Inventory and Products Management Flashcards
6 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 6 Inventory and Products Management flashcards as text
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.
Where do you manage products and services in QuickBooks Online?
Answer: Sales menu
Products and services are set up and managed under the Sales menu in QBO.
Which product type should you select in QBO for a physical item you buy, track in stock, and sell?
Answer: Inventory
The Inventory product type is used for physical goods where QBO tracks quantity on hand.
What account does QBO automatically debit when you purchase inventory items?
Answer: Inventory Asset
Purchasing inventory debits the Inventory Asset account, where it stays until the items are sold.
Which QBO report shows the current quantity on hand and total value of all inventory items?
Answer: Inventory Valuation Summary
The Inventory Valuation Summary displays quantity on hand and asset value for every inventory item.
What happens to the Inventory Asset account in QBO when you sell an inventory item?
Answer: It decreases
Selling an inventory item reduces Inventory Asset and moves the cost into Cost of Goods Sold.