The Chart of Accounts Is

question 2

Multiple Choice

The Chart of Accounts is:

• A)a list of all the accounts the company uses when recording transactions.
• B)not one of the QBO Lists and is used to record transactions.
• C)not updated by the company; QBO support staff updates and initially sets up the Chart of Accounts with little input from the user.
• D)a financial statement prepared by the company at the end of an accounting year.

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Definitions:

Accounts Receivable Period

The common interval before a business secures payments from its customers for products or services rendered on credit.

Operating Cycle

The time period between the acquisition of inventory and the collection of cash from accounts receivable.

Cash Cycle

The amount of time required for a company to turn its inventory and various assets into cash through sales revenue.

Restrictive Policy

A policy implemented by a company or government to limit or control certain activities, often to ensure financial stability or compliance with regulations.