In practice,an accounting system's chart of accounts includes
A)a numerical identifier.
B)the use of account titles only.
C)statement of financial position accounts only.
D)a restriction on the number of accounts that can be used.

Question

Quizplus · Accepted Answer

A numerical identifier is typically included in a chart of accounts to provide a systematic way of identifying and organizing accounts. This helps ensure that transactions are recorded in the correct accounts and that financial statements are accurately prepared. Including account titles as well as statement of financial position accounts is common practice, but there is no restriction on the number of accounts that can be used in a system.

In Practice,an Accounting System's Chart of Accounts Includes