QuickBooks Certification

Which of the following statements are TRUE regarding credit memos? a) Its the reverse of an invoice b) Reduces accounts receivable c) Decreases cash d) It's a money-out accounting transaction e) Refunds the customer

A and B

One of the last period-end tasks is to send out management reports. What different formats does QuickBooks enable you to send these in? a) PDF b) Rich text format c) Microsoft Word document d) Google Doc

A and C

How can vendor credits be used in QuickBooks? a) Apply it to a bill that has been paid b) Apply it to an existing open bill c) Enter it and leave as a credit on the vendor's account d) Apply it to an invoice e) Apply it to a credit memo

A, B ,and C

What happens when your client receives a bill and records it in QuickBooks? a) Credits accounts payable b) Increases accounts payable balance c) Debits the expense account d) Increases expenses on the profit and loss

All of the above

You're configuring the Expenses options in Account and settings for a client. So that they can specify which products and services are purchased from vendors, you switch on Show Items table on expense and purchase forms. To which of the following forms does this add a product/service option? a) Bill b) Check c) Expense d) Purchase order e) Vendor credit

C and D

What is the best way to record a payment made to a credit card to ensure that it's categorized accurately in QuickBooks? a) It should be categorized to an expense account b) It should be recorded as a bill payment c) It should be recorded as a credit card credit d) It should be recorded as a pay down credit card transaction

d) It should be recorded as a pay down credit card transaction

You are creating a new item in your client's products and service list. This item is provided to your client's customers, and can be one-time, recurring, or fixed-fee. Which item type should you choose to set this up? a) Inventory b) Non-inventory c) Service d) Bundle

d) Service

All firms and clients are unique, so period end can look different depending on who your client is. Common tasks are added to QuickBooks, with links to the relevant data, but there will also be tasks that are specific to individual clients. Which feature can you use to add tasks to your period-end workflow for a specific client? a) Notes in Accountant tools b) Custom reports in the Reports center c) Client notes in QuickBooks Online Accountant d) The Additional items section in each tab of the Books review center

d) The Additional items section in each tab of the Books review center

When your client spends money at the time of purchase, what should be used to record the transaction in QuickBooks? a) An expense b) A bill c) A purchase order d) A sales receipt

a) An expense

If you want to take a customer out of the records to help maintain a clean customer list, what should you select from the Action column for that customer? a) Make inactive b) Edit c) Delete d) Remove

a) Make inactive

You generally need to submit a 1099 to the IRS at year end when you pay more than how much for services from a vendor who is an independent contractor or freelancer? a) $60 b) $600 c) $6,000 d) $16,000

b) $600

Your client wants to identify how much they are spending with particular vendors to help identify areas of overspend. Which report would be most helpful for them? a) Transaction List by Vendor b) Expenses by Vendor c) Check Detail d) Accounts Payable Aging

b) Expenses by Vendor

Which of the following about a client's bank and credit card statements are TRUE? a) When the account is connected, the account statements may automatically upload to QuickBooks b) If the client's bank doesn't automatically upload statements to QuickBooks, you will need to work with the paper statement c) You can't manually upload statements into QuickBooks—they must come in automatically via a connected account d) You need the statement so that you can see the beginning and ending balances, activity, and the total amount of withdrawals and deposits on that account for the statement period

A and D

Your client makes a sale but doesn't expect to be paid immediately. Which sales form should they issue to their customer? a) Credit memo b) Estimate c) Sales receipt d) Invoice

d) Invoice

Which of the following vendor details is it best practice to maintain in their record in QuickBooks? a) Opening balance b) Account number c) Address d) Email address

B, C, and D

Which of the following statements best describe tags in QuickBooks? a) Tags are the best way to generate reports to analyze financial data based on location, to make informed decision about each location's performance b) Tags are integrated into all standard reports, and offer advanced filtering and sorting capabilities. c) Tags are customizable labels that you can add to transactions that affect the profit and loss statement. d) Tags are highly structured and typically used for high-level categorization, such as departments, product lines, or business units.

C) Tags are customizable labels that you can add to transactions that affect the profit and loss statement

Your client wants to see all their unpaid bill transactions, grouped by days past due. Which report will show them this? a) Accounts Payable Aging Detail report b) Expenses by Vendor Summary report c) Transaction List by Vendor report d) Accounts Payable Aging Summary report

a) Accounts Payable Aging Detail report

What happens when a transaction in the client's bank feed is exactly matched? a) It's matched to a transaction already recorded in a client's QB account b) It's matched to a rule in the Rules list c) It's matched to a project that's been set up in a client's QB account d) It's matched to an account in the chart of accounts

a) It's matched to a transaction already recorded in a client's QB account

A customer pays an invoice issued by your client. Which option from the +New button should be selected next? a) Receive payment b) Sales receipt c) Journal Entry d) Bank deposit

a) Receive payment

Which template types are good starting points when your client wants to record transactions that occur on a regular, scheduled basis, but where the client doesn't want QuickBooks to process them automatically because they need editing before they're created? a) Reminder b) Dynamic c) Unscheduled d) Scheduled

a) Reminder

A client wants to automatically invoice customers for a regular service they provide at a fixed price. Which recurring transaction template type would be most appropriate for them? a) Scheduled b) Unscheduled c) Reminder

a) Scheduled

Which of the following statements is FALSE regarding naming conventions when adding a vendor to QuickBooks? a) The Vendor display name can be the same as another customer or vendor b) The Vendor display name is the name used to display the vendor in QuickBooks c) The Company name and the Vendor display name can be the same in both places or they can different d) The Company name appears on all bills and purchase orders created for this vendor

a) The Vendor display name can be the same as another customer or vendor

Which one of the following statements about connecting a client's bank or credit card account to QuickBooks Online is TRUE? a) The client should sign in to their bank or credit card account themselves—they shouldn't share their details so that you can sign in on their behalf b) You can automatically import data from any date you wish, from when the bank or credit card account was opened c) The client can connect up to three bank and credit card accounts to their QuickBooks account d) There should be one corresponding account in the chart of accounts to allocate all connected accounts to

a) The client should sign in to their bank or credit card account themselves-they shouldn't share their details so that you can sign in on their behalf

Your client has received payments from clients, but they haven't yet deposited them at their bank? In which account in QuickBooks should these payments be? a) Undeposited Funds b) Uncategorized Asset c) Uncategorized Income d) Unapplied Cash Payment Income

a) Undeposited Funds

Which template types are good starting points when your client wants to record transactions in the future that occur on an ad-hoc basis or where the details are subject to change each time? a) Unscheduled b) Reminder c) Scheduled d) Dynamic

a) Unscheduled

You're in the Final review stage of Books review, and you're reviewing the profit and loss statement. You see a figure of $43.21 against the Reconciliation discrepancy account. What does this indicate? a) The book have been closed without all accounts being reconciled b) An account reconciliation has been forced without it being balanced c) Transactions have been added to QuickBooks for a period that has already been reconciled d) Your client is owed $43.21 from a customer

b) An account reconciliation has been forced without it being balanced

Which one of the following statements accurately describes bank text? a) Its the text used for the Vendor field and how you look up the transaction in the Expenses center b) Its the same as bank detail-information QB receives from the bank about a transaction c) Its a simplified version of the bank detail text d) Its text the only ever applies to transactions from a bank account, not a credit card

b) Its the same as bank detail-information QB receives from the bank about a transaction

Which type of transaction cannot be referenced with a tag in QuickBooks? a) Bill b) Journal entry c) Check d) Bank deposit e) Invoice f) Purchase order

b) Journal entry

Your client wants to send out a customer statement that reflects all the open sales transactions from the last 365 days. Which statement type is appropriate? a) Balance Forward b) Open Item c) Customer Open Balance d) Transaction Statement

b) Open Item

When might a client want to manually record an expense, rather than categorizing it when it comes in through the bank feed? a) When the expense is greater than $10 b) When the payee is a new vendor c) When a large expense is incurred d) When the expense needs to appear in a company report immediately

b) When the payee is a new vendor

Which QuickBooks feature makes it quicker to access the reports you'll use the most during your period-end reviews? a) Bookmarking the reports in the left-hand navigation b) Adding them to the Client overview center c) Favoriting the reports in the Reports center d) Adding links in QuickBooks Online Accountant

c) Favoriting the reports in the Reports center

In which tab of the Transactions center do bills and receipts appear after they're added to QuickBooks? a) Bank transactions b) App transactions c) Receipts d) Rules

c) Receipts

A client has an auto repair shop. They have replaced the tires on a customer's truck and they collect payment when the customer picks up the truck at the end of the day. Which sales form should they use to record this sales transaction? a) Invoice b) Estimate c) Sales Receipt d) Credit memo

c) Sales Receipt

Your client wants to identify customers with the same buying trends. Which report would be LEAST helpful for them? a) Sales by Customer b) Customer Balance c) Sales by Product/Service d) Income by Customer Summary report

c) Sales by Product/Service

What is the best way to record a payment to a credit card? a) Record the payment directly as income to balance the credit card account b) Use the Transfer feature to move the transaction from the bank account to the credit card account c) Use the Pay down a credit card feature to record moving funds from the bank account to the credit card account d) record the credit card statement as a bill and then record the payment as a bill payment

c) Use the Pay down as credit card feature to record moving funds from the bank account to the credit card account

Which of the following statements about purchase orders is FALSE? a) Once a purchase order has been created, its status is Open b) When the client receives the items from the purchase order, it can be added to an expense c) When the client receives the items from the purchase order, it can be copied to a bill d) A purchase order is an accounting transaction, which means it affects balances in your client's accounts

d) A purchase order is an accounting transaction, which means it affects balances in your client's accounts

Your client wants to see a list of all their open invoices and how long they have been open for. Which reports will show them this? a) Customer Balance Summary and Detail reports b) Sales by Customer Summary and Detail reports c) Sales by Product/Service Summary and Detail reports d) Accounts Receivable Aging Summary and Detail reports

d) Accounts Receivable Aging Summary and Detail reports

There are items listed under the following headings in a Reconciliation report. Which would need investigating? a) Uncleared checks and payments as of the date of reconciliation b) Uncleared checks and payments after the date of the reconciliation c) Uncleared deposits and other credits as of the date of the reconciliation d) Uncleared deposits and other credits after the date of the reconciliation

A and C

Which of the following statements are TRUE regarding using the Undeposited Funds account? a) You should use Undeposited Funds so that you can select payments from several customers and noncustomers to match the total amount deposited at the bank b) You should use the Undeposited Funds account as a temporary holding account to track payments received from customers that have not been deposited to your client's bank account c) You should use the Undeposited Funds account when recording payments received for invoices, but not when recording payments via a sales receipt d) You should only use the Undeposited Funds account if you're using cash-basis accounting

A and B

In which of these scenarios would a scheduled recurring transaction be the best automation option? a) When sales receipts are sent monthly to a customer for fixed amounts and descriptions b) When invoices are sent monthly to a customer for varying amounts and descriptions c) When invoices are sent monthly to a customer for fixed amounts and descriptions d) When there are pre-authorized payments to a cell phone provider for amounts that vary each month

A and C

Which of the following statements about setting up management reports in QuickBooks are TRUE? a) You can hide any sections you don't want to include in your published management report b) You can duplicate existing management reports to use as the basis for a new report c) You can only include financial reports in management reports d) You can select the time period you want the management report to cover

A, B, and D

If you find issues that stop you from finishing a reconciliation, which of the following actions might help you resolve them? a) Reviewing the beginning balance b) Editing the beginning balance so that its the same as the cleared balance c) Combing payments into a single deposit amount d) Checking the ending balance you entered

A, C, and D

What happens when your client receives a credit from a vendor? a) It can be applied to an existing open bill b) It increases the cash balance c) It can be used for a future purchase from that vendor d) It decreases the accounts payable liability on the balance sheet

A, C, and D

Which of the following statements about bank rules in QuickBooks are TRUE? a) Rules are applied in numerical order as they are listed b) If QB can't apply a rule, it will then look for a matching transaction already recorded in the accounting software c) You can change the order in which riles are applied d) The first rule where the transaction meets the conditions is the one that QB applies

A, C, and D