Recording Transactions 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 Recording Transactions flashcards as text
What is the effect of marking an invoice as 'Paid in Full' using a Journal Entry instead of Receive Payment in QBO?
Answer: It does not link to the invoice and may leave it open in Accounts Receivable
Journal Entries do not link to open invoices, so the AR balance may remain outstanding even if the JE offsets the account total.
A business owner transfers $5,000 from the business checking account to a personal account. How should this be recorded in QBO?
Answer: Expense to Owner's Draw (Equity)
Money taken out by an owner for personal use is an owner's draw, recorded as a decrease in equity, not a business expense.
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.
Which QBO account type would you use for recording a loan received from a bank?
Answer: Long-Term Liability or Notes Payable
A bank loan is a liability — the company owes the money back — so it is recorded as a Long-Term Liability or Notes Payable.
In QBO, what does the 'Class' field on a transaction allow you to do?
Answer: Segment transactions by department, location, or business unit for reporting
Classes in QBO let you tag transactions for segmented reporting by department, profit center, or any custom business division.
What type of account is 'Accounts Receivable' and how does it behave when an invoice is created?
Answer: Asset — it increases (debits) when an invoice is created
Accounts Receivable is a current asset; creating an invoice debits AR (increases it) because the customer now owes you money.
A QBO user records the same invoice twice by mistake. What is the best corrective action?
Answer: Delete the duplicate invoice
Deleting the exact duplicate invoice removes it cleanly from QBO, as long as no payment has been applied to it.