The chart of accounts is the starting point for a
A) journal.
B) trial balance.
C) ledger.
D) financial statement.

Question

Quizplus · Accepted Answer

The chart of accounts is a list or directory of all the accounts that a business uses to record its transactions. It is the foundation for setting up a company's general ledger, which is where all the transactions are eventually recorded. Therefore, the chart of accounts is the starting point for creating a ledger. The journal is where individual transactions are initially recorded, the trial balance is a list of all the accounts and their balances used to ensure that the debits and credits are equal, and the financial statements are prepared using information from the ledger.

The Chart of Accounts Is the Starting Point for a