ATU Quickbooks
Vendors transactions can include:
1. Entering expenses 2. Entering checks 3. Entering bills 4. Paying bills 5. Entering purchase orders 6. Entering vendor credits 7. Entering credit card credits
Recording Vendor Transactions
1. Expenses 2. Checks 3. Selecting Bill then Pay Bills 4. Selecting Purchase Order then Bill, then Pay Bills
UPDATE VENDORS LIST BEFORE ENTERING TRANSACTIONS
Befere entering transactions, we can update the Vendors List from the QBO Navigation Bar
Two basic ways to update QBO Lists
Before entering transactions and While entering transactions
match the type of tax form related to legal form of organization
C Corporation to Form 1120 Partnership to Form 1065 Sole Partnership to Form 1040 Schedule C
A customer may pay using the following methods in QBO?
Credit Card (online, phone, in person, or mail), Online (credit card or bank transfer), or Customer Check
In QBO, management reports include the following:
Customer reports, Vendor reports, Inventory reports, Transaction Journal, and the Audit Log.
Which two QBO lists will be used when entering customer sales related transactions?
Customers List, and Products and Services List
Create window has four categories
Customers, Vendors, Employees and Other
What is a 1099 and when is it prepared? A) An IRS Form completed for corporations that another company paid $600 or more for services in a year. B) An IRS Form completed for sole proprietorships and partnerships a company paid $60 or more for services in a year. C) An IRS Form completed for individuals a company paid $6,000 or more for services in a year. D) A 1099 is an IRS Form completed for sole proprietorships and partnerships that a company paid $600 or more for services in a year.
D) A 1099 is an IRS Form completed for sole proprietorships and partnerships that a company paid $600 or more for services in a year
If Undeposited Funds was selected during Receive Payment, then which of the following is true? A) Undeposited Funds are used with Bundles and the company must separate out the different payments prior to creating a bank deposit. B) Acompany does not need to create a bank deposit since the funds are already available to pay bills. C) Use the Gear Icon and select Bank Deposit under Other to record the transfer. D) Acompany must create a bank deposit to transfer the funds from the Undeposited Funds account to the appropriate bank account.
D) A company must create a bank deposit to transfer the funds from the Undeposited Funds account to the appropriate bank account
Which transaction type does not appear on the Create (+) screen? A) Vendors B) Customers C) Employees D) Budgeting
D) Budgeting
Which of the following is correct regarding QBO COA (Chart of Accounts)? A) QB0 is not able to assist in tax return preparation and only requests legal entity status for COA account purposes. Changes to the COA are encouraged and should happen often. B) QBO does not encourage editing the COA since too many errors can be made by changing what was initially set up when the company was organized. C) QBO does allow editing of the accounts in the COA, however, it only allows authorized users to make changes. QBO codes accounts for tax return preparation tracking. D) By customizing the QBO COA to align with the business tax return, countless hours are saved in preparation time, and tax returns are more accurate.
D) By customizing the QBO COA to align with the business tax return, countless hours are saved in preparation time, and tax returns are more accurate.
Correcting errors on saved documents requires all of the following except: A) The document can be voided and then create a new document. B) One approach is to display the document, correct the error and then save the document again. C) Delete the document and create a new document. D) Destroy the document to ensure there is no source for identity theft since that is more important than needing an audit trail.
D) Destroy the document to ensure there is no source for identity theft since that is more important than needing an audit trail.
All of the following are true regarding QBO Customers List except: A) It allows the user to collect information about the customer and reuse the information without re-entering. B) It collects information about a customer such as: name, address and contact information. C) It is a time-saving feature. D) It contains past sales transactions and allows us to estimate future intended sales.
D) It contains past sales transactions and allows us to estimate future intended sales.
When is the Bill onscreen form used to record a vendor transaction in QBO? A) It is used to record a credit or a reduction in the charges owed to the vendor. B) It is used when a vendor gives a refund or reduction in a bill for what is owed to the vendor. C) It is used to record expenses a company pays for at the time it receives the product or service. D) It is used to record services for which a company has been billed for and agreed to pay later.
D) It is used to record services for which a company has been billed for and agreed to pay later.
The financial statements must be prepared in a specific order. What is that order and why do financial statements need to be prepared in that order? B) Profit and Loss, Balance Sheet and Statement of Cash Flows. This order is required since the net income obtained from the Profit and Loss statement is used to increase assets on the Balance Sheet and the Balance Sheet's updated accounts are needed to prepare the Statement of Cash Flows. D) Profit and Loss, Balance Sheet and Statement of Cash Flows. This order is required since the net income obtained from the Profit and Loss statement is used to increase owners' equity on the Balance Sheet. The Balance Sheet's updated accounts are needed to prepare the Statement of Cash Flows.
D) Profit and Loss, Balance Sheet and Statement of Cash Flows. This order is required since the net income obtained from the Profit and Loss statement is used to increase owners' equity on the Balance Sheet. The Balance Sheet's updated accounts are needed to prepare the Statement of Cash Flows.
In QBO, what is the difference between the vendor transaction Bill and Expense?
Expense — record expenses paid for using cash, check or credit card at the time a company receives the product or service. Bill — record services received that will be paid for later creating an account payable.
When we do NOT use the Pay Bills form?
If the Expense form or the Check form was used to enter the vendor transaction, since it has already been paid at the time
Equity accounts are:
Increased with credits and decreased with debits.
Why do users of QBO want to align their company's tax form with their company's accounts?
Information in the accounts feeds into lines on the tax return which reduces extra work needed at year end when tax returns are prepared.
Why is it important to align QBO with a company's legal entity and tax information during initial set up?
Legal entity dictates what tax form a company uses and the tax form affects the accounts QBO needs to use.
What impact will a Deposit in Transit and an Outstanding Check have on a company's accounting records after a reconciliation is completed? (will cash have to increase or decrease based on the reconciling item)
No change needs to be made to the Cash account for Outstanding Checks and Deposits in Transit.
In QBO, how are the Open Purchase Orders report and the Physical Inventory Worksheet different?
Open Purchase Orders represent purchase orders for items ordered but not yet received and the Physical Inventory Worksheet compares inventory on hand in QBO with a physical count of goods.
In QBO, the weekly timesheet can be used to bill time to a specific customer. The time can then be transferred to a specific customer's invoice by completing the following steps:
Select Customer Name in drop-down Customer List, and select Service from the drop-down Services List. Check Billable and enter in a Description, and Time.
When using the Navigation Bar in QBO to enter in sales transactions, a user must perform the following:
Select Sales and click on the drop-down arrow for New transaction. Next, select the type of transaction and complete the online form.
What is the process to add a new transaction from the Check Register window?
Select the drop-down arrow by Add Check in the Check Register window, then select the new type of transaction to enter i.e. deposit, refund, expense, etc.
When in the QBO Chart of Accounts window, adding new accounts is completed by:
Selecting Accounting, then New, then enter a Category Type and a Detail Type. A Sub- account is optional, therefore, Uncheck sub-account if not needed.
What are the 2 main aspects of using QBO Employee and Payroll?
Setting up payroll and Processing payroll
QBO provides two different ways to track time
Single Time Activity and Weekly Timesheet
Which of the following is correct regarding a company's legal entity type and the tax form it must file with the IRS?
Sole Proprietor and Form 1040 Schedule C
How is Federal Tax Form 944 different from Federal Tax Form 941?
Tax form 944 is used by very small companies to summarize federal income tax, Social Security, and Medicare withheld from employee paychecks for the year vs. quarterly.
Accounts and Settings is an option available by clicking on the Gear icon in the upper right side of the QBO screen. What is difference between the Chart of Accounts and Recurring Transactions?
The Chart of Accounts is a list of accounts the company uses and Recurring Transactions are transactions saved for future reuse
Adjusting Entries
The QBO Journal is used to record adjustments (and corrections). Adjustments are often necessary to bring the accounts up to date at the end of the accounting period.
What is the primary objective of accounting and how does QBO assist in achieving this objective?
The primary objective of accounting is to provide information for decision making and QBO is used to capture, track, sort, summarize, and communicate financial information.
Create Pay Bills
Use Pay Bills to select the bills that are due and we are ready to pay. If the bill has been entered using the Bill form, then the bill will automatically appear in the Pay Bills List.
What is FUTA?
It is a payroll tax owed by the business and reported annually on a tax form 940
Which of the following describes the QBO Mobile Payroll app?
It offers employers the convenience of running payroll from their device (Apple and Android) and is synced with QBO.
three main QBO processes
QBO Settings, Transactions, Reports
Create icon
to display options entering transactions
2 Ways to Update the Vendors List
1. Before entering transactions 2. While entering transactions
A user must turn on QBO time tracking preferences
before entering time.
Types of Vendors
1. Suppliers from whom we buy inventory or supplies 2. Service companies that provide services to our company, such as cleaning services or landscaping services 3. Financial institutions, such as banks, that provide financial services including checking accounts and loans 4. Tax agencies such as the IRS (the IRS is considered a vendor because we pay taxes to the IRS) 5. Utility and telephone companies
In QBO, what is a Bundle?
A collection of products or services that are sold together as a bundle. Products can be purchased separately and sold to customers as a Bundle.
If Undeposited Funds was selected during Receive Payment, then which of the following is true?
A company must create a bank deposit to transfer the funds from the Undeposited Funds account to the appropriate bank account.
If Undeposited Funds was selected during Receive Payment, then which of the following is true? A) A company must create a bank deposit to transfer the funds from the Undeposited Funds account to the appropriate bank account. B) Use the Gear Icon and select Bank Deposit under Other to record the transfer. C) Undeposited Funds are used with Bundles and the company must separate out the different payments prior to creating a bank deposit. D) Acompany does not need to create a bank deposit since the funds are already available to pay bills.
A) A company must create a bank deposit to transfer the funds from the Undeposited Funds account to the appropriate bank account.
Which of the following is NOT a choice available to a LLC for how it wishes to be treated for tax purposes? A) C Corporation filing a form 1120 B) S Corporation filing a Form 1120S C) Sole Proprietorship filing a Schedule C attached to an owners Form 1040 D) Partnership filing a Form 1065
A) C Corporation filing a form 1120
What is the difference between a correcting entry and an adjusting entry? A) Correcting entries fix mistakes in the accounting system. Adjusting entries are not mistakes but updates required to bring accounts to the correct balances as of a certain date. B) Correcting entries are updates required to bring accounts to the correct balances as of a certain date. Adjusting entries fix mistakes in the accounting system. C) Correcting entries require one journal entry to fix and adjusting entries require two entries to fix.
A) Correcting entries fix mistakes in the accounting system. Adjusting entries are not mistakes but updates required to bring accounts to the correct balances as of a certain date.
Which of the following is NOT true regarding accounts receivable? A) Due to a company's prescreening activities, it is generally not that important to track the receivable after the credit sale. B) The risk is that a customer may break their promise to pay resulting in a bad debt or uncollectible account. C) It is important to track accounts receivable to determine if accounts are collected in a timely manner. D) Accounts receivable arise from credit sales where we debit account receivable and credit sales.
A) Due to a company's prescreening activities, it is generally not that important to track the receivable after the credit sale.
Expense accounts are: A) Increased with debits and decreased with credits. C) Increased with credits and decreased with debits.
A) Increased with debits and decreased with credits.
What is the QBO Check Register? A) It keeps track of all banking activities. B) Monitors credit card charges and withdrawals. C) It tracks deposits and checks in QBO; credit cards are managed in a Credit Register. D) It is a review analysis and it is a list of all items checked during the review analysis.
A) It keeps track of all banking activities.
When using the Navigation Bar to enter expense transactions in QBO, a user must perform the following: A) Select Expenses and click on the drop-down arrow for New transaction. Next, select the type of new transaction and complete the online form. B) Select Create (+) and click on the drop down arrow for New transaction. Next, select the type of transaction and complete the online form. C) Select Accounting and select New transaction from the Vendors transaction selection shown. D) Select Create (+) and select New transaction from the Vendor transactions shown.
A) Select Expenses and click on the drop-down arrow for New transaction. Next, select the type of new transaction and complete the online form.
In QBO, the process for updating the Vendors List While entering transactions is: A) Use the Create (+) icon to find the appropriate onscreen form. Then select Choose a payee drop-down arrow > + Add new and enter the new vendor information. B) Select the Create (+) icon and then Choose a vendor drop-down arrow > + Add new and entering the new vendor information.
A) Use the Create (+) icon to find the appropriate onscreen form. Then select Choose a payee drop-down arrow > + Add new and enter the new vendor information.
QBO Adjustments
Adjustments are often required to bring our accounts up to date and show the correct account balances on financial reports. Adjustments are typically made at the end of the accounting period, so accounts are up to date before year-end reports are prepared.
QBO groups transactions into the following different types? A) Banking and Savings, Customers and Sales, Vendors and Expenses, Employees and Payroll, and Other. B) Banking and Credit Card, Customers and Sales, Vendors and Expenses, Employees and Payroll, and Other. C) Banking and Credit Card, Customers and Sales, Payables, Employees and Payroll, and Other. D) Banking and Credit Card, Customers and Sales, Vendors and Expenses, and Employees and Payroll.
B) Banking and Credit Card, Customers and Sales, Vendors and Expenses, Employees and Payroll, and Other.
Which of the following is correct regarding QBO COA? A) QB0 is not able to assist in tax return preparation and only requests legal entity status for COA account purposes. Changes to the COA are encouraged and should happen often. B) By customizing the QBO COA to align with the business tax return, countless hours are saved in preparation time, and tax returns are more accurate. C) QBO does allow editing of the accounts in the COA, however, it only allows authorized users to make changes. QBO codes accounts for tax return preparation tracking. D) QBO does not encourage editing of its COA since too many errors can be made by changing what was initially set up when the company was organized.
B) By customizing the QBO COA to align with the business tax return, countless hours are saved in preparation time, and tax returns are more accurate.
Which is NOT true regarding the Accounts Payable Aging Report? A) It provides information to track amounts we owe our vendors. B) It ensures a company is aware of the credit limit it has with each vendor. C) It summarizes accounts payable balances by age of the account. D) It tracks how much we owe vendors and the amounts due including past due balances.
B) It ensures a company is aware of the credit limit it has with each vendor.
Businesses might want to have multiple checking accounts to provide various functions. What type checking account would a business NOT want to have? A) Hourly Payroll B) Owner's personal expenses C) Operations related D) Salaried Payroll
B) Owner's personal expenses
QBO Reports is a process included in QBO SatNav. Which of the following best describes the essence of QBO Reports? A) QBO Reports are the output of the system and provide information mainly to decision makers outside of the company. It is rather limited to the following types of reports generated: tax returns, and financial statements. B) QBO Reports provides information to a variety of decision makers and is the output of the accounting system. The Reports includes but are not limited to the following: Financial statements, Tax Returns, and Management reports. C) QBO Reports is still being developed by QBO and contains mainly financial statements with plans to expand its abilities in the future to tax returns and internal reporting. D) QBO Reports mainly provide information to a company's managers and accountants and is limited to providing information regarding cash flows and ability to pay debts when due.
B) QBO Reports provides information to a variety of decision makers and is the output of the accounting system. The Reports includes but are not limited to the following: Financial statements, Tax Returns, and Management reports.
Which of the following statements is true regarding QBO? A) QBO is updated annually to ensure the content screens are familiar to users. B) QBO is cloud-based and uses a web browser to access information vs. installed software. C) QBO does not require a user to have integrated knowledge of accounting, financial systems or technology. D) QBO can only be accessed by using installed software on a computer desktop or laptop.
B) QBO is cloud-based and uses a web browser to access information vs. installed software.
Which of the following is false regarding recurring transactions in QBO? A) Recurring transactions save time and reduce errors. B) Recurring transaction types are set up in QBO to be scheduled and do not represent unscheduled type of transactions. C) Recurring transactions are frequently used transactions which are saved to use in future transactions. D) Recurring transactions are classified in QBO as three different types: Scheduled, Unscheduled and Reminder.
B) Recurring transaction types are set up in QBO to be scheduled and do not represent unscheduled type of transactions.
In QBO, Recurring transactions can be classified as: 1. Scheduled 2. Unscheduled 3. Reminder. Which of the following statements is NOT true regarding these three classifications? A) Unscheduled transactions appear in the Recurring Transactions list but QBO will not automatically enter the transaction. B) Scheduled transactions are a great option to use for Recurring adjusting entry transactions since adjustments generally are for a constant amount each time. C) Reminder transactions mean QBO will alert us with a reminder when we should use a recurring transaction to enter in an adjustment. D) Scheduled transactions mean QBO automatically enters the transaction on the date the user specifies.
B) Scheduled transactions are a great option to use for Recurring adjusting entry transactions
Which of the following is NOT true regarding the Allowance method? A) The uncollectible accounts expense is estimated in advance of the write-off. B) This method is used for tax purposes. C) The estimate can be calculated as a percentage of sales or as a percentage of accounts receivable. D) The method should be used if uncollectible accounts have a material effect on a company's mfinancial statements.
B) This method is used for tax purposes.
Which one of the following statements best describes a transaction? A) Transactions are only completed annually and close out temporary accounts. B) Transactions are exchanges between a business and other parties. C) Transactions are only completed at the end of the month and relate to adjusting accounts. D) Transactions are based on cash being received and paid.
B) Transactions are exchanges between a business and other parties.
Balance sheet accounts Profit and Loss accounts
BS: Assets, Liability, Equity (permanent account) PL: Income, Expense (temporary account)
QBO groups transactions into the following different types?
Banking and Credit Card, Customers and Sales, Vendors and Expenses, Employees and Payroll, and Other
Which selection below is FALSE regarding Adjustments? A) Adjustments bring accounts up to date and show the correct account balances on financial reports. B) Adjustments are also called Adjusting Entries since we enter Adjustments by making entries into a Journal. C) Adjusting entries are dated the first day of the accounting period. D) Adjustments are typically made at the end of the accounting period to up date accounts before year-end reports are prepared.
C) Adjusting entries are dated the first day of the accounting period.
Which of the following is correct? A) Balance sheet accounts are considered permanent accounts and these accounts have balances that are closed each year. B) Profit and Loss accounts are considered permanent accounts and these accounts have balances that are closed each year. C) Balance sheet accounts are considered permanent accounts and these accounts have balances that are carried forward from year to year. D) Balance sheet accounts are considered temporary accounts and these accounts have balances that are carried forward from year to year.
C) Balance sheet accounts are considered permanent accounts and these accounts have balances that are carried forward from year to year.
Why are bank reconciliations a good internal control? A) Bank reconciliations allow the company to update the Cash account to equal the bank balance. B) Bank reconciliations are not part of the internal control system. C) Bank reconciliations compare actual assets existing at the bank with accounting records. D) Bank reconciliations allow the bank to update its cash to agree to the company's accounting records.
C) Bank reconciliations compare actual assets existing at the bank with accounting records.
What is the difference between a correcting entry and an adjusting entry? B) Correcting entries are updates required to bring accounts to the correct balances as of a certain date. Adjusting entries fix mistakes in the accounting system. C) Correcting entries fix mistakes in the accounting system. Adjusting entries are not mistakes but updates required to bring accounts to the correct balances as of a certain date. D) Correcting entries and adjusting entries are the same type of entry just labelled differently.
C) Correcting entries fix mistakes in the accounting system. Adjusting entries are not mistakes but updates required to bring accounts to the correct balances as of a certain date.
What is true regarding FUTA? A) It is a payroll tax owed by the business and reported quarterly on form 940. B) It is a payroll tax shared by the employer and employee and reported quarterly on form 941 and annually on tax form 944. C) It is a payroll tax owed by the business and reported annually on a tax form 940. D) It is a payroll tax owed by the business and reported quarterly on form 941 and annually on tax form 944.
C) It is a payroll tax owed by the business and reported annually on a tax form 940.
QBO Settings are comprised of Company Settings and QBO Chart of Accounts. Company Settings are accessed by using the following process: A) Select the Create (+) icon, then select Other, then select Company. B) Select the ? icon, then select Search, then select Company. C) Select the Gear icon, then select Account and Settings, then select Company. D) Select the Search icon, then select Advanced Search, then select Company.
C) Select the Gear icon, then select Account and Settings, then select Company.
What is the process to add a new transaction from the Check Register window? A) Select the drop-down arrow by Add Check in the Check Register window, then select the payee account, and save. B) Select the drop-down arrow by Balance in the Check Register window, then select the type of transaction to enter i.e. deposit, refund, expense, etc. C) Select the drop-down arrow by Add Check in the Check Register window, then select the new type of transaction to enter i.e. deposit, refund, expense, etc. D) Select the drop-down arrow by Payment in the Check Register window, then select the new type of transaction to enter i.e. deposit, refund, expense, etc.
C) Select the drop-down arrow by Add Check in the Check Register window, then select the new type of transaction to enter i.e. deposit, refund, expense, etc.
QBO is able to display account numbers in the Chart of Accounts by:
Click the Gear Icon, click Account and Settings, Click Advanced, click Chart of Accounts, then check Enable Account Numbers.
Employee Lists in QBO online are used to:
Collect information about employees for payroll purposes including name, Social Security number, and address.
3 QBO Tools
Create (or + icon), Search icon, Gear Icon
What statement is true regarding a company's bank and credit card in QBO? B) QBO can connect a company's bank account but not its credit card resulting in expenses written by check or electronically deducted from the bank being automatically downloaded from the bank to QBO. QBO then prepares transactions related to bank account expenses. D) QBO can connect a company's bank account and its credit card resulting in expenses being automatically downloaded from the bank or credit card to QBO. QBO then prepares transactions related to both of these expenses.
D) QBO can connect a company's bank account and its credit card resulting in expenses being automatically downloaded from the bank or credit card to QBO. QBO then prepares transactions related to both of these expenses.
What is the correct process to record a Bank Deposit (not related to customer sales)? A) Select the Create (+) icon, select Bank Deposit under Other, click on Bank and enter the date, select Received Form in Add New Deposits, then select the appropriate Account and enter in the information necessary. B) Select the Gear icon, click on Bank and enter the date, select Received Form in Add New Deposits, then select the appropriate Account and enter in the information necessary. C) Select the Gear icon, select Create (+), click on Bank and enter the date, select Received Form in Add New Deposits, then select the appropriate Account and enter in the information necessary. Use Attachments to add a file or photo of the source document. ¥ D) Select the Create (+) icon, select Bank Deposit under Other, click on Bank and enter the date, select Received Form in Add New Deposits, then select the appropriate Account and enter in the information necessary. Use Attachments to add a file or photo of the source document.
D) Select the Create (+) icon, select Bank Deposit under Other, click on Bank and enter the date, select Received Form in Add New Deposits, then select the appropriate Account and enter in the information necessary. Use Attachments to add a file or photo of the source document.
QBO Settings are comprised of Company Settings and QBO Chart of Accounts. Company Settings are accessed by using the following process: A) Select the Search icon, then select Advanced Search, then select Company. B) Select the ? icon, then select Search, then select Company. C) Select the Create (+) icon, then select Other, then select Company. D) Select the Gear icon, then select Account and Settings, then select Company.
D) Select the Gear icon, then select Account and Settings, then select Company.
Which of the following is incorrect regarding the type of tax form related to legal form of organization? A) C Corporation — Form 1120 B) Sole Partnership — Form 1040 Schedule C C) Partnership — Form 1065 D) Sole Proprietorship — Form 1040 Schedule S
D) Sole Proprietorship — Form 1040 Schedule S
Which of the following is NOT an objective of a bank reconciliation? A) It is a great internal control that involves comparing actual assets at the bank with accounting records. B) Detection of errors. C) Update the checking account for unrecorded increases and decreases in cash. D) The reconciliation ensures that the owner's personal expenses are not included in the business expenses.
D) The reconciliation ensures that the owner's personal expenses are not included in the business expenses.
What is FALSE regarding the adjusted trial balance? A) The adjusted trial balance verifies that the accounting system still balances after the adjusting entries are made. B) To view an Adjusted Trial Balance in QBO just run the Trial Balance report after adjusting entries have been entered. C) The adjusted trial balance is prepared to view updated account balances after adjusting entries are made. D) To view an Adjusted Trial Balance in QBO select the Adjusted Trial Balance in Accountant Reports.
D) To view an Adjusted Trial Balance in QBO select the Adjusted Trial Balance in Accountant Reports.
What is NOT true regarding Tax forms? A) Tax forms include: Federal and State income tax returns, Federal Payroll Forms and Federal Form 1099. B) The objective of the tax form is to provide information to federal and state tax authorities. C) When preparing tax returns, a company uses different rules from those used to prepare financial statements. D) When preparing tax returns, a company uses the same rules as those used to prepare fnancial statements.
D) When preparing tax returns, a company uses the same rules as those used to prepare financial statements.
The financial statements must be prepared in a specific order. What is the order and why do financial statements need to be prepared in that order?
Profit and Loss, Balance Sheet and Statement of Cash Flows. This order is required since the net income obtained from the Profit and Loss statement is used to increase owners' equity on the Balance Sheet. The Balance Sheet's updated accounts are needed to prepare the Statement of Cash Flows.
QBO Chart of Accounts
QBO Chart of Accounts is aligned with a company's tax return since QBO is used to organize financial information for tax preparation. QBO Chart of Accounts is customized by a user to fit its company's needs. QBO automatically creates a Chart of Accounts when a new company is set up.
QuickBooks Online (QBO)
QuickBooks Online is accounting in the cloud. Use a browser to access instead of installing software. Intuit recommend Google Chrome browser.
Which of the following is true regarding recording an accounts payable transaction?
When a purchase is made, accounts payable is increased with a credit and when the bill is paid, accounts payable is decreased with a debit.
In QBO, which of the following is TRUE?
When making journal entries, accountants generally list Debits before Credits, however, QBO may not always list Debits before Credits in Journal entries.
Vendors List
When we enter vendor transactions, we typically need to use the Vendors List. The Vendors List permits us to store information about the vendor, such as vendor name, address, and contact information, we can reuse that information without re-entering.
Create Bill
When we receive a bill from a vendor, we use the Bill form to create the bill in QBO. The Bill form is used to record vendor transactions that we pay later. EX of Bills include rent, utilities expense, insurance expense, and accounting and professional services.
When preparing tax returns, a company uses ( ) rules from those used to prepare financial statements
different rules from those used to prepare financial statements
A Weekly Timesheet is used to enter time worked by
each employee during the week and includes time billable to customers.
Use Pay Bills only
for bills that have been entered using the Bill forms.
QBO reports can be selected
from the Navigation Bar and Dash board, which summarizes key financial information
The gear icon
lists various tasks
Most QBO reports are accessed from
the Navigation Bar QBO offers numerous reports to meet the needs of a wide array of users
If updating While entering a transaction, then use
the screen where you enter the transaction to update as well
In QBO, account numbers are:
used to uniquely identify accounts and help identify an account type.
Update vendors list while entering transactions
we can update the Vendors List from the screen where we enter the transaction
