When labeling accounts, the 100s are used for which type of accounts?

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Multiple Choice

When labeling accounts, the 100s are used for which type of accounts?

Explanation:
Numbers in the 100s are used for asset accounts because the chart of accounts groups accounts by type, and assets are the resources the business owns that typically increase with a debit. This numbering helps keep the ledger organized and makes financial statements easier to read. Examples of asset accounts include cash, accounts receivable, supplies, and equipment, all of which would sit in the asset range. Other kinds of accounts—like liabilities, owner's equity, and revenue—are usually assigned to different ranges (such as 200s, 300s, and 400s, depending on the chart). So, the 100s are the section for asset accounts.

Numbers in the 100s are used for asset accounts because the chart of accounts groups accounts by type, and assets are the resources the business owns that typically increase with a debit. This numbering helps keep the ledger organized and makes financial statements easier to read. Examples of asset accounts include cash, accounts receivable, supplies, and equipment, all of which would sit in the asset range. Other kinds of accounts—like liabilities, owner's equity, and revenue—are usually assigned to different ranges (such as 200s, 300s, and 400s, depending on the chart). So, the 100s are the section for asset accounts.

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