A listing of the names of the accounts that a company has identified and made available for recording transactions in its general ledger is known as:

A listing of the names of the accounts that a company has identified and made available for recording transactions in its general ledger is known as:

• A. Journal Entry
• B. Financial Statement
• C. Chart of Accounts
• D. Trial Balance

Answer: (C)

The listing of names of accounts used to record transactions is called the chart of accounts. It serves as the organized map of all accounts the company will use in its general ledger, typically grouping them into categories like assets, liabilities, equity, revenues, and expenses. Having a chart of accounts provides a consistent structure so postings and reporting are standardized and comparable over time. It’s not a journal entry, which records a specific transaction with debits and credits; it’s not a financial statement, which presents results and position; and it’s not a trial balance, which lists each account’s balance to verify that total debits equal total credits. For example, common accounts you’d include are Cash, Accounts Receivable, Revenue, and Salaries Expense.

The listing of names of accounts used to record transactions is called the chart of accounts. It serves as the organized map of all accounts the company will use in its general ledger, typically grouping them into categories like assets, liabilities, equity, revenues, and expenses. Having a chart of accounts provides a consistent structure so postings and reporting are standardized and comparable over time. It’s not a journal entry, which records a specific transaction with debits and credits; it’s not a financial statement, which presents results and position; and it’s not a trial balance, which lists each account’s balance to verify that total debits equal total credits. For example, common accounts you’d include are Cash, Accounts Receivable, Revenue, and Salaries Expense.