Account titles in the chart of accounts are:
A)general purpose and do not indicate the nature of the account.
B)consistent with those used by other companies.
C)linked to account numbers.
D)the names mandated for use by the FASB.

Question

Quizplus · Accepted Answer

As part of transaction analysis,a name is given to each item exchanged.Accountants refer to these names as account titles (or names).To ensure account titles are used consistently,every company establishes a chart of accounts-a list that designates a name and reference number that the company will use when accounting for each item it exchanges.The chart of accounts is tailored to each company's business,so although some account titles are common across all companies,others may be unique to a particular company.

Account Titles in the Chart of Accounts Are