Recording Transactions Flashcards

A customer pays an outstanding invoice with a check. Which QBO transaction type should you use to record this payment?

Answer: Receive Payment

Receive Payment is used to apply a customer payment to an existing open invoice in QBO.

When recording a bill in QBO, which account is typically debited?

Answer: The expense or asset account for what was purchased

Recording a bill debits the expense or asset account for the item purchased and credits Accounts Payable.

Which QBO feature allows you to record a transaction that has NOT yet cleared the bank?

Answer: Manually entering the transaction in the register or via a form

You can manually enter transactions in QBO at any time, regardless of whether they have cleared the bank.

A vendor offers a 2% discount if you pay within 10 days. Where do you set this up in QBO so it applies automatically when paying bills?

Answer: Payment Terms on the vendor record

Setting payment terms (e.g., 2/10 Net 30) on the vendor record allows QBO to calculate early-payment discounts automatically.

What happens to Undeposited Funds when you create a Bank Deposit in QBO?

Answer: The balance decreases as funds move to the selected bank account

Creating a Bank Deposit clears the Undeposited Funds account and moves the selected payments to the chosen bank account.

You receive a partial payment on a $1,000 invoice. The customer pays $400. What is the status of the invoice after applying the payment?

Answer: Partially paid

When a payment does not cover the full invoice amount, QBO marks the invoice as Partially Paid and shows the remaining balance.

Which transaction type in QBO is used to record money you spend directly from a bank account WITHOUT a prior bill?

Answer: Check or Expense

A Check or Expense transaction records an immediate payment from a bank account without first creating a bill.