The Numbering System Used in a Company's Chart of Accounts

question 18

Multiple Choice

The numbering system used in a company's chart of accounts:

• A) Is the same for all companies.
• B) Is determined by generally accepted accounting principles.
• C) Depends on the source documents used in the accounting process.
• D) Typically begins with balance sheet accounts.
• E) Typically begins with income statement accounts.

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Definitions:

Long Hedger

A long hedger is an investor or company that enters into a hedge transaction to protect against a rise in the price of an asset in the future.

Short Hedger

A short hedger is an investor or trader who enters into contracts to sell an asset in the future to hedge against the risk of falling prices.

Treasury Bond Futures

Contractual agreements to buy or sell a specified amount of U.S. Treasury bonds at a future date and price.

Interest Rates

The percentage of an amount of money which is charged for its use per a given period, typically expressed as an annual percentage.