QBO - Certified QuickBooks ProAdvisor Payables and Expenses Workflow Questions and Answers

Question 1

A client used their company debit card to purchase office supplies at a store and wants to record the transaction immediately.
Which transaction type in QuickBooks Online is most appropriate for this scenario?

Accepted Answer

Expense

Answer

Bill

Answer

Check

Answer

Journal Entry

Question 2

Which of the following represents the standard accounts payable workflow in QuickBooks Online for an invoice received from a vendor that will be paid at a later date?

Accepted Answer

Enter Bill -> Pay Bill

Answer

Create Expense -> Match to Bank Feed

Answer

Write Check -> Print Check

Answer

Create Purchase Order -> Create Expense

Question 3

A vendor has issued a credit for goods that your client returned. What is the best practice in QuickBooks Online to record this and ensure the credit can be applied to a future payment?

Accepted Answer

Create a 'Vendor Credit' transaction.

Answer

Delete the portion of the original bill related to the returned goods.

Answer

Record a negative amount on a new 'Expense' transaction.

Answer

Make a 'Journal Entry' to debit Accounts Payable and credit the relevant expense account.

Question 4

Which of the following statements is true regarding the function of Purchase Orders (POs) within QuickBooks Online?

Accepted Answer

A PO is a non-posting transaction and does not impact the general ledger.

Answer

Creating a PO immediately increases the Accounts Payable balance.

Answer

POs must be converted into an 'Expense' transaction, not a 'Bill'.

Answer

The Purchase Order feature is enabled by default in all QBO subscriptions.

Question 5

A client received a single bill from a contractor for work done on three separate projects. To ensure accurate job costing, how should this bill be entered in QuickBooks Online?

Accepted Answer

Use the 'Item details' or 'Category details' section to add multiple lines, assigning each line's cost to the appropriate Customer/Project.

Answer

Create three separate bills, one for each project, and estimate the amounts.

Answer

Enter one bill and use the 'Memo' field to describe the cost breakdown per project.

Answer

Pay the full amount and later create journal entries to allocate the costs.

Question 6

When a user selects 'Pay Bills' in QuickBooks Online to pay an outstanding vendor bill, what is the primary DEBIT in the resulting journal entry?

Accepted Answer

Accounts Payable

Answer

An Expense Account

Answer

The Bank Account

Answer

Undeposited Funds