A chart of accounts is prepared to determine whether the books have gotten out of balance.

Question

Quizplus · Accepted Answer

A chart of accounts is not prepared to determine whether the books have gotten out of balance. A chart of accounts is a list of all the accounts used by a business to track financial transactions. It is used as a tool for organizing and categorizing financial information, but it does not specifically determine if the books are out of balance.

A Chart of Accounts Is Prepared to Determine Whether the Books