checks, which makes carrying large amounts of cash unnecessary.

Step-by-step explanation:

Under a non-integrated accounting system, the account made to is Bank account. Banks facilitate the operation of a complex economy by enabling diverse transactions in goods, labor, and financial capital markets. A non-integrated accounting system means financial transactions are recorded separately from cost accounts, necessitating the separate management of cash flows through bank accounts. Banks mitigate the need for carrying large amounts of cash, offering services like direct withdrawals, checks, and debit cards to access funds stored in checking or savings accounts.