When you add a new expense-type member under an income-type parent, FCCS will do which of the following to the parent?

• A. Subtract amounts consolidated to the parent
• B. Add amounts consolidated to the parent
• C. Do nothing
• D. Not allowed

Answer: (A)

Account types determine how values flow when you consolidate. An income-type parent represents revenue, and when you add a child that is an expense-type, that expense reduces the parent’s net amount on consolidation. The consolidation logic treats expenses as negative contributions to income, so the parent’s consolidated balance is decreased by the child’s total. For example, if the parent shows 100 and you add an expense child totaling 10, the consolidated parent becomes 90. That’s why subtracting is the correct outcome. The other options don’t fit because adding would increase income, doing nothing ignores the child’s impact, and this setup is allowed in FCCS.