BuyFindarrow_forward

College Accounting, Chapters 1-27

23rd Edition
HEINTZ + 1 other
ISBN: 9781337794756

Solutions

Chapter
Section
BuyFindarrow_forward

College Accounting, Chapters 1-27

23rd Edition
HEINTZ + 1 other
ISBN: 9781337794756
Textbook Problem

A revenue account will begin with the number ________ in the chart of accounts.

(a) 1

(b) 2

(c) 3

(d) 4

To determine

Indicate the number the revenue account will start with in the chart of accounts.

Explanation

Chart of accounts:

Chart of accounts refers to the list of all accounts used in a business. The chart of accounts contains account titles in numeric order for all assets, liabilities, stockholder’s equity, revenues and expenses. In “Mitchell ‘s Campus Delivery chart  of  accounts” the assets account will begin with  number “1”, liabilities with “2”, stockholder’s equity with “3”, revenues with “4” and expenses with “5”. “Mitchell‘s Campus Delivery” uses three digit number for all accounts.

Justification for incorrect answer:

Option a:

In “Mitchell ‘s Campus Delivery chart  of  accounts” the assets account will begin with  number “1”, liabilities with “2”, stockholder’s equity with “3”, revenues with “4” and expenses with “5”. “Mitchell‘s Campus Delivery” uses three digit number for all accounts. Therefore, Option a. (1) is an incorrect answer because asset account will begin with number 1 in chart of accounts.

Option b:

In “Mitchell ‘s Campus Delivery chart  of  accounts” the assets account will begin with  number “1”, liabilities with “2”, stockholder’s equity with “3”, revenues with “4” and expenses with “5”...

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Additional Business Solutions

Find more solutions based on key concepts

Show solutions add

Why do firms engage in international trade?

Foundations of Business (MindTap Course List)

What is lapping?

Accounting Information Systems

DISCOUNTED PAYBACK Refer to Problem 11-1. What is the projects discounted payback?

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)

Diagrammatically represent pure economic rent.

Economics (MindTap Course List)