The accountant for a new company is establishing the chart of accounts for the company based on the accounts she expects to be used. She has decided to use a three digit account number with each account type starting with a different number. Which of the following numbers would you expect the Equity range to begin with?
A)900
B)700
C)300
D)200
E)100

Question

Quizplus · Accepted Answer

Equity accounts typically start with the number 3 in a chart of accounts, following the convention where assets start with 1, liabilities with 2, and equity with 3.

The Accountant for a New Company Is Establishing the Chart