QuickBooks Creates a Chart of Accounts for Your Company Based

question 21

Multiple Choice

QuickBooks creates a Chart of Accounts for your company based on:

• A)Company address
• B)Industry type
• C)Your Federal ID Tax number
• D)None of these

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Definitions:

Prepaid Expenses

Expenses paid in advance for goods or services to be received in the future, recognized as assets on the balance sheet.

Recorded

This term refers to the action of documenting financial transactions in the accounting records of a business.

Statement of Financial Position

A financial statement that presents the assets, liabilities, and equity of an entity at a specific date, offering a snapshot of its financial health.

Chart of Accounts

A systematic listing of all accounts used by an organization, making up its general ledger and helping categorize transactions.