What action should you take to ensure a negative asset account is displayed under liabilities?

To ensure a negative asset account is displayed under liabilities, adding a switch rule is the appropriate action. A switch rule is a feature in accounting systems, including Xero, that allows you to modify how balances are displayed based on certain conditions, such as whether an account has a negative balance. By applying a switch rule to the negative asset account, you can effectively reclassify it so that it appears under liabilities in the financial reports or dashboards. This is particularly useful in scenarios where it is necessary to manage or present accounts that should logically fall under liabilities despite being categorized as assets.

The other options do not achieve the desired result. Adjusting the account number might change the sequence or classification in a list but does not alter how the balance is displayed in reports. Deleting the account would remove it entirely from the financials, which is not helpful if you still need to track that financial information. Creating a new report could provide different layouts and formats but would not change the underlying classification of the account. Thus, implementing a switch rule is the most effective method to manipulate the presentation of a specific account in the financial statements.