A Chart of Accounts Is A

question 30

Multiple Choice

A chart of accounts is a:

• A) formal plan developed by management to estimate information flows through the computerised system.
• B) listing of the ledger account titles and their account numbers.
• C) list of accounts receivable and payable.
• D) chart showing the organisational structure of the entity.

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Definitions:

Insurance

A contractual agreement where one party, the insurer, agrees to compensate another, the insured, for loss on a specified subject by specified perils in return for a premium.

Work In Process Inventory

Represents the cost of unfinished goods that are in the production process at a certain point in time.

Finished Goods Inventory

The value of products that have completed the manufacturing process but have not yet been sold to customers.

Raw Materials Inventory

An account on the balance sheet that represents the cost of materials that have not yet been converted into finished products by a manufacturing company.