The Coding Scheme Most Appropriate for a Chart of Accounts

question 78

Multiple Choice

The coding scheme most appropriate for a chart of accounts is

• A)sequential code
• B)block code
• C)group code
• D)mnemonic code

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Definitions:

Withholding Table

A chart or table used by employers to determine the amount of tax to withhold from an employee's paycheck based on earnings and tax status.

Interest-Bearing Note

A debt instrument that pays interest to the holder at a fixed or variable rate over a specified period.

Interest Expense

The cost incurred by an entity for borrowed funds, considered a non-operating expense on the income statement.

Notes Payable

A formal written agreement in which one party agrees to pay another a specific sum of money, either on demand or at a determined future date.