Which of the Following Statements About the Default Linked Expense

question 12

Multiple Choice

Which of the following statements about the default linked expense account for a supplier is incorrect

• A) you can select an asset account as the linked account
• B) the default account may be changed in the purchases journal
• C) you must select an expense account as the linked account
• D) the linked account is entered on the supplier's option tab input screen

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Definitions:

Accounts Payable

Debts incurred by a company towards its suppliers, reflected as liabilities on its balance sheet.

Prepaid Insurance

An asset account that represents insurance paid in advance, which is not yet expired and thus not yet an expense.

Owner's Capital

The equity in a firm attributable to the owner, reflecting the amount invested by and the earnings retained for the business owner.

Accounts Receivable

Monies owed to a company by customers for sales made on credit that are recorded as assets on the balance sheet.