Question

Question:Enter the number for the item that best completes each of the descriptions below.

1. Chart 2. General ledger

a. A __________ of accounts is a list of all accounts a company uses.

b. The __________ is a record containing all accounts used by a company, including account balances.

Short answer

Answer

The blanks would be filled in the manner 1 and 2 for the statements a and b respectively.

Step-by-step solution

Statement ‘a’

Generally, a business uses different accounts based on their activity and nature. These accounts are given a unique code for their identification. The collection or listing of all such accounts is called the chart of accounts.

So, the correct answer is option 1.

Statement ‘b’.

General ledger or ledgeris where all accounts are grouped together containing their balances.

So, the correct answer is option 2.