You have an invoice for a three-month lease and wish to recognize the expense monthly for the duration of the lease. What must be entered on the invoice in order to do this?
A. You must provide a start date and an end date for the prepaid expenses in the invoice lines or distributions.
B. You must provide a start date, an end date, and the accrual account for the prepaid expenses in the invoice lines or distributions.
C. You must provide a start date and the accrual account for the prepaid expenses in the invoice lines or distributions.
D. You must provide the accrual account for the prepaid expenses in the invoice lines or distributions.
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B
When you create a transaction with multiperiod accounting, you must enter the following:
• Start Date: The date when multiperiod accounting begins.
• End Date: The date when multiperiod ends.
• Accrual Account: The account where the expenses are assigned until they’re recognized.