Question

You just set up a new QuickBooks company and your employer needs you to create a chart of accounts. Which of the following is TRUE?

a.) Accounts are automatically created based upon your business type, however you CANNOT add more accounts later
b.) Only accounts with balances need to be added since you can't adjust these once they've been created
c.) You must know all the accounts that need to be added during the set up process since you won't be able to go back and add accounts later
d.) Accounts are automatically created based upon your industry type, however you CAN add more accounts later

Answer 1

The correct answer is d.) Accounts are automatically created based upon your industry type, however you can add more accounts later.

Step-by-step explanation:

The correct answer is d.) Accounts are automatically created based upon your industry type, however you can add more accounts later.

When setting up a new QuickBooks company, accounts are automatically created based on your industry type to provide a starting point for your chart of accounts. However, you have the flexibility to add more accounts later to reflect the specific needs of your business.

For example, if your business operates in the retail industry, QuickBooks will provide a set of standard retail accounts, such as Sales, Cost of Goods Sold, and Inventory. However, if your business has unique requirements, such as selling digital products or offering specialized services, you can add additional accounts to accurately track those transactions.