To complete this exercise, you must be in the Sample company. From your QBOA account, click on the Gear icon on the top right corner of the screen, then select Sample company.
Note that you will be logged out of your current account. If you are sure, click "Continue" to confirm.
Now get started with the exercise.
Click "Reports"
Balance Sheet
Start by running a Balance Sheet report.
Click "Balance Sheet"
Note the Accounts Payable and Accounts Receivable totals.
Now, switch to a cash-basis Balance sheet.
Click the "Cash" field.
In the "Show non-zero or active only" dropdown, select the "All" field.
Click "Run report"
Notice now that the Accounts Payable and Accounts Receivable are zero because those accounts do not exist in cash-basis accounting.
Remember, cash-basis accounting is about the actual cash that has changed hands, not the cash that you WILL BE receiving or WILL BE paying.
Profit and Loss
Next, run a Profit and Loss report.
Click "Back to report list"
Click "Profit and Loss"
Note the amounts for several account and particularly the Net Income amount.
Click the "Cash" field.
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