Question

When you write a check, QBs automatically creates a bill.

a) True
b) False

Answer 1

Writing a check in QuickBooks simply records a direct payment from a bank account and does not create a bill. Bills have to be entered and managed separately within QuickBooks. Therefore, the correct answer to the student's question is 'false'.

Step-by-step explanation:

When you write a check, QuickBooks (QB) does not automatically create a bill. Writing a check in QuickBooks records a payment that is made directly out of a checking account or any other bank account you choose to your vendor or service provider.

Bills, on the other hand, are usually entered separately in QuickBooks when you receive them, to acknowledge that you owe a payment for a received service or product that you agree to pay at a later date. Only when you pay the bill does QuickBooks affect the checking account balance. Thus, the statement mentioned is false. The process of managing bills and checks in QuickBooks is an essential part of accounting for small businesses, helping to keep accurate financial records.