To be effective,the chart of accounts must
A)not use alpha-numeric characters.
B)contain sufficient detail.
C)utilize only one coding technique.
D)begin with account 001.

Question

Quizplus · Accepted Answer

The chart of accounts must contain sufficient detail to accurately track financial transactions and provide useful information for decision-making purposes. It should include all relevant accounts necessary for the organization to effectively manage its financial resources. Using only one coding technique or beginning with a specific account number is not necessary for the effectiveness of the chart of accounts. Furthermore, alpha-numeric characters may be used in the chart of accounts to increase the number of accounts available.

To Be Effective,the Chart of Accounts Must