The usual ordering of accounts in the general ledger is
A) assets liabilities owner's capital drawings revenues and expenses.
B) assets liabilities drawings owner's capital expenses and revenues.
C) liabilities assets owner's capital revenues expenses and drawings.
D) owner's capital assets liabilities drawings expenses and revenues.

Question

Quizplus · Accepted Answer

The usual ordering of accounts in the general ledger is assets, liabilities, owner's equity (which includes owner's capital and drawings), revenues, and expenses. This order follows the accounting equation of Assets = Liabilities + Owner's Equity, with the owner's equity section divided into capital and drawings and revenues and expenses shown below that to calculate the net income or loss.

The Usual Ordering of Accounts in the General Ledger Is