Which of the following statements is FALSE?
A) A chart of accounts must be developed before beginning the financial statement process.
B) The chart of accounts is a classification scheme to organize and summarize data.
C) A chart of accounts uses an industry-mandated coding system to classify accounts.
D) The chart of accounts makes creating financial statements possible.

Question

Quizplus · Accepted Answer

The statement that a chart of accounts uses an industry-mandated coding system to classify accounts is false. While charts of accounts are often influenced by industry standards, they are not mandated by the industry and can be customized to meet the specific needs of an individual organization.

Which of the Following Statements Is FALSE