Mixed Deck — All QBO Topics Flashcards

A client's project requires tracking profitability, including labor costs from timesheets and specific expenses. Which QuickBooks Online feature is best suited for this purpose, offering a dedicated dashboard to view income, costs, and profit for the job?

Answer: The Projects feature.

The Projects feature in QuickBooks Online (available in Plus and Advanced) is specifically designed for job costing. It provides a central dashboard to track income, costs (including billable time and expenses), and profitability for each project, offering more robust tracking than using sub-customers or classes alone.

A ProAdvisor is preparing a professional, branded financial package for a client's board meeting. The package needs to include a cover page, a table of contents, standard reports like the P&L and Balance Sheet, and a page for an executive summary. Which QuickBooks Online feature is designed for creating such a package?

Answer: Management Reports

The Management Reports feature is specifically designed to compile multiple reports and custom pages (like a cover page, table of contents, and executive summary) into a single, professional-looking PDF package that can be branded with a company logo.

A reconciliation is off by a small amount that cannot be found. A ProAdvisor decides to force the reconciliation to zero. Which account is typically used for this adjustment?

Answer: Reconciliation Discrepancies

QBO posts forced reconciliation adjustments to the Reconciliation Discrepancies account.

What happens when you enter a bank deposit in QuickBooks?

Answer: Adds funds to a bank account

When you enter a bank deposit in QuickBooks, you are recording money received and placed into one of your bank accounts. This action directly increases the balance of the selected bank account within QuickBooks. It ensures your internal records accurately reflect the funds available in your real-world bank account.

In QuickBooks Online Payroll, which report shows the total wages, taxes, and deductions for each employee for a selected period?

Answer: Payroll Summary by Employee

The Payroll Summary by Employee report breaks down earnings, deductions, and taxes per employee for the chosen date range.

Which inventory costing method does QuickBooks Online use exclusively?

Answer: FIFO (First In, First Out)

QBO uses only the FIFO (First In, First Out) method for inventory costing.

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.

A client has several customers who paid with checks and cash throughout the day. To efficiently record these payments and ensure the bank deposit matches, what is the recommended final step in the QuickBooks Online sales workflow?

Answer: Use the 'Bank Deposit' feature to group the payments received from Undeposited Funds into a single deposit transaction.

The correct workflow is to first receive payments against invoices (or create sales receipts) and direct these funds to the 'Undeposited Funds' account. Then, when the physical deposit is made at the bank, use the 'Bank Deposit' screen to select all the individual payments that constitute that single deposit. This ensures that the deposit amount in QuickBooks matches the actual bank deposit, simplifying bank reconciliation.

Which QBO report would show the total amount owed to all vendors at the end of the month?

Answer: Vendor Balance Summary

The Vendor Balance Summary provides a total outstanding balance owed to each vendor as of the report date, giving a quick snapshot of total payables.

In QBO, which transaction type records money paid directly back to a customer when they return goods?

Answer: Refund Receipt

A Refund Receipt records a direct payment back to the customer and reduces both revenue and the bank balance.

A ProAdvisor is setting up QuickBooks Online for a client and needs to enable the 'Location Tracking' feature. Where is this setting found?

Answer: Gear > Account and Settings > Advanced

Location Tracking (and Class Tracking) are enabled under Gear > Account and Settings > Advanced in the Categories section.

In QBO, what is the purpose of the 'Collapse' button on a Profit and Loss report?

Answer: Groups sub-accounts under their parent accounts to summarize data

The Collapse button hides individual sub-accounts and rolls their totals into parent account lines for a cleaner, higher-level view.

Which of the following settings is configured directly from the 'Sales' tab within the 'Account and Settings' section of QuickBooks Online?

Answer: Customizing the default email message sent with invoices.

The 'Sales' tab in 'Account and Settings' allows you to customize sales form content, set invoice payment terms, and define the default email messages that accompany sales forms like invoices and estimates. Sales tax is set up in the 'Taxes' center, payment processors are managed under 'Payments', and the legal name is in the 'Company' tab.

Which transaction type is used to record income from customers in QuickBooks?

Answer: Invoice

In QuickBooks, an Invoice is the correct transaction type to record income when you provide goods or services to a customer and they will pay you at a later date. This action creates an Accounts Receivable entry, signifying that money is owed to your business. It is used for sales made on credit.

A ProAdvisor needs to attach a client-signed engagement letter to the client's QBOA profile. Where is the best place to store this?

Answer: In the Documents section of the QBOA client profile

The Documents section within a QBOA client profile is the appropriate place to store files like engagement letters tied to the client relationship.

You need to split a single expense transaction among three different accounts in QBO. How do you do this?

Answer: Use the 'Split' or add multiple line items within the same transaction

QBO expense forms support multiple line items, allowing you to split one transaction across multiple accounts in a single entry.

A client's QBO company is set up under the wrong industry type. What is the primary impact of changing the industry setting later?

Answer: The recommended chart of accounts changes but existing accounts are unaffected

Changing the industry type updates QBO's default account recommendations but does not modify any accounts or data already created.

A client running a cash-basis business wants to see income only when payment is received. Which report setting ensures this?

Answer: Cash

Setting the report to Cash basis shows income and expenses only when money actually changes hands, not when invoices are issued.

Which of the following best describes the process for handling federal and state payroll tax liabilities in QuickBooks Online Payroll Premium and Elite subscriptions?

Answer: QuickBooks automatically debits the necessary funds from the client's bank account and electronically pays the agencies and files the forms on their behalf.

A key feature of the QuickBooks Online Payroll Premium and Elite subscriptions is the automation of tax payments and form filings. Once properly set up, QuickBooks withdraws the tax money from the designated business bank account and handles the electronic payments and filings with the federal and state agencies, ensuring compliance.

A vendor sends a bill with net-30 terms. Which QBO feature automatically calculates the due date when you enter the bill?

Answer: Terms field on the bill form

The Terms field on the bill form uses the vendor's payment terms to automatically calculate the due date from the bill date.