QuickBooks Test 37 Questions

Where in QuickBooks can you find out the status of what you owe to a vendor, and when it's due?

Accounts Payable Aging report or the Vendor Balance Detail report

Which two accounts of the following accounts would most likely appear on the Balance Sheet report?

Accounts Receivable Checking

Select 2 ways to identify unbilled billable expenses.

Run the report Unbilled charges. Create a new invoice and any unbilled billable expenses will appear on the sidebar.

For each Money-in transaction described, identify the transaction. Not all choices will be used.

Sale to a customer on account. Invoice A cash sale to a customer. Sales Receipt Money taken to the bank. Deposit Money returned to a customer. Refund Receipt

Customer A pays you cash in the morning for work done that morning. Later in the day, customer B drops off a check for an unpaid invoice. You record the payments and take both checks to the bank on the same day. Place the following steps in order to show how you do this in QBo assuming steps are completed right after the customer action occurs. Not all steps will be correct.

1. Create a Sales Receipt for the work done for Customer A. Correct 2. Click Receipt payment next to Customer B and record the payment received. Correct 3. Select Deposit from the <+New> icon and select the transactions for customer A and customer B. Correct 4. Click Receive payment next to Customer A and record the payment received. Incorrect

Use the dropdown menu to identify whether each of the following statements is true for Accrual Accounting or Cash Basis Accounting.

A company makes a sale and records the expected revenue as an Accounts Receivable transaction. Accrual Accounting. A company makes a sale, but revenue is not realized until the invoice is paid. Cash Basis Accounting. A company receives their utility bill but the expense is not recorded until the bill is paid. Cash Basis Accounting. Provides a more accurate picture of the profitability of a company because it includes accounts receivables and payables. Accrual Accounting.

For each statement below about recurring transactions identify if the statement is true or false.

A scheduled recurring transaction will process automatically at the set interval of recurrence YES An unscheduled recurring transaction must have a set end date NO A remind recurring transaction will process automatically at the set interval of recurrence. NO

For each statement below identify if the statement is True or False related to the how to use and process bank feeds.

After a transaction is downloaded from the bank feed into QBO Online, QBO will suggest the bank reconciliation discrepancy account if it does find an applicable bank rule or matching transaction. NO The first download after setting up the bank fees will include 90 days for transactions unless excluded. YES If you want to keep a downloaded transaction from going into your company expenses you should exclude the transaction. YES

When should you select your checking account as the payment account on an Expense form?

All of the answers are correct

What is the difference between an Invoice and 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)

For the Duke's basketball camp

An invoice dated September 10 of the current year will be due by September 25th of the current year. YES If the terms for a customer are changed on Sept 10 of the current year all the due dates on all open invoices dated before September 10th of the current year will be updated with new due dates NO When creating an invoice for Duke's basketball camp, the terms on the invoice can only be NET15 NO

To add a receipt to QBO Online from your computer, what option do you select from the left-hand navigation to begin the process?

Banking

She needs the expense form to look like this. How do you fix this?

Click the *** icon next to the company name. Click Account and Settings/Company Settings. Click the Expenses tab. Select "Track Expenses and items as billable."

Your computer retail store has decided to sell repair services. You must add this new list to QBO Online. How do you add a new Services list to QBO Online? Put the steps for adding a new list in the correct order.

Click the *** icon. Select Products and Services. Click the new button. Select Service. Enter a service Name, Information (description), Rate, and Account to track income.

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 Private mode switch on the dashboard to prevent sensitive financial information from being displayed in this window.

For each statement below identify if the statement is True or False related to the benefits of connecting QBO Online to online bank accounts.

Connecting to online bank accounts and downloading transactions, increases the likelihood of not recording a transaction. NO Connecting to online bank accounts and downloading transactions, increases the risk of manual data entry errors. NO Connecting to online bank accounts and downloading transactions allows you to apply banking rules to automatically categorize common transactions. YES Connecting to online bank accounts and downloading transactions, increases the time spent on data entry. NO

When transaction should you enter if a customer returns a damaged product that they have not yet paid for.

Credit Memo

For each statement about discounts select "Yes" if the statement is correct or "No" if the statement is not correct.

Discounts can be a percentage rate YES Discounts can be a dollar amount. YES Discounts are a list in QBO NO Discounts are always applied to total after the sales tax is added. NO

What information would you see on a standard accounts payable aging summary or accounts payable aging detail report? Select 2 items

Due dates for bills Vendors who you owe money to

Complete each statement with the correct word for the actions that are possible after a receipt is uploaded into QBO Online. Not all choices will be used.

If QBO finds an existing transactions in your book that is exactly the same as uploaded receipts or bills you should select _____ it. Match. If QBO can't find an existing transaction that matches your uploaded receipt and the transactions needs to be recorded, you can _____ a new transaction from your receipt or bill. Create. If QBO finds more that one potential match to your uploaded receipt you should ____ the potential matches, then select the correct bill or expense. Review.

When setting up a new inventory item what accounts have to be defined?

Inventory asset account Income account Expense account

You notice an invoice you entered last month has changed significantly, but you didn't make the change. How can you find out who changed it and what they changed?

Look at the Audit Log report.

QBO Online allows you to connect directly to which of the following financial accounts to download activity into QBO?

Most major US Banks and credit card processors.

All of the fields below are fields that can be edited when changing the email sent to the customer with their invoice except which two?

Priority From Address

Select three benefits of using Quickbooks Online

QBO is in the cloud and can be accessed from anywhere as long as you have an internet connection. Companies can easily invite their outside accountant to access the QBO company file remotely. The need to install software on computers is eliminated.

When entering a journal entry, what happens if the debits don't equal the credits?

Quickbooks will not allow you to record the transaction.

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.

Select the two statements below that are correct as it relates to merging vendors.

To merge vendor A into vendor B you should edit the display name of vendor A to match vendor B. Merging of vendors cannot be undone.

Select the area that should be checked or filled in order to track 1099 vendors.

Track payments for 1099

You need to track your company sales and expenses by department. Put the following steps in order for tracking transactions for departments in the correct order. Not all steps will be used.

Turn on Classes in company settings. Create your departments on the Class List. On sales and expense transactions, select the class(es) associated with each transaction. Turn on Departmental Tracking in company settings. Click the tracking button.

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?

Use the Apps tab in Quickbooks to find a CRM app.

For each transaction below select Yes if it would be a good candidate to apply a bank rule to or No if it would not be a good candidate to apply a bank rule to.

Utility expense YES Monthly rent expense payments YES Purchases of fuel for your work trucks YES Hourly payroll worker paycheck NO

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.

For each statement below out money transactions identify if the statement is true of false.

When you receive a check from your customer to pay an open invoice, you should select Check to record the amount. NO Vendor credits can be used to reduce the amount paid a vendor. YES After entering a Bill you should select to Pay bills when it is time to pay the bill. YES Entering a Bill increases Accounts Payable. YES

For each statement below about report delivery, identify if this something you can do with a report by selecting yes, if this is not something you can do with a report select no.

You can export a QBO report to Excel. YES You can export a QBO report as a PDF. YES You can email a QBO report. YES You can import a report from Excel into QBO (as long as you exported the report from QBO originally) NO

The company that just hired you uses Quickbooks Online. You notice there are many duplicate entries on list, such as the same customer or account entered twice with slightly different spelling. You've decided to merge the duplicates. Which three statements are true about merging list entries? Choose three

You cannot merge a customer with a vendor entry. You can only merge names from the same Type. You cannot merge expenses and items.

For each statement below regarding sub-customers identify if the statement is true or false.

You must set up the sub-customer before the parent-customer. NO If Bill with Parent option is selected on the sub-customer, you can see the activity of the sub-customer in the parent customer account. YES If Bill with Customer option is selected on the sub-customer, then payments received must be applied to the parent customer. NO Sub-customers could be used when one customer has multiple shipping locations where you ship product. YES