QBO Inventory and Products Management 1

Question 1

Which inventory costing method does QuickBooks Online use exclusively?

Accepted Answer

FIFO (First In, First Out)

Answer

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

Question 2

Where do you manage products and services in QuickBooks Online?

Accepted Answer

Sales menu

Answer

Products and services are set up and managed under the Sales menu in QBO.

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

The Inventory product type is used for physical goods where QBO tracks quantity on hand.

Question 4

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

Accepted Answer

Inventory Asset

Answer

Purchasing inventory debits the Inventory Asset account, where it stays until the items are sold.

Question 5

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

Accepted Answer

Inventory Valuation Summary

Answer

The Inventory Valuation Summary displays quantity on hand and asset value for every inventory item.

(QBO) Certified QuickBooks ProAdvisor Practice Test