Which is the correct statement concerning a chart of accounts?

Question

Quizplus · Accepted Answer

A chart of accounts is typically drawn up at the commencement of a business and serves as a framework for organizing the company's financial transactions. It is a list of all the accounts used by the company to record its financial transactions, including assets, liabilities, equity, revenues, and expenses. It is not typically organized alphabetically, and it does not include current balances. While there are some similarities in the structure of charts of accounts across different businesses, they can vary significantly depending on the nature of the company's operations and the industry in which it operates.

Which Is the Correct Statement Concerning a Chart of Accounts