In which order are accounts listed in a typical chart of accounts?

In a typical chart of accounts, accounts are organized in a specific order that reflects the structure of the balance sheet and the income statement. The correct order begins with asset accounts followed by liability accounts and owners' equity, which form the basis of the balance sheet.

Following these accounts, income accounts are listed, which represent the revenues generated from business operations. Finally, expense accounts are included, detailing the costs incurred during the operations. This order is crucial because it provides a clear framework for financial reporting and analysis, aligning with the accounting equation (Assets = Liabilities + Owners' Equity) and helping to facilitate an understanding of the flow of financial information.

In the context of choice D, the organization of asset, liability, owners' equity, income, and expense accounts allows for an orderly and logical presentation, reflecting both the financial position and performance of the organization in compliance with standard accounting practices. This structure is widely adopted in accounting systems, ensuring consistency and clarity in financial reporting.