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A chart of accounts mixes job materials, owner draws, and payroll taxes in one account. What should be improved?

Correct Answer

B) Account structure.

A clear chart of accounts separates cost, liability, equity, revenue, and expense categories.

Answer Options
A
Truck labels.
B
Account structure.
C
Retainage entry.
D
Overhead allocation.

Why This Is the Correct Answer

A clear chart of accounts separates cost, liability, equity, revenue, and expense categories.

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