Question

If you choose to remove transactions as of a specific date from the "Condense Data" window, what does QuickBooks do?

1) Removes all payroll transactions that occurred on that date. This is a great way to fix the mistakes a new person made on a particular day.
2) Removes all transactions while leaving lists, preferences, and service subscriptions intact.
3) Changes the company's start date.
4) Deletes all transactions, as well as user passwords and access privileges.

Answer 1

QuickBooks' 'Condense Data' feature removes transactions before a specified date, keeps lists, preferences, and service subscriptions intact, and aids in reducing file size and improving performance.

Step-by-step explanation:

If you choose to remove transactions as of a specific date from the "Condense Data" window in QuickBooks, the program performs an action that simplifies your company file but retains essential data. Specifically, QuickBooks removes all transactions that occurred before the date you specify. However, it preserves your lists, preferences, and service subscriptions. This feature is often used to reduce the size of a QuickBooks file and to improve performance by removing old or unnecessary transaction data while keeping a summary of past financial activity. It does not change the company's start date, nor does it remove payroll transactions that occurred only on that date. Also, it doesn't delete user passwords or access privileges; users' access to the system will remain unchanged.