Question

Which 4 statements are true about the Chart of Accounts, how to make changes to the Chart of Accounts, and how products and services are linked to the Chart of Accounts

Answer 1

Answer:

a. To add a new account, you open the Chart of Accounts by selecting Accounting from the left navigation, then select New to open the Account window

c. Uncategorized Income and Uncategorized Expense are default accounts for online banking activity

d. If you add a new account, the category type determines on which financial statement this account will show

e. When we set up Products and Services, they are linked to the Chart of Accounts by specifying a sales price/rate

Explanation:

Quickbooks is arguably the most popular accounting software for Medium and Small Businesses.

In Quickbooks, the Chart of Accounts lists all the accounts that a company has including their balances so that it may be able to use these details to construct business reports and for easier information access.

To add a new account, the Chart of Accounts should be opened by selecting Accounting and then creating a New account.

When banking activity is inputted in Qucikbooks, it will categorize it as either Uncategorized Income or Uncategorized Expense because it will be unable to classify them instantly.

When a new account is added, its category determines entirely which financial statement it will show up on.

And finally, when Products and Services are linked to the Chart of Accounts by specific sales prices/rates.