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Chart of Accounts (Practice Quiz)

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Author:
Harold Averkamp, CPA, MBA

For multiple-choice and true/false questions, simply press or click on what you think is the correct answer. For fill-in-the-blank questions, press or click on the blank space provided.

If you have difficulty answering the following questions, learn more about this topic by reading our Chart of Accounts (Explanation).


1.
The chart of accounts is a listing of the accounts presently having balances in the general ledger.

True

Wrong.
The list will include accounts that are available for amounts. Some accounts appear on the chart of accounts even if the accounts have had no amounts recorded in them.

False

Right!
You selected the correct answer. Some accounts listed in the chart of accounts will NOT have amounts recorded in them, especially if it is early in the accounting year.
2.
The digits of the account numbers assigned to general ledger accounts often have significance. For example, an account number beginning with a "1" might signify that the account is an asset account, a "6" might signify an operating expense, etc.

True

Right!
Generally, the larger and more sophisticated the company, the more digits in the account numbers. For sorting the accounts into meaningful reports the various digits do signify a specific category.

False

Wrong.
3.
The accounts shown in the chart of accounts can be broadly classified into two categories: balance sheet accounts and __________ income statement accounts.
4.
Every transaction will affect how many accounts?

Only one

Wrong.
Accounting uses 'double-entry.' This means at least two accounts are involved in every transaction.

Only two

Not the best answer.
While many transactions involve only two accounts, many transactions involve more than two accounts. Two accounts is the minimum number.

Two or more

Right!
Two is the minimum number of accounts required to record a transaction; however, many transactions involve more than two accounts.
5.
In addition to the standard chart of accounts for a specific industry, you will likely want to expand and/or modify the chart of accounts to fit your business. One tool that would be helpful in determining the accounts for your company would be your company's __________ organization chart.
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About the Author

Harold Averkamp

For the past 52 years, Harold Averkamp (CPA, MBA) has
worked as an accounting supervisor, manager, consultant, university instructor, and innovator in teaching accounting online. He is the sole author of all the materials on AccountingCoach.com.

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