Question

Which of the following statements concerning general ledger accounts is true?
a. The general ledger accounts are the only source of accounting information that managers of job order cost operations need to plan and control production activities.
b. The general ledger accounts are sometimes fraught with errors meaning that managers of job order cost operations need to look to other information sources to plan and control production activities.
c. The typical general ledger accounts usually do not provide the accounting information that managers of job order cost operations need to plan and control production activities.
d. The typical general ledger accounts usually do not provide the accounting information that managers of job order cost operations need because of deficiencies in internal controls.

Answer 1

The typical general ledger accounts usually do not provide the accounting information that managers of job order cost operations need to plan and control production activities.

Option C

Explanation:

Typical general accounting generations typically do not provide the accounting information required to schedule and monitor the production activities by job-cost managers.

A general account is a database used to organize, store and sum up transactions of a business. Such accounts shall be divided into a general leader (and a map of account), accompanied by the balance sheet accounts first.

A number that all agencies can use shall be allocated to each general ledger account. A number is also allocated to separate accounts in each division. The range of transactions involving most small businesses assigns a number of three or four digits to each account.