Chapter Two Questions

Question 1

Different companies use different Chart of Accounts based on the individual needs of the company. True or False?

Answer 1

True

Question 2

The Chart of Accounts should be ordered in a logical sequence based on the type of account. True or False?

Answer 2

True

Question 3

The general ledger contains all of the accounts a company uses, along with the details of the balances in those accounts. True or False?

Answer 3

True

Question 4

With double-entry accounting, each transaction requires

Answer 4

That at least two accounts are affected
The credits will equal the debits

Question 5

What is step-3 and step-4 of the account process?

Answer 5

Step 3: record transactions into the journal; Step 4: post entries into the ledger.

Question 6

The trial balance is completed to ensure that debits and credits are equal in the General Ledger. True or False?

Answer 6

True