The driving force in constructing a chart of accounts is to add structure to the classification of financial information.

Question

Quizplus · Accepted Answer

The main purpose of a chart of accounts is to provide a systematic and organized way of classifying and storing financial information. It breaks down a company's financial transactions into categories and subcategories that facilitate financial reporting and analysis. By doing so, it enables managers, investors, and other stakeholders to understand the financial health of the company and make informed decisions. Therefore, it adds structure to the classification of financial information.

The Driving Force in Constructing a Chart of Accounts Is