Question

The Chart of Accounts lies at the heart of a QuickBooks Online company. Which 5 of the following 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?(Select all that apply)

-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

-The Sales of Product Income account is a default account when inventory is turned on

-Uncategorized Income and Uncategorized Expense are default accounts for online banking activity

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

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

-Delete an account from the Chart of Accounts if it is not relevant to your business

Answer 1

Option A is true because to create a new account we go through accouting pane and click new.

Option B is false because inventory asset account is created by default but not the sales of products income account.

Option C is true because uncategorised income and uncategorised expenses accounts are default accounts.

Option D is True because the category decides the financial statement to which an account pertains to.

Option E is true because when we set up products and services they are linked to chart of accounts and invoices can be easily generated specifying the rate,quantity and description.

Option F is True because we can delete chart of accounts which are irrelevant for our business.

So the statements A,C,D,E,F are true.