The categories to which various costs are charged in the normal financial accounting cycle are:
A) Natural accounts.
B) Functional accounts.
C) Cash accounts.
D) Expense accounts.
E) None of these.

Question

Quizplus · Accepted Answer

In the normal financial accounting cycle, costs are typically charged to natural accounts, which are used to categorize expenses based on their nature (e.g. salaries, rent, materials). Functional accounts refer to how a cost is used within an organization (e.g. marketing, production), while cash accounts track the flow of money in and out of an organization. Expense accounts are a type of natural account used specifically for tracking expenses.

The Categories to Which Various Costs Are Charged in the Normal