Saskco Chicken Products is a new company established by four entrepreneurs from Moose Jaw, Saskatchewan. They intend to purchase live chickens, process them, and sell them as frozen pieces. They anticipate hiring 17 workers to process the chickens. The four owners will work in the business and have the following titles: President (overseeing the whole operation, including finance and accounting), VP Procurement (in charge of purchasing chickens from farmers), VP Operations (in charge of the processing operations), and VP Marketing.
The president has hired you to help the company set up a computerized accounting system. First she wants you to create a list of account titles that you think the company will need for its operations. Second, for each account title, she wants you to provide a brief explanation of its nature and your reason for including it in the chart of accounts.