Asked by Tishera Brooks on Jun 24, 2024

verifed

Verified

The usual ordering of accounts in the general ledger is

A) assets, liabilities, shareholders' equity, revenues, and expenses.
B) assets, liabilities, shareholders' equity, expenses, and revenues.
C) liabilities, assets, shareholders' equity, revenues, and expenses.
D) shareholders' equity, assets, liabilities, expenses, and revenues.

General Ledger

A complete record of all financial transactions over the life of an organization, serving as the primary source of information for financial reporting.

Shareholders' Equity

The residual interest in the assets of a company after deducting its liabilities.

Liabilities

Liabilities represent financial obligations or amounts owed by a business to creditors, which can include loans, accounts payable, mortgages, and other debts.

  • Understand the role and ordering of various types of accounts in the general ledger.
verifed

Verified Answer

SP
Shilvi PatelJun 30, 2024
Final Answer :
A
Explanation :
The usual ordering of accounts in the general ledger follows the format of the balance sheet and income statement. It starts with assets, followed by liabilities, then shareholders' equity (reflecting the balance sheet structure), and concludes with revenues and expenses (mirroring the income statement structure).