Managing Lists & Chart of Accounts 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 Managing Lists & Chart of Accounts flashcards as text
Which of the following is TRUE about sub-accounts in QBO's Chart of Accounts?
Answer: Sub-accounts must have the same account type as their parent
Sub-accounts in QBO must share the same account type as their parent account to maintain proper financial statement classification.
A ProAdvisor imports a client's Chart of Accounts using an Excel file. Which file format does QBO accept for this import?
Answer: .csv only
QBO's Chart of Accounts import feature accepts .csv files formatted with the required column headers.
What is the purpose of the 'Undeposited Funds' account in QBO?
Answer: To temporarily hold payments received before they are deposited into a bank account
Undeposited Funds acts as a holding account for received payments until they are grouped and recorded as a bank deposit.
A client has 600 customers in QBO. They want to send a customized email to a specific segment. Which QBO list feature supports this?
Answer: Customer types used to filter the list
Customer Types in QBO allow you to categorize and filter customers, making it easier to target specific segments for communications or reporting.
In the QBO Chart of Accounts, which account type automatically increases with a credit entry?
Answer: Equity
Equity accounts follow the credit-normal balance rule, meaning credits increase equity and debits decrease it.
A QBO company has 'Track locations' enabled. What does this feature allow?
Answer: Segment transactions by physical business location or department
The Locations feature in QBO allows businesses to assign transactions to specific business locations for segmented profit and loss reporting.
When would a ProAdvisor recommend using the 'Opening Balance Equity' account in QBO?
Answer: To enter the starting balance when a new account is created mid-year
Opening Balance Equity is a temporary holding account used when entering an initial balance for a new bank or balance sheet account to keep the books balanced.