Advanced Accounting Tools Flashcards
7 cards from real QBO practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Advanced Accounting Tools flashcards as text
What is the primary function of the 'Closing Date' feature in QuickBooks Online?
Answer: It password-protects prior-period transactions to prevent unauthorized changes
Setting a closing date in QBO prompts a warning (and optionally requires a password) whenever a user tries to add or edit a transaction in a locked period.
A QuickBooks Online company needs to record a transaction that debits an expense and credits a liability but does not relate to any customer or vendor. Which transaction type is most appropriate?
Answer: Journal Entry
A Journal Entry allows direct debit/credit posting to any account combination without requiring a customer, vendor, or bank account.
In QuickBooks Online Advanced, which feature allows you to set user-level permissions so that one employee can only view reports but cannot enter transactions?
Answer: Custom Roles
Custom Roles in QBO Advanced let administrators define granular access rights per user, including read-only report access without transaction entry rights.
When reconciling a bank account in QBO and the ending balance does not match the statement, which tool helps identify the discrepancy quickly?
Answer: Reconciliation Discrepancy report
The Reconciliation Discrepancy report lists any changes made to previously reconciled transactions that have altered the reconciled balance.
A client wants to bill customers for actual time spent on projects. Which two features must be turned on in QBO settings to enable this workflow?
Answer: Time tracking and Billable expenses/hours
Enabling Time Tracking and marking time as Billable allows employees to log hours that can then be added directly to customer invoices.
Which QuickBooks Online account type is used to record the owner's personal withdrawals from a sole proprietorship?
Answer: Owner's Draw (Equity)
Withdrawals by a sole proprietor reduce equity and are recorded in an Owner's Draw account, a sub-type of Equity.
What does the 'Exclude' action on a bank feed transaction in QBO do?
Answer: Marks the transaction as reviewed without creating a QBO record
Excluding a bank feed transaction removes it from the For Review queue without creating any accounting record, useful for non-business transactions like personal charges.