General Account

What is a general ledger?

• A type of asset

• A financial report

• A list of all employees

• A record of all accounts used by a company

What is the purpose of a chart of accounts?

• To track employee performance

• To calculate taxes

• To list all ledger accounts of a company

• To manage customer relationships

Why do companies use specific names for their accounts?

• To make it harder to find accounts

• To maintain consistency in naming

• To follow government regulations

• To confuse their employees

What do the numbers in a chart of accounts help with?

• Tracking sales

• Calculating profits

• Cataloging purposes

• Identifying employees

What does an account record?

• Only increases in assets

• Only revenues

• Increases and decreases in specific items

• Only decreases in liabilities