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

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Definitions:

Checks and Balances

A system in government designed to prevent any single branch from gaining too much power, allowing each branch to limit or check the powers of the others.

Legislative Branch

The part of the government responsible for creating laws, consisting of elected representatives in many countries.

Legislative

Pertaining to the branch of government responsible for making laws.

Executive

A top-level manager or administrator in an organization who is responsible for making significant decisions and ensuring the organization's policies are implemented.