Question

What account (on the Chart of Accounts) is affected when you sell an item?

1) The account you selected when you set up the item.
2) Other Income account.
3) A default sales account set up by QuickBooks.
4) Accounts are not affected by items.

Answer 1

The account that is affected when you sell an item depends on the accounting system you are using. In QuickBooks, the default account is the Sales account, but you may select a different account when setting up the item.

Step-by-step explanation:

When you sell an item, the account that is affected on the Chart of Accounts depends on the accounting system you are using.

In QuickBooks, the default account that is affected when you sell an item is the Sales account. This is the account where revenue from sales is recorded.

However, in some cases, you may have set up a specific account for the item when you created it. In this case, the account that is affected when you sell the item would be the account you selected when you set up the item.

Therefore, the correct answer to your question would be:

1.