A General Ledger Should Be Arranged in the Order in Which

question 91

True/False

A general ledger should be arranged in the order in which accounts are presented in the financial statements beginning with the balance sheet accounts.

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Definitions:

Adjusting Entries

Journal entries made in accounting to update the records for expenses and revenues that have been incurred but not previously recorded.

Unadjusted Trial Balance

A listing of all the accounts and their balances from the general ledger before any adjusting entries are made, used to ensure credits and debits match.

Closing Entries

Journal entries made at the end of an accounting period to transfer temporary account balances to permanent accounts and prepare the company's accounts for the next period.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting liabilities, often referred to as shareholder's equity or owner's equity.