QBO Recording Transactions 1

Question 1

Which transaction type is used to record income from customers in QuickBooks?

Accepted Answer

Invoice

Answer

In QuickBooks, an Invoice is the correct transaction type to record income when you provide goods or services to a customer and they will pay you at a later date. This action creates an Accounts Receivable entry, signifying that money is owed to your business. It is used for sales made on credit.

Question 2

What form should be used to record a vendor bill in QuickBooks?

Accepted Answer

Bill

Answer

The 'Bill' form in QuickBooks is specifically designed to record expenses from vendors that your business intends to pay later. Entering a bill increases your Accounts Payable, accurately reflecting that your company owes money to a vendor for goods or services received. This sets up the liability before payment is made.

Question 3

Which QuickBooks form is best for recording immediate payment for a sale?

Accepted Answer

Sales Receipt

Answer

A Sales Receipt is the best QuickBooks form for recording a sale where the customer pays immediately at the time of the transaction. Unlike an invoice, it does not create an Accounts Receivable entry, as the payment is received upfront. This directly records the income and increases your bank or undeposited funds balance.

Question 4

What transaction type is used to pay a bill in QuickBooks Online?

Accepted Answer

Pay Bills

Answer

The 'Pay Bills' transaction in QuickBooks Online is specifically used to record payments for vendor bills that were previously entered into the system. This process decreases your Accounts Payable liability and reduces your bank balance, accurately reflecting the payment made to a vendor. It ensures proper tracking of outstanding and paid liabilities.

Question 5

What happens when you enter a bank deposit in QuickBooks?

Accepted Answer

Adds funds to a bank account

Answer

When you enter a bank deposit in QuickBooks, you are recording money received and placed into one of your bank accounts. This action directly increases the balance of the selected bank account within QuickBooks. It ensures your internal records accurately reflect the funds available in your real-world bank account.

(QBO) Certified QuickBooks ProAdvisor Practice Test

(QBO) Certified QuickBooks ProAdvisor Practice Test

QBO Recording Transactions 1