A Numbering System for a Chart of Accounts

question 83

Multiple Choice

A numbering system for a chart of accounts

• A) is prescribed by GAAP.
• B) is uniform for all businesses.
• C) usually starts with income statement accounts.
• D) usually starts with balance sheet accounts.

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Definitions:

Forward Market

A marketplace for financial contracts that are agreed upon now but settled at a future date.

Premium

An amount paid in addition to a standard price, or the amount above the nominal or face value of a financial instrument.

Discount

A reduction in the price of goods, services, or financial instruments, often used as a marketing strategy or to encourage early payment.

International Fisher Effect

A theory stating that differences in nominal interest rates between two countries are directly proportional to changes in the exchange rate over the same period.