A numbering system for a chart of accounts
A) is prescribed by GAAP.
B) is uniform for all businesses.
C) usually starts with income statement accounts.
D) usually starts with balance sheet accounts.

Question

Quizplus · Accepted Answer

The numbering system for a chart of accounts usually starts with balance sheet accounts, which are assets, liabilities, and equity accounts. This allows for easy classification and organization of financial information on the balance sheet. There is no uniform numbering system for all businesses, and GAAP does not prescribe a specific numbering system.

A Numbering System for a Chart of Accounts