B-02.07 Problem

B-02.07 Problem - B-02.07 Professor Drebin's Executive MBA...

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B-02.07 Susie Professor Miguel Roberta Fletcher Randy Jana Louis Arman Professor Drebin's Executive MBA students were recently discussing the benefits of a chart of accounts. Following is a transcript of the discussion. Most of the comments were correct, but two students were off base. Assume the role of Professor Drebin, and identify and adjust the incorrect statements. This is all interesting to me. I guess you don't even need textual names for accounts if you use a numeric system. I am a divisional manager, and I regularly review our unit's ledger accounts and compare them to balances of other divisions. It is very helpful to be able to identify all assets, expenses, and so forth by uniform account numbering. This uniformity greatly aids data mining and evaluation. For example, our travel costs all start with a 503 digit, but 503.01 further identifies air travel, 503.02 relates to lodging, and so forth. This scheme enables me to look at overall data, as well as its components. It sure helps me control costs and compare results to other
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