QBO ADVANCED SECTION 4

Chen at Chen Automotive purchases much of his stock from overseas. Some of these shipments take six months or more to get to him. Because of this long lead time, his vendors require a 60% deposit at the time of order, which is a significant dollar amount. Up until now, he's been entering a bill for all the inventory items and paying 60% of the bill. He just fired his last bookkeeper and hired you to review and fix his books, if necessary, and advise him on correct procedures to use going forward. Upon review, how should you recommend the prepayment be recorded? Enter a bill now for only 60% of the inventory and create a bill for the remaining 40% upon receipt of the items Create a credit memo for the prepayment upon receiving the final bill Create a bill and post to Purchases Suspense Expense account until the inventory arrives and then reclass to Inventory Asset Set upa Vendor Prepayments account and post the initial payment against that account Enter a purchase order against accounts payable (A/P) Continue handling the prepayment in the same way

Continue handling the prepayment in the same way

When creating an invoice, what is the importance of the Location of sale field in the header? The address in the field determines the amount of shipping to be added to the invoice The address in that field determines which sales tax should be applied when based on location of sale The address in that field determines which sales tax should be applied when based on custom rates The address in that field determines which location column the transaction will show up in when running a Balance Sheet by Location

The address in that field determines which sales tax should be applied when based on location of sale

Which 4 transaction types can be made into recurring templates? Paycheck Receive payment Bill Transfer Deposit Invoice Inventory quantity adjustment Pay bills

Bill Transfer Deposit Invoice

A client is using a payroll service that doesn't integrate with QuickBooks Online. Every month they need to allocate the previously recorded wage expenses to multiple jobs, some of which need to be billed to customers. What is the most efficient way to do this with QuickBooks Online? Manually work out the time for each staff member, apply these to the customer in Excel, and create an invoice in QuickBooks Online Create an expense transaction and enter the amount of the allocated wages, posting to the wage account. On each line enter the customer and mark it as billable, if appropriate. On the next blank line, enter the total amount as negative posting to the wage account Create a vendor bill with multiple line items to the wage expense account, assigning a customer and marking it as billable Create a journal entry to credit the wage expense account for the whole amount and debit the wage expense account with multiple line items allocating it to each customer. Mark the line items as billable, if appropriate.

Create a journal entry to credit the wage expense account for the whole amount and debit the wage expense account with multiple line items allocating it to each customer. Mark the line items as billable, if appropriate.

How do you record the withdrawal of the individual bank fee associated with a bounced check? Record a transfer from the bank account to a bank charges expense account Create an expense categorized to a bank charges expense account Add a Bounced check fee item to the invoice Create a deposit categorized to a bank charges expense account

Create an expense categorized to a bank charges expense account

If a client is using custom sales tax rates, which area do they see when the select See the math? Override this amount Customer tax details Your tax agency and standard rate Tax Categories and Totals

Customer tax details

How does QuickBooks Online know to which customers a custom sales tax rate should apply? It is identified in the Tax info tab of the Customer information record It can only be identified on an invoice The customers are selected when setting up the taxable product or service The customers are selected when adding/editing the custom rate

It can only be identified on an invoice

Which 2 of these tasks must be done to create a report that displays only outstanding retainers? Run a report on the Client Retainers account, grouped by Customer, and filtered for Uncleared Reconcile the Client Retainers account regularly, using an ending balance of whatever is on the balance sheet Run a report on the Client Retainers account, grouped by Customer, and filtered for Specified Run a report on the Client Retainers account, grouped by Customer, and filtered for Cleared Reconcile the Client Retainers account regularly, using an ending balance of zero

Run a report on the Client Retainers account, grouped by Customer, and filtered for Uncleared Reconcile the Client Retainers account regularly, using an ending balance of whatever is on the balance sheet

When creating an invoice, where can you easily change the tax rate for a product? See the math > Customer tax details See the math > Custom rate Product line > Select link on checkmark in Tax column See the math > Tax category

See the math > Customer tax details

Which 2 things are involved in creating a report to track deposits by vendor using the Other Current Asset method? Filter by Vendor Not Specified Sort by Account Set Dates to All Filter for cleared status of Uncleared

Sort by Account Set Dates to All

How do you record a sales tax payment in QuickBooks Online? Taxes > Sales Tax > View return > Record payment > Enter payment amount, date and bank account > Record payment + New > File Sales Tax > Select state > Enter adjustment > Enter date and bank account > Record payment Taxes > Sales Tax > View return > Select link for state website > Enter adjustments if needed > Enter payment date > Record payment Taxes > Sales Tax > Prepare return > View report > Enter payment amount, date and bank account > Record payment

Taxes > Sales Tax > View return > Record payment > Enter payment amount, date and bank account > Record payment

If you think sales tax is not being calculated correctly, which 2 of these should you verify? That the tax is calculating on the customer's area code That Location tracking is turned on That the correct tax category is selected That the tax is calculating on the correct address That a price rule is being applied

That the tax is calculating on the correct address That a price rule is being applied

Which 2 statements are true when using a daily sales summary in QuickBooks Online? The transaction is a sales receipt that deposits to a new and separate Undeposited Funds account The transaction is a sales receipt that deposits to a clearing account The transaction is a zero dollar sales receipt The transaction is a sales receipt totaling the sales amount net of sales taxes for the period The sales receipt's sales amounts are negative numbers and payments received are positive numbers

The transaction is a sales receipt that deposits to a clearing account The transaction is a sales receipt totaling the sales amount net of sales taxes for the period

Your client, a landscaping company generally invoices their customers with seven-day terms. They just landed a job and have decided to ask for a deposit to pay for materials before conducting any work. The job will be completed within a month, and they want to know how to report the deposit without reporting income. What process would you suggest to your client? Create a Deposits expenses account to allocate to, and then journal out when the invoice is created Invoice the client as they normally would, and apply the payment to the invoice Use the Receive Payment screen to enter the deposit without applying to an invoice Use the Deposit feature to allocate directly to their sales income account PreviousNext

Use the Receive Payment screen to enter the deposit without applying to an invoice

Which statement is true about using the Deposit feature in QuickBooks Online? Using the Deposit field on an invoice allows you to make the date of the deposit different from the invoice date Entering an amount in the Deposit field on an invoice enables the Deposit to field The amount of a deposit on an invoice appears on the balance sheet in the Deposits Received account The Deposit field can be used on both invoices and sales receipts

Using the Deposit field on an invoice allows you to make the date of the deposit different from the invoice date