Answer :
A company's list of accounts and the identification numbers assigned to each account is called a "Chart of Accounts".
What is charts of accounts?
The chart of accounts (COA) is just an inventory of all the banking statements in a company's general ledger. In a nutshell, it's an administrative tool that offers a comprehensible breakdown of all financial transactions undertaken by a company within a certain accounting period, divided into subcategories.
Some key features of charts of accounts are-
- The chart of accounts (COA) is a financial organizational device that provides a comprehensive breakdown of all accounts in a company's general ledger, split down into subcategories.
- Its purpose is to organize finances and provide involved people, including such investors and shareholders, with a better understanding of a company's financial health.
- Each chart of accounts normally includes a name, a short outline, and an identifying code to help readers locate specific accounts.
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