Final answer:
The verification of an adequate chart of accounts is instrumental for the transaction-related objective of classification, which ensures transactions are properly recorded in the appropriate accounts.
Step-by-step explanation:
Verifying that an adequate chart of accounts is used is key to ensuring the classification of transactions for accounting purposes. A chart of accounts is an organized list of all the different accounts that a company uses to record transactions in its general ledger. It helps to ensure transactions are recorded in the correct accounts, which is vital for maintaining accurate financial records, preparing financial statements, and effectively managing money. Additionally, by keeping a chart of accounts well-organized and up-to-date, a company can easily keep tabs on its cash flow, prevent problems such as overdraft, and avoid fees associated with insufficient funds.
The transaction-related objective tied to the verification of an adequate chart of accounts would be classification, which refers to ensuring that transactions are recorded in the proper accounts. An adequate chart of accounts supports classification by providing a clear framework for organizing financial information, which in turn, helps in achieving accuracy in financial reporting.