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

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, before moving on to income statement accounts. While there are general guidelines for how accounts should be classified and numbered, the specific numbering system used can vary between companies based on their individual needs and preferences.

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