When you set up your company file, QuickBooks automatically sets up two equity accounts for you:
Opening Bal Equity | QuickBooks automatically creates this account when you enter the starting balance of your first balance sheet account. QuickBooks uses Open Bal Equity to ensure that you get a correct balance sheet even before you've entered all your company's
assets and liabilities. QuickBooks records the opening balance of each account in Opening Bal Equity.
You can transfer some, or all, of the money in Opening Bal Equity to other equity accounts. |
Retained Earnings | This account tracks your company's net income from previous fiscal years. QuickBooks automatically transfers your profit (or loss) to Retained Earnings at the end of each fiscal year. |
Your company assets are the things that your company owns.
QuickBooks distinguishes between two types of assets: