How do items affect financial statements? B. When you set up a non-inventory item, QuickBooks assigns the current on hand quantity to the Balance Sheet. A. Items on transactions do not affect the Financial Statements. Only accounts do. C. When you purchase or sell an item, the value of the purchase or sale flows to the account you selected when you set up the item. D. When you set up an item, you select Balance Sheet or Profit and Loss form the Assign to drop-down list.