Quickbooks online 2019
Which of the following transaction types will QuickBooks enter for you?
This is incorrect. c. If you deleted a customer, vendor, or account that had an open balance, QuickBooks will create an adjusting entry Correct. QuickBooks needs to offset the remaining balance
What are three areas where you can find and do everything you need?
(to create new transactions), (for settings, lists and activities you don't do often), and navigation bar on left (to work in specific functional areas, e.g. customers or reports) Correct
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 offer a refund?
Credit Memo/Note This is the correct answer From the Create menu, click Credit Memo/Note. This decreases the amount owed by the customer and reverses the sale.
Sally the Supplier and Van the Vendor want to buy something from you. What list should you add them to in QuickBooks?
Customer Correct. Customers are people who purchase things from you.
What is the primary reason for setting a Closing Date in QuickBooks?
To restrict users from deleting, editing, or adding transactions to a closed period, such as a previous fiscal year. Correct
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 Correct
True or False: Because QBO is in the cloud you don't need to back it up.
True This is correct.
When should you select your checking account as the payment account on an Expense form?
When you are entering a debit card transaction. This is correct, but so are the other answers. b. When you are entering a payment made online directly from your bank account. This is correct, but so are the other answers. c. When you are entering a wire transfer directly from your checking account. This is correct, but so are the other answers. d. All of the above. Correct
How do you apply a vendor credit memo to a bill in QuickBooks?
When you pay the bill, select the credit you want to apply towards the payment. Correct
When would you enter a journal entry?
To correct errors (if you have a strong accounting background) This is correct, but so are the other choices. b. For year-end adjustments This is correct, but so are the other choices. c. To enter depreciation This is correct, but so are the other choices. d. All of the above This is the correct answer. You should only use journal entries if you have a strong accounting background and truly understand debits and credits. Also, you should not use journal entries instead of the built-in forms and windows in QuickBooks. This can create unexpected results on reports.
Which of the following IS a list in QuickBooks Online?
Chart of Accounts Correct
Where do you go to turn on stock in QuickBooks?
Company Menu > Company Settings > Sales > Products and services > Track stock quantity on hand Correct
Your employer wants to know where the business stands overall. On the Balance Sheet, the company has 100,000 in assets, and 30,000 in liabilities. What is the company's equity (Capital and Reserves)?
70,000 Correct
How do you add custom fields so that they can be used on a sales form?
Account and Settings > Sales > Sales form content Correct
You just set up a new QuickBooks company and your employer needs you to create a Chart of Accounts. Which of the following is TRUE?
Accounts are automatically created based upon your industry type, however you CAN add more accounts later. This is the correct answer. A Chart of Accounts is created when a company is first set up, however you can add more accounts after the startup process.
Regular or Custom users are set up with one of the following levels of access:
All, None, or Limited This is the correct choice. Within Limited, you can further customize their access by selecting Customers and Sales, Vendors and Purchases, or both.
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). Correct b
Where on the Expense form do you indicate which account you are issuing payment from?
At the top next to the payee. Correct
Which of these reports would you run to get information on your liabilities?
Balance Sheet report Correct
Which form CANNOT be customized? a
Bill This is correct. A Bill cannot be customized in QuickBooks.
You're setting up QuickBooks Online for a company that already has information in Excel. What can you import into QuickBooks from Excel?
Certain lists (customers, vendors, products and services, and the Chart of Accounts) Correct
Your new employer is confused by the money bar above. He insists that more customers are overdue. How can you fix this?
Change the Customer Terms Correct
Which lists can you import from Excel into QuickBooks Online?
Chart of Accounts, Customers, Products and Services, and Vendors Correct
Here is how Legal & Professional Fees appear on your Profit and Loss:
Click Collapse Correct
Your customer Donna Comeback has gone out of business and you will never sell to her again. Put the steps for removing her from the customer list in the correct order (Note: You don't have to choose all the steps.)
Click Make Inactive (3) b. Click the "x" next to the customer (Donna) you want to remove c. Click the Customer tab (1) d. Click the checkbox next to the customer's (Donna) name e. Edit the Customer (Donna) you want to remove (2) f. Click Batch Actions > Delete
What is the FIRST step you must take if you want QuickBooks to AUTOMATICALLY email a report?
Click Save Customizations so the report appears under My Custom Reports. Correct
You used your credit card a week ago, but are not happy with your purchase. You return the goods and the vendor refunds the amount directly to your credit card. If you don't have online banking, how do you record this transaction in QuickBooks?
Click the Global Create button and select Credit Card Credit This is correct Basic
You purchased office supplies online using a company credit card not connected to online banking. How would you record this in QuickBooks?
Click the Global Create button and select Expense. Fill out the expense and select the credit card as the payment account. Correct. Use the Expense form to enter credit card transactions.
How would you enter a transaction that won't be downloaded, where you paid for a service using a debit card?
Click the Global Create button and select Expense. Fill out the expense and use Debit Card as the payment method. Correct. Use the Expense form to enter debit card transactions
Your employer asks you to record an order she just placed for some stock. You haven't received the items yet, and don't owe anything to your vendor at this time. How would you record this in QuickBooks?
Click the Global Create button and select Purchase Order. Fill out the form and save the transaction. Correct
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 Privacy mode switch on the home page to prevent sensitive financial information from being displayed in this window. Correct
How do you search for a transaction in QuickBooks?
Click the icon and search by transaction number, amount, or date. This is correct. After you click the search icon, you can click "Advanced Search" in the same window to search by even more criteria/filters.
You need to find an invoice, but all you know is the total amount. You can't remember the customer or even what you sold. How can you find the invoice?
Click the icon and search for the specific amount. Correct. If there is only one transaction with that amount, QuickBooks will display it. If there are more than one, QuickBooks will display a list of all transactions for that amount.
You invoice customers a set amount for mowing their lawn each month. Sometimes, you provide extra services like pruning trees or planting flowers that you must remember to add to their monthly invoice. What's the best way to do this if you use QuickBooks?
Click the icon and select Delayed Charge. Enter the details you want to add to the invoice at the end of the month. Next time you invoice that customer, QuickBooks opens a list of delayed charges that you can easily add to the invoice. Correct
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 look like this:
Click the icon next to the company name. Click Account and Settings. Click the Expenses tab. In the Bills and expenses area select "Make Expenses and Items as billable" and "Track Expenses and Items as billable". Correct
Your employer asks you to update your businesses contact info. How do you access the Account and Settings screen to do this?
Click the icon on the home page Correct. This is where you access Account and Settings. The link for settings is sometimes called "Company Settings" and in other companies it might be called "Account and Settings". d
You'd like to change the company address in Account and Settings screen. What's the first step to open the Account and Settings?
Click the icon on the home page Correct. This is where you can access Account and Settings. Note, in some companies, this option may be called Company Settings.
Your employer asks you to remove a product you no longer sell. How do you do this?
Click the icon, then click Products and Services to open the list. Click the drop down list to the right of the product you want to remove, and select Make inactive. Correct
One of your customers opens a new location. They want you to perform some work at the new location, and all invoices should go to the original customer. How do you handle this?
Create a New Customer and check the option 'Is a sub-customer', and select 'Bill with parent'. Correct b
Sub-customers can make tracking jobs or locations for a particular customer easy. You have a restaurant as a customer that just opened up a brand new location. How do you handle this?
Create a New Customer and check the option 'Is a sub-customer'. Correct
How do delayed charges affect a customer's balance?
Delayed charges have no effect on a customer's balance. Correct
Your new employer is on the road a lot and would like to view overdue customers so he can phone them and possibly visit them to collect payment. How can (s)he do this
Download and use the free QuickBooks Online app that's available for IOS (Apple) and Android. This is correct. The apps take advantage of the mobile devices capabilities (e.g. GPS, and phone) so the owner can easily see who's overdue and call them and then get directions to the customer's location. The owner can even record expenses and use the camera to attach a photo of the receipt. Note: The owner can't do EVERYTHING on the mobile device that you can do from the web browser.
You have a customer who isn't sure they want you to do some work they need. But you want to record they're interested. How?
Enter an Estimate. Correct
Why would a business choose to enter a bill and then later pay the bill (2 steps) instead of just recording the check or expense when you pay the bill (1 step)? a
Entering and paying bills allows you to track accounts payable This is correct. You also record expenses in the period you incurred them (proper accrual accounting)
When you invoice for time and costs, where does QuickBooks get the billable time or costs?
From billable time entered on timesheets and/or billable costs entered on check and bills. This is the correct answer. When you record an expense or time, click the "Billable" box and enter the customer you want to invoice.
Your new Employer has been using QuickBooks for 6 months. He's frustrated because none of the sales he enters appear on the QuickBooks sales reports. However, the sales do appear on the Profit and Loss report. Why is this happening?
He's recording sales using the bank deposit screen, Journal Entry, or directly into the bank register. These screens don't allow him to enter a product/service which is required for a sale to appear on a Sales Report. Correct
What is one reason to NOT use a "bank deposit" or "Journal Entry" screen to record sales?
If you record sales through the bank deposits or journal entry screen the sale will not appear on sales reports. Correct
Your employer wants you to include some legal fine print in the footer of every invoice. However, you already use the "Customer Message" field to include a "thank you" message. How can you add the legal fine print to the bottom of all invoices (without using the "Customer Message" field)? a
In the Customize Form Styles window when editing the invoice template, click the Content tab, and then click the footer box to type the fine print in the footer text field. Correct b
What does "Privacy mode" on the home page do?
It hides the values displayed on the profit and loss, bank accounts, and other sensitive financial information. Correct
Which of the following statements is true regarding Undeposited Funds in QuickBooks?
It is an account used to record payments before you make a deposit Correct
When setting up a new QuickBooks account, which of the following is TRUE about the Chart of Accounts?
It is possible to add more accounts after starting a new company. This is correct. QuickBooks creates a Chart of Accounts for you, but you can add, edit, and/or remove accounts after starting a new company in QuickBooks.
You notice an invoice you entered last month has changed significantly. You didn't make the change. How can you find out who changed it...and what they changed? a
Look at the Audit Log report Correct
Your employer asked you to track the service person assigned to each sale. She wants to see their name on the invoice. How can you track the sales person on the sales forms
Navigate to company settings, and in the Sales category of settings, create a custom field for sales rep Correct c
In QBO Plus, entering a purchase order for stock affects which accounts?
None, because purchase orders are non-posting transactions Correct
The Company you work for set up three services in QuickBooks to record their sales. However, when they run a Profit and Loss report all of their sales are reported on one line, as "Services Income". They ask you to fix this so the Profit and Loss displays a separate line for sales of each service. How do you do this? a
Open the Products and Services list and edit each service. Change the Income account to the one you want sales of that service to appear as on the Profit and Loss. Click the "Also update this account in historical transactions" box if you want old transactions to affect this new account. Correct
You need to create a recurring invoice. How do you do this in QuickBooks?
Open the transaction form (invoice in this case) and click Make recurring. Correct
Which of the following is NOT a list in QuickBooks Online?
Other Names Correct
You'd like to work in QuickBooks more efficiently. How can you see the list of shortcuts available to you?
Press the "CTRL", "ALT", and "?" keys at the same time. Correct
There are two primary financial statements that summarize the Chart of Accounts. Which of the following is one of these reports?
Profit and Loss Correct
Which report gives you information on your income and expenses for a specific period?
Profit and Loss report Correct. The Profit and Loss shows income and expense accounts
Which of the following is NOT true regarding merging entries in lists?
QuickBooks allows you to merge an expense account with an income account Correct. You cannot merge two accounts that are not the same Type.
What happens if you press "CTRL", "ALT", and the "?" keys at the same time?
QuickBooks displays a list of shortcut keys Correct
When entering a journal entry, what happens if the debits don't equal the credits?
QuickBooks will not allow you to record the transaction. Correct
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 My Custom Reports. Select the line of the report on the list and click Edit. Set the email schedule in this window. Correct
You made a sale and the customer paid the whole amount (they DON'T owe you anything). To record the sale you click the icon and select... a
Sales Receipt. Enter the sale and payment information and save the transaction. Correct
If you have a customized report that you use each month, what feature lets you run the report with updated data each month?
Save Customizations Correct
You finished entering all the transactions for last year and just sent the file to the tax preparer. How do you ensure that no one accidentally deletes, edits or adds a transaction to last year?
Set a Closing Date and password in the Advanced tab of the Account and Settings. Correct
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. - Correct
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 Correct c
When you purchase stock, which account is increased?
Stock Asset Correct
What type of account must you have to collapse the Profit and Loss report? a
Subaccounts Correct
Your employer wants you to create a new QuickBooks company. What information should you know (because you can't change it later)?
The company's industry Correct. QuickBooks uses this information to change settings and create a Chart of Accounts for you. You can change settings after set up. And while you can edit, add, and delete accounts, it can be more time consuming that simply selecting an industry.
What account do you put in the account field at the top of the form?
The name you used when you set up your credit card account on the Chart of Accounts (e.g. Visa, Company Credit Card, etc.) This is correct. Each time you enter an expense and select the Credit Card account, QuickBooks increases how much you owe that credit card. Conversely, when you enter a bank account, QuickBooks decreases the account balance. b
Your company has 2 departments, landscaping and a greenhouse. You'd like to see how your business is doing overall AND how each department is doing individually. This means you need to "tag" each transaction as either "landscaping", "greenhouse" or split to both.
Turn on Classes, and set up consulting services and landscaping each as their own class. Correct. You turn this on in the Account and Settings window. Then you can use the Class field on expense and sales forms to tell QuickBooks which class (department) the transaction is for. If you want to track different locations of the same business, use "Locations" instead.
You invoiced your customer for 5 Widgets (stock parts). Your customer returned 3 of the widgets. What's the best way to handle this transaction in QuickBooks?
Use a Credit Memo/Note. On the form enter 3 Widgets. Correct
You have two customers with the same name. How do you handle this in QuickBooks?
Use a middle initial or other letter in the Display name to make one name different from the other. Correct
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 customer 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? a
Use the Apps tab in QuickBooks to find a CRM app This is correct. The apps tab in QuickBooks contains apps created by other companies to solve specific business needs (e.g. industry specific, web sales, CRM, project management, etc.). Businesses can add functionality as they grow, or connect an app they're already using to QuickBooks. Their data syncs automatically so they don't have to enter the same data twice.
What does the "Apps" tab do in QuickBooks?
Use the Apps tab to find other apps a business needs (or is already using) for their business (e.g. webstores, CRM, project management, etc.). This is correct. The apps tab in QuickBooks contains apps created by other companies to solve specific business needs (e.g. industry specific, websales, CRM, project management, etc.). Businesses can add functionality as they grow, or connect an app they're already using to QuickBooks. Their data syncs automatically so they don't have to enter the same data twice. d
Which of the following statements is true regarding vendor credit memos?
Vendor credit memos reduce what you owe the vendor Correct
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. Correct
When would you create an estimate in QuickBooks?
When a customer requests a bid, quote, or proposal Correct
Your employer asks if you can automate the process of entering the rent check in QuickBooks. How do you answer?
Yes, I can do this by making the rent check recurring. I can even tell QuickBooks to stop creating these checks after a certain number of months. Correct
Which statement is TRUE?
You CAN enter a Sales Receipt if the Customer field is empty. Correct
If you use QuickBooks on your mobile device, how do you update your QuickBooks so that someone using it on the web can see your changes?
You do nothing. QuickBooks is always up to date with info from the mobile device. This is correct. Transactions entered on your mobile device are available almost immediately on the web.
Which of the following is TRUE regarding accessing QuickBooks?
You can access QuickBooks from almost any browser on any computer with an Internet connection. Correct 97
Your new employer asks about the menu choices at the top of the screen ( ). Select the statement about the menu that is FALSE
You can create your own menus in the Advanced tab of Account and Settings Correct. You can't create menus in QuickBooks while accessing your data via a web browser. You can use a desktop app to access your QuickBooks data which does have a menu.
You're setting up a new QuickBooks account for a business that just hired you. The company has a list of accounts with opening balances (e.g. loan, vehicles, etc.). Where do you enter these balances when setting up the QuickBooks account?
You can enter opening balances using a Journal entry or directly into account registers. However, this is not recommended for non-accountants. You can enter open invoices to record the balance owed to you (Accounts Receivable) and open bills to record what you owe (Accounts Payable). Correct. Entering opening balances can be tricky because of the "other side" of the opening balance entry. Usually one uses an Equity account, but this depends on the date you enter opening balances.
) Select the statement that is NOT true
You can import a report from Excel back into QuickBooks (as long as you exported the report from QuickBooks originally) Correct
You've just been hired as a bookkeeper and the company's QuickBooks is a mess. There are many list entries that are duplicates. You decide to merge list entries to clean up the lists. Which of the following is TRUE? a
You can only merge names from the same Type Correct
At your new job, you inherit a QuickBooks company that has a lot of duplicates on lists (e.g. the same customer or account entered twice, but with slightly different spelling). To clean this up, you decide to merge redundant list entries. Which of the following is TRUE?
You can only merge names from the same Type Correct. Names must be the same type to be merged.
Which of the following statements is true concerning products and services?
You can use one product/service to represent different services or goods. If your company sells a different service or product each time, you can set up a "catch-all" item and just change the description on each invoice. You can also set up items that represent categories of things you sell (for example, Labor and Parts) c. Products/Services allow you to track your sales in more detail without cluttering your Chart of Accounts or Profit & Loss. You can have 1000s of products/services "flowing" to a few income accounts. This allows you to get a simple view of your sales on the Profit & Loss, while you can get more detailed information from Sales reports. d. To create an invoice, you must use a product or service. Invoices require products/services because this is how QuickBooks knows which account to use for the income (the account you use when you set up the item). e. All of the above.
You sent a QuickBooks report to Excel and made some changes. How do you import the changes back to QuickBooks? a
You can't import changes in Excel back to QuickBooks Correct
You notice the memo field on a transaction (e.g. check, or credit memo) reads, "Created by QB Online..." Why would QuickBooks create a transaction for you?
You deleted a customer, vendor, or account that had an open balance Correct. When you delete a list entry with a balance, QuickBooks creates a transaction to offset the balance. For example, if you delete a customer with a balance, QuickBooks creates a credit memo to decrease the balance. It also creates a payment to link the open balance with the credit. On both these transactions, the memo contains the text "Created by QB Online..."
When should you NEVER delete a check?
You printed a check, and the check number has been used. This is the correct answer. If a check number has been used, you must account for it. By voiding the check, you keep a record of the check number and show that the check is voided. You also ensure that QuickBooks will warn you if you try to record that same check number again. If you really didn't use the check number, and just enters a check by accident. You can delete the check. 56
You need to customize a report the same way every week. To save time, you want QuickBooks to "remember" your customizations. How do you do this? a
a. (1) When the report is customized click "Save Customization". (2) Name the report and click Save. (3) When you want to run the report click the Reports tab. (4) Click the My Custom Reports tab and (5) click on the report name to run it. Correct
You need to set up a new user so they can see reports, but do NOTHING else in QuickBooks. Put the steps for setting up a user (who can only see reports) in the correct order. (Note: You don't have to choose all the steps.)
a. In the Manage Users screen, click "New"(2) b. Choose User Type "Reports Only" and click Next (3) c. Click the Reports Tab Enter the user's email address and click Next (4) d. In the reports tab, select users and then click New. e. Click the Company menu and choose Manage Users (1)
Put the following steps in order for tracking departments.
a. On sales and expense transactions, select the class(es) associated with each transaction (3) b. Turn on Classes in company settings (1) c. Turn on Departmental Tracking in company settings. d. Run the Profit and Loss by Class report (4) e. Create your departments on the Class List (2)
Two customers with unpaid invoices paid you in cash today. Hooray! You really needed the money because your bank balance is almost zero! You immediately run to the bank and deposit the $1000 in cash (you received $500 from each customer).
a. Step 1: Click Receive Payment next to each customer and record their $500 payments. In both cases, deposit the money to "Undeposited Funds" Step 2: Click the icon and select Bank Deposit. Select both payments from the list and save the $1000 deposit. Correct
Your employer wants to know if there are any overdue bills. What report would you run to give him this information? a
b. Accounts Payable Aging report Correct. You can also click the "overdue" box on the money bar on top of the vendor page. However, this is not a report you can print.
Where in QuickBooks can you find out the status of what you owe to a vendor, and when it's due?
b. Accounts Payable Aging report or the Vendor Balance Detail report This is correct. Both of these reports will show you the vendors that you have open balances with, how much you owe them, as well as when the balances are due. c
