Financial Accounting

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Defining T-account

FINACT-5XZVW1

Which of the following statements regarding a T-account is FALSE?

A

A T-account is a tool used in financial accounting to maintain a running total for a particular account (e.g., Cash).

B

In a T-account, all debits are posted on the left side and all credits are posted on the right side.

C

T-account balances are used to produce an entity's financial statements.

D

All T-accounts within an accounting information system (AIS) make up an entity's general ledger (G/L).