Which Coding Method(s)is (Are)used to Establish a Chart of Accounts

question 22

Multiple Choice

Which coding method(s) is (are) used to establish a chart of accounts?

• A) Alphabetical
• B) Alphanumerical
• C) Numerical
• D) All of these.

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Definitions:

Adjusting Entries

Financial records entered at the termination of an accounting period, aimed at allocating profits and outlays to the correct period.

Pretax Income

The income earned by a company before deducting taxes, representing the company's profitability after all expenses except taxes.

Accrued Expenses

Liabilities (payables) created when expenses are incurred, but cash will be paid in the future; created at end of period during the adjustment process to reflect the amount of expense incurred that the company will pay in the future.

Depreciation Expense

Distributing the expense of a physical asset throughout its lifespan.