To determine the scope of a bookkeeping clean-up engagement, you are reviewing the Client Overview tab for a potential client. You notice that there is a large amount in the Opening Balance Equity account.

Which 2 reasons could be causing this balance?

1. An opening balance was entered when an inventory item was created

2. Transactions in the Banking Center were added without assigning an account to them

3. An opening balance was entered when creating a new Other Current Asset account

4. An opening balance was entered when setting up sales tax

A reconciliation adjustment was posted when completing a bank reconciliation