Recording Transactions Flashcards

What is the purpose of a Journal Entry in QBO?

Answer: To manually debit and credit accounts for transactions not covered by standard forms

Journal Entries allow accountants to manually adjust account balances using debits and credits for non-standard transactions.

A company buys $500 of office supplies with a company credit card. Which QBO form should be used?

Answer: Expense (with credit card as payment account)

An Expense transaction with the credit card selected as the payment account correctly records a credit card purchase in QBO.

In QBO, what does the 'Memo' field on a transaction primarily serve?

Answer: It provides a descriptive note for internal reference

The Memo field is a free-text note that helps identify the purpose of a transaction but does not affect accounting calculations.

When you void a check in QBO, what happens to the transaction amount?

Answer: The amount is set to zero and the transaction remains for audit trail

Voiding a check sets the amount to $0 while keeping the transaction in the register to preserve the audit trail.

Which QBO report would you use to see every transaction posted to a specific account over a date range?

Answer: Account QuickReport / Transaction Detail by Account

The Account QuickReport or Transaction Detail by Account report lists all transactions posted to a selected account within a chosen period.

You accidentally posted an expense to the wrong account. What is the recommended way to fix this in QBO?

Answer: Edit the transaction directly and change the account

You can simply open the transaction, change the account to the correct one, and save — QBO updates the general ledger automatically.

What does a negative balance in Accounts Payable typically indicate in QBO?

Answer: You have overpaid a vendor or applied a vendor credit in excess of what is owed

A negative AP balance usually means vendor payments or credits exceed outstanding bills, indicating an overpayment or unapplied vendor credit.