Question

Which of the following is true?

A T account is a system of predicting account balances.

The T account method is optional.

The T account method of recording transactions does not follow the same rule of debiting and crediting accounts as journalizing.

A T account is a system of calculating account balances.

Answer 1

The statement that is true is:

**A T account is a system of calculating account balances.**

T accounts visually represent accounts in the accounting system, showing debits on the left side and credits on the right side, which helps in calculating the balance of each account.

To clarify the inaccuracies in the other statements:

1. **A T account is a system of predicting account balances.** - This is false. T accounts do not predict balances; they show actual debits and credits to calculate the current balance.

2. **The T account method is optional.** - This is misleading. While various methods can be used for recording transactions, T accounts are a fundamental part of double-entry bookkeeping and are commonly used for understanding the effects of transactions.

3. **The T account method of recording transactions does not follow the same rule of debiting and crediting accounts as journalizing.** - This is false. T accounts adhere to the same rules of debiting and crediting as other accounting methods, as both are based on the principles of double-entry bookkeeping.