A chart of accounts is a list of the title and numerical code of all accounts in the general ledger.

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BlackTom AI · Accepted Answer

Start by restating what the question asks: whether a chart of accounts is a list of the title and numerical code of all accounts in the general ledger.
Option 1: True. A chart of accounts is precisely the organized listing of all account titles used by an organization, each paired with its unique account code or number. This structure helps in classifying transactions and maintaining consistent accounting records across the general ledger.
Option 2: False. This would be incorrect because the chart of accounts is not a partial or selective list; it is intended to include every account that the organization uses, with their corresponding codes. Saying it omits accounts would contradict the standard purpose of the chart of accounts.
To reinforce the distinction, consider that while the general ledger contains the detailed transactions, the chart of accounts provides the framework and reference for those accounts, including their titles and codes, ensuring uniformity in data entry and reporting.
Another potential misinterpretation is thinking the chart of accounts is only a conceptual map or only for some types of accounts. In practice, it is a comprehensive roster of all accounts (both asset, liability, equity, revenue, and expense) used by the entity, each with its numeric or alphanumeric code, to support the posting and aggregation of financial information.
In summary, the statement aligns with the conventional definition of a chart of accounts, as it encompasses the titles and numerical codes for all accounts used in the general ledger.

A chart of accounts is a list of the title and numerical code of all accounts in the general ledger.

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