Which of the following statements about making modifications to accounts is true?

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BlackTom AI · Accepted Answer

Question context: modifications to accounts and what is true about what cannot or can be changed. We will evaluate each statement on its own merits and in light of common accounting system behavior.
Option 1: 'You cannot modify the description of an account' In many systems, the descriptive label or description field of an account can be edited to reflect changes in naming or clarification. If the system allows edits to descriptions, this statement would be false. If, however, the system locked descriptions for integrity, it could be true—but without that specific constraint stated, this claim is not universally true.
Option 2: 'You cannot modify the structure code' The structure or code of an account often refers to its unique identifier or chart of accounts code. In many financial systems, once an account is created, its code is immutable to preserve historical transactions and reporting consistency. If the platform follows that common practice, this statement would be true. If the system surprisingly allows code changes, it would be false.
Option 3: 'You can change an account type if it is used as a default closing account' This suggests that there is a conditional exception permitting a type change specifically when the account serves as a default closing account. In typical accounting configurations, default closing accounts are critical for correct period-end processing, and changing their type or role is usually restricted to avoid misclassification. Therefore this option seems unlikely and generally false in standard setups.
Option 4: 'You cannot change an account group to an account' This describes a constraint where a grouping construct (an account group) cannot be transformed into an actual active account. Since account groups and accounts serve distinct purposes (grouping versus transactional balances), converting a group directly into an account is often disallowed, making this statement plausible as true in many systems.
Synthesis: Among these options, the most defensible true statement in typical accounting software is that the structural code (the account’s code) cannot be modified after creation, preserving the integrity of historical data and reporting. The other statements rely on capabilities (editing descriptions) or special-case exceptions (changing type for a default closing account) that are either not universally true or are counterintuitive in standard controls. Furthermore, the notion that an account group can be turned into a regular account conflicts with the idea that groups are categorical containers rather than actual balances, supporting the view that converting a group to an account is not permitted.
Note on nuance: If a particular system allows editing descriptions, that would render Option 1 false in that environment, and if it allows changing account codes, Option 2 would be false there. The analysis assumes common enterprise accounting behaviors where account codes are immutable and groups remain distinct from individual accounts. The reasoning also treats the default-closing-account exception in Option 3 as unlikely, given the risk to period-end accuracy.
In summary, evaluating the constraints through typical system design leads to the interpretation that statements about modifying the structure code (Option 2) and converting a group to an account (Option 4) are the most aligned with standard immutability rules for core identifiers and structural separation, while the other options describe more variable or restricted behaviors.

SG30018E1 - Sage 300 2018 General Ledger Final Exam

Which of the following statements about making modifications to accounts is true?

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