The chart of accounts is designed to
A) alphabetize the accounts to make reading easier for financial statement users
B) organize accounts in order of dollar amount to simplify the accounting information for users
C) summarize the transactions and determine ending account balances
D) meet the information needs of a company's managers and other users of its financial statements

Question

Quizplus · Accepted Answer

The chart of accounts is a list of all the accounts used by a company to record its transactions. The chart of accounts is designed to meet the information needs of a company's managers and other users of its financial statements. It organizes accounts in a logical and consistent manner, making it easier to summarize transactions and determine ending account balances. The chart of accounts is not designed to alphabetize accounts or arrange them in order of dollar amount.

The Chart of Accounts Is Designed to