A Chart of Accounts for a Merchandising Business

question 33

Multiple Choice

A chart of accounts for a merchandising business

• A) usually is the same as the chart of accounts for a service business
• B) usually requires more accounts than does the chart of accounts for a service business
• C) usually is standardized by the FASB for all merchandising businesses
• D) always uses a three-digit numbering system

---

Definitions:

Business Risk

The potential for losses or less-than-expected returns stemming from the economic, industry, or company-specific factors.

Property Insurance

Insurance that protects property from loss or damages.

Loss Or Damage

Refers to the negative impact, destruction, or impairment of value, function, or condition of property or goods.

Insurance Proceeds

The money received from an insurance company as a payout for claims made under an insurance policy.