Asked by Joseph Smith on May 06, 2024
Verified
Which of the following statements are NOT true regarding QBO Chart of Accounts?
A) QBO automatically creates a Chart of Accounts when a new company is set up.
B) QBO Chart of Accounts is customized by a user to fit its company's needs.
C) QBO Chart of Accounts is customized to fit a company's needs and is not overly useful regarding tax return preparation since it is completed by using an IRS form.
D) QBO Chart of Accounts is aligned with a company's tax return since QBO is used to organize financial information for tax preparation.
Chart of Accounts
A systematic listing of all accounts used in the general ledger of an organization, categorized by assets, liabilities, equity, revenues, and expenses.
Tax Return Preparation
Tax return preparation involves compiling financial records, calculating income and expenses, and completing the necessary tax forms to comply with tax filing requirements.
Financial Information
Data regarding the monetary operations and condition of a business, such as revenue, expenses, assets, and liabilities.
- Gain insight into the constituents and capabilities of QBO, including aspects like Reports, Transactions, Settings, and the Chart of Accounts.
Verified Answer
HH
Hannah HeimosMay 12, 2024
Final Answer :
C
Explanation :
QBO Chart of Accounts is customizable to fit a company's specific needs, but it is also useful for tax return preparation. The accounts used in QBO can correspond directly to various lines on the tax form, making it easier to organize financial information for tax purposes. Therefore, statement C is not true.
Learning Objectives
- Gain insight into the constituents and capabilities of QBO, including aspects like Reports, Transactions, Settings, and the Chart of Accounts.