Accounts are classified in the ledger
A) chronologically
B) alphabetically
C) in accordance with their appearance in the financial statements
D) so that accounts used most often are listed first

Question

Quizplus · Accepted Answer

Accounts are classified in the ledger in accordance with their appearance in the financial statements, typically starting with assets, followed by liabilities and equity accounts, and then revenue and expense accounts. This order is designed to facilitate the preparation of financial statements and ensure consistency in financial reporting. Chronological or alphabetical classification would not be as useful or relevant to financial reporting, and listing accounts based on frequency of use would not necessarily reflect their importance or relevance to the financial statements.

Accounts Are Classified in the Ledger