Quickbooks Online Prep Exam

Jaslene received a bill from her supplier that included more than the actual products purchased. What might the charges be for and what should she do? -This can happen with the FIFO inventory method. It just means the items she ordered have different costs, based on when the supplier purchased them on their end. -It could be an error. She should contact the supplier to discuss and request a new bill. -It is likely for delivery or shipping charges. She should add the charge to the purchase transaction in QuickBooks. -She should only pay for what she ordered.

-It is likely for delivery or shipping charges. She should add the charge to the purchase transaction in QuickBooks.

How can you get your purchase receipts into QuickBooks Online for automatic categorization and matching to your bank feed? -Convert the physical receipts to CSV or TXT files. -Use the Import tool. -Set up a transfer for each purchase. -Upload images of them using the built-in receipt capture feature.

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In what QBO subscriptions can you prepare and print 1099s? -Simple Start, Essentials, Plus, and Advanced -Essentials, Plus, and Advanced -Plus and Advanced -Simple Start and Essentials

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What is the audit log? -The final step of the accounting cycle -A listing of user sign-ins and activities in chronological order -What you complete before preparing the Adjusted Trial Balance -A report of changes to customer and vendor transactions

A listing of user sign-ins and activities in chronological order.

What is the migration utility? -A tool that creates a backup of company data to share with your accountant -A tool that assists with importing all data from a QuickBooks Desktop company file to QuickBooks Online -A tool that automatically closes out the company books for year end -A tool that converts cash-basis accounting records to accrual-basis

A tool that converts cash-basis accounting records to accrual-basis

What is NOT a benefit of using QuickBooks apps on the desktop instead of via your browser? -The pages load faster. -You can snap a picture of a receipt to upload directly. -The pages won't time out. -You can stay signed in.

You can snap a picture of a receipt to upload directly.

Why set up a recurring journal entry? -You don't expect the customer to pay their debt. -You want to transfer funds from your checking to your savings account every month. -You will make multiple payments on a fixed schedule. -You need to replenish the petty cash fund.

You will make multiple payments on a fixed schedule.

Barry wants to show appreciation to his best customer by discounting all their purchases by 10%. What's the most effective way for him to do this? -Update to the Price Point version of QuickBooks Online. -Create a price rule and apply the rule to the customer. -Raise the prices for all other customers while leaving this customer's prices as they are. -Manually enter the discount on all invoices to that customer.

Create a price rule and apply the rule to the customer.

What is a limitation associated with location tracking? -There's no option to automatically apply the same location to all lines on a form. -Only one location per transaction form can be tracked. -Banking deposits can't be tracked. -The reports for location tracking are limited.

Only one location per transaction form can be tracked.

What report do you run to verify that goods were not received without applying the receipt of inventory to a purchase order? -Open Purchase Order List -Purchases by Vendor Detail -Purchases by Product/Service Detail -Expenses by Vendor Summary

Open Purchase Order List

What report helps you manage cash flow by showing you each customer with an open balance and how long the account has been outstanding? -A/R Aging Summary -Balance Sheet -Dashboard -Chart of Accounts

A/R Aging Summary

Hugh wants to add a Product Code field to all his sales forms. What do you tell him? -Add the custom field to one form, which will apply the change to all forms by default. -The easiest way is to rename one of the existing fields. -Manually add the field to each sales form, saving the customization every time. -You can't do that, but you can have employees put the product code in the Notes field.

Add the custom field to one form, which will apply the change to all forms by default.

In the Chart of Accounts, what are bank accounts listed as? -Credits -Debits -Assets -Liabilities

Assets

With QuickBooks Payments, customer payments are _____ matched to the applicable invoices. -not -automatically -later -periodically

Automatically

What types of accounts can be added to the bank feed? -Inventory accounts and bank accounts -Bank accounts and credit card accounts -Credit card accounts and equity accounts -Equity accounts and inventory accounts

Bank accounts and credit card accounts

Akim is entering a bill from a new vendor whose name does not appear in the Choose a Vendor menu. What should he do? -Close the Bill window, navigate to the Vendors tab and create the vendor, and then go back to the Bill window and fill in the form. -Choose Add New from the menu and create the new vendor right from the bill. -Leave the Vendor field blank and complete the rest of the bill; add the name later. -Use the Import Data tool to pull in the vendor's name. -Merge the bill with the customer's invoice.

Choose add new from the menu and create the new vendor right from the bill.

Juan wants to track the profitability of three aspects of his restaurant: dining, bar, and merchandise sales. What feature does he use? -Report center -Transaction labeler -Class tracking -Profitability tracker

Class tracking

How can you access the QuickBooks Apps store? -From the Gear menu -Via a web search -Request a store username and password -Upgrade to the Advanced subscription

Via a web search

Credit Memo : Refund Receipt: Vendor Credit: Inventory Qty Adjustment: Purchase Order: -This form applies to open invoices and reduces the amount a customer owes. -Use this form when returning money to a customer for a returned product. -Recorded for an expense or product/service and applied to an unpaid bill. -Use this to match your actual product counts with the counts in QuickBooks. -This is a document sent to a vendor to order inventory products.

Credit Memo : This form applies to open invoices and reduces the amount a customer owes. Refund Receipt : Use this form when returning money to a customer for a returned product. Vendor Credit : Recorded for an expense or product/service and applied to an unpaid bill. Inventory Qty Adjustment : Use this to match your actual product counts with the counts in QuickBooks. Purchase Order : This is a document sent to a vendor to order inventory products.

A customer wants an order she is placing with you to be sent to an address that is not the same as the billing address you have on file for her. What do you do? -Create a shipping rule for this particular order. -Indicate the change in the Sales/Invoicing center. -Enter the billing and shipping addresses on the Customer Information form. -Create a sub-customer with the alternate shipping location.

Enter the billing and shipping addresses on the Customer Information form..

You just started using QuickBooks to manage your existing business. Your customer list is in Excel. How do you get the list into QuickBooks? -Manually enter each customer. -Import the customer list. -Save the Excel file as a CSV file and enter that. -Enter the products instead -- it's faster.

Import the customer list.

Carol just modified and saved a new version of the Profit and Loss report. Where is her version stored? -In the Reports center, within an area reserved for customized reports -At the top of the Reports center, in the Favorites section -In the Business Overview section with the default Profit and Loss reports -It's hidden by default but can be searched for and then saved to Favorites

In the Reports center, within an area reserved for customized reports

What happens to Cost of Goods Sold in the profit and loss report when you sell a product? -Nothing happens. -It increases. -It is closed out. -The valuation automatically adjusts.

It increases.

How does QuickBooks assist with the third step of the accounting cycle? -It posts transactions to the general ledger. -It moves information you entered in forms to the journal. -It attaches source documents to transactions. -It ensures classes are applied to all transactions.

It posts transactions to the general ledger.

From where do you access the Sales(/Invoicing) center? -Navigation bar -Customers List -Gear menu -Chart of Accounts

Navigation bar

Angel is going to use QuickBooks for his new business. He tells you his business doesn't use purchase orders. What do you tell him? -You have to use purchase orders with QuickBooks. -No worries; just make your purchase directly on the expense, check, or bill form. -While you don't have to use purchase orders in your business, not using them translates to more work for you in QuickBooks. -If you don't use purchase orders, you can't track your inventory.

No worries; just make your purchase directly on the expense, check, or bill form.

Camilla wants her Bill form to credit an account other than Accounts Payable. What do you tell her? -Good idea! Change it to credit the bank or credit card account. -That default setting can't be changed, and it makes sense that a Bill form credits Accounts Payable. -You can't change the default, but you can manually change the account each time you create a new bill. -Be sure to make your customizations before recording expense transactions.

That default setting can't be changed, and it makes sense that a bill form credits accounts payable.

Jemma is setting up a journal entry to record the allocation of her prepaid auto insurance. What information will she need? -The accounts that will be increased and decreased with debits and credits -The total amount of the long-term liability -The company's total budget for auto insurance -The purchase order from the insurance company

The accounts that will be increased and decreased with debits and credits

Why create the Chart of Accounts? -It's necessary for the company file setup -To categorize assets, liabilities, expenditures, and revenue -So customers can see the products and services you offer -Because QuickBooks Online is a double-entry accounting system

To categorize assets, liabilities, expenditures, and revenue

Why would you make a recurring journal entry for the depreciation of a vehicle? -So the inventory valuation summary makes sense at the end of the year -You wouldn't; depreciation is done with one journal entry -To have the vehicle's value gradually depreciate throughout its useful life -It's a required part of the accounting cycle steps

To have the vehicles value gradually depreciate throughout its useful life.

In what account do you collect more than one payment before making a deposit? -Accounts Receivable -Undeposited Funds -Accrued Savings -Checking

Undeposited Funds

Where can you set default payment terms for an individual vendor? -Vendor Information window or directly on the bill -Products and Services List -On the invoice template -Account and Settings

Vendor information window or directly on the bill

Issue a _____ if a customer has been overbilled. -refund receipt -vendor credit -purchase order -credit memo

credit memo

A vendor transaction is recorded as an expense when: -you buy now and pay later -vendor records are being merged -payment is made at the time of purchase -included on management reports.

payment is made at the time of purchase