The chart of accounts is an important control because it provides the framework for determining the information presented to management and other financial statement users.What type of error is the chart of accounts helpful in preventing?
A)errors of occurrence
B)errors of completeness
C)errors of accuracy
D)errors of classification

Question

Quizplus · Accepted Answer

The chart of accounts is helpful in preventing errors of classification, which are mistakes related to the proper categorization of transactions or balances. By having a well-organized and detailed chart of accounts, transactions can be properly recorded in their respective accounts, minimizing the risk of misclassification.

The Chart of Accounts Is an Important Control Because It