Asked by
charlotte pajinag
on Nov 18, 2024
Verified
In a basic chart of accounts, each account number has two digits. The first digit indicates the major account group to which the account belongs. Which of the following correctly identifies the major account groups typically represented by the numbers 1 through 5?
A) 1-Assets, 2-Liabilities, 3-Stockholders' Equity, 4-Expenses, 5-Revenues
B) 1-Assets, 2-Liabilities, 3-Stockholders' Equity, 4-Revenues, 5-Expenses
C) 1-Assets, 2-Stockholders' Equity, 3-Revenues, 4-Expenses, 5-Dividends
D) 1-Stockholders' Equity, 2-Dividends, 3-Revenues, 4-Expenses, 5-Common Stock
Major Account Groups
Categories used in accounting to organize and summarize financial transactions, including assets, liabilities, equity, revenue, and expenses.
Basic Chart
A visual representation of data designed to display simple information clearly and concisely, often used in reporting and analysis.
Account Number
An Account Number is a unique identifier assigned to each account within a bank or financial institution, facilitating the management, tracking, and distinction of transactions.
- Acquire knowledge of the purpose and components of a chart of accounts.
Verified Answer
CS
Learning Objectives
- Acquire knowledge of the purpose and components of a chart of accounts.