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
In QuickBooks Online, what is the effect of marking an account as 'inactive'?
Answer: The account no longer appears in transaction dropdowns but historical data is preserved
Making an account inactive hides it from dropdowns and forms while retaining all historical transactions and balances for reporting purposes.
Which QBO report shows each customer's outstanding balance grouped by how long the invoice has been unpaid?
Answer: Accounts Receivable Aging Summary
The Accounts Receivable Aging Summary categorizes unpaid customer invoices into buckets (Current, 1-30, 31-60, 61-90, 90+) to prioritize collections.
A client switched from accrual to cash basis mid-year. Which QBO setting change controls how the Profit & Loss report displays income and expenses?
Answer: Toggling the Accounting Method between Accrual and Cash in report settings
QBO allows you to switch the Accounting Method between Accrual and Cash on any report without changing underlying transaction data.
Which action should you take in QBO when a customer overpays an invoice and you need to apply the credit to a future invoice?
Answer: Create a Credit Memo and apply it to the next invoice
A Credit Memo records the overpayment as a customer credit that can be applied to reduce the balance on any future invoice.
In QBO's bank reconciliation, what is the correct way to handle a bank service charge that appears on the bank statement but has not been recorded in QBO?
Answer: Add the charge directly in the reconciliation screen using the 'Add' function
During reconciliation you can click 'Add' on unmatched statement items to create the transaction in QBO on the spot, keeping the reconciliation balanced.
What is the purpose of the 'Undeposited Funds' account in QuickBooks Online?
Answer: To stage customer payments received before they are grouped into a bank deposit
Undeposited Funds acts as a holding account for customer payments so multiple checks can be grouped into a single bank deposit that matches the actual bank deposit slip.
Which QuickBooks Online Advanced feature enables you to create automated reminders to customers whose invoices are overdue without manual intervention?
Answer: Automated Invoice Reminders (Workflows)
QBO Advanced's Workflows feature includes automated invoice reminder rules that send emails to customers based on days-past-due criteria.