Which of the following best describes the operative chart of accounts?
A)Contains the operational accounts that are used to record the financial impact of an organization's day-to-day transactions
B)Used to enable companies to meet special country-specific reporting requirements
C)Contains accounts that are used by multiple companies to consolidate their financial reporting
D)Contains only accounts payable transactions
E)Contains only accounts receivable transaction

Question

Quizplus · Accepted Answer

The operative chart of accounts contains the operational accounts that are used to record the financial impact of an organization's day-to-day transactions. It is the primary chart of accounts that is used by companies to track their financial activities. Options B and C refer to specialized charts of accounts used for specific purposes, while options D and E are too narrow in scope to describe the operative chart of accounts.

Which of the Following Best Describes the Operative Chart of Accounts