Chart of Accounts - Wikipedia, The Free Encyclopedia
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Accountancy Key concepts Accountant · Accounting period · Bookkeeping · Cash and accrual basis · Cash flo w management · Chart of accounts· Constant Purchasing PowerAccounting · Cost of goods sold · Credit terms · Debits and credits · Double- entry sy stem · Fairvalue accounting · FIFO & LIFO · GAAP / IFRS · General ledger· Goodwill · Historical cost · Matching principle · Revenue recognition · Trial balance Fields of accounting Cost · Financial · Forensic · Fund · Management · Tax Financial statements Statement of Financial Position · Statement of cash flows · Statement of changes in equity · Statement of comprehensive income · Notes · MD&A · XBRL Auditing Auditor's report · Financial audit · GAAS / ISA · Internal audit · Sarbanes–Oxley Act Acc ountin g qualifications CA · CP A · CCA · CGA · CMA Chart of accounts From Wikipedia, the free encyclopedia A chart of accounts (COA) is an arbitrarily created li st ofthe accounts used by a business entity to define each class ofitems for which money or the equivalent is spent or received. It is used to organiz e the finances of the entity and to segreg ate expenditures, reven ue, assets a nd liabil iti es in orderto give interested parties a better understanding of the financial health of the entity . The lis t can be numerical, alphabe tic, or alpha-numeric. The structure a nd hea ding s of ac counts should assis t in consistent posting of transactions. Each nomi nal ledger account is unique to allow its ledger to be located. The list is typically arranged in the order of the customary appearance ofaccounts in the financial statements, profit and loss accounts followed by balance sheet accounts. Contents 1 Nomenclature, classification and codification 2 Example 2.1 Si mpl e Chart of Accounts 3 Trial Balance 4 Types of accounts 5 See also Nomenclatu re, classification and codification Each account in the chart of accounts is typically assigned a name and a unique number by which it can be identifi ed. (Software for some small busi nesses may not require a ccount numbers.) Account numbers are often five or more digi ts in length with each digit representing a divisi on of the company, the department, the type ofaccount, etc. As you will see, the first digit might signify if the account is an asset, liability, etc. For example, if the first digit is a "1" it is an asset. If the firs t digi t is a "5" it is an operating expense. A gap between account numbers allows for adding accounts in t he future. The followi ng is a partial li sting of a sampl e cha rt of acc ounts.29=April 201 1}} Example Chart of accounts - Wikipedia, th e f ree encyclopedia h ttp://en.wikipedia.org/wi ki/Chart_of accou nts 1 of 3 7/16/ 2011 11:07 PM
