Banking and Reconciliation 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 Banking and Reconciliation flashcards as text
A business uses QBO's bank rules to auto-categorize transactions. A rule incorrectly categorized 10 transactions last month. What is the fastest way to fix all 10?
Answer: Use the bank feed's batch edit feature to re-categorize all at once
QBO's batch editing in the bank feed allows you to select multiple transactions and change their category simultaneously.
How does QBO handle a check that was voided after a period has already been reconciled?
Answer: It creates a new transaction in the current period with the opposite effect
Voiding a reconciled check in QBO creates an offsetting transaction in the current period, preserving the prior reconciliation.
Which of the following best describes a bank rule in QBO?
Answer: An automated condition in QBO that categorizes downloaded transactions based on defined criteria
A QBO bank rule automatically assigns payees, categories, and classes to downloaded transactions that match set conditions.
When you undo a reconciliation in QBO, what is the immediate effect?
Answer: The reconciled (R) status is removed from all transactions in that reconciliation
Undoing a reconciliation removes the R status from all previously cleared transactions, making them available to reconcile again.
A client uses QBO's 'Transfer' function between two accounts. During reconciliation of the checking account, how does this transfer appear?
Answer: As a payment (outflow) on the checking account reconciliation
A transfer out of checking shows as a payment (debit) in the checking account reconciliation, reducing the balance.
What is the purpose of the 'Categorized' tab in QBO's Banking center?
Answer: Shows transactions that have already been added or matched to the register
The Categorized tab shows transactions that have already been accepted into the QBO register.
A client's credit card account in QBO has a negative balance after reconciliation. What does this most likely indicate?
Answer: The client has overpaid their credit card balance
A negative credit card balance in QBO typically means the client has made payments exceeding the charges, resulting in a credit with the card issuer.