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Chapter 1, Analysis Questions 1.Define the chart of accounts and its categories. How do accounting textbooks define the chart of accounts?
ANSWER:
The Chart of Accounts is a complete list of a business’s accounts and their balances. QBO includes the Account name, Type (for financial statement classification), the Detail Type (account subcategory), and Balance. The chart of accounts includes two categories of
accounts:
•Balance Sheet accounts: In QBO, these types of accounts reflect what you own and what you owe, like Bank, Credit Card, Assets, Liabilities, Accounts Receivable, Accounts Payable and Equity.•Income and expense accounts: These are categories for tracking how money flows in and out of your company.In accounting textbooks, the term Chart of Accounts is defined as a list of all the accounts used in the General Ledger. Accounts are used to classify transaction information for reporting purposes.
2.What do you select to add account numbers to the Chart of Accounts?
ANSWER:
Adding account numbers is a two-step process.a.Go to > Account and Settings > Advanced > in the Chart of accounts area, click on the pencil icon to Enable account numbers and Show account numbers > Save > Done.b.After saving, then selecting
3.What numbering system is used for the Chart of Accounts? Complete the following chart.Numbers Type 1000s Assets 2000s Liabilities 3000s Equity 4000s Income 5000s Cost of Sales 6000s Expenses 2 / 4
Chapter 2 Answer to Analysis Question What is cloudware?
ANSWER:
Cloudware refers to software that is built, installed, delivered and accessed entirely from a remote web server, also called the “cloud.” Cloudware is a software delivery method that provides software over the internet.
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Answer to Analysis Question, Chapter 3 How do you edit a transaction? List two options.
ANSWER:
- With the Audit Log shown, drill down to the transaction that needs editing. The original
entry is shown. Make the needed corrections, then save. When you view the Audit Log again, the edited transaction is shown.
- Go to Recent Transactions by selecting the magnifying-glass icon. To edit the transaction,
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link to it. Make the needed changes, then save.
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