A chart of accounts is a list of all the accounts used by a business to record its financial transactions. It is a structured list of general ledger accounts that includes various categories such as assets, liabilities, equity, revenues, and expenses. Each account in the chart of accounts is identified by a unique account number and name. The chart of accounts is used to organize and classify financial transactions, which makes it easier to create financial reports and track the financial health of the business.

Here is an example of a simple chart of accounts:

1. Assets
   • 1000 Cash
   • 1010 Accounts Receivable
   • 1020 Inventory
2. Liabilities
   • 2000 Accounts Payable
   • 2010 Loans Payable
3. Equity
   • 3000 Owner’s Equity
   • 3100 Retained Earnings
4. Revenue
   • 4000 Sales
   • 4100 Interest Income
5. Expenses
   • 5000 Rent
   • 5100 Salaries
   • 5200 Advertising
   • 5300 Utilities

In this example, the chart of accounts is divided into five main categories: Assets, Liabilities, Equity, Revenue, and Expenses. Each account within these categories has a unique number and name, which helps to keep the accounts organized and easily identifiable. For example, the cash account is assigned the number 1000 and is listed under the Assets category, while the rent account is assigned the number 5000 and is listed under the Expenses category.