The Chart of Accounts is a structured list of all the accounts in the general ledger. These accounts are created by businesses to record the details of their financial transactions in the accounting information system. The Chart of Accounts groups and indexes the accounts by name and identifying codes according to the structure of the financial reports (i.e. assets, liabilities and Owners Equity for the Balance sheet and revenue and expenses for the Income Statement). A Chart of Accounts with their structured identifying codes provides accounting staff with an efficient and effective tool when processing financial data in a computerized accounting programs.
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Scooped by
Peter John Baskerville
onto Basic Accounting Concepts July 19, 2011 9:41 AM
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