In accounting, what is a basic chart of accounts?

Answer by  GilFinn (2065)

It is a list (usually numerical) of all the accounts used by a business to track all thier financial transactions.

Answer by  MichaelMoroschan (120)

In accounting a basic chart of accounts contains 2 main parts. The first is the balance sheet and the second is the income statement. The balance sheet consists of assets = liabilities + owners equity. The income statement consists of revenues - expenses = net income. The two combined show whether a business is profitable or not.

Answer by  jossf3d (258)

Accounting entries are grouped and coded for easy understanding. For example all supply costs might be coded in the 100's with office supplies coded as 110 and so on.

Answer by  Bruce2005 (6)

Charts of accounts are basically a listing of the various income and expenses accounts associated with the finance of the organization. All of these accounts are organized in the general ledger.

Answer by  Cecilia (2828)

A chart of accounts is a list of the categories into which the financial information is entered. They are usually separated into Assets, Liabilities and Owner's Equity.

Answer by  smrt1 (21)

A chart of accounts is a complete list of all the account names that will be used in the general ledger. Thses accounts are used to classify transaction information. Every account will have a corresponding account ID to help locate it while recording data. Most charts will group accounts according to type and purpose.

Answer by  TheAnswerFairy (2345)

A chart of accounts is exactly what it sounds like: a big list of all the accounts that are related to a business.