The chart of accounts classify the accounts to make identification of the accounts easier. This is done by way of assigning a number to each account. The first number identifies the classification of the type of account. Which of the following indicates the use of this classification?
A) 1-Assets, 2-Liabilities, 3-Owner's Equity, 4-Expenses, 5-Revenues
B) 1-Assets, 2-Liabilities, 3-Owner's Equity, 4-Revenues, 5-Expenses
C) 1-Assets, 2-Owner's Equity, 3-Revenues, 4-Expenses, 5-Drawing
D) 1-Owner's Equity, 2-Drawing, 3-Revenues, 4-Expenses

Question

Quizplus · Accepted Answer

The classification typically follows the order: 1-Assets, 2-Liabilities, 3-Owner's Equity, 4-Revenues, 5-Expenses, which matches option B.

The Chart of Accounts Classify the Accounts to Make Identification