Which statement about editing accounts is true -
A)you may change group accounts to subgroup accounts without a following subgroup total account
B)you may change subgroups accounts to group accounts
C)you cannot change group accounts to subgroup accounts
D)you cannot change account types

Question

Quizplus · Accepted Answer

According to generally accepted accounting principles, subgroups can be consolidated to form group accounts, but group accounts cannot be broken down into subgroups. Therefore, you may change subgroup accounts to group accounts, but you cannot change group accounts to subgroup accounts. Option A is incorrect because subgroup accounts must have a corresponding subgroup total account. Option C is correct but only partially because group accounts cannot be changed to subgroup accounts. Option D is incorrect because it is possible to change account types under certain circumstances, such as converting an asset account to a liability account through a journal entry.

Which Statement About Editing Accounts Is True -