Question

You should enter old checks and deposits that haven't cleared the bank when setting up a QuickBooks file

A. Finding the transaction will be easier if there is a problem at the bank.
B. Each check and deposit listed on the bank statement for the first month will already be entered into QuickBooks.
C. It will make the first month's reconciliation easier.
D. All of the above.

Answer 1

When setting up a QuickBooks file, it is recommended to enter old checks and deposits that haven't cleared the bank. This makes it easier to find transactions, matches transactions during reconciliation, and overall simplifies the first month's reconciliation process.

Step-by-step explanation:

When setting up a QuickBooks file, it is recommended to enter old checks and deposits that haven't cleared the bank. This is because:

1. Finding the transaction will be easier if there is a problem at the bank: By entering these transactions, you will have a record of all the checks and deposits made, which can help you identify any discrepancies or errors in your account.
2. Each check and deposit listed on the bank statement for the first month will already be entered into QuickBooks: By entering these transactions beforehand, you can easily match them with the transactions on your bank statement during the reconciliation process.
3. It will make the first month's reconciliation easier: By having all the transactions already entered, you can quickly compare the transactions in QuickBooks with the bank statement, ensuring that everything is accounted for and accurate.

Therefore, the correct answer is D. All of the above.