Reporting & Reconciliation Flashcards
7 cards from real QBO practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Reporting & Reconciliation flashcards as text
Which QBO report would you use to verify that all sales tax collected has been properly recorded before filing a return?
Answer: Sales Tax Liability Report
The Sales Tax Liability Report shows tax collected by agency and rate, making it the primary report for sales tax filing verification.
A ProAdvisor wants to see all transactions entered or modified in QBO during the past 30 days. Which tool provides this?
Answer: Audit Log
The Audit Log records every create, edit, and delete action in QBO with timestamps and user information.
What is the effect of running a Balance Sheet report 'By Class' in QBO?
Answer: It splits each balance sheet account into columns by class for departmental tracking
Running a Balance Sheet by Class adds a column for each class, showing how assets, liabilities, and equity break down by department or segment.
During reconciliation, a transaction appears in QBO but not on the bank statement. What is the correct action?
Answer: Leave it uncleared — it may be an outstanding item that will appear on next month's statement
Transactions in QBO not on the statement are outstanding items — they should remain uncleared until they appear on a future bank statement.
A client reports their Trial Balance doesn't balance (debits ≠ credits). What is the most likely cause in QBO?
Answer: QBO rarely produces an unbalanced trial balance; suspect a corrupted data file or import error
QBO enforces double-entry accounting, so an unbalanced trial balance almost always indicates a data import error or file corruption rather than a normal entry mistake.
Which report setting in QBO displays a Profit & Loss as a percentage of total income for each line item?
Answer: % of Income
The '% of Income' option in report customization shows each P&L line as a percentage of total revenue, useful for margin analysis.
After completing a bank reconciliation in QBO, which document should a ProAdvisor generate and file for record-keeping?
Answer: Reconciliation Report (Summary and Detail)
The Reconciliation Report (available in Summary and Detail versions) is the standard documentation to retain after completing each reconciliation.