Reporting & Reconciliation 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 Reporting & Reconciliation flashcards as text
A client's Accounts Payable balance on the Balance Sheet does not match the A/P Aging Summary total. What is the most common cause?
Answer: Transactions posted directly to the A/P account via journal entry
Journal entries posted directly to A/P bypass the vendor sub-ledger, causing the Balance Sheet and A/P Aging to disagree.
What does the 'Compare Periods' feature in a QBO Profit & Loss report allow you to do?
Answer: Display multiple time periods side by side for trend analysis
Compare Periods adds columns for prior periods (e.g., previous month, previous year) so you can see changes side by side.
In QBO, which account type should never appear on a Profit & Loss report?
Answer: Accumulated Depreciation
Accumulated Depreciation is a contra-asset account that appears on the Balance Sheet, never on the Profit & Loss.
A client wants to give their CPA a read-only version of their QBO reports. What is the best approach?
Answer: Invite the CPA as an Accountant user (view/edit access)
Inviting the CPA as an Accountant user gives secure, role-appropriate access without sharing owner credentials.
When would a ProAdvisor use the 'Exclude' option during bank reconciliation?
Answer: To temporarily set aside a transaction that doesn't belong to this period without deleting it
Excluding a transaction hides it from the current reconciliation view without deleting it, so it can be addressed later.
Which QBO feature allows you to save a customized report with specific filters and date ranges for future use?
Answer: Save Customization
The 'Save Customization' button in QBO saves your report settings and adds it to the Custom Reports tab for easy reuse.
A client's bank reconciliation shows 'cleared balance' matching the statement but the difference is not zero. What should you check first?
Answer: Whether the statement ending balance entered in QBO matches the bank statement exactly
If the cleared balance equals the statement balance but the difference isn't zero, the statement ending balance was entered incorrectly in QBO.