You run a financial statement report and notice the net profit calculated is different than what you expect. What could cause the issue? Note: There are 2 correct answers to this question.

Question

Options

• AYou selected account group assignment by balance for an account and it is displayed as a
• BYou have accounts that you have not assigned in the financial statement version.
• CYou have added an account to the liabilities node that belongs to the financial statement notes.
• DYou have added an account to the wrong node and it is included in the assets section.

• A
  20% (5)
• B
  72% (18)
• C
  8% (2)

Explanation

B is correct because any general ledger account not assigned to the financial statement version is simply excluded from the report - its balance is invisible to the net profit calculation, creating an immediate discrepancy. D is correct because placing a P&L account (revenue or expense) under the wrong node - such as Assets - removes it from the income/expense calculation, directly distorting net profit.

A is a distractor because the "assignment by balance" setting is a legitimate feature that correctly flips an account's display side based on its debit/credit balance; it changes presentation, not the profit figure. C is a distractor because assigning an account to a liabilities node (rather than a notes node) is a balance sheet classification error that affects balance sheet accuracy, but "financial statement notes" are non-calculating display nodes that don't feed into net profit either way - neither scenario directly corrupts the P&L result the way B and D do.

Memory tip: Think of it as "missing vs. misplaced" - B means the account is missing from the version entirely, D means it's misplaced into a section that doesn't feed net profit. Both break the calculation; the other options only affect display or presentation.

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