HOTSPOT -
A rental service company hires you to configure their system to implement accrual schemes.
You need to configure the accrual schemes for the company for both rentals and associated expenses.
Which configuration and transaction options should you use? To answer, select the appropriate options in the answer area.
NOTE: Each correct selection is worth one point.
Hot Area:
Seems correct
correct
Correct. https://learn.microsoft.com/en-us/dynamics365/finance/general-ledger/tasks/create-accrual-schemes
Why should the scheme to costs though this is a rental service, I think applies to the revenue only.
It is mentioned in the questions " both rentals and associated expenses"! I believe" associated expenses" is the key here that is why the correct answer should be both revenue and expenses.
Accountants know this. It is important to accrue both revenue and costs for matching principle. hope this clarifies.
correct https://learn.microsoft.com/en-us/dynamics365/finance/general-ledger/accruals-overview
Given answers are correct. ==> Apply the scheme to both revenue and costs - Explanation: In Dynamics 365 Finance, accrual schemes can be configured to manage both deferred revenue (e.g., rental income recognized over time) and deferred costs (e.g., prepaid expenses like insurance or maintenance). ==> Specify the frequency of the accruals - Explanation: When configuring an accrual scheme, you must specify the frequency of accruals (e.g., monthly, quarterly) to determine how often transactions are posted. This is critical for a rental service company to ensure revenue and expenses are recognized periodically over the rental term.