QBO - Certified QuickBooks ProAdvisor QuickBooks Online Setup Questions and Answers

Question 1

A new client who runs a small service-based business has never used accounting software before. When setting up their QuickBooks Online company file for the first time, which of the following is a critical first step in the 'Account and Settings' area?

Accepted Answer

Setting the company's fiscal year start month and accounting method.

Answer

Before entering transactions, it is crucial to establish the company's accounting foundation. This includes setting the fiscal year, which impacts financial reporting periods, and choosing the accounting method (cash vs. accrual), which determines how income and expenses are recognized. While other steps are important, they follow this fundamental setup.

Question 2

When importing data into a new QuickBooks Online company, which list can be imported as a CSV or Excel file?

Accepted Answer

Chart of Accounts

Answer

QuickBooks Online allows users to import several types of lists to speed up the setup process. This includes the Chart of Accounts, Customers, Vendors, and Products and Services from a CSV or Excel file. Bank transactions are typically brought in through a direct bank feed connection, while historical transactions like invoices and bills generally need to be entered manually or with a third-party app.

Question 3

A client wants to give their office manager the ability to manage customers, vendors, and enter daily transactions, but does not want them to see sensitive financial reports or company bank balances. Which user role would be most appropriate to assign in QuickBooks Online?

Accepted Answer

Standard user with limited access (e.g., only Customers & Sales)

Answer

The 'Standard user' role can be customized to grant specific permissions. For this scenario, you can give the user access to areas like 'Customers & Sales' and 'Vendors & Purchases' while restricting access to banking and reporting, thereby protecting sensitive financial data. The Company Administrator and Accountant roles have much higher levels of access.

Question 4

Which of the following settings is configured directly from the 'Sales' tab within the 'Account and Settings' section of QuickBooks Online?

Accepted Answer

Customizing the default email message sent with invoices.

Answer

The 'Sales' tab in 'Account and Settings' allows you to customize sales form content, set invoice payment terms, and define the default email messages that accompany sales forms like invoices and estimates. Sales tax is set up in the 'Taxes' center, payment processors are managed under 'Payments', and the legal name is in the 'Company' tab.

Question 5

Your client has been in business for several years and is migrating to QuickBooks Online. They have provided you with their trial balance from their previous accounting system as of December 31st of the last fiscal year. What is the most common method for entering these opening balances into QBO?

Accepted Answer

Creating a single, comprehensive journal entry dated as of the start of the new fiscal year.

Answer

The standard and most efficient method for establishing opening balances from a prior system is to create a journal entry. This entry, dated on the 'start date' (e.g., January 1st), will debit all asset accounts and credit all liability and equity accounts, ensuring the balance sheet is correct from day one.

(QBO) Certified QuickBooks ProAdvisor Practice Test

(QBO) Certified QuickBooks ProAdvisor Practice Test

QBO - Certified QuickBooks ProAdvisor QuickBooks Online Setup Questions and Answers