Question

Which of the following best describes a chart of accounts? Group of answer choices A chart of accounts is the list of accounts allowed by the Financial Accounting Standards Board. A chart of accounts is the list of a firm’s accounts that have zero balances at a particular point in time. A chart of accounts is the list of accounts deemed suitable for firms belonging to a particular industry. A chart of accounts is the list of the accounts in a given firm’s ledger. A chart of accounts is the list of a firm’s accounts that have non-zero balances at a particular point in time.

Answer 1

Answer:

A chart of accounts is the list of the accounts in a given firm’s ledger.

Explanation:

Chart of accounts: It is a chart which shows different types of accounts in a firm ledger. The accounts like - Assets, liabilities, revenue, expense, and shareholder equity.. Mainly these are the accounts types or we can say chart of accounts which is shown in the firm ledger

In the balance sheet, the assets, liabilities, and stockholder equity is recorded. In this the accounting equation is used which is shown below:  

Total assets = Total liabilities + stockholder equity  

The debit and credit side of the balance sheet should always be equal and balanced.  Moreover, it always is prepared on the specified date.

In the income statement, the total revenues and the total expenses are recorded.  If the total revenues are more than the total expenditure then the company earns net income . And, If the total revenues are less than the total expenditure then the company have a net loss

This net income or net loss would reflect in the statement of the retained earning account.