Question : What is the purpose of a chart of accounts?
Option 1: it acts as a framework for a business's financial record-keeping procedure
Option 2: it acts as a framework for a business's non-financial record-keeping procedure
Option 3: it acts as a framework for a non-business's record-keeping procedure
Option 4: None of these
Answer (1)
18th Jan, 2024
Correct Answer: it acts as a framework for a business's financial record-keeping procedure
Solution : The COA acts as the framework for a business's financial record-keeping procedure. It offers a logical framework that makes it easier to add new accounts and remove old ones. Hence, the correct option is 1.
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