The chart of accounts classifies the accounts to make identification of the accounts easier. This is done by way of assigning a number to each account. The first number identifies the classification of the type of account. Which of the following indicates the use of this classification?
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

Question

Quizplus · Accepted Answer

The classification typically follows the order: Assets, Liabilities, Stockholders' Equity, Revenues, and Expenses.

The Chart of Accounts Classifies the Accounts to Make Identification