In a basic chart of accounts, each account number has two digits. The first digit indicates the major account group to which the account belongs. Which of the following correctly identifies the major account groups typically represented by the numbers 1 through 5?
A) 1-Assets, 2-Liabilities, 3-Stockholders' Equity, 4-Expenses, 5-Revenues
B) 1-Assets, 2-Liabilities, 3-Stockholders' Equity, 4-Revenues, 5-Expenses
C) 1-Assets, 2-Stockholders' Equity, 3-Revenues, 4-Expenses, 5-Dividends
D) 1-Stockholders' Equity, 2-Dividends, 3-Revenues, 4-Expenses, 5-Common Stock

Question

Quizplus · Accepted Answer

The major account groups are typically represented by the numbers 1 through 5 as follows:

1 - Assets
2 - Liabilities
3 - Stockholders' Equity
4 - Revenues
5 - Expenses

Therefore, option B correctly identifies the major account groups represented by these numbers.

In a Basic Chart of Accounts, Each Account Number Has