The Recording Process

Teresa Alvarez has prepared the following list of statements about the general ledger:
  1. The general ledger contains all the asset and liability accounts but no owner's equity accounts.
  2. The general ledger is sometimes referred to as simply the ledger.
  3. The accounts in the general ledger are arranged in alphabetical order.
  4. Each account in the general ledger is numbered for easier identification
  5. 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

  1. This statement is false. The correct statement is The general ledger contains all the asset, liability accounts and owner's equity statement
  2. This statement is true
  3. 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
  4. This statement is true
  5. This statement is false. The correct statement is General Journal is a book of original entry
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