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

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

Respond to the following:

.Why do you think the AP clerk needs the New Expenses account?

.Who needs to know this information and what action should you consider?