A chart of accounts generally start with which of the following types of accounts?
Correct answer: A. Assets accounts
- A. Assets accounts
- B. liability accounts
- C. Cash accounts
- D. Revenue accounts
Explanation
A chart of accounts commonly begins with assets, followed by liabilities, equity, revenue and expenses. This ordering broadly follows the structure of the statement of financial position before the income statement.
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About Accounting Principles
Accounting principles explain the rules used to record, classify and report business transactions. Coverage includes the accounting equation, double-entry system, accrual and cash bases, matching and prudence concepts, consistency, going concern, business entity, and the difference between capital and revenue items.
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