ABT Corporation uses block coding for its chart of accounts, which includes Cash (101), Land (201), Accounts payable (301) and Retained Earnings (501).Which of the following account numbers is most likely associated with an account that will appear on the income statement?
A)101
B)102
C)401
D)601

Question

Quizplus · Accepted Answer

Retained Earnings (501) is the only account listed in the chart of accounts that is associated with the income statement. The other accounts listed are associated with the balance sheet.

ABT Corporation Uses Block Coding for Its Chart of Accounts