Which of the following is the proper order of accounts in the chart of accounts?
A)Assets, equity, liabilities, revenues
B)Equity, assets, revenues, liabilities
C)Liabilities, equity, revenues, assets
D)Assets, liabilities, equity, revenues

Question

Quizplus · Accepted Answer

The typical order of accounts in a chart of accounts is assets, liabilities, equity, and then revenues and expenses. This order allows for a clear separation between the resources a company owns (assets), its financial obligations (liabilities), and the owner's stake in the business (equity). Revenues and expenses are then listed last as they affect the equity section of the balance sheet. Choice D is the only option that lists the accounts in this order.

Which of the Following Is the Proper Order of Accounts