Financial Reporting 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 Financial Reporting flashcards as text
A client wants to see how much revenue was earned but not yet collected. Which report best shows this?
Answer: Accounts Receivable Aging Summary
The Accounts Receivable Aging Summary shows outstanding invoices grouped by how long they have been unpaid, revealing uncollected revenue.
When running a Profit and Loss report in QBO, what does the 'Compare another period' option allow you to do?
Answer: Show two date ranges side by side for trend analysis
The 'Compare another period' option displays two date ranges side by side so users can analyze performance trends over time.
Which financial statement in QBO shows the net change in cash during a specific period?
Answer: Statement of Cash Flows
The Statement of Cash Flows categorizes cash inflows and outflows into operating, investing, and financing activities to show net cash change.
A business owner notices their net income is positive but cash is decreasing. Which report would best explain why?
Answer: Statement of Cash Flows
The Statement of Cash Flows reconciles net income to actual cash movement, revealing non-cash items and working capital changes causing the discrepancy.
In QBO, what is the purpose of the 'Collapse' button on a Profit and Loss report?
Answer: Groups sub-accounts under their parent accounts to summarize data
The Collapse button hides individual sub-accounts and rolls their totals into parent account lines for a cleaner, higher-level view.
Which QBO report would you run to verify that total debits equal total credits in the general ledger?
Answer: Trial Balance
The Trial Balance lists all accounts with their debit or credit balances and confirms they are in balance as required by double-entry accounting.
A client needs a report showing every transaction posted to their bank account during Q1. Which report is most appropriate?
Answer: General Ledger
The General Ledger report shows every transaction recorded to a specific account, making it ideal for reviewing all bank account activity in a period.