Reports such as the Profit and Loss Report in QBO allow you to compare the data with which of the following?

Question

BlackTom AI · Accepted Answer

When using reports like the Profit and Loss Report in QuickBooks Online (QBO), you’re looking at income and expense activity over a specified period. This type of report is commonly used to compare performance across time.
Option 1: 'The number of transactions entered' — A P&L report doesn’t focus on the quantity of transactions; it aggregates revenue and expense totals for the chosen period, not a simple count of entries. So this is not the primary comparison provided by the P&L.
Option 2: 'A previous period' — This is the correct concept. The P&L supports period-over-period comparisons (e.g., current month vs. previous month or this quarter vs. prior quarter), enabling you to assess changes in profitability between periods.
Option 3: 'The number of customers served' — Customer counts are not the core data in a P&L; that metric relates more to sales activity or CRM metrics, not the income/expense summary the P&L presents.
Option 4: 'The balance in your bank account' — Bank balances appear on a balance sheet or cash flow-related reports, not on the Profit and Loss, which summarizes income and expenses rather than cash balances.
In summary, the Profit and Loss Report is designed to show financial performance over a period and often includes a comparison to a prior period, whereas the other options reflect metrics or accounts not represented in a P&L summary.

QBO25E1 - QuickBooks Online Module 17 Quiz

Reports such as the Profit and Loss Report in QBO allow you to compare the data with which of the following?

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