Assume That You Are Creating a Chart of Accounts for a Company

Multiple Choice

Assume that you are creating a chart of accounts for a company. Each account number will have two digits. The first digit indicates the major account group to which the account belongs. Which of the following correctly identifies the major account groups typically represented by the numbers 1 through 5?

A) 1-Assets, 2-Liabilities, 3-Owner's Equity, 4-Expenses, 5-Revenues
B) 1-Assets, 2-Liabilities, 3-Owner's Equity, 4-Revenues, 5-Expenses
C) 1-Assets, 2-Owner's Equity, 3-Revenues, 4-Expenses, 5-Drawing
D) 1-Owner's Equity, 2-Drawing, 3-Revenues, 4-Expenses