When an account is designated as "inactive," which of the following is NOT true of its status?
A) The accounting system will prevent further entries from being made to the account.
B) The accounting system will immediately delete the account from the chart of accounts.
C) The account remains active until the accounting period is closed and financial statements issued.
D) All of the above are false regarding inactive accounts.

Question

Quizplus · Accepted Answer

When an account is designated as "inactive," it means that it has not been used for a certain period of time, but it still exists in the chart of accounts. The accounting system will prevent further entries from being made to the account, and the account remains active until the accounting period is closed and financial statements issued. However, the accounting system will not immediately delete the account from the chart of accounts. Therefore, option B is not true.

When an Account Is Designated as "Inactive," Which of the Following