Question: What does QuickBooks do with net profit at the beginning of a new year?

1. Subtracts net profit from an Owner's or Shareholder's Equity account.
2. Adds net profit to an Owner's or Shareholder's Equity account.
3. Adds net profit to Stockholder's Equity.
4. Adds net profit to Retained Earnings.

Answer: The correct answer of the above question is Option D:Adds net profit to Retained Earnings.