4.1 How does a business record its business transactions? Flashcards
1
Q
What is a ledger account?
A
A ledger account is the basic unit used to record all the business transactions.
2
Q
Can a business have many ledger accounts?
A
Yes.
3
Q
What is a chart of accounts?
A
A chart of accounts is a list of all the ledger accounts used by the business.
4
Q
Define ‘account’.
A
‘Account’ means to give a description of an event.
