Chart of Accounts Quiz

What is the purpose of the chart of accounts?

• To identify where the money is coming from and where it is going

• To organize office supplies

• To schedule company meetings

• To plan employee vacations

How are the accounts listed and numbered in the chart of accounts?

• Owner's equity first, followed by assets, expenses, revenue, and liabilities

• Liabilities first, followed by assets, expenses, revenue, and owner's equity

• Expenses first, followed by revenue, owner's equity, liabilities, and assets

• Asset first, followed by liabilities, owner's equity, revenue, and expenses

What does the number 185 indicate in the chart of accounts?

• It is a revenue account

• It is a contra liability account of furniture

• It is an expense account

• It is a contra asset account of furniture

How should a business formulate a chart of accounts?

• Based on random numbers

• Based on its needs

• Based on alphabetical order

• Based on employee birthdays

What should businesses use to promote comparability in their chart of accounts?

• Account titles that are randomly generated

• Account titles that are in a foreign language

• Account titles that conform to the Philippine financial reporting standards and Industry practices

• Account titles that are based on employee names