Austin needs a summary of all general ledger accounts classified as fixed assets.Which QuickBooks report would be most useful?Profit and lossExpenses by vendor summaryIncome by customer summaryBalance sheet

The Balance Sheet report in QuickBooks provides a summary of a company's financial condition at a specific point in time. It includes all asset accounts, including fixed assets, making it the most useful report for summarizing general ledger accounts classified as fixed assets.

• Profit and loss: Shows income and expenses over a period.
• Expenses by vendor summary: Summarizes expenses categorized by vendor.
• Income by customer summary: Summarizes income categorized by customer.
• Balance sheet: Includes all asset accounts, including fixed assets.

Thus, the Balance Sheet report is the appropriate choice.

Supplemental Knowledge

Fixed assets in accounting refer to long-term tangible assets used by a business for operations that will likely remain useful over multiple accounting periods - for instance buildings, machinery and equipment. Businesses typically track these assets using general ledger accounts dedicated to fixed assets.
QuickBooks offers various reports that help users manage their finances effectively. Here’s a brief overview of the reports mentioned:

• Profit and Loss (P&L) Report: This report shows the company's revenues and expenses over a specific period, providing insight into profitability.
• Expenses by Vendor Summary: This report summarizes expenses categorized by each vendor.
• Income by Customer Summary: This report provides a summary of income generated from each customer.
• Balance Sheet: This report provides a snapshot of the company’s financial position at a specific point in time, listing assets, liabilities, and equity.

Everyday Examples

Imagine running a small business where you have invested in various pieces of equipment and property. In order to fully comprehend your financial health and prepare for audits or tax filings, keeping track of these fixed assets accurately is vital in understanding financial health better and understanding audit results or tax filings more quickly. A balance sheet serves this function well by showing all fixed assets along with financial data in one central place.

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