Which of the Following Statements Is Not True Regarding QBO

question 5

Multiple Choice

Which of the following statements is not true regarding QBO subaccounts?

• A)QBO automatically sets up Subaccounts commonly used by companies.
• B)QBO permits the use of Subaccounts which are useful in tracking additional detail.
• C)Subaccounts are essentially subcategories of an account.
• D)Subaccounts are added by selecting New from the Chart of Accounts window and selecting the Category Type,i.e.Expenses,then selecting Detail Type and entering in the Name.

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Definitions:

Unit Sales Price

The price at which a single unit of product is sold.

CVP Graph

A visual representation of the Cost-Volume-Profit analysis that shows the relationship between total costs, sales volume, and profit.

Profit and Loss

The profit and loss statement is a financial report that summarizes revenues, costs, and expenses incurred during a specific period, usually a fiscal quarter or year.

CVP Chart

A graphical representation used in Cost-Volume-Profit analysis to show the effects of different levels of volume and cost on operating profits.