Which of the following statements correctly distinguishes a 'T-account' format from a 'Running balance' account format?

Test yourself: pick an answer

• A)Running balance accounts only record cash, whereas T-accounts record credit.
• B)T-accounts are balanced periodically, while running balance accounts provide an updated balance after each transaction.
• C)T-accounts are updated after every transaction, while running balance accounts are only updated at year-end.
• D)There is no practical difference; the terms are perfectly synonymous.