The Driving Force in Constructing a Chart of Accounts Is

question 47

True/False

The driving force in constructing a chart of accounts is to add structure to the classification of financial information.

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Definitions:

Net Income

The sum a company holds onto after subtracting expenses and taxes from the total revenue earned.

Cash Dividends

Payments made by a corporation to its shareholders out of the company's current or retained earnings.

Beginning Balance

The amount of money in an account at the start of a new accounting period, carried over from the end of the previous period.

Ending Balance

The final amount in an account at the end of a reporting period after all debits and credits have been accounted for.