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Which prerequisite must be met by the technical clearing account for integrated asset acquisition?

a) Positive balance
b) Zero balance
c) Negative balance
d) Foreign currency

1 Answer

4 votes

Final answer:

The correct answer is b) Zero balance. The technical clearing account used for integrated asset acquisition should always be balanced with a zero balance at the end of a posting period to correctly reflect the associated financial transactions.

Step-by-step explanation:

The prerequisite that must be met by the technical clearing account for integrated asset acquisition is a zero balance. The role of the technical clearing account in accounting is to temporarily hold transactions during the acquisition process of an asset. This account must always be cleared and have a zero balance before the end of the posting period. It ensures that both sides of an acquisition transaction (debit and credit) are equal, reflecting the principle that every financial transaction has equal and opposite effects in at least two different accounts.

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