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Which format provides an informal view of account activity and is used for problem solving accounting transactions?

A. T-account correct
B. Four-column ledger
C. Both are correct
D. None of the above

1 Answer

3 votes

Final answer:

The informal format used for problem-solving accounting transactions is the T-account, a tool represented by a simple two-column balance sheet showing 'Assets' and 'Liabilities'. Hence, the correct answer is option (A).

Step-by-step explanation:

The format that provides an informal view of account activity and is used for problem-solving accounting transactions is a T-account. A T-account is essentially a balance sheet with a two-column format. This format becomes recognizable by the T-shape formed by the vertical line down the middle and the horizontal line under the column headings for “Assets” and “Liabilities”.

It offers a simple and clear visualization of the debits and credits affecting individual accounts, making it a helpful tool for understanding and solving accounting problems. Therefore, the correct answer to the question is A. T-account.

User Manas Kumar
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