QBO Cheat Sheet 2026

The 30 highest-yield QBO facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. Which report helps review all financial transactions by account and date? → General Ledger
2. A business wants every new invoice to default to a 'Due on Receipt' payment term. Where is this configured in QBO? → Account and Settings > Sales > Invoice and delivery preferences
3. A company records a customer advance payment. Which account type should be used to properly record this liability in QBO? → Deferred Revenue (Other Current Liability)
4. Which account type should be used to track money owed by customers? → Accounts Receivable
5. Which QuickBooks Online report shows income and expenses broken down by Class? → Profit and Loss by Class
6. What is the purpose of the 'Trace' feature when reviewing a number on a QBO financial report? → It drills down to show the individual transactions making up that total
7. Which QuickBooks Online feature allows a ProAdvisor to view and edit multiple transactions at once using a spreadsheet-like interface? → Batch Transactions
8. A client needs to record a payroll run that was processed outside of QBO (e.g., with a third-party provider). Which feature should be used? → Manual Paycheck under Payroll
9. A ProAdvisor needs to apply one payment to multiple invoices for the same client in QBO. How is this done? → Use 'Receive Payment' and check all applicable invoices
10. Which QuickBooks form is best for recording immediate payment for a sale? → Sales Receipt
11. A QBO company has 'Track locations' enabled. What does this feature allow? → Segment transactions by physical business location or department
12. In QBO, what is the effect of enabling 'Show account numbers' in the Chart of Accounts settings? → Account numbers appear on financial reports and transaction forms
13. Which of the following transactions CANNOT be assigned a Location in QuickBooks Online? → Payroll transactions created through QBO Payroll
14. A QBO client uses the Products and Services list. When would you use a 'Non-inventory' item type instead of an 'Inventory' item type on an invoice? → When the item is sold but QBO should not track quantity on hand for it
15. When you use the 'Work' tab in QuickBooks Online Accountant, what is a 'project'? → A container grouping related tasks for a client engagement
16. A ProAdvisor is setting up QuickBooks Online for a client and needs to enable the 'Location Tracking' feature. Where is this setting found? → Gear > Account and Settings > Advanced
17. A client accidentally applied a vendor credit to the wrong bill. How do you fix this in QBO? → Open the bill payment and uncheck the credit, then re-apply to the correct bill
18. When is a Form 944 used instead of Form 941 for payroll tax reporting? → When the IRS notifies a small employer that their annual tax liability is $1,000 or less
19. Which report in QBO shows all outstanding bills grouped by how many days they are past due? → Accounts Payable Aging Summary
20. What happens when you click 'Save customization' after modifying a report in QBO? → The custom report settings are saved and accessible from Custom Reports
21. If a company has multiple retail store locations, which QBO feature is most appropriate for tracking each store's financial performance separately? → Location tracking
22. Which user permission level in QBO allows a bookkeeper to enter and pay bills but prevents them from viewing payroll data? → Standard User with limited access (no payroll)
23. When setting up a new employee in QuickBooks Online Payroll, which section is used to enter federal and state withholding allowances? → Withholding
24. A QBO customer is exempt from sales tax. Where do you mark this so invoices are automatically created without tax? → In the customer's profile under the Tax info tab
25. What form should be used to record a vendor bill in QuickBooks? → Bill
26. You receive a partial payment on a $1,000 invoice. The customer pays $400. What is the status of the invoice after applying the payment? → Partially paid
27. Which QBO feature automatically sends payment reminders to clients with overdue invoices? → Automatic invoice reminders
28. Which transaction type in QBO is used to record money you spend directly from a bank account WITHOUT a prior bill? → Check or Expense
29. A company wants to require manager approval before any vendor bill over $1,000 is paid. QBO's native workflow supports this through: → QBO Advanced's Workflow Automation feature
30. When recording a bill in QBO, which account is typically debited? → The expense or asset account for what was purchased