___________ helps business to classify transactions according to their nature?
Correct answer: B. Ledger accounts
- A. General journal
- B. Ledger accounts
- C. Real accounts
- D. Cash accounts
Explanation
The ledger groups transactions into individual accounts, allowing similar transactions to be classified and summarized according to their nature. The journal records transactions first in chronological order rather than grouping them by account.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? [email protected]
About Accounting Principles
Accounting principles explain the rules used to record, classify and report business transactions. Coverage includes the accounting equation, double-entry system, accrual and cash bases, matching and prudence concepts, consistency, going concern, business entity, and the difference between capital and revenue items.
Practise Accounting Principles
351 free Accounting Principles MCQs from Accounting, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Discussion
Stuck on an option, or know a faster way to get there? Ask or explain it here.
No comments yet. Be the first to explain this one.
Exams that ask Accounting questions like this
Accounting is on 3 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Accounting Principles questions
Which of the following is a real account?
Which of the following accounts are closed at the end of an accounting period?
Which of the following is the closing balance of a ledger account?
Office equipments account is classified as _________ account?
Building account is classified as _________ account?
The real accounts are accounts of Assets, liabilities and ___________?