Recording Transactions Flashcards

Which QBO transaction records the return of goods to a vendor and reduces the amount you owe them?

Answer: Vendor Credit

A Vendor Credit in QBO records that a vendor owes you money or has reduced your outstanding balance, typically due to returned goods.

You need to record a customer refund in QBO. Which two transactions are typically required?

Answer: Credit Memo and Refund Receipt

A Credit Memo reduces the customer's balance, and a Refund Receipt records the actual money returned to the customer.

A company receives a $200 check from a customer. Before depositing, it sits in which default holding account in QBO?

Answer: Undeposited Funds

Undeposited Funds is QBO's default holding account for payments received but not yet deposited to a bank account.

What is a 'Recurring Transaction' in QBO used for?

Answer: Saving a transaction as a template to be used repeatedly on a schedule

Recurring Transactions let you save templates for invoices, bills, or expenses that repeat on a set schedule, reducing manual entry.

In QBO, what is the difference between a 'Sales Receipt' and an 'Invoice'?

Answer: A Sales Receipt records immediate full payment; an Invoice creates an amount owed

A Sales Receipt is used when payment is collected at the time of sale, while an Invoice creates an accounts receivable balance for future collection.

When categorizing a downloaded bank transaction in QBO, selecting 'Add' does what?

Answer: Creates a new transaction in QBO based on the bank data

Clicking 'Add' on a bank feed transaction creates a brand-new QBO transaction using the downloaded bank data.

Which field on an invoice determines which revenue account is credited when the invoice is saved?

Answer: Product/Service item selected on the line

The Product/Service item on each invoice line maps to an income account in QBO, which is credited when the invoice is recorded.