A chart of accounts generally start with which of the following types of accounts?
Correct answer: B. Assets accounts
- A. liability accounts
- B. Assets 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.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? [email protected]
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.
Practise Accounting Principles
351 free Accounting Principles MCQs from Accounting, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Discussion
Stuck on an option, or know a faster way to get there? Ask or explain it here.
No comments yet. Be the first to explain this one.
Exams that ask Accounting questions like this
Accounting is on 3 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Accounting Principles questions
Total depreciation of an asset cannot exceed its:
Amount paid to Masood posted to the credit side of his account would affect___________?
Which of the following is true regarding closing entries?
The first step in accounting process is___________?
Which of the following accounts will be credited if a company purchases building for cash?
In which of the following orders data is entered in journal?