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kati45 [8]
3 years ago
7

In the chart of accounts, each account number has two digits. The first digit indicates the major account group to which the acc

ount belongs. Which of the following correctly identifies the major account groups typically represented by the numbers 1 through 5?
a) 1-Assets, 2-Liabilities, 3-Stockholders' Equity, 4-Expenses, 5-Revenues
b) 1-Assets, 2-Liabilities, 3-Stockholders' Equity, 4-Revenues, 5-Expenses
c) 1-Assets, 2-Stockholders' Equity, 3-Revenues, 4-Expenses, 5-Dividends
d) 1-Stockholders' Equity, 2-Dividends, 3-Revenues, 4-Expenses, 5-Common Stock
Mathematics
2 answers:
LiRa [457]3 years ago
8 0

Answer:

Option b

Step-by-step explanation:

In the chart of accounts, each account number has two digits. The first digit indicates the major account group to which the account belongs.

In the chart of accounts

1-Assets,

2-Liabilities

3-Stockholders' Equity

4-Revenues

5-Expenses

Form the given options, only option b represents the correct account numbers.

Therefore, the correct option is b.

Eduardwww [97]3 years ago
4 0

Answer:

The correct option is (b)

Step-by-step explanation:

Chart of accounts refers to listing or arranging various accounts for the ease of locating them. Listing is done based on the order of appearance beginning with balance sheet and then income statement.

The order starts with assets, followed by liabilities and stockholders' equity from the balance sheet and revenue and expenses from income statement.

So, the correct order is stated in option (b).

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