What happens when you officially close the books in QBO?

Question

BlackTom AI · Accepted Answer

When evaluating what happens after you officially close the books in QBO, it's helpful to examine what each option implies about the closing process.
Option A: 'When you close the books, it automatically generates tax reports for the period.' This is not how the standard closing process works in QuickBooks Online; closing the books is about finalizing the period's accounting, not generating tax reports automatically.
Option B: 'When you officially close the books in QBO, it locks the accounting period, preventing any changes to transactions or financial reports for that period.' This aligns with the typical purpose of closing a period: to prevent retroactive edits and ensure the period's data remains as reported, preserving the integrity of financial statements.
Option C: 'When you close the books, it transfers all balances to the next fiscal year.' Closing a period does not automatically roll balances into the next year; carrying forward balances is a separate process and depends on the accounting system's setup and the nature of the accounts.
Option D: 'When you close the books, it deletes all transactions for the closed period.' Deleting transactions contradicts the goal of preserving historical accuracy; closing should prevent changes but not erase data.
In summary, option B captures the core effect of closing a period in QBO—locking the period to prevent further modifications to transactions and reports—while the other options describe actions that are not part of the standard closing behavior or misrepresent the outcome of closing.

QBO25E1 - QuickBooks Online Module 18 Quiz

What happens when you officially close the books in QBO?

查看解析

登录即可查看完整答案

类似问题

In a consumer society, many adults channel creativity into buying things

Economic stress and unpredictable times have resulted in a booming industry for self-help products

People born without creativity never can develop it

A product has a selling price of $20, a contribution margin ratio of 40% and fixed cost of $120,000. To make a profit of $30,000. The number of units that must be sold is: Type the number without $ and a comma. Eg: 20000

Which of the following statement regarding cost is correct:

Under the assumptions used in cost-volume-profit analysis, as the activity increases:

The CVP and break-even analysis are supported by a range of important assumptions. Which of the following is not an assumption of the CVP:

The break-even point is that at which:

更多留学生实用工具

考试浏览器助手

风格化写作助手

论文查重助手

文献引用助手

课堂转译助手

课堂笔记助手

Quiz搜索助手

学校历年真题

智能刷题助手

智能匹配练习

希望你的学习变得更简单