Accounts Are Classified in the Ledger

question 184

Multiple Choice

Accounts are classified in the ledger

• A) chronologically
• B) alphabetically
• C) in accordance with their appearance in the financial statements
• D) so that accounts used most often are listed first

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Definitions:

Reportable Segment

A distinguishable component of a business for which separate financial information is available and regularly reviewed by the entity’s decision makers.

Operating Profits

Income earned from a firm's core business operations, excluding deductions of interest and taxes.

IFRS 8

Refers to the International Financial Reporting Standard dealing with operating segments, requiring particular ways of financial reporting by segment to enhance transparency and comparability.

Reportable Segment Revenues

The revenues generated by each distinguishable segment of a company, as required to be disclosed in financial statements under certain accounting standards.