Question

You decide to combine two active accounts, Conferences and Seminars, into one account called Conferences. What should you do?

A. Deactivate the Seminars account by choosing Make Account Inactive from the Accounts menu in the Chart of Accounts window.
B. Open the Edit Account window for the Seminars account and delete the account number. This will delete the account.
C. Rename the Seminars account as Conferences which will merge the two accounts.
D. Ctrl+click the two accounts in the Chart of Accounts window and select Combine Accounts from the Accounts window.

Answer 1

To combine two active accounts, Conferences and Seminars, you should rename the Seminars account as Conferences, which will usually prompt a merge of the two accounts. This action simplifies the Chart of Accounts and enhances financial reporting clarity.

Step-by-step explanation:

If you decide to combine two active accounts, such as Conferences and Seminars, into one account named Conferences, you would generally follow these steps:

Rename the Seminars account as Conferences, which will merge the two accounts.

1. In your accounting software, find the option to edit the Seminars account details.
2. Once in the edit mode, change the name of the Seminars account to Conferences. Ensure the account numbers align with the existing Conferences account if applicable.
3. Depending on the software, this action might prompt a merge if there is an existing account with the same name or allow you to manually select to merge the accounts.

After completing these steps, all transactions that were under the Seminars account will now show under the Conferences account. This helps in simplifying your Chart of Accounts and can provide clearer financial reporting.

Option C is typically the correct approach. However, it's important to follow the specific instructions or protocols of the accounting software you are using. Some software might indeed require a specific function such as 'Combine Accounts' or a special sequence of actions to properly merge accounts.