Question

One way to make sure all expenses and revenues are allocated to the correct department is the use of general ledger accounts; each department in the organization will have its own department codes that will identify its expenses and revenue to its department.

a. True
b. false

Answer 1

It is true that using general ledger accounts with department codes helps in correctly allocating expenses and revenues to the appropriate department in an organization.

Step-by-step explanation:

The use of general ledger accounts with department codes is true when it comes to ensuring that all expenses and revenues are allocated correctly within an organization. Each department having its own set of codes allows for accurate tracking and reporting, which is essential for the financial management of a company. This method supports transparency and accountability in the management of funds, aligning with practices that ensure responsible budgeting and spending across various levels of government, including federal, state, and local authorities.

The statement is true. One way to make sure all expenses and revenues are allocated to the correct department is through the use of general ledger accounts. Each department in the organization will have its own department codes that identify its expenses and revenue to its department. This allows for accurate tracking and allocation of financial resources.