Quickbooks Online Certification Exam Answers

Which one of the following is a feature of QuickBooks Online Payroll? The client submits payroll tax payments and forms Exporting to QuickBooks Desktop for Win Mac Run from a different website with a central client list. Paying employees by print paychecks or direct deposit

C. Run from a different website with a central client list.

What does a negative inventory indicate?

hows that there is no inventory to sell. To resolve this issue, you can create a Quick report for the item and can look for the discrepancy in and out of the inventory.

Write down the correct definition of Cash-based reports?

indicate income as of the date you get the customer payment and expenses as of the date you pay the vendor bill.

If you see two or more similar names in the vendor center that refer to the same vendor, what will you do to clean up the Vendors list?

merge similar vendor names.

What is the undeposited funds account?

temporary account that is used when you have received a payment from a client but has not been deposited in the bank.

What are the unique features of QuickBooks Enterprise that no other version has?

User limit: 5 to 30 A limitless items amount vs. 14500 max with Pro/Premier Powerful Inventory features Runs faster in a network multi-user environment Individual user access per area

What are the main tips for a beginner to speed up the work in QuickBooks?

Verify the date: The wrong dates will always give the wrong reports. Utilize Tab rather than Enter: Enter inclines to the opposite of what you want. Practice shortcuts: Speeding up the data entry procedure, particularly with dates. And, reconcile accounts along with discarding the duplicate transactions. Use the Home page in case of finding out a lost page. Follow Accounting Rules such as expense matching and revenue recognition.

Write down the true statements regarding how to make changes to the QuickBooks Chart of Accounts and how to link products and services to the chart of accounts?

We have to access the chart of accounts to add a new account. And then, click on New to launch the Account window. When you have turned on the inventory, the default account will be the Sales of Product Income account. The category type decides on which financial statement the new account will appear while adding a new account. Once you have set up Products and Services, they will be linked it to the chart of accounts by specifying sales price. It is recommended to delete an account from the chart of accounts if is irrelevant to the business.

What is the difference between writing a check and entering a bill?

Writing a check indicates recording an expense simultaneously it is being paid. There will be no time gap between the expense and the payment date. Whereas, entering a bill is to incur an expense that will be paid in the future.

What is the main difference between QuickBooks Pro and Premier?

You can create P.O.'s directly from sales orders, change orders, and manage industry-specific reports such as Retail, Wholesale and Manufacturer, Non-Profit, Professional, Contractor, and services. Whereas, QuickBooks Pro doesn't contain this feature.

What types of customer statements can be created by QuickBooks Online?

A statement that indicates a balance forward. Which indicates invoices created between related payments and two specific dates. Open transactions.

Which option is to be selected to find the link to the Deleted Transactions tool?

Accountant Toolbox.

Write down the difference between Accounts and Items?

Accounts: In which financial transactions are prepared into reports like profit & loss reports and balance sheets. A few accounts carry balances like accounts payable, accounts receivable, income and expenses, etc. Items: They are the products and services you trade and use on transactions like purchase orders and invoices.

Which subscription includes online banking, integration with a wide range of apps, and online access feature?

All QuickBooks Online subscription includes the feature of online banking, integration with a wide range of apps, and online access.

Which option may help you to set up a new bank feed or link to a bank account in QuickBooks Online Company?

Banking Center option

Why is setting a closing date and a password strongly recommended?

Because it automatically sends an email to the accountant.

Which account register needs to be opened to view the cleared checks?

Checking Account.

Where can you import a list of products and services in QuickBooks Online?

Choose the Gear icon and select All Lists. Here, you can import a list of products and services.

What type of user permissions need to be set up to give access to one or more employees to your practice?

Company administrator, Regular or custom user, Time Tracking only, and Reports only.

What is the difference between a Custom Transaction Detail Report and a Custom Summary Report?

Detail: Transaction by transaction, Line by line, detailed transaction. Summary: Consists of the totals for a customer or vendor/totals for a particular account.

What are the steps to turn on warnings for duplicate check and bill numbers in QuickBooks Online Company?

First of all, choose the Gear icon. Click on the Account and Settings option under your Company. Select the Advanced tab. Now, select the option to warn in the other preferences section. Finally, click on the Save option.

How to get QuickBooks financial reports to excel?

First of all, launch any report and choose the Excel option. Create a new worksheet and you must have Excel on your PC. Start exporting to excel and look for data, statistical analysis, and creating graphs.

If your client wants to transfer $600 from the checking account into a savings accounts to cover tax liabilities, from where he should imitate the process?

He should navigate to the Quick Create option and choose the Transfer link.

How to reclassify transactions in QuickBooks Online?

In the Account Toolbox option, you need to choose reclassify transactions to clear out unspecified expense accounts.

When would you use the Add other funds to this deposit grid in a Deposit Transaction?

In the following situation, we use to add other funds in a deposit transaction. In case of receiving a tax refund from the IRS. Employee reimbursement When the company is not recording income using sales transactions and is interested to record deposits to income accounts

Are you allowed to enter statement charges one by one as you enter customer or vendor services?

No, you can't enter statement charges in turn like entering customer or vendor services.

Which of these Company Settings must be chosen in order to activate online invoices: Include sales forms as PDF attachments Email a link to customers to pay invoices online HTML emails Include invoice as a PDF attachment

Option B (Email a link to customers to pay invoices online)

Which financial reports are to be prepared at the end of the year for the tax preparation or other type of financial reporting?

Profit and Loss, balance sheet A/R Aging, A/P Aging, Summary of Inventory Valuation, Profit by job, etc. are to be prepared at the end of the year for the tax preparation.

Where you can find the transfer funds function in QuickBooks Online?

Under the 'Quick Create' option, you can find the transfer funds function in QBO.

What are the methods to get information into QuickBooks Online?

Use Export Data Tool and Import Data Tool. Via the Attachments Tool Manually enter data into the QBO forms.

Complete the following steps of adding a new customer for your client in their QuickBooks Online Company. Enter the customer name, phone number, and email from the business card that has been given by the client. ________________ Edit the customer's details and choose the Customer name from the list. Go to the Edit option and enter the reseller number if the customer is not taxable. ________________ Set the desired payment method to Credit Card.

Step 2: Choose the Add Customer option. Step 5: Click on Payment and Billing.

If your client wants to modify the business address of the company in QBO, what steps he needs to perform? Complete the following steps. Sign in to the QuickBooks Online Account. ________________ The client dashboard will appear. ________________ Choose the Account and Settings option. Click on the Pencil icon under the Address section.

Step 2: Choose the client company from the Client Switcher drop-down. Step 4: Select the Gear icon.

What is the difference between the Balance Sheet Report and Profit and Loss Report?

The balance sheet reports indicate the values of Assets and Liabilities at Equity as of a particular date. Whereas, the Profit and Loss Reports show activities (Income and Expenses to arrive at Net Income for a particular time).

You should look into the sales tax requirements of your clients for their business and locality, as part of understanding the client's requirements. What information will be required to set sales tax up in QuickBooks Online? (Only for home-state business)

The company address Starting date of their current tax. How often do they file a tax return? Starting date of collecting sales tax for the agency.

How to enter statement charges in QuickBooks?

The first step is to log in to QuickBooks and go to the Home page. And then, click on the Statement Charges option on the dashboard. Finally, enter the data you have asked for.