The General Ledger Accounts Are Usually Arranged in the Following

question 73

Multiple Choice

The general ledger accounts are usually arranged in the following order:

• A) first the balance sheet accounts,then the income statement accounts.
• B) first the accounts with debit balances,then the accounts with credit balances.
• C) first the temporary accounts,then the permanent accounts.
• D) first the accounts used most often,then those used less frequently.

---

Definitions:

Cost Of Goods Sold

Costs that are directly tied to the generation of products a company markets, including both materials and labor.

Variable Cost

Charges that increase or decrease depending on the volume of production or sales, like raw materials and direct labor.

Contribution Format

A method of income statement presentation that separates fixed costs from variable costs, highlighting the contribution margin.

External Reporting

The process of providing financial information to external stakeholders, such as investors, creditors, and regulatory bodies.