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:

Middle Manager

A managerial position typically below top management and above frontline managers, responsible for implementing the policies and plans developed by senior management.

Independent Auditor

A third-party professional or firm that examines an organization's financial statements to ensure accuracy and compliance with accounting standards.

Letter of Comments

A document containing feedback, observations, or suggestions usually generated during reviews or audits.

Registration Statement

A set of documents, including financial statements and a prospectus, filed with the SEC for a company intending to go public.