A chart of accounts is a:
A) list of account titles with corresponding reference numbers used by companies so that transaction items are consistently named.
B) list of daily transactions showing the accounts debited and credited for each transaction.
C) summary of each account's activity and its ending balance.
D) list of each account and its balance at a point in time.

Question

Quizplus · Accepted Answer

A chart of accounts is a list of account titles with reference numbers used by companies to consistently name transaction items. It provides the framework for recording financial transactions and organizing financial statements. Choices B, C, and D describe different financial statements or records that may be created using the chart of accounts, but they do not define the chart of accounts itself.

A Chart of Accounts Is A