Question

The chart of accounts is designed to

a.alphabetize the accounts to make reading easier for financial statement users
b.meet the information needs of a company's managers and other users of its financial statements
c.organize accounts in order of dollar amount to simplify the accounting information for users
d.summarize the transactions and determine ending account balances

Answer 1

Answer: The correct answer is b).meet the information needs of a company's managers and other users of its financial statements

Explanation: Chart of accounts refers to list of accounts of an organization. It shows at a spot how an organisation receives money and spends money.

Chart of accounts contains Assets, Liabilities, Income, Expenses and Equity.