Final answer:
The true statements regarding classes in QuickBooks Online are that the 'Not Specified' column represents transactions without a specified class and the label for class tracking can be customized to meet client needs. It is not correct that classes can be assigned to both the source and target or that multiple classes can be assigned to a transaction. Additionally, a Balance Sheet by Class will not always balance.
Step-by-step explanation:
Regarding classes in QuickBooks Online, two statements that are true are:
- (c) The Not Specified column on a Profit and Loss by Class represents transactions that have not had a class specified. This means that if a transaction does not have a class associated with it, it will appear in this column when you run the report.
- (e) The label for Class tracking can be changed to suit client's needs. This feature allows for customization to make the class tracking system fit the specific vocabulary or organizational structure of a business.
However, it is important to clarify some points:
- Statement (a) is incorrect because classes can be assigned only to each line of the transaction but not to the source account of that transaction.
- Statement (b) is often a misconception; customized Balance Sheet by Class reports do not always balance because not all transactions may be classifiable.
- For statement (d), QuickBooks Online only allows one class per transaction line, not multiple classes.