Question

What types of items should be tracked for a business in the accounting software? (Select all that apply)

a. Inventory On Hand
b. Services
c. Non-Inventory Products
d. Paper clips used in the office

Answer 1

In accounting software, a business should track inventory on hand, services, and non-inventory products to maintain accurate records.

Step-by-step explanation:

In accounting software, a business should track various items to maintain accurate records. The types of items that should be tracked include:

• Inventory On Hand: This refers to the goods or products that the business currently possesses and is available for sale.
• Services: Services rendered by the business should also be tracked to keep record of the revenue generated.
• Non-Inventory Products: These are products that the business sells but does not physically keep in inventory.

Paper clips used in the office, on the other hand, would not typically be tracked in the accounting software as they are considered office supplies and not inventory or services directly related to the business operations.