QuickBooks Setup & Navigation 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 QuickBooks Setup & Navigation flashcards as text
A client's QuickBooks Online is set to 'Cash Basis' accounting. What does this mean for how income is reported?
Answer: Income is recorded when payment is actually received
Under cash basis accounting, income is recognized only when cash is received, not when the invoice is issued.
Which of the following is NOT a default account automatically created by QuickBooks Online during company setup?
Answer: Work in Progress
Work in Progress is not a default account created by QBO; it must be added manually if the business needs it.
A ProAdvisor wants to prevent users from entering transactions dated before a certain date. Which setting accomplishes this?
Answer: Closing Date with password
Setting a Closing Date with an optional password (under Gear > Account and Settings > Advanced) prevents users from adding or changing transactions before that date.
When navigating QuickBooks Online, where does the 'Recent Transactions' list appear for quick access?
Answer: In the Search bar dropdown after clicking it
Clicking the Search icon reveals a dropdown that displays recent transactions, making it easy to quickly reopen recently accessed records.
A client switched from desktop QuickBooks to QuickBooks Online. Which method is recommended to migrate the company file?
Answer: Use the built-in QuickBooks Desktop migration tool to export and import the file
Intuit provides a built-in migration tool within QuickBooks Desktop that converts and uploads the company file directly to QuickBooks Online.
In QuickBooks Online Advanced, what is the purpose of the 'Custom Fields' feature during setup?
Answer: To capture business-specific data on sales and purchase forms beyond standard fields
Custom Fields in QBO Advanced let businesses add unique data fields (like purchase order numbers or project codes) to sales and purchase transaction forms.
Which QuickBooks Online plan is the first to include the 'Budgeting' feature for creating and comparing budgets to actuals?
Answer: Plus
The Budgeting feature, which allows creating annual budgets and running Budget vs. Actuals reports, is first available in the Plus plan.