Reference no: EM132983406

Question: If you are a bookkeeper of a new start-up company, you would be responsible for keeping the chart of accounts up to date. At the end of each year, you would analyze the accounts to verify that each account should be active for accumulation of costs, revenues, and expenses.

In July, the accounts payable (A/P) clerk asked you to open an account named New Expenses. You know that an account name should be specific and well defined, and you're afraid the A/P clerk might charge some expenses to the account that are inappropriate.

-Why do you think the A/P clerk needs the New Expenses account?
-Who needs to know this information and what action should you consider?