The Chart of Accounts Is Designed to

question 118

Multiple Choice

The chart of accounts is designed to

• A) alphabetize the accounts to make reading easier for financial statement users
• B) organize accounts in order of dollar amount to simplify the accounting information for users
• C) summarize the transactions and determine ending account balances
• D) meet the information needs of a company's managers and other users of its financial statements

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Definitions:

Credit Card Companies

Businesses that issue credit cards to consumers, extending a line of credit for purchases and cash advances.

Forged Checks

Illegally altered checks or the creation of counterfeit checks to fraudulently withdraw or obtain money.

Fraudulent Alteration

The unauthorized modification of a document with the intention to deceive for personal gain or to harm another party.

Liabilities

Financial or legal obligations that an entity is required to pay or resolve in the future.