How do we use the chart of the accounts to verify coding?

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The chart of accounts provides the reporting structure of each account in your accounting general ledger system. Most charts of accounts have an account number and description associated with each account type in your system – asset accounts, liability accounts, sales accounts, expense accounts, and equity accounts. The chart of accounts is your reference guide to where an invoice should be coded. For example, if your chart of accounts has a rental account listed as "61250 Rental equipment," then when an invoice comes in that is for, say, renting a copier, then you would "code" the invoice to #61250 Rental Equipment and enter the amount to this account. The financial reporting generated from your system would show the amount charged to this account.

There is also a definition of the chart of accounts in the TAPN Glossary. The glossary is organized in alphabetical order.

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