Asked by Mugan Tayalan on May 23, 2024
Verified
Which of the following is correct regarding QBO COA (Chart of Accounts) ?
A) By customizing the QBO COA to align with the business tax return,countless hours are saved in preparation time,and tax returns are more accurate.
B) QBO does not encourage editing the COA since too many errors can be made by changing what was initially set up when the company was organized.
C) QBO does allow editing of the accounts in the COA,however,it only allows authorized users to make changes.QBO codes accounts for tax return preparation tracking.
D) QBO is not able to assist in tax return preparation and only requests legal entity status for COA account purposes.Changes to the COA are encouraged and should happen often.
QBO COA
The Chart of Accounts in QuickBooks Online, a structured list of an organization's financial accounts.
Customizing
The process of altering or tailoring features and appearances of products, software, or services to meet specific requirements or preferences.
Tax Return Preparation
The process of completing and filing a tax return form, typically performed by an individual taxpayer or a tax professional.
- Appreciate the critical role of frequent revisions to QBO Lists and the Chart of Accounts in ensuring precise tracking of finances.
Verified Answer
CB
Cindy BosséMay 27, 2024
Final Answer :
A
Explanation :
Customizing the QBO Chart of Accounts (COA) to align with a business's tax return can indeed save significant preparation time and increase the accuracy of tax returns. This customization allows for a more streamlined process when it comes to tax preparation, as the accounts in the COA can directly correlate with the lines on the tax return, reducing the need for extensive adjustments or reclassifications.
Learning Objectives
- Appreciate the critical role of frequent revisions to QBO Lists and the Chart of Accounts in ensuring precise tracking of finances.