Which of the Following Statements Are NOT True Regarding QBO

question 19

Multiple Choice

Which of the following statements are NOT true regarding QBO Chart of Accounts?

• A)QBO automatically creates a Chart of Accounts when a new company is set up.
• B)QBO Chart of Accounts is customized by a user to fit its company's needs.
• C)QBO Chart of Accounts is customized to fit a company's needs and is not overly useful regarding tax return preparation since it is completed by using an IRS form.
• D)QBO Chart of Accounts is aligned with a company's tax return since QBO is used to organize financial information for tax preparation.

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Definitions:

Tax Benefit

A financial advantage that results from specific tax laws or regulations, allowing for reductions in tax liability.

Avoidance

A legal principle that allows a party to cancel or annul a contract under certain conditions.

Profit Distributions

The allocation of a portion of a company's earnings to its shareholders, typically in the form of dividends or share buybacks.

De Facto Corporation

A business operating as if it were a legally incorporated company, despite not having completed the formal incorporation process, and is often treated as such by the law under certain conditions.