Callow Youth Clothing Is a Boutique Retailer Located in Estes

question 9

Multiple Choice

Callow Youth Clothing is a boutique retailer located in Estes Park,Colorado.It is a sole proprietorship that stocks an inventory of between 80 and 160 different items,each of which is tracked in real time by the AIS.In designing a chart of accounts for this business,what is the minimum number of digits necessary to represent the account codes,including subsidiary ledgers?

• A)4
• B)6
• C)7
• D)9

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Definitions:

Preferred Stock

Preferred stock is a class of shares that typically provides a fixed dividend and has priority over common stock in the event of a liquidation, but generally does not carry voting rights.

Deductible

An amount that can be subtracted from an individual's or organization's taxable income, thereby reducing the amount of tax owed.

Tax Deductible

Refers to a qualifying expense that can reduce an entity's taxable income, and thereby reduce its tax liability.

Dividends

Sum of money distributed by a corporation to those holding its shares, originating from the firm's earnings allocated among its stockholders.