Which statement best describes a T$-$account?

Multiple choice question.

A T$-$account represents a ledger account and is a tool used to understand the effects of transactions.

A T$-$account is used in a business to accurately report the financial status of its operations to the owners.

A T$-$account is a formal financial statement which reports whether debits $=$ credits at any given time.

A T$-$account is used to record transactions in a chronological order and serves as a book of original entry.

Prepaid accounts are another name for accounts receivable and are reported as an asset.

Prepaid accounts are also called prepaid expenses and are considered assets.

Prepaid accounts are also called prepaid liabilities and are classified as liabilitIt is a collection of all accounts with their activity and balances that exist in a business.