Which of the following statements are true? Select all that apply and click on Submit Different companies will use different charts of accounts based on individual company need. The chart of accounts contains the balance of all the accounts in the ledger. The general ledger contains all of the accounts that a company uses, along with detail of the balances in those accounts. The general ledger and the chart of accounts can be ordered in any sequence because they are not formal financial systems.

Question

Business

Stevens

3 February, 05:00

Which of the following statements are true? Select all that apply and click on Submit Different companies will use different charts of accounts based on individual company need. The chart of accounts contains the balance of all the accounts in the ledger. The general ledger contains all of the accounts that a company uses, along with detail of the balances in those accounts. The general ledger and the chart of accounts can be ordered in any sequence because they are not formal financial systems.

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Verena · Answer 1

Different companies will use different charts of accounts based on individual company need.

The general ledger contains all of the accounts that a company uses, along with detail of the balances in those accounts.

Explanation:

The above stated two statements are True.

If in a company there is no manufacturing and it only provides service, which requires no inventory, then it will not have inventory related accounts.

Accordingly if a company only do sales on current basis, that is no credit allowed, then it will not have accounts receivables account.

Further for the second statement:

The general ledger is basically the accumulative collection of all the accounts maintained, thus, it correctly states all the account balances with details

Therefore, only statement 1 and statement 3.