Oracle Financials Cloud: Accounts Payable 2017 Implementation Essentials — Question 13

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?

Answer options

• 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 ivoice lines or distributions.
• D. You must provide the accrual account for the prepaid expenses in the invoice lines or distributions.

Correct answer: D

Explanation

To recognize the expense monthly for a prepaid lease, it is essential to provide the accrual account for the prepaid expenses. Options A, B, and C are incorrect because they include unnecessary information such as start and end dates, which are not required for monthly expense recognition.