QBO Study Guide 2026

When you enter a bank deposit in QuickBooks, you are recording money received and placed into one of your bank accounts. This action directly increases the balance of the selected bank account within QuickBooks. It ensures your internal records accurately reflect the funds available in your real-world bank account.

QBO uses only the FIFO (First In, First Out) method for inventory costing.

A Refund Receipt records a direct payment back to the customer and reduces both revenue and the bank balance.

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.

In QuickBooks, an Invoice is the correct transaction type to record income when you provide goods or services to a customer and they will pay you at a later date. This action creates an Accounts Receivable entry, signifying that money is owed to your business. It is used for sales made on credit.

A key feature of the QuickBooks Online Payroll Premium and Elite subscriptions is the automation of tax payments and form filings. Once properly set up, QuickBooks withdraws the tax money from the designated business bank account and handles the electronic payments and filings with the federal and state agencies, ensuring compliance.