For a sole proprietorship, 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) owners' capital, assets, liabilities, drawings, expenses, and revenues.

Question

Quizplus · Accepted Answer

The usual ordering of accounts in the general ledger for a sole proprietorship follows the accounting equation (Assets = Liabilities + Owner's Equity) and then lists the income statement accounts (revenues and expenses), followed by drawings. This order helps in preparing the financial statements efficiently, starting with the balance sheet accounts (assets, liabilities, owner's capital) and then moving to the income statement accounts (revenues, expenses), with drawings reflecting the owner's withdrawals from the business.

For a Sole Proprietorship, the Usual Ordering of Accounts in the General