Which of the following represent a typical coding scheme for a general ledger account?
A)1XXX assets X1XX current assets
XX1X cash accounts
XXX3 cash in bank
B)1XXX cash in bank X1XX cash accounts
XX1X current assets
XXX3 assets
C)1XXX non-current assets X1XX current assets
XX1X cash accounts
XXX3 cash in bank
D)none of the above are correct

Question

Which of the following represent a typical coding scheme for a general ledger account?
A)1XXX assets X1XX current assets
XX1X cash accounts
XXX3 cash in bank
B)1XXX cash in bank X1XX cash accounts
XX1X current assets
XXX3 assets
C)1XXX non-current assets X1XX current assets
XX1X cash accounts
XXX3 cash in bank
D)none of the above are correct

Quizplus · Accepted Answer

This coding scheme follows the common practice of using a four-digit account number with the first digit indicating the account category, such as assets (1XXX). The second digit represents the major subcategory, such as current assets (X1XX), and the third digit represents a specific account within that subcategory, such as cash accounts (XX1X). Finally, the fourth digit is used for further differentiation, such as cash in bank (XXX3).

Which of the Following Represent a Typical Coding Scheme for a General