Good afternoon class,

The chart of accounts is a list of all the different accounts you have set up for your company. It lists all income and expense accounts for your business. The chart of accounts in Quickbooks is used to track all income and expenses for your company. It allows you to run reports on specific accounts, this allows you to break down income and expenses when necessary. each account has a transaction history that allows you to see what you have or what you owe. It is very important to put the proper account and detail type in when inputting information because this allows Quickbooks to categorize things properly. For example, if you put an expense into an income account, its going to show you have more money than you really do. And, if you put income into an expense account just the opposite is going to happen, its going to show you have less money than you actually do, and an expense could get overlooked.

PLEASE RESPOND TO THIS IN A DISCUSSION LIKE MANNER