Financial Reporting 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 Financial Reporting flashcards as text
A QBO report shows 'Retained Earnings' on the Balance Sheet. What does this figure represent?
Answer: Cumulative net income minus owner distributions over the company's life
Retained Earnings accumulates all historical net income minus any owner draws or dividends paid since the company's inception.
Which QBO feature allows you to schedule a financial report to be emailed automatically each month?
Answer: Scheduled Reports
QBO's Scheduled Reports feature lets you set a frequency and recipient list so reports are automatically generated and emailed on a recurring schedule.
When would you use the 'Budget vs. Actuals' report in QBO?
Answer: To compare forecasted revenue against real income and expenses
The Budget vs. Actuals report compares the amounts entered in a QBO budget to the real income and expenses recorded, showing variances.
In QBO, what does the 'Class' filter on a Profit and Loss report enable?
Answer: Segments financial results by business division, location, or department
Class tracking allows businesses to segment their P&L by department, location, or any custom division, enabling profitability analysis by segment.
A client runs a Profit and Loss for January and notices income from December is included. What is the most likely cause?
Answer: The report is set to cash basis and the December invoices were paid in January
On a cash basis P&L, revenue is recognized when payment is received, so December invoices paid in January would appear in the January report.
Which report in QBO would help identify if any transactions were deleted or modified?
Answer: Audit Log
The Audit Log tracks all additions, edits, and deletions made to transactions and settings, showing who made the change and when.
If a company uses location tracking in QBO, which report would show Profit and Loss separated by each store or office?
Answer: Profit and Loss by Location
The Profit and Loss by Location report uses QBO's location tracking feature to segment income and expenses by each designated business location.