Which of the following is a CORRECT statement about a chart of accounts?
A)It lists the income statement accounts first.
B)It can be used to determine the balance in an account.
C)It is a tool used by accountants to help prepare the financial statements.
D)It lists the balance sheet accounts first.

Question

Quizplus · Accepted Answer

CA chart of accounts typically lists the balance sheet accounts first, starting with assets, followed by liabilities and equity, before listing income statement accounts such as revenues and expenses. It is also a tool used by accountants to organize financial information and facilitate the preparation of financial statements, but it does not directly determine the balance in an account; it merely lists and categorizes the accounts.

Which of the Following Is a CORRECT Statement About a Chart