Company A's Chart of Accounts Contains the Following: Cash (101)

question 5

Multiple Choice

Company A's chart of accounts contains the following: Cash (101) , Accounts receivable (102) , inventory (103) , equipment (201) , accounts payable (301) . Company B's chart of accounts shows: Wages payable (112) , Taxes payable (113) , Retained earnings (114) . Which of the following is true?

• A) Company A uses block coding; Company B uses sequential coding.
• B) Company A uses sequential coding; Company B uses hierarchical coding.
• C) Both Company A and Company B use block coding.
• D) Both Company A and Company B use sequential coding.

Comprehend the significance of notes to financial statements.

Understand the distinction between financial and managerial accounting in terms of their focus and information provided.

Analyze the importance of critical thinking in evaluating accounting principles and practices.

Understand the procedural steps the FASB follows in issuing new accounting statements.

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Definitions:

Regression Analysis

Regression analysis is a statistical method used for estimating the relationships among variables, often to determine how the typical value of the dependent variable changes when any one of the independent variables is varied.

Least Squares Line

The best-fitting straight line through a set of data points, minimizing the sum of the squares of the vertical distances of the points from the line.

Weight

A measurement of the gravitational force acting on an object, often used in statistical analysis to assign importance to different elements of a dataset.

Height

A measurement of how tall a person or object is, typically measured in units like feet, inches, meters, or centimeters.