The chart of accounts is designed toA) alphabetized the accounts to make reading easier for its financial statement usersB) summarize the transactions and determine their ending balancesC) meet the information needs of a company and other financial statement usersD) analyse the accounts and organize them in order of dollar amount to simplify the accounting information for users

Question

Business

Luna Sexton

29 June, 18:04

The chart of accounts is designed toA) alphabetized the accounts to make reading easier for its financial statement usersB) summarize the transactions and determine their ending balancesC) meet the information needs of a company and other financial statement usersD) analyse the accounts and organize them in order of dollar amount to simplify the accounting information for users

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Answers (1)

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Shaffer · Answer 1

C) meet the information needs of a company and other financial statement users

Explanation:

A chart of accounts displays the accounts used by a company to classify each class of items on which cash is being spent or earned or its equiv. The account chart lists all accounts that are used in an organization's overall directory. The chart is used to add information into the financial reports of a company through accounting software. The chart usually is ironed by account number in order to easily locate particular accounts.