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

The scope of a bookkeeping clean-up engagement include the following:

Quick books automatically records the following transactions to the opening equity account.

Opening balances entered when new customers or vendors are setup.

The inventory total balances entered in the new item dialogue.

The three reasons causing or affecting the balance includes the following:

An opening balance was entered by the client when creating a new other current asset account.

The balances to one or more product/service items were entered during the setup process.

The balance opening were included when importing customers, by using a tool called the import data tool.

Explanation:

Solution:

The Three reasons causing or resulting in this balance are:

Options

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