When creating a new QuickBooks data file for an existing company, QuickBooks automatically offsets inventory item balances with an entry to the:
A)Uncategorized Expenses account
B)Uncategorized Income account
C)Opening Balance Equity account
D)Capital Stock account

Question

Quizplus · Accepted Answer

When creating a new QuickBooks data file for an existing company, QuickBooks automatically offsets inventory item balances with an entry to the Opening Balance Equity account. This is because when you start a new QuickBooks file, you need to enter the balances of all accounts as of a certain date. The Opening Balance Equity account is used to record the balances that cannot be entered directly into another account. This account is used to keep track of the original balances in the new data file until they can be reconciled with actual account balances.

When Creating a New QuickBooks Data File for an Existing