Account names in the chart of accounts are:
A) general purpose and do not indicate the nature of the account.
B) not consistent in their use throughout the records.
C) linked to account numbers.
D) the names mandated for use by the FASB.

Question

Quizplus · Accepted Answer

Account names in the chart of accounts are linked to account numbers to ensure consistency and accuracy in the records. A and D are incorrect because account names do indicate the nature of the account and are not mandated by the FASB. B is incorrect because consistency in the use of account names is important in maintaining accurate records.

Account Names in the Chart of Accounts Are