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Custom Bundle: Accounting, Loose-leaf Version, 26th + Working Papers, Chapters 1-17, 26th Edition
26th Edition
ISBN: 9781305714731
Author: Warren/Reeve/Duchac
Publisher: Cengage
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Concept explainers
Textbook Question
Chapter 2, Problem 2.1DQ
What is the difference between an account and a ledger?
Expert Solution & Answer
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To determine
Explain the difference between an account and a ledger.
Explanation of Solution
Recording Process: The recording process of any accounting transaction starts with analyzing the transaction, journalizing the transaction, and posting them into the relevant account.
- An account refers to a financial record in the general ledger, where the increase or decrease in the values of the assets, liabilities, stockholder’s equity, revenues or expenditures of the business, pertaining to a particular period are recorded.
- A ledger refers to the collection of different accounts maintained by the business during a particular period that records the changes during the specific period, and provides the balance at the end of the period.
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Chapter 2 Solutions
Custom Bundle: Accounting, Loose-leaf Version, 26th + Working Papers, Chapters 1-17, 26th Edition
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