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Problem 1: Why does QuickBooks warn you if you attempt to enter a transaction that took place before the closing date?
A. QuickBooks Online is not backwards compatible. B. You will have to run an adjusted trial balance. C. It could affect your inventory. D. The transaction would affect the books for a closed period.
Problem 2: What step of the accounting cycle involves analyzing balances and making adjustments?
A. Step 1 - financial transactions B. Step 2 - general journal C. Step 3 - general ledger D. Step 4 - trial balance E. Step 5 - financial statements
Problem 3: What do you create to account for any damaged items in your inventory?
A. Journal entry B. Inventory valuation adjustment C. Balance sheet D. Inventory quantity adjustment
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