Payables and Expenses Workflow 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 Payables and Expenses Workflow flashcards as text
In QBO, what happens to the Accounts Payable balance when you record a vendor credit?
Answer: It decreases because the vendor owes you a reduction
A vendor credit reduces Accounts Payable (debits AP) because it represents an amount the vendor owes you as a reduction against future bills.
A company pays for office supplies with a debit card. In QBO, which transaction type is most appropriate to record this?
Answer: Expense
An Expense transaction in QBO is designed for immediate payments (cash, debit card, credit card) with no prior bill entered.
Which QBO setting must be enabled before you can assign expenses to specific customers for potential reimbursement?
Answer: Billable Expenses
The Billable Expenses setting (under Account and Settings > Expenses) must be enabled to mark expenses as billable to a customer.
After enabling billable expenses, how does a reimbursable expense flow to the customer's invoice in QBO?
Answer: It appears in the Add to Invoice drawer when creating the customer's invoice
Billable expenses appear in the Add to Invoice panel on the right side when creating or editing that customer's invoice.
What is the purpose of a Purchase Order (PO) in QBO?
Answer: To formally request goods or services from a vendor before receiving a bill
A Purchase Order is a non-posting document sent to a vendor to request goods or services; it converts to a bill when the vendor fulfills the order.
A vendor bill has been paid but the check bounced. What is the recommended QBO workflow to handle this?
Answer: Void the check and re-open the original bill by reversing the payment
Voiding the check in QBO automatically reopens the original bill so it shows as unpaid and you can reprocess the payment.
In QBO, the 'Vendor Balance Summary' report differs from the 'Unpaid Bills' report in that it:
Answer: Shows the net balance per vendor including credits, not individual open bills
Vendor Balance Summary shows a single net balance per vendor (bills minus credits), while Unpaid Bills lists each individual open bill.