What is the purpose of the Chart of Accounts in QuickBooks?
The Chart of Accounts organizes all financial transactions into categories such as assets, liabilities, income, and expenses.
Which account type should be used to track money owed by customers?
Accounts Receivable is used to track outstanding invoices and amounts owed by customers.
Where can you add, edit, or delete items in the Products and Services list?
The Products and Services list is found under the Sales menu, where you can manage inventory and non-inventory items.
Which of the following is a list type in QuickBooks Online?
QuickBooks includes several list types such as Vendors, Customers, Employees, and Chart of Accounts.
What does marking an account as inactive in the Chart of Accounts do?
Inactive accounts are hidden from the list but retain their historical transactions in reports.
Which of the following is used to track what a business owns?
Asset accounts in the Chart of Accounts are used to track things the business owns such as cash, equipment, and inventory.
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How can you customize a list of vendors for specific uses?
Using tags or custom fields allows you to segment vendors for organization, reporting, or workflow purposes.
Which type of product requires tracking both quantity and cost?
Inventory items are tracked for both the number on hand and the cost, helping manage stock levels and profitability.
What is the benefit of organizing the Chart of Accounts by account type?
Organizing by type ensures accurate reporting and helps QuickBooks generate meaningful financial statements.