Managing Lists & Chart of Accounts Flashcards

In QBO, which account type would you use to record a long-term loan payable over five years?

Answer: Long-Term Liability

Loans payable beyond one year are classified as Long-Term Liabilities in QBO.

A client needs to track inventory costs. Which Product/Service type in QBO supports inventory tracking with COGS?

Answer: Inventory

The Inventory product type in QBO tracks quantity on hand and automatically records Cost of Goods Sold when items are sold.

How do you prevent users from adding new accounts to the Chart of Accounts in QBO Advanced?

Answer: Remove the user's ability to manage accounts under Roles

In QBO Advanced, custom roles can restrict specific users from creating or managing chart of accounts entries.

What happens when you change the account type of an existing account in QBO?

Answer: QBO warns that the change may affect reports and tax mapping

QBO displays a warning that changing the account type can affect how transactions appear on financial reports and tax forms.

Which QBO list stores payment terms such as 'Net 30' or '2/10 Net 30'?

Answer: Terms list

The Terms list in QBO stores payment terms that can be applied to customer invoices and vendor bills.

A customer's name appears twice in the Customer List due to a data entry error. What is the correct way to fix this in QBO?

Answer: Edit one name to match the other to trigger an automatic merge

To merge duplicate customers in QBO, edit one customer's name to exactly match the other and QBO will prompt you to merge them.

In QBO, where do you configure the default income account for a specific product or service?

Answer: Products & Services list > Edit item

Each product or service in the Products & Services list has an income account field that determines where revenue is recorded when the item is sold.