In QBO,the Three Different Financial Statements Are Prepared Very Similarly

question 7

Multiple Choice

In QBO,the three different financial statements are prepared very similarly using the following process:

• A)From the Navigation Bar select Reports and then the All Reports tab.Select Business Overview,then select Profit and Loss,Balance Sheet,or Statement of Cash Flows.To customize enter Customize features using the Customization Bar and Save Customizations.The statement can also be exported to Excel or PDF.
• B)From the Navigation Bar select Accounting and then the Reports tab.Select Business Overview,then select Profit and Loss,Balance Sheet,or Statement of Cash Flows.To customize export the file to enter Customize features using the Customization Bar and Save Customizations.The statement can also be exported to Excel or PDF.
• C)From the Navigation Bar select Reports and then the All Reports tab.Select Business Overview,then select Profit and Loss,Balance Sheet,or Statement of Cash Flows.To customize export the statement to Excel or PDF.
• D)From the Navigation Bar select Accounting and then the Reports tab.Select Business Overview,then select Profit and Loss,Balance Sheet,or Statement of Cash Flows.To customize export the statement to Excel or PDF.

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Definitions:

Operating Activity

Transactions and events that are directly related to the primary business operations of a company, such as sales revenue and expense transactions.

Financing Activity

Transactions involved in raising, repaying, or restructuring the capital funding of a company, as reflected in the cash flow statement.

Net Income

The total profit of a company after all expenses, including taxes and operating costs, have been subtracted from revenue.

Depreciation

A method of allocating the cost of a tangible asset over its useful life.