Reports and Analysis
What this domain tests
Choosing the right report, filtering it correctly, and explaining what the numbers mean.
Core concepts
Know the standard set: Profit and Loss, Balance Sheet, Statement of Cash Flows, A/R and A/P Aging, Sales by Customer, General Ledger, Trial Balance, and Transaction List by Date. Customization covers period, basis (cash or accrual), rows and columns, filters by customer, class, or location, comparison to a prior period, and collapsing or expanding detail.
Two date concepts decide everything. A Balance Sheet is as of a single date; a Profit and Loss covers a period. Aging reports use invoice and bill due dates evaluated as of a chosen date.
The cash/accrual toggle changes only how the report is built, not the underlying data. Cash basis ignores unpaid invoices and unpaid bills; accrual includes them. Memorized and scheduled reports preserve settings for reuse.
Traps
- Reporting revenue that includes open invoices and calling the bank balance wrong; the gap is A/R, not an error.
- Running a P&L with the wrong date range, or a balance sheet with a range instead of a date.
- Forgetting that filters persist after a report is memorized.
- Reading a P&L by class and ignoring the unclassified column.
- Assuming report basis changes affect transaction entry.
Worked example
The owner sees 50,000 of revenue on an accrual P&L but only 38,000 of deposits. The 12,000 difference is unpaid A/R. Re-run the P&L on cash basis to show revenue actually collected, and check the A/R Aging to confirm the open balance.
Rule of thumb: before answering any report question, verify three things: the period or as-of date, the accounting basis, and the active filters.