Question

Customer statements can be prepared in QBO. Select one: O True O False

Answer 1

1) True

There are three types of customer statements in QuickBooks Online. Here's how to create Balance Forward, Open Item, and Transaction Statements.

2) B) inventory part

Under Perpetual Inventory System, the changes in inventory are recorded in the inventory account. This is unlike periodic inventory system, where every item in the cost of goods sold calculation is recorded in separate accounts. Items such as purchases and sales of goods are recorded directly in the inventory account as they occur.

Following are the salient accounting characteristics of perpetual inventory system:

• Merchandise purchases made for the purpose of resale or raw materials for production are debited to the Inventory account rather than purchases.
• Likewise items like Freight-in, Purchase returns, allowances and purchase discounts are too recorded in inventory account instead of separate accounts.
• For each sale made, the cost of goods sold is recognized by debiting cost of goods sold account and crediting inventory.
• Each item of inventory is recorded in the subsidiary ledger account. These subsidiary records exhibit cost and quantity of each type of inventory in hand. Furthermore, these records support the Merchandise Inventory Account which is the control account.

3) C) Bank

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