Chart of Accounts
Purpose of chart of accounts
What is to help organize the expanded ledger?
The two balances in the trial balance.
What is debit or credit?
Number of digits used for a computerized chart of accounts.
Advantages of using computer software to create a trial balance.
What is less risk of errors?
What are the benefits of creating a chart of accounts on a computer?
What is a four digit system allows for more flexibility and growth?
Purpose of trial balance
What is report or explanation that lists the balances in each of an organization's or business's general ledger accounts?
Reason why there are gaps in chart of accounts.
What is new accounts might be added?
What are some limitations of trial balance?
What is only shows debit and credit balances?
For assets, revenue, liabilities, expense and drawings, capital list their corresponding first digit of their numbers in chart of accounts.
What is 1 for assets, 2 for liabilities, 3 for capital, 3 for drawings, 4 for revenue, 5 for expenses?
What does trial balance highlight?
What is trial balance highlights the double entry accounting system?