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The commonly used format for recording a transaction is referred to as a(n)

a) Ledger
b) Balance sheet
c) Journal entry
d) Invoice

User Whiteatom
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Final answer:

The commonly used format for recording a transaction is a journal entry, while a balance sheet lists assets and liabilities and is not used to record transactions as they happen.

Step-by-step explanation:

The commonly used format for recording a transaction in accounting is referred to as a journal entry. A journal entry is used to record the initial transaction that takes place, capturing the debit and credit aspects of a transaction. It's essential for documenting all the financial transactions of a business and forms the basis for posting into individual accounts within the ledger. On the other hand, a balance sheet is an accounting tool that lists assets and liabilities at a certain point in time but does not record transactions as they occur. An invoice is a request for payment and is not an accounting record of the transaction itself. A T-account, resembling a balance sheet with a two-column format, is a visual aid for understanding the effects of transactions on individual accounts but is not where transactions are initially recorded.

User Taulant
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