QBO - Certified QuickBooks ProAdvisor Financial Reporting Questions and Answers

Question 1

A client wants to view a summary of their company's financial position, including what it owns (assets) and what it owes (liabilities) at a specific point in time. Which standard report in QuickBooks Online should they run?

Accepted Answer

Balance Sheet

Answer

The Balance Sheet is the correct report. It provides a snapshot of a company's financial health by summarizing its assets, liabilities, and owner's equity on a specific date. The Profit and Loss statement shows performance over a period, the Statement of Cash Flows tracks cash movement, and the A/R Aging report details unpaid customer invoices.

Question 2

A business owner has generated a Profit & Loss report and wants to save the current customization settings—including a comparison to the previous year and a filter for a specific location—to run again each month. What is the most efficient way to do this in QuickBooks Online?

Accepted Answer

Use the 'Save Customization' feature.

Answer

The 'Save Customization' feature allows a user to name a modified report and save its specific settings, such as filters, columns, and comparison periods. This saved report can then be easily accessed and re-run from the 'Custom reports' tab, which is far more efficient than the other options.

Question 3

When viewing a Profit & Loss report, what is the primary difference between selecting the 'Accrual' basis versus the 'Cash' basis?

Accepted Answer

Accrual basis shows income when it is earned and expenses when they are incurred, regardless of when money changes hands.

Answer

Accrual basis accounting recognizes revenue when the sale is made (earned) and expenses when they are incurred, not when payment is sent or received. Cash basis accounting, conversely, recognizes revenue and expenses only when cash is actually exchanged.

Question 4

A ProAdvisor is preparing a professional, branded financial package for a client's board meeting. The package needs to include a cover page, a table of contents, standard reports like the P&L and Balance Sheet, and a page for an executive summary. Which QuickBooks Online feature is designed for creating such a package?

Accepted Answer

Management Reports

Answer

The Management Reports feature is specifically designed to compile multiple reports and custom pages (like a cover page, table of contents, and executive summary) into a single, professional-looking PDF package that can be branded with a company logo.

Question 5

Which of the following can be accomplished using the 'Customize' button on a standard QuickBooks Online report?

Accepted Answer

Filter the report data to show only specific customers, vendors, or products.

Answer

The 'Customize' function in the reports section allows users to apply various modifications, including filtering the data by different criteria like customers, vendors, products/services, and accounts to narrow down the information displayed.

(QBO) Certified QuickBooks ProAdvisor Practice Test

(QBO) Certified QuickBooks ProAdvisor Practice Test

QBO - Certified QuickBooks ProAdvisor Financial Reporting Questions and Answers