A Chart of Accounts

question 96

Multiple Choice

A chart of accounts:

• A)is set up in alphabetical order.
• B)is a list of customer accounts.
• C)is a listing of all the accounts used by a company.
• D)All of the above are correct.

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Definitions:

Deductions

Items of expenditure that the tax code allows taxpayers to deduct from income to arrive at taxable income.

Taxable Income

The portion of an individual's or company's income used as a base to calculate the amount of tax owed to the government.

Dependency Exemption

A tax exemption for taxpayers who support dependents who cannot fully support themselves.

Straight-Line Depreciation

A technique for distributing the expense of a physical asset evenly across its lifespan in yearly increments.