A chart of accounts is a:
A) planning device used by management to anticipate information flows through the accounting system.
B) list of accounts receivable.
C) chart showing the organisational structure of the firm.
D) plan of the ledger listing account titles and their related numbers.

Question

Quizplus · Accepted Answer

A chart of accounts is a plan or blueprint of the ledger that lists all the accounts in the accounting system with their related account numbers. It helps in organizing and categorizing financial transactions and facilitates the preparation of financial statements. Therefore, option D - plan of the ledger listing account titles and their related numbers - is the correct answer.

A Chart of Accounts Is A