To Add a New Account to the Chart of Accounts

question 2

Multiple Choice

To add a new account to the Chart of Accounts:

• A)Display the Chart of Accounts, select Account, New
• B)From the Company menu, select New Account
• C)From the Home page, select New Account
• D)From the Lists menu, select New Account

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Definitions:

Deferred Tax Asset

An accounting term referring to a situation where a business has paid more taxes or has higher tax payments upcoming than what is currently due on the financial statements.

Income Tax Expense

The total amount of income tax owed to tax authorities, reflecting current tax and deferred tax charges and credits for the period.

Deferred Tax Liability

A tax obligation that a company owes but can postpone to future periods.

Interest Revenue

Income earned by an entity for lending funds or making financial investments that pay interest.