Which of the following statements relating to a chart of accounts is correct?

Question

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A chart of accounts is created at the commencement of a business and is a list of all accounts that are used by a business to classify financial transactions. It organizes accounts by categories, such as assets, liabilities, equity, revenue, and expenses, and helps with financial reporting and analysis. The accounts are not necessarily listed in alphabetical order, and the chart of accounts can differ between businesses based on their individual needs and accounting systems.

Which of the Following Statements Relating to a Chart of Accounts