To be effective,the chart of accounts must
A) be as concise as possible.
B) begin with account 001.
C) utilize only one coding technique.
D) contain sufficient detail to meet the information needs of the organization.

Question

Quizplus · Accepted Answer

The chart of accounts needs to contain sufficient detail to meet the information needs of the organization. This allows for accurate and useful financial reporting and analysis. A concise chart of accounts may not provide enough detail, while beginning with account 001 or utilizing only one coding technique may not be necessary or practical for every organization.

To Be Effective,the Chart of Accounts Must