Final answer:
It is false (Option 2) ; separate customer accounts are essential for individual customer account management, credit risk assessment, and compliance with financial reporting standards and audits.
Step-by-step explanation:
It is False that a company can maintain accurate financial records without having separate accounts for specific customers as long as it records total credit sales information. While recording total credit sales provides a general overview of sales activity, having separate accounts for each customer is essential for several reasons. First, separate accounts allow for better customer account management, including monitoring of credit limits and payment histories. This is crucial for assessing credit risk and for collections processes when payments are overdue. Second, individual customer accounts provide detailed transaction records, which are indispensable for dispute resolution and reconciling account balances. Third, detailed customer ledgers are often required for financial reporting standards and audits. Therefore, aspects such as customer relationship management, financial accuracy, and regulatory compliance make it necessary to have separate customer accounts within a company's accounting system.