The Chart of Accounts Is Designed to

question 118

Multiple Choice

The chart of accounts is designed to

• A) alphabetize the accounts to make reading easier for financial statement users
• B) organize accounts in order of dollar amount to simplify the accounting information for users
• C) summarize the transactions and determine ending account balances
• D) meet the information needs of a company's managers and other users of its financial statements

Assess the deductibility of medical expenses, including their limitations based on adjusted gross income.

Identify which organizations qualify for deductible charitable contributions and understand limitations based on adjusted gross income.

Understand the treatment of miscellaneous itemized deductions, including those subject to the 2% of adjusted gross income limitation.

Analyze the effect of casualty events on tax reporting, including the election of the tax year for claiming a loss.