What Is A Chart Of Accounts
What Is A Chart Of Accounts. The chart of accounts is a tool that lists all the financial accounts included in the financial statements of a company. Chart Of Accounts: A listing of each account a company owns, along with the account type and account balance , shown in the order the accounts appear in the company's financial statements.
ERPs such as Oracle, SAP, etc., can allow each account a unique number as defined.
It allows a corporation to categorise its monetary operations throughout a certain accounting cycle.
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It provides you with a birds eye view of every area of your business that spends or makes money. A chart of accounts is divided into categories; assets, liabilities, and equity make up the balance sheet, and revenue and expenses comprise the income statement.. The word chart just makes it sound fancy.
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Michaell Cooper
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