QBO Inventory and Products Management 2 — Questions and Answers
Question 1: Which QBO product type lets you group multiple products and services and sell them as a single line item?
- Kit
- Bundle (Correct answer)
- Package
- Inventory Group
Correct answer: Bundle
The Bundle product type allows you to combine products and services and sell them together as one unit.
Question 2: What is the purpose of the Reorder Point field on an inventory item in QBO?
- Sets the selling price
- Alerts you to reorder when stock falls to that quantity (Correct answer)
- Caps the maximum stock level
- Sets the applicable tax rate
Correct answer: Alerts you to reorder when stock falls to that quantity
The Reorder Point triggers a low-stock alert when inventory quantity on hand reaches that level.
Question 3: Which income account does QBO assign by default to a new inventory product?
- Sales of Product Income (Correct answer)
- Service Revenue
- Other Income
- Unearned Revenue
Correct answer: Sales of Product Income
QBO pre-selects 'Sales of Product Income' as the default income account for new inventory items.
Question 4: When you need to write off damaged inventory in QBO, which adjustment type reduces the quantity on hand?
- Quantity Adjustment (Correct answer)
- Value Adjustment
- Both Quantity and Value simultaneously
- Journal Entry only
Correct answer: Quantity Adjustment
A Quantity Adjustment is used to reduce on-hand stock counts for damaged or lost goods.
Question 5: Which QBO report shows how many units of each product were sold during a selected period?
- Inventory Valuation Summary
- Sales by Product/Service Summary (Correct answer)
- Balance Sheet
- Transaction List by Date
Correct answer: Sales by Product/Service Summary
The Sales by Product/Service Summary shows quantity sold and revenue broken down by item for the chosen period.
Question 6: What does the 'As of Date' field control in the Inventory Valuation Summary report?
- The date range for sales
- The date range for purchases
- The point-in-time snapshot for inventory quantities and values (Correct answer)
- The fiscal year end date
Correct answer: The point-in-time snapshot for inventory quantities and values
The As of Date sets the specific date for which inventory quantities and values are displayed.
QBO Inventory and Products Management 2
Which QBO product type lets you group multiple products and services and sell them as a single line item?