Question 12 Unsaved
A chart of accounts __________.
is set up in alphabetical order
includes account balances
is a listing of all the accounts used by a company
All of the above answers are correct.
I say C
To confirm the answer, let's break down and analyze each option provided:
A) "is set up in alphabetical order": This statement may not be accurate for all companies. While some companies may choose to set up their chart of accounts in alphabetical order for easier organization, it is not a universal requirement or rule.
B) "includes account balances": The chart of accounts typically does not include account balances. Instead, it serves as a reference or framework that lists all the accounts used by a company. The account balances for each account are usually recorded in the company's general ledger.
C) "is a listing of all the accounts used by a company": This option accurately describes the purpose of a chart of accounts. It is a comprehensive list of all the accounts that a company uses to categorize and classify its financial transactions.
Considering the analysis above, option C is the correct answer. The chart of accounts is primarily a listing of all the accounts utilized by a company.