In the 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

Question

Quizplus · Accepted Answer

The correct sequence for the major account groups in a chart of accounts typically starts with assets, followed by liabilities, then stockholders' equity, revenues, and finally expenses. This sequence is essential for organizing financial information in a logical manner, facilitating reporting, analysis, and compliance with accounting principles.

In the Chart of Accounts,each Account Number Has Two Digits