The numbering system used in a company's chart of accounts:
A) Typically begins with balance sheet accounts.
B) Is the same for all companies.
C) Is determined by generally accepted accounting principles.
D) Typically begins with income statement accounts.
E) Depends on the source documents used in the accounting process.

Question

Quizplus · Accepted Answer

The numbering system used in a company's chart of accounts typically begins with balance sheet accounts such as assets, liabilities, and equity. This is because these accounts are more permanent and less likely to change compared to income statement accounts such as revenues and expenses.

The Numbering System Used in a Company's Chart of Accounts