Quickbooks Level 1 Certificate Training

You can customize information displayed in the products and services list by selecting the List settings gear. Which of the following columns can you choose to show or hide? Select the FOUR options you think apply, and then select Submit. Cost and sales price Income and expense accounts Purchase description Payment method Stock location Sales description

Cost and sales price Income and expense accounts Purchase description Sales description

You can include attachments to a customer's records. This is a useful feature as it offers secure storage of files. Which of the following should you NOT attach here? Select an option, and then select Submit. Payment authorization forms Credit memos Contract agreements Resale certificates

Credit Memo Explanation: Credit memos should NOT be attached to a customer's record because they are already recorded within the system as transactions. Instead, they should be created and managed within QuickBooks itself rather than being stored as attachments.

When setting up for your period-end reviews, what can you do in Reports options (accessed from Accountant tools) that can save you time during your review? Select an option, and then select Submit. Set the default time frame for reports Favorite the reports you will use the most Select the reports to be included in management reports Schedule reports to be emailed to you and the client

Favorite the reports you will use the most

Which of the following might happen if the Undeposited Funds workflow for receiving payments isn't followed correctly? Select the THREE options you think apply, and then select Submit. It may result in overstated income It could be fixed without affecting bank reconciliations by deleting duplicate customer payments It could lead to incorrect financial information It could mean paying higher taxes

Overstated income can occur if customer payments are recorded twice—once when received and again when deposited—leading to inflated revenue figures. Incorrect financial information may result from mismanaged deposits, making it harder to track actual cash flow and reconcile bank accounts. Higher taxes could be a consequence if income is overstated, leading to reporting and paying taxes on incorrect revenue.

Collections Report

The Collections Report has the same data as on the Customer Balance Detail report, with the addition of customer phone numbers. You can customize the report to show other useful details, such as email addresses. You can also choose how many days past so that the report only displays overdue invoices. Use when a client wants to... Collect the outstanding amounts.

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

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

Which of the following would NOT need to be collected from clients at period end? Select an option, and then select Submit. Bank statements for any connected bank and credit cards where QuickBooks fetches the statement automatically Loan statements from any clients with loans Invoicing information from healthcare clients that are required to manage invoicing in a separate system Sales information from e-commerce clients who use separate software to manage their sales and sales tax

Bank statements for any connected bank and credit cards where QuickBooks fetches the statement automatically

Which statement about the Additional items in each of the tabs of the Books review center is true? Select an option, and then select Submit. Additional items can be exported from one company and imported into another company You can create a checklist of any tasks you want, along with hyperlinks, if available They can only be used at year end They can be added to the Final review tab only

You can create a checklist of any tasks you want, along with hyperlinks, if available

Connecting accounts

By connecting bank and credit card accounts to QuickBooks, you can streamline your accounting process and save valuable time that would otherwise be spent on entering transactions manually. When accounts are connected, transactions come into QuickBooks daily through the bank feed.

Which of the following IS NOT explicitly shown on a Reconciliation report for the period of the reconciliation? Select an option, and then select Submit. Changes that have happened to the reconciled transactions covered in the report since the reconciliation, if there are any Period end date Period start date Date on which the account was reconciled

Date on which the account was reconciled

Does a rule apply?

If there's no match, QuickBooks runs each transaction through the rules in the Rules list to determine if any apply. Note that QuickBooks will not apply rules if a potential match is found.

Your client makes a sale but doesn't expect to be paid immediately. Which sales form should they issue to their customer? Select an option, and then select Submit. Estimate Invoice Credit memo Sales receipt

Invoice

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

It can be applied to an existing open bill It decreases the accounts payable liability on the balance sheet It can be used for a future purchase from that vendor

Which of the following DOES NOT happen when you are categorizing money-out transactions and you add a transaction from the bank feed? Select an option, and then select Submit. It's listed in the categorization history for the same customer or vendor An accounting transaction is recorded It moves to the Categorized tab It moves to Pending and will be recorded once a receipt is attached

It moves to Pending and will be recorded once a receipt is attached

A customer pays an invoice issued by your client. Which option from the +New button should be selected next? Select an option, and then select Submit. Bank deposit Receive payment Journal entry Sales receipt

Sales Receipt

Sales by Product/Service Summary

Sales by Product/Service Summary and Detail reports show how many of each item on the products and services list were sold in a period, and how much income they generated.

Creating bank rules

When transactions come in via the bank feed, you need to categorize them so they are allocated to the appropriate accounts in the chart of accounts. Bank rules speed up this process and increase consistency. You can create rules that automatically categorize transactions for you.

Potential Post - W9

You need to collect a W-9 for anyone that may need a 1099 at the end of the year. As you might not know at the beginning of an engagement if your client will pay someone more than $600, it is good practice to collect a W-9 from all people or companies from whom they purchase services in case they do. The Vendors list in the Expenses center shows which of your client's vendors are set up for 1099 tracking. These vendors will also appear on the Contractors list.

Use expense reports to track and manage spending

By regularly reviewing expense reports, you can monitor spending against budgets, identify overspending, and make necessary adjustments to help clients stay within limits. Expense reports can also be used to track and manage vendor payments, ensuring all bills are accounted for and paid on time.

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? Inventory Non-inventory Service Bundle

Inventory Non-inventory Service Bundle

What is the best way to record a payment made to a credit card to ensure that it's categorized accurately in QuickBooks?

It should be recorded as a pay down credit card transaction. This helps to ensure that the payment is allocated to the correct credit card liability account.

When choosing how sales forms appear in emails, which of these options can you choose to include? Summarized details Payment method Full details Return address

Summarized details Full details

Which of the following statements is FALSE regarding a receipt that has been uploaded to QuickBooks and is showing in the Receipts tab of the Transactions center? Select an option, and then select Submit. It's not recorded anywhere else in a client's QuickBooks account until it's been reviewed Transactions in the For review tab in the Transactions center are included in QuickBooks search for existing transactions to match to the receipt It either must be categorized and added as a new transaction or matched to an existing transaction QuickBooks will look for existing transactions already in QuickBooks that match the uploaded receipt to help prevent duplicate transactions

The FALSE statement is: "Transactions in the For review tab in the Transactions center are included in QuickBooks search for existing transactions to match to the receipt." Explanation: QuickBooks does not search transactions in the For Review tab to match receipts. Instead, it only looks at transactions that are already recorded in QuickBooks.

Income by Customer Summary

Income by Customer Summary report contains similar data as the Sales by Customer Summary and Detail reports, with the addition of expenses per customer, as long as they have enabled tracking expenses by customer.

Which types of customer statements can QuickBooks generate? Select the THREE options you think apply, and then select Submit. Statements that show sales transactions and payments between two specified dates Statements that only show sales receipts Statements that show only open transactions Statements that show only credit card or online payments made between two specified dates Statements that show a beginning balance with a list of sales transactions for a selected date range, and a running balance

Which types of customer statements can QuickBooks generate? Select the THREE options you think apply, and then select Submit. Statements that show sales transactions and payments between two specified dates Statements that only show sales receipts Statements that show only open transactions Statements that show only credit card or online payments made between two specified dates Statements that show a beginning balance with a list of sales transactions for a selected date range, and a running balance

When thinking about how QuickBooks uses tags, which of the following statements are TRUE? Select the TWO options you think apply, and then select Submit. You can set them up and group them to help keep track of specific areas of your client's business The names of the tags you have set will appear in any QuickBooks-created document you send out You can add tags to invoices or expenses in QuickBooks, but not bills Tags are customizable labels that you can add to transactions to get insights into money in and money out Once you've set a tag, you can't change it or add another

You can set them up and group them to help keep track of specific areas of your client's business Tags are customizable labels that you can add to transactions to get insights into money in and money out

In which of the following cases should you use a Bank deposit transaction in QuickBooks to record what's happened? Select the TWO options you think apply, and then select Submit. An employee reimburses your client's company A vendor needs to be issued with a credit A customer pays an invoice Your client receives a refund from the IRS

An employee reimburses your client's company Your client receives a refund from the IRS

In which tab of the Transactions center do bills and receipts appear after they're added to QuickBooks? Select an option, and then select Submit. Bank transactions App transactions Receipts Rules

Bills and receipts appear in the Receipts tab after they're added to QuickBooks.

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

Everything Increases accounts payable balance Debits the expense account Credits accounts payable Increases expenses on the profit and loss

Personal transactions that aren't relevant to the business should:

Excluded shows transactions that have been excluded. We only recommend using the Exclude function for duplicate transactions—for example, transactions imported from a file and then again through a bank connection. Personal transactions that aren't relevant to the business should be categorized as owner's draws, not excluded.

Which of the following statements are TRUE regarding invoices? Select the THREE options you think apply, and then select Submit. Affects cash accounts Customer pays immediately Supports accrual-basis accounting Affects accounts receivable accounts Customer payment is a separate transaction Supports cash-basis accounting

-Supports accrual-basis accounting -Affects accounts receivable accounts -Customer payment is a separate transaction

Which of the following statements about bank rules in QuickBooks are TRUE? Select ALL the options you think apply, and then select Submit. You can change the order in which rules are applied If QuickBooks can't apply a rule, it will then look for a matching transaction already recorded in the accounting software The first rule where the transaction meets the conditions is the one that QuickBooks applies Rules are applied in numerical order as they are listed

1. You can change the order in which rules are applied 2. The first rule where the transaction meets the conditions is the one that QuickBooks applies 3.Rules are applied in numerical order as they are listed

Which of the following statements are TRUE regarding invoices? Select the THREE options you think apply, and then select Submit. Customer pays immediately Affects cash accounts Supports cash-basis accounting Affects accounts receivable accounts Supports accrual-basis accounting Customer payment is a separate transaction

Affects accounts receivable accounts Supports accrual-basis accounting Customer payment is a separate transaction

Which of the following statements about setting up management reports in QuickBooks are TRUE? Select ALL the options you think apply, and then select Submit. You can hide any sections you don't want to include in your published management report You can duplicate existing management reports to use as the basis for a new report You can only include financial reports in management reports You can select the time period you want the management report to cover

If there are any sections in the report that you don't want to be included in the final published report, you can hide them. Existing reports can be duplicated as a starting point for creating new reports. You can choose the time period that the report covers. You can set up management reports that contain any reports you think will be useful to your clients, such as accounts receivable and payable, or sales and transactions reports. They don't only need to include financial reports, and it might be that you don't send financial reports at all.

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? Select an option, and then select Submit. The Additional items section in each tab of the Books review center Notes in Accountant tools Custom reports in the Reports center Client notes in QuickBooks Online Accountant

In each tab of the Books review center, you can add additional items to tailor period-end tasks for your client.

Opening Balances

Once the client has been verified, the account will connect and transactions will be pulled into QuickBooks. In most cases, the opening balance will automatically populate with the total amount of whatever is already in the bank account. For more accurate records, it's a good idea to find out more about this opening balance—what is it and how did it get there? For example, if it's a new business and the owner contributed their own money, the opening balance should be recorded as owner's equity.

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? Select an option, and then select Submit. Open Item Balance Forward Customer Open Balance Transaction Statement

Open Item

What does switching on the Show Items table on expense and purchase forms option in Account and settings enable your clients to do? Select an option, and then select Submit. Create custom reports for expense tracking Add tags to track expenses and purchases Specify which products and services are purchased from vendors Automatically categorize expenses in the bank feed

Specify which products and services are purchased from vendors

Which of the following statements are TRUE regarding sales receipts? Select the THREE options you think apply, and then select Submit. Supports cash-basis accounting Customer pays immediately Affects accounts receivable accounts Supports accrual-basis accounting Customer has time to pay Affects cash accounts

Supports cash-basis accounting Customer pays immediately Affects cash accounts Sales receipts support cash-basis accounting because revenue is recorded when the payment is received. Sales receipts are used when a customer pays immediately at the time of the sale. Sales receipts affect cash accounts since the money is received right away.

Which of the following statements regarding a vendor credit is FALSE? Select an option, and then select Submit. Can affect the balance sheet Increases accounts payable Can affect the profit and loss statement Reduces money that your client owes to a vendor

The FALSE statement regarding a vendor credit is: Increases accounts payable A vendor credit reduces the amount your client owes to a vendor, which would decrease accounts payable, not increase it.

What happens when you receive payment for an invoice and record it using the Undeposited Funds account? Select the TWO options you think apply, and then select Submit. Increases (debits) the Undeposited Funds account Decreases (credits) the Accounts Receivable account Increases (credits) the Accounts Receivable account Decreases (credits) the Undeposited Funds account

The Undeposited Funds account increases (debits) because the money is temporarily held before being deposited into a bank account. The Accounts Receivable account decreases (credits) because the customer's outstanding balance is reduced once payment is received.

Potential Post - Balance Sheet

The balance sheet provides a snapshot of the client's assets, liabilities, and equity at a specific point in time. Proving the balance sheet is an important period-end task which involves working through each row, verifying that the data within it is accurate, and ensuring it matches information held in other reports and statements. When this is done, you can be confident that the financial records are accurate and complete.

Which statement is TRUE regarding the Reconciliation Discrepancy Report? Select an option, and then select Submit. It's available when attempting to reconcile an account with reconciliation discrepancies It's always available, even when discrepancies have been fixed It's only available in Accountant Tools It's available in the Reports center

The correct answer is: "It's available when attempting to reconcile an account with reconciliation discrepancies." Explanation: The Reconciliation Discrepancy Report is specifically used to identify changes made to previously reconciled transactions, which can cause discrepancies during reconciliation. It becomes available when QuickBooks detects discrepancies in the reconciliation process. Why not the other options? ❌ "It's always available, even when discrepancies have been fixed" - This report is only generated when discrepancies exist, so if they are fixed, it may not be needed.❌ "It's only available in Accountant Tools" - While accountants can use it, it's also available to regular users when reconciliation discrepancies occur.❌ "It's available in the Reports center" - It's not a standard report in the Reports center; it's accessed through the Reconciliation process.

Which of the following statements about the Account reconciliation stage of Books review is TRUE? Select an option, and then select Submit. Nonbank accounts that need reconciling will appear in this tab, for bank and credit cards that have been reconciled, you'll need to look in the Transactions center Only bank and credit card accounts that are connected to QuickBooks will appear in this tab You will only see accounts in this tab that have never been reconciled You can select which accounts you want to appear in this tab

You can select which accounts you want to appear in this tab In the Account reconciliation stage of Books review, you have the flexibility to choose which accounts you want to review, making it easier to focus on relevant reconciliations.

How does QuickBooks establish the beginning balance for a reconciliation? Select an option, and then select Submit. It's the number you enter at the start of the reconciliation It's the sum of all transactions previously marked reconciled It's the cleared balance minus payments plus deposits that have check marks next to them It's the difference between the starting balance and the cleared balance

It's the sum of all transactions previously marked reconciled

Potential Post - Pro tip

Reviewing voided and deleted transactions While it's not part of the Book review process, when reviewing the transactions at period end, it can also be a good idea to review any transactions that have been voided or deleted. To do this, go to Accountant tools and select Voided/deleted transactions. This will take you to a filtered view of the audit log, showing any transactions that have been voided or deleted. It should be fairly rare that this happens, and if there are multiple transactions that have been voided, it might suggest that there is a training opportunity for someone in your team, or an advisory moment for your client.

Which of the following statements are TRUE regarding bills? Select the THREE options you think apply, and then select Submit. Paying the bill is recorded separately to receiving the bill Affects accounts payable accounts Client pays immediately Supports cash-basis accounting Supports accrual-basis accounting Affects cash accounts

The three TRUE statements regarding bills are: Paying the bill is recorded separately to receiving the bill Affects accounts payable accounts Supports accrual-basis accounting

In which of the following cases should you use a Bank deposit transaction in QuickBooks to record what's happened? Select the TWO options you think apply, and then select Submit. A customer pays an invoice An employee reimburses your client's company Your client receives a refund from the IRS A vendor needs to be issued with a credit

✅ An employee reimburses your client's company✅ Your client receives a refund from the IRS

When customizing the content of a sales form, which of the following can you do with the columns in the table section? Select the THREE options you think apply, and then select Submit. You can edit column widths You can show or hide all of the columns in the table You can change the order in which the columns are presented You can edit column label

-You can edit column widths -You can change the order in which the columns are presented -You can edit column label

For those clients subscribed to QuickBooks Online Plus and Advanced plans, what can be done with estimates? Select the TWO options you think apply, and then select Submit. Copy to purchase order Convert to sales receipt Copy to statement Convert to invoice

Copy to purchase order Convert to invoice

For those clients subscribed to QuickBooks Online Plus and Advanced plans, what can be done with estimates? Select the TWO options you think apply, and then select Submit. Copy to purchase order Convert to sales receipt Copy to statement Convert to invoice

Copy to purchase order Convert to invoice

You can include attachments to a customer's records. This is a useful feature as it offers secure storage of files. Which of the following should you NOT attach here? Select an option, and then select Submit. Resale certificates Credit memos Payment authorization forms Contract agreements

Credit memos While you can attach resale certificates, payment authorization forms, and contract agreements to a customer's record for secure storage, credit memos are typically used for recording adjustments or refunds, and they are generally not documents you'd store in the customer record itself as an attachment. Instead, credit memos should be used to track transactions in your accounting records.

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? Select an option, and then select Submit. Accounts Payable Aging Summary report Transaction List by Vendor report Expenses by Vendor Summary report Check Detail report

Expenses by Vendor Summary report

Beginning Balance Discrepancies

Beginning balance discrepancies (where the beginning balance you see on your client's bank statement doesn't match the beginning balance when starting a bank reconciliation) should be fixed before you reconcile. QuickBooks Online alerts you to these beginning balance discrepancies and gives you a link to run a discrepancy report straight from the reconcile screen. The discrepancy report finds any transactions that were: Changed after they were reconciled, if the change affected the beginning balance of the account Deleted after it was reconciled Manually reconciled in the register by changing the reconciliation status to reconciled (R) Unreconciled in the register by changing the reconciliation status from reconciled (R) to cleared (C) or no statusWhen you open the report, QuickBooks Online will also give you some guidance on how we think you can resolve the transactions. Once you've resolved the problem transactions and the Total Discrepancy Difference is zero, you're ready to reconcile.

Which of the following can you do when customizing the design of sales forms? Select the THREE options you think apply, and then select Submit. QuickBooks Online Certification Level 1: Sales and customers exam Question 3 Which of the following can you do when customizing the design of sales forms? Select the THREE options you think apply, and then select Submit. Select any font you have installed on your computer Change page orientation Include your client's logo Adjust page margins Choose any highlight color

Change page orientation Include your client's logo Adjust page margins

Payee

Displaying the Payee is switched on by default. It's a good idea to keep it this way so that you can check that a payee is assigned to all transactions. When transactions are assigned a payee, they appear in the Vendor list. So if your client asks how much they've spent with a particular vendor, you can see this information easily, rather than having to rely on the general ledger. Having a payee assigned is also helpful later for potential 1099 processing. You can view transactions without a vendor in the Books review.

What is an advantage of bank-to-bank transfer matching? Select an option, and then select Submit. It automatically accepts high-confident matches of money moved between bank accounts connected to QuickBooks, streamlining the workflow by removing the need to take action to match or add a paired transaction It contacts the bank on behalf of the client and orders the transfer of funds It identifies high-confidence matches of money moved between two bank accounts connected to QuickBooks and flags them as Paired to another transaction It allows a regular transfer between bank accounts in the Transactions center to be set up

It identifies high-confidence matches of money moved between two bank accounts connected to QuickBooks and flags them as Paired to another transaction

Your client received six checks from customers for outstanding invoices that will be deposited at the bank. What is the next step in QuickBooks? Select an option, and then select Submit. From the +New button, select Check From the +New button, select Journal entry From the +New button, select Bank deposit From the +New button, select Receive payment

From the +New button, select Receive payment

The importance of reconciliations

This workflow is all about reconciling accounts, that is, reviewing the accounts in QuickBooks so that they match the client's real-life bank and credit card statements. It's about tidying up the transactions that sit outside of those matched and categorized as part of managing the bank feed—that bank deposit that never cleared the bank; that customer payment that never got deposited; that check that never got cashed. Reconciling is also helpful for catching duplicate transactions that were accidentally entered twice into QuickBooks.

Which of the following about a client's bank and credit card statements are TRUE? Select ALL the options you think apply, and then select Submit. 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 When the account is connected, the account statements may automatically upload to QuickBooks You can't manually upload statements into QuickBooks—they must come in automatically via a connected account If the client's bank doesn't automatically upload statements to QuickBooks, you will need to work with the paper

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 When the account is connected, the account statements may automatically upload to QuickBooks

In which one of the following scenarios should you use a Bank deposit transaction in QuickBooks to record the activity? Select an option, and then select Submit. When your client wants to make a deposit to a vendor When your client wants to record sales from an upcoming trade show and provide sales receipts When your client wants to record receiving funds from loan proceeds When your client wants to apply a customer payment to an open invoice

✅ When your client wants to record receiving funds from loan proceeds Explanation: A Bank deposit transaction is used when funds are deposited into the business bank account, such as receiving loan proceeds or other income that is not associated with a direct sale or customer payment. It allows you to specify the source of the funds and ensure that they are recorded in the correct account.

When thinking about how QuickBooks uses tags, which of the following statements are TRUE? Select the TWO options you think apply, and then select Submit. -You can add tags to invoices or expenses in QuickBooks, but not bills -The names of the tags you have set will appear in any QuickBooks-created document you send out You can set them up and group them to help keep track of specific areas of your client's business -Tags are customizable labels that you can add to transactions to get insights into money in and money out -Once you've set a tag, you can't change it or add another

*You can set them up and group them to help keep track of specific areas of your client's business *Tags are customizable labels that you can add to transactions to get insights into money in and money out

Which template types are good starting points if 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? Select the TWO options you think apply, and then select Submit. Unscheduled Reminder Dynamic Scheduled

✅ Unscheduled ✅ Dynamic Explanation: Unscheduled templates are useful for transactions that happen on an ad-hoc basis, as they don't have a set date or regular frequency, and they can be created when needed. Dynamic templates are flexible and allow for changes in details each time a transaction occurs, making them ideal for scenarios where the transaction details may vary.

If you find issues that stop you from finishing a reconciliation, which of the following actions might help you resolve them? Select ALL the options you think apply, and then select Submit.

Reviewing the beginning balance, checking the ending balance you entered, and combining payments into a single deposit amount all might help you fix issues that might stop you finishing a reconciliation.

Which of the following criteria CAN'T be specified in a bank rule condition? Select an option, and then select Submit. Bank text Bank account Transaction date Transaction amount Description

Transaction date

If, when checking the profit and loss statement during your final period-end review, you see something in the reconciliation discrepancy account, what does this mean? Select an option, and then select Submit. A reconciliation has been forced, even though it doesn't balance A reconciliation has been carried out without all transactions having been categorized Not all accounts from the period have been reconciled A reconciliation has been carried out without all transactions having been assigned a payee

A reconciliation has been forced, even though it doesn't balance The Reconciliation Discrepancy account is used when a transaction has been altered after a reconciliation or when a reconciliation has been forced to balance despite discrepancies. This indicates that adjustments were made that could impact the accuracy of financial records.

Difference between sales reports and income reports

A sales report focuses on the revenue generated from sales activities. It provides details on the sales transactions within a specified period. An income report—also known as an income statement or profit and loss statement—provides a broader view of a business's financial performance over a period, showing not just sales but also other income and expenses. By analyzing both types of reports, businesses can gain detailed insights into their sales performance and overall financial status, supporting better financial management and strategic planning.

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? Select an option, and then select Submit. Your client is owed $43.21 from a customer Transactions have been added to QuickBooks for a period that has already been reconciled An account reconciliation has been forced without it being balanced The books have been closed without all accounts being reconciled

An account reconciliation has been forced without it being balanced

Potential Post

Overview of period-end tasks The aim of the period-end review is to make sure that everything from the last period (usually a month) has been properly accounted for. It's an opportunity to highlight any issues and fix them in a timely manner. Period end is easy in QuickBooks, as the Books review center steps you through each task in turn. You may not be involved in each of the steps, but it's useful to have a good understanding of them so you know how your work fits into the bigger picture. Steps: 1. Transaction review: The first step in Books review is Transaction review for the period—making sure they are detailed, and correctly categorized. 2. Account Reconciliation: The second step of Books review is Account reconciliation—making sure that the information held within QuickBooks matches the information stored in other business records, such as bank and credit card statements. 3. Final Review: The third step of Books review is the Final review—looking at unexpected balances and reviewing the balance sheet and the profit and loss statement. 4. Wrap-up: The final step of Books review is Wrap-up—finalizing and sharing reports with clients, and closing the books so transactions can't be changed.

Your client received eight checks from customers for outstanding invoices. They recorded the payments to the Undeposited Funds account and now they have deposited the payments at the bank. How should they record this in QuickBooks? Select an option, and then select Submit. They should create a bank deposit record for each separate check They should create a receive payment record to adjust the amount in the accounts receivable account They should use a journal entry to move the payments from the Undeposited Funds account to the bank account They should group the payments together and record the deposit at the bank as a single deposit

The correct answer is: ✅ They should group the payments together and record the deposit at the bank as a single deposit Explanation: Once the payments have been recorded in the Undeposited Funds account, the client should create a single bank deposit record in QuickBooks to move the payments from Undeposited Funds to the appropriate bank account. This way, the payments are grouped together as one deposit, which matches the actual deposit made at the bank.

Which types of customer statements can QuickBooks generate? Select the THREE options you think apply, and then select Submit. Statements that show only credit card or online payments made between two specified dates Statements that show a beginning balance with a list of sales transactions for a selected date range, and a running balance Statements that show sales transactions and payments between two specified dates Statements that only show sales receipts Statements that show only open transactions

The three types of customer statements that QuickBooks can generate are: Statements that show a beginning balance with a list of sales transactions for a selected date range, and a running balance This type of statement shows a full summary of a customer's transactions, starting with the beginning balance and including sales and payments, along with a running balance for the selected period. Statements that show sales transactions and payments between two specified dates This type of statement details sales and payments that occurred within a specified date range. Statements that show only open transactions This type of statement shows only transactions that are still open, such as unpaid invoices.

When might a client want to manually record an expense, rather than categorizing it when it comes in through the bank feed? Select the TWO options you think apply, and then select Submit. When the expense is greater than $10 When the expense needs to appear in a company report immediately When a large expense is incurred When the payee is a new vendor

The two situations when a client might want to manually record an expense are: When the expense needs to appear in a company report immediately When the payee is a new vendor

Which template types are good starting points if 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? Select the TWO options you think apply, and then select Submit. Unscheduled Reminder Scheduled Dynamic

The two template types that are good starting points for transactions that occur on a regular, scheduled basis but need editing before creation are: Reminder Unscheduled

There are items listed under the following headings in a Reconciliation report. Which would need investigating? Select ALL the options you think apply, and then select Submit. Uncleared checks and payments as of the date of the reconciliation Uncleared checks and payments after the date of the reconciliation Uncleared deposits and other credits as of the date of the reconciliation Uncleared deposits and other credits after the date of the reconciliation

These are all items that haven't cleared the bank, however only those marked as of the date of the Reconciliation report need to be investigated—ensuring these items clear soon is important as vendors are not receiving payments. Uncleared checks and payments as of the date of the reconciliation Uncleared deposits and other credits as of the date of the reconciliation

Checking for accuracy on the Accounts Receivable Aging Summary

They list all open (unpaid) invoices and how long they have been open, regardless of whether they are overdue or not. To check for accuracy, you could run these reports and compare to the balance sheet (run using accrual basis) with the same as of date as the accounts receivable aging report. The accounts receivable line on the balance sheet should be the same as the total on these reports.

Setting up a client in QB

To sign into the bank or credit card account via QuickBooks, start from Bank transactions and select Connect account, if this is the first account to be connected. Otherwise select Link account. At this point, the client should enter their bank/credit card username and password. They may find it helpful and reassuring to be on a phone or video call with you to talk them through the process. It's best practice for clients to sign into their account themselves. Note that for some banks, this will need to be with the primary account holder's user credentials. Some banks allow accounting pros to have read-only access, which you may find useful when working with some clients, but don't attempt to establish the bank connection using this type of access. Some clients will try to give you full access to their bank/credit card account by sharing their passwords with you. You should never do this. Having access to a client's money is a big risk for you and a security breach. Some clients may be wary of entering their banking password into QuickBooks. If this is the case, you can reassure them and share Intuit's How we keep your data safe article.

Which of the following transactions are NOT flagged in the Transaction review tab of the Books review center? Select an option, and then select Submit. Unapplied payments Transactions without payees Uncategorized transactions Undeposited funds Transactions created via journal entries

Transactions created via journal entries Journal entries are not flagged in the Transaction review tab of the Books review center. The tab mainly focuses on identifying issues like unapplied payments, transactions without payees, uncategorized transactions, and undeposited funds to help streamline the review process.

What makes a successful reconciliation?

When you're done reconciling, the difference between the amount in the QuickBooks accounts and the bank statements should be $0.00. But let's be clear—while that $0 difference is definitely a goal, it's not the only goal. Ensuring that you understand what hasn't cleared the bank and why, and whether you need to take action with those transactions, is also the goal. Put your detective hat on. Investigate all transactions for accuracy. That zero only means that everything is balanced when it's been investigated and verified

One of the last period-end tasks is to send out management reports. What different formats does QuickBooks enable you to send these in? Select ALL the options you think apply, and then select Submit. PDF Google Doc Microsoft Word document Rich text format

When you've finalized the details of the management report, you can send it to your clients as either a PDF or a Microsoft Word document. You can't send management reports as either rich text format or Google docs through QuickBooks Online.