Why Is It Important to Align QBO with a Company's

Multiple Choice

Why is it important to align QBO with a company's legal entity and tax information during initial set up?

A) The IRS (Internal Revenue Service) regularly accesses QBO information to update its records.
B) QBO only allows one type of legal entity to be input for a corporation - the C corporation,therefore,QBO must ensure all corporations are using this legal entity.
C) Legal entity dictates what tax form a company uses and the tax form affects the accounts QBO needs to use.
D) A company can use more than one legal entity at a time; it is important for QBO to track what type of legal entity a company is using for different transactions.