A chart of accounts for a merchandising business

A) usually is the same as the chart of accounts for a service business
B) usually requires more accounts than does the chart of accounts for a service business
C) usually is standardized by the FASB for all merchandising businesses
D) always uses a three-digit numbering system

A merchandising business requires more accounts than a service business because there are additional accounts needed to track the cost of goods sold and inventory. The chart of accounts will vary depending on the specific merchandising business, but it generally includes accounts for sales revenue, cost of goods sold, inventory, purchases, and returns and allowances. The numbering system used can vary, but it may include more than three digits to account for the additional accounts needed. There is no standardization by the FASB for the chart of accounts of a merchandising business.