QBO Inventory and Products Management

Question 1

Which inventory costing method does QuickBooks Online use exclusively?

Accepted Answer

FIFO (First In, First Out)

Answer

LIFO (Last In, First Out)

Answer

Weighted Average Cost

Answer

Specific Identification

Question 2

Where do you manage products and services in QuickBooks Online?

Accepted Answer

Sales menu

Answer

Expenses menu

Answer

Reports menu

Answer

Accounting menu

Question 3

Which product type should you select in QBO for a physical item you buy, track in stock, and sell?

Accepted Answer

Inventory

Answer

Service

Answer

Non-inventory

Answer

Bundle

Question 4

What account does QBO automatically debit when you purchase inventory items?

Accepted Answer

Inventory Asset

Answer

Cost of Goods Sold

Answer

Accounts Payable

Answer

Purchases Expense

Question 5

Which QBO report shows the current quantity on hand and total value of all inventory items?

Accepted Answer

Inventory Valuation Summary

Answer

Profit and Loss

Answer

Balance Sheet

Answer

Sales by Product/Service Summary

Question 6

What happens to the Inventory Asset account in QBO when you sell an inventory item?

Accepted Answer

It decreases

Answer

It increases

Answer

It remains unchanged

Answer

It transfers to Retained Earnings