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    Explain how accounting codes are grouped in Quickbooks

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    Do you know how accounts were grouped so financial statements could be generated for Quicken, Quickbooks? Was it based upon some type of code assigned to each account, like a=assets,l=liabilities, etc. Also, do you know if the later versions are now using account codes for grouping?

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    Solution Preview

    I use QB (Quickbooks) and can give you the account groupings. When I add a new account, the 'new account' screen first asks for the type of account.

    The list includes:
    Accounts receivable
    Other current assets
    Fixed assets
    Other assets
    Accounts payable
    Credit card
    Other current liability
    Long term liability
    Cost of goods sold
    Other Income
    Other Expense

    By selecting a category, QB knows where to place the new account in a financial statement.

    On the 'new account' screen, the next box asks for the name of the account, and there are no prompts...meaning I can call it whatever I want. The control feature is the type of account, which ...

    Solution Summary

    In a 470 word solution, the response explains how Quickbooks (and Quicken) group accounts including the effects of those groupings.