'Prime Retailers' has recently shifted from using traditional 'T-accounts' to 'running balance' accounts for its receivables ledger. What is the primary operational difference?

Test yourself: pick an answer

• A)Running balance accounts only record cash, whereas T-accounts record credit sales.
• B)T-accounts are balanced periodically, whereas running balance accounts calculate and show an updated balance after every single transaction.
• C)Running balance accounts do not require debits and credits.
• D)T-accounts are used for assets, while running balance accounts are used for liabilities.