Quickbooks - Online Practice Tests (1 & 2)

What does the Apps tab on the left-hand navigation do in Quickbooks? (Choose 2)

- Allows you to open and use apps you are connected to. - Allows you to search for new apps to use.

What is the difference between an Invoice and a Sales Receipt?

- An invoice records a sale and how much your customer owes. A Sales Receipt records a sale and the payment you received (it doesn't track any amount as owed).

Your boss wants to know what the balance is for total assets, liabilities and equity. What financial report would you use to find this information?

- Balance Sheet

To add a receipt to Quickbooks Online from your computer, what option do you select from the left-hand navigation to begin the process?

- Banking

Which form cannot be customized in Quickbooks?

- Bill

Which two accounts of the following accounts would most likely appear on the Balance Sheet report?

- Checking - Accounts Receivable

How would you enter a transaction that won't be downloaded from an online bank account in which you paid for a service using a debit card?

- Click on the <+New> icon and select Expense. Fill out the expense and use Debit card as the payment method.

Your new employer would like to Invoice her customers for job materials that she has to buy to complete a project. Currently her expense forms that look like this: <IMAGE>. She needs her form to look like this: <IMAGE>. How do you fix this?

- Click the "GEAR" icon next to the company name. Click Account and Settings/Company Settings. Click the Expenses tab. Select "Track Expenses and Items as billable."

You're working in QuickBooks at a coffee shop for a few hours and don't want to share all of your company's financial details with everyone there. How can you fix this?

- Click the private mode switch on the dashboard to prevent sensitive financial information from being displayed in the window.

Select two benefits of using Quickbooks Online.

- Companies can easily invite their outside accountant to access the QBO company file remotely. - QBO is in the cloud and can be accessed from anywhere as long as you have an internet connection.

Which two user types below would be able to write a check in Quickbooks Online. (Choose 2)

- Company Admin - Standard user with vendor access only

Select 2 ways to identify unbilled billable expenses.

- Create a new invoice and any unbilled billable expenses will appear on the sidebar. - Run the report Unbilled charges.

What transaction should you enter if a customer returns a damaged product that they have not yet paid for.

- Credit Memo

From the list below, select the two ways you can upload receipts into Quickbooks Online. (Choose 2)

- Email the receipt to a custom email in QBO. - Upload a photo of your receipt from your computer.

You are setting up a new product you will frequently need to purchase for your company. You want Quickbooks Online to provide fields to track the product. How do you set up a new product to be tracked by Quickbooks?

- Enable the box, "I purchase this product/service from a supplier."

A remind recurring transaction will process automatically at the set interval of recurrence.

- False

After a transaction is downloaded from the bank feed into Quickbooks Online, Quickbooks will suggest the bank reconciliation discrepancy account if it does find an applicable bank rule or matching transaction.

- False

An unscheduled recurring transaction must have a set end date.

- False

Connecting to online bank accounts and downloading transactions, increases the likelihood of not recording a transaction.

- False

Connecting to online bank accounts and downloading transactions, increases the time spent on data entry.

- False

Discounts are a list in QBO.

- False

Discounts are always applied to total after the sales tax is added.

- False

If Bill with Customer option is selected on the sub-customer, then payments received must be applied to the parent customer.

- False

If the terms for a customer are changed on Sept 10 of the current year all the due dates on all open invoices dated before September 10th of the current year will be updated with new due dates.

- False

When creating an invoice for Duke's basketball camp, the terms on the invoice can only be Net 15.

- False

When you receive a check from your customer to pay an open invoice, you should select Check to record the amount.

- False

You must set up the sub-customer before the parent-customer.

- False

Monthly rent expense payments

- Good Candidate

Purchases of fuel for your work trucks

- Good Candidate

Utility Expense

- Good Candidate

Which of the following statements are true regarding vendor credits? (Choose 2)

- If an inventory item is entered in the product/service field of the item details section of the vendor credit, the inventory quantity on hand balance would decrease. - Vendor credit memos decrease what you owe to the vendor.

What is one reason to not use a bank deposit journal entry screen to record sales?

- If you record sales through the bank deposit or journal entry screen, the sale will not appear on sales reports.

When setting up a new inventory item what accounts have to be defined?

- Income account - Inventory asset account - Expense account

You notice an invoice you entered last month has changed significantly, but you didn't make the change. How can you find out who changed it and what they changed?

- Look at the Audit Log report.

Quickbooks Online allows you to connect directly to which of the following financial accounts to download activity into QBO?

- Most major US banks and credit card processors.

You can import a report from Excel into Quickbooks (as long as you exported the report from Quickbooks originally).

- No

Hourly payroll worker paycheck

- Not a Good Candidate

All of the fields below are fields that can be edited with changing the email sent to the customer with their invoice except which two?

- Priority - From Address

When entering a journal entry, what happens if the debits don't equal the credits?

- Quickbooks will not allow you to record the transaction.

What transaction should you enter if a customer returns a damaged product, or in the case of a service, complains so much you decide to write them a check for a refund?

- Refund Receipt

The owner of the business asks you to set up Quickbooks to automatically email him a specific report on a regular basis (e.g., weekly or monthly). How would you do this?

- Run the report you want to email. Click Save Customization. Select Reports and go to Custom Reports. Select the line of the report on the list and click Edit. Set the email schedule in the window.

You're setting up a new customer. How do you tell Quickbooks that this customer's invoices should be due 30 days after they're issued?

- Set the customer's Terms to Net30.

How do you track Accounts Payable (A/P) in Quickbooks?

- Step 1: Enter a Bill. Step 2: Pay the Bill in the Pay Bills window.

Select the two statements below that are correct as it relates to merging vendors.

- To merge vendor A into Vendor B you should edit the display name of vendor A to match vendor B. - Merging of vendors cannot be undone.

What is the purpose of the Audit Log report?

- To track any changes and deletions to transactions as well as track which user makes the change or deletion.

Select three statements that are correct about journal entries. (Choose 3)

- Total debits must equal total credits on a journal entry. - The accounts used on a journal entry come from the chart of accounts. - A journal entry must have a date.

A scheduled recurring transaction will process automatically at the set interval or recurrence.

- True

After entering a Bill you should select to Pay bills when it is time to pay the bill.

- True

An invoice dated September 10 of the current year will be due by September 25th of the current year.

- True

Connecting to online bank accounts and downloading transactions allows you to apply banking rules to automatically categorize common transactions.

- True

Discounts can be a dollar amount.

- True

Discounts can be a percentage rate.

- True

Entering a Bill increases Accounts Payable.

- True

If Bill with Parent option is selected on the sub-customer, you can see the activity of the sub-customer in the parent customer account.

- True

If you want to keep a downloaded transaction from going into your company expenses you should exclude the transaction.

- True

Sub-customers could be used when one customer has multiple shipping locations where you ship product.

- True

The first download after setting up the bank fees will include 90 days for transactions unless excluded.

- True

Vendor credits can be used to reduce the amount paid to a vendor.

- True

Which of the following statements is true regarding Undeposited Funds in Quickbooks?

- Undeposited Funds is an account used to record payments before you make a deposit.

You have a customer who will now also be a vendor. How do you handle this in Quickbooks?

- Use a "V" at the end of a display name on the vendor record to differentiate the vendor record from the customer record.

A company uses Quickbooks, but they need another program or app to manage all the interactions they have with their customers (this is usually called a relationship management or CRM application). They don't want to enter every customer twice (once into Quickbooks and once into the CRM application). What do you suggest they do?

- Use the Apps tab in Quickbooks to find a CRM app.

What information would you see on a standard accounts payable aging summary or accounts payable aging detail report? Select 2 items

- Vendors who you owe money to. - Due dates for bills

You mailed a check to pay your monthly rent. The check was lost in the mail and was never cashed. What should you do with the check in Quickbooks?

- Void the check.

Which two statements below are correct as it relates to the Close the Books feature. (Choose 2)

- When setting a closing date you can choose to warn users or require a password for any transactions that are attempted to be edited, deleted or added prior to the closing date. - If a warning is used instead of a password the user is not stopped from making the change.

You can email a Quickbooks report.

- Yes

You can export a Quickbooks export to excel.

- Yes

You can export a Quickbooks report as a PDF.

- Yes

You need to create a recurring invoice. Select two statements that are true about creating a recurring invoice. (Choose 2)

- You can set a recurring invoice to run for a fixed number of times. - To create the recurring invoice, open or create the invoice, and then click Make recurring.

Which three statements are true about setting up a product or service in Quickbooks Online? (Choose three)

- You can use one product/service to represent different services or goods. - To create an invoice, you can use either a product or a service. - Products/Services allow you to track your sales in more detail without cluttering your Chart of Accounts or Profits & Loss.

The company that just hired you uses Quickbooks Online. You notice there are many duplicate entries on lists, such as the same customer or account entered twice with slightly different spellings. You've decided to merge the duplicates. Which three statements are true about merging list entries? (Choose three)

- You cannot merge a customer with a vendor entry. - You cannot merge expenses and items. - You can only merge a names from the same Type.

When should you not delete a check?

- You printed a check and the check number has been used.

You need to track your company sales and expenses by department. Put the following steps in order for tracking transactions for departments in the correct order. Not all steps will be used.

1: Turn on Classes in company settings. 2: Create your departments on the Class List. 3: On sales and expense transactions, select the class(es) associated with each transaction. 4: Run the Profit and Loss by Class report. 5: Turn on Departmental Tracking in company settings. 6: Click the Tracking button.

Your boss wants to know if there are any overdue bills. What report would you run to give him this information?

- Accounts Payable Aging report

Where in Quickbooks can you find out the status of what you owe to a vendor and when it's due?

- Accounts Payable Aging report or the Vendor Balance Detail report

When should you select your checking account as the payment account on an Expense form?

- All of the answers are correct

You made a sale, and the customer paid the entire amount in cash. How do you enter this sale into Quickbooks Online? Put the steps for entering this sale in the correct order. Not all steps will be used.

Step 1: Click the "+ NEW" icon. Step 2: Select the Sales Receipt. Step 3: Enter the sale and payment information. Step 4: Save the transaction.

You need to change your company address in Quickbooks Online. Put the steps for changing the company address in the correct order. Not all steps will be used.

Step 1: Click the "GEAR" icon on the home page. Step 2: Select Account and Settings.

Your computer retail store has decided to sell repair services. You must add this new list to Quickbooks Online. How do you add a new Services list to Quickbooks Online? Put the steps for adding a new list in the correct order.

Step 1: Click the "GEAR" icon. Step 2: Select Products and Services. Step 3: Click the New button. Step 4: Select Service. Step 5: Enter a service Name, Information (description), Rate, and Account to track income.

Customer A pays you cash in the morning for work done that morning. Later in the day, customer B drops off a check for an unpaid invoice. You record the payments and take both checks to the bank on the same day. Place the following steps in order to show how you do this in Quickbooks assuming steps are completed right after the customer action occurs. Not all steps will be correct.

Step 1: Create a Sales Receipt for the work done for Customer A. (Correct) Step 2: Click Receive payment next to Customer B and record the payment received. (Correct) Step 3: Select Deposit from the <+New> icon and select the transactions for Customer A and Customer B. (Correct) Step 4: Click Receive payment next to Customer A and record the payment received. (Incorrect)

The vendor that is used to provide all your office supplies has changed your payment terms. Put the steps in order for how to change the payment terms for the vendor in Quickbooks Online. Assume the term is already in the Terms list. Not all steps will be used.

Step 1: Select Expenses from the left-hand navigation Step 2: Select the Vendors tab. Step 3: Click on the Name of the vendor you want to edit. Step 4: Select edit. Step 5: Change the term to the new term Step 6: Select Save and Close.