Question

Which of the following is correct regarding QuickBooks Online Chart of Accounts? 

Multiple Choice 

By customizing the QuickBooks Online Chart of Accounts to align with the business tax return, countless hours can be saved in preparation time 

QuickBooks Online does not encourage editing of its Chart of Accounts since too many errors can be made by changing what was initially set up when the company was organized. 

QuickBooks Online does allow editing of the accounts in the Chart of Accounts, however, it only allows authorized users to make changes. QuickBooks Online codes accounts for tax return preparation tracking.

QuickBooks Online is not able to assist in tax return preparation and only requests legal entity status for Chart of Accounts account purposes. Changes to the Chart of Accounts are encouraged and should happen often.  

Answer 1

The following statement regarding quickbooks online chart of accounts is correct

A. by customizing the quickbooks online chart of accounts to align with the business tax return, countless hours can be saved in preparation time,

This statement is correct while preparation of financial accounts for the purpose of filling with tax authorities there is a format given by them and there are rules which are to be followed. if we make quick books similar to details which will be given in business tax return lot of time can be saved.

Other three statements are incorrect

B. The statement says quickbooks doesnot encourage editing of its chart of accounts because too many error can pop up if the setup is changed from initial one. This statement is completely false because every business has its own needs and they function as per requirements. quickbooks encourages editing of chat of accounts and to align the accounts as per needs of the business because provides greater value to organisation.

C. in default mode Anyone can make changes chart of accounts without any restriction. therefore, third statement is incorrect.

D. Quick books has many features that helps in tax preparation and therefore the fourth statement is incorrect.