Concept explainers
The detailed record of the changes in a particular asset, liability, or stockholders’ equity is called
a. an account.
b. a journal.
c. a ledger.
d. a
Account: A record which documents or records the changes in assets, liabilities, or equity for a particular period is referred to as an account.
To find: The correct term for the given description.
Answer to Problem 1QC
(a) an account.
Explanation of Solution
Explanation for correct answer:
Account is a document which registers the changes in assets, liabilities, or equity, in detail. Hence, (a) is the correct option.
Explanation for incorrect answers:
- Option (b) is incorrect because journal is record of transactions.
- Option (c) is incorrect because ledger is record of accounts.
- Option (d) is incorrect because trial balance is a summary of all the asset, liability, and equity accounts and their balances.
Hence, the correct option is (a).
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Chapter 2 Solutions
Horngren's Financial & Managerial Accounting, The Managerial Chapters, Student Value Edition Plus MyLab Accounting with Pearson eText -- Access Card Package (6th Edition)
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