QBO - Certified QuickBooks ProAdvisor Financial Reporting Questions and Answers 1

Question 1

A client wants to view a summary of their company's financial position, including what it owns (assets) and what it owes (liabilities) at a specific point in time.
Which standard report in QuickBooks Online should they run?

Accepted Answer

Balance Sheet

Answer

Profit and Loss

Answer

Statement of Cash Flows

Answer

A/R Aging Summary

Question 2

A business owner has generated a Profit & Loss report and wants to save the current customization settings—including a comparison to the previous year and a filter for a specific location—to run again each month. What is the most efficient way to do this in QuickBooks Online?

Accepted Answer

Use the 'Save Customization' feature.

Answer

Export the report to Excel and create a template.

Answer

Take a screenshot of the customization settings for future reference.

Answer

Manually re-apply the filters and settings each time the report is run.

Question 3

When viewing a Profit & Loss report, what is the primary difference between selecting the 'Accrual' basis versus the 'Cash' basis?

Accepted Answer

Accrual basis shows income when it is earned and expenses when they are incurred, regardless of when money changes hands.

Answer

Cash basis reports are always more accurate for tax purposes.

Answer

Accrual basis only includes transactions that have cleared the bank.

Answer

Cash basis shows income when invoices are created and expenses when bills are entered.

Question 4

A ProAdvisor is preparing a professional, branded financial package for a client's board meeting. The package needs to include a cover page, a table of contents, standard reports like the P&L and Balance Sheet, and a page for an executive summary. Which QuickBooks Online feature is designed for creating such a package?

Accepted Answer

Management Reports

Answer

Report Groups

Answer

Custom Report Builder

Answer

Spreadsheet Sync

Question 5

Which of the following can be accomplished using the 'Customize' button on a standard QuickBooks Online report?

Accepted Answer

Filter the report data to show only specific customers, vendors, or products.

Answer

Permanently change the company's default accounting method.

Answer

Create new transaction forms like invoices or bills.

Answer

Reconcile a bank account directly from the report view.

Question 6

A client is confused about why their 'Statement of Cash Flows' shows a different bottom-line number than their 'Profit & Loss' report for the same period. What is the most accurate explanation for this difference?

Accepted Answer

The Profit & Loss report includes non-cash expenses like depreciation, while the Statement of Cash Flows adjusts for these.

Answer

The Statement of Cash Flows is always run on a Cash basis, while the Profit & Loss is always Accrual.

Answer

The Profit & Loss report includes sales tax, but the Statement of Cash Flows does not.

Answer

One of the reports must be incorrect and needs to be rebuilt from scratch.