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When you create a company and identify the type of business, QB online creates a chart of accounts based on your selected type of business.

a) True
b) False

1 Answer

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Final answer:

The statement is true; QB Online creates a chart of accounts based on the type of business selected, providing businesses with a customized financial foundation.

Step-by-step explanation:

The statement that when you create a company and identify the type of business, QuickBooks Online (QB Online) creates a chart of accounts based on your selected type of business is true.

QB Online tailors the initial chart of accounts to the industry you select to provide a more relevant starting point for managing your company's finances.

This is incredibly helpful as different types of businesses will have different financial tracking needs. For instance, a retail business may need account categories for inventory and cost of goods sold, while a service-based business might need accounts for tracking different types of service income and subcontractor expenses.

answered
User Iltaf Khalid
by
7.6k points
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