A Look at the Chart of AccountsThe Chart of Accounts plays an important role in the Accounting Cycle by categorizing every account by its corresponding Account Number. Account Numbers facilitate the referencing of each account through the Accounting Cycle whether the business uses a manual accounting system or accounting software. Accounting Systems categorize the accounts into five major groups:
For example, Sunny Sunglasses Shop lists its accounts as: 
All accounts for the company are categorized into the five major groups listed above. Contra accounts, such as the Allowance for Bad Debts, or Accumulated Depreciation Accounts, are categorized with its major corresponding account. Contra Accounts adjust a corresponding account and are discussed in the Adjusting Entries Step of the Accounting Cycle. Click Here to Navigate from the Chart of Accounts Back to the General Ledger. Click Here to Return to the Accounting Cycle Main Page. Click Here to Return to the Home Page.
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