Question

Regarding the​ ledger, which of the following statements is​ incorrect?

A.

The ledger provides more detail than the chart of accounts.

B.

Companies use the ledger to fulfill the task of showing all of the increases and decreases in each account.

C.

Both the chart of accounts and the ledger list the account names and numbers of the business.

D.

Both the chart of accounts and the ledger provide the balance of each account at a specific point in time.

Accrual basis accounting requires the business to review the unadjusted trial balance and determine whether any additional revenues and expenses need to be recorded.

True

False

Accrual basis accounting requires the business to review the unadjusted trial balance and determine whether any additional revenues and expenses need to be recorded.

True

False

Answer 1

1

Both the chart of accounts and the ledger provide the balance of each account at a specific point in time is incorrect.

Chart of accounts only provides list of accounts

2

True, Accrual basis accounting requires the business to review the unadjusted trial balance and determine whether any additional revenues and expenses need to be recorded.

Adjusting entries are prepared at the end of accounting period to make the accounts up-to-date under Accrual basis accounting.