Chart Of Accounts-2

An account in the chart of acconts normally has -
1. All of the listed answers are correct
2. A brief description of the account.
3. The account's name.
4. The account's number.
A listing of all the accounts contained in the general ledger is called -
1. chart of accounts
2. general ledger
3. account listing
4. subsidiary ledger
Which of the following major type of account is the properties used in the operation of a business ?
1. Assets
2. Liabilities
3. Owner's Equity
4. Revenue
Which of the following type of account is sometimes referred to as net worth ?
1. Owner's Equity
2. Assets
3. Liabilities
4. Revenue
Cost of Goods Sold is what type of major account ?
1. Expense
2. Revenue
3. Asset
4. Liability
Which of the following accounts is not a Balance Sheet Account ?
1. Fee Revenues
2. Cash
3. Accounts Payable
4. Equipment
Which of the following is an Income Statement Account ?
1. Cost Of Goods Sold
2. Cash
3. Accounts Receivable
4. Owner's Equity
A characteristic of a good code used with a chart of accounts is -
1. All of the listed answers are correct
2. Uniformity
3. Uniqueness
4. Expandable
An example of a category or identifier assigned to an account is -
1. All of the listed answers are correct
2. major type of account
3. balance sheet or income statement account
4. organizational unit such as a department
Probably, the most frequent coding method used with a chart of accounts is -
1. Block Coding
2. Sequential Coding
3. Hierarchial Coding
4. Mnemonic Coding
The coding system that uses numbers and letters as an aid for remembering something about an account is -
1. Mnemonic Coding
2. Hierarchial Coding
3. Block Coding
4. Sequential Coding
A sub-account is used to divide or break a main account into mini accounts.
1. True
2. False
Which of the following is not a consideration when setting up a chart of accounts ?
1. Business's Fiscal Year
2. Size and Complexity of the business
3. Type of business
4. Manual or Computer System
Good accounting software should provide -
1. All of the listed answers are correct
2. Sample Chart Of Accounts
3. Support Control and Subsidiary Accounts
4. Good User Interface
5. Help Files
The purpose of a chart of accounts is to establish a framework for classifying, recording, and reporting business transactions.
1. True
2. False
Coding an account means that we assign a name, number (or both), description, and other identifiers to an account.
1. True
2. False
Every business needs a complex and detailed chart of accounts.
1. True
2. False
A hierarchial structure resembles an upside down tree.
1. True
2. False
Alphabetic characters or number "mini" codes are often used to identify pieces or facets of information about an account.
1. True
2. False
A properly designed accounting system does not need a chart of accounts.
1. True
2. False

Chart Of Accounts-2

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