Teresa Alvarez has prepared the following list of statements about the general ledger:
- The general ledger contains all the asset and liability accounts but no owner's equity accounts.
- The general ledger is sometimes referred to as simply the ledger.
- The accounts in the general ledger are arranged in alphabetical order.
- Each account in the general ledger is numbered for easier identification
- The general ledger is a book of original entry.
Instructions
Identify each statement as true or false. If false, indicate how to correct the statement.
Answers
- This statement is false. The correct statement is The general ledger contains all the asset, liability accounts and owner's equity statement
- This statement is true
- This statement is false. The correct statement is The accounts in the general ledger are arranged in the order of balance sheet and income statement items
- This statement is true
- This statement is false. The correct statement is General Journal is a book of original entry