Question

The 4-column account format adds an additional debit and credit column to show a running balance in the account.

A. True
B. False

Answer 1

The 4-column account format does not add an additional debit and credit column to show a running balance in the account. Instead, it uses a T-account format, which has two columns for debits and credits.The statement is False.

Step-by-step explanation:

The statement is False. The 4-column account format does not add an additional debit and credit column to show a running balance in the account. Instead, it uses a T-account format, which has two columns for debits and credits.

The T-account format is used in accounting to record transactions and track the balances of accounts. The left side represents debits (increases in assets or decreases in liabilities), while the right side represents credits (decreases in assets or increases in liabilities).

By recording debits and credits in the appropriate columns of the T-account, accountants can keep track of the balance and determine if it has a debit or credit balance.