QBO Tax Setup and Compliance 2

Question 1

Which QBO report shows how much sales tax was collected and is owed to each tax agency for a given period?

Accepted Answer

Sales Tax Liability Report

Answer

The Sales Tax Liability Report itemizes tax collected by agency and period, showing what is currently owed.

Question 2

What does the 'Record Tax Payment' function in QBO's Sales Tax Center accomplish?

Accepted Answer

Records remittance to the tax agency and clears the sales tax liability

Answer

Recording a tax payment creates a transaction that reduces the sales tax liability and marks the amount as paid to the agency.

Question 3

When should a ProAdvisor set up multiple sales tax rate components for a single location in QBO?

Accepted Answer

When separate state, county, and city tax rates each apply to transactions

Answer

Many jurisdictions layer state, county, and city taxes, requiring separate components to calculate the correct combined rate.

Question 4

What does QBO's 'Prepare Return' workflow in the Sales Tax Center produce?

Accepted Answer

A calculated summary of tax due for the period to use when filing

Answer

The Prepare Return workflow calculates total tax collected and owed, generating a summary you use when submitting the return to the agency.

Question 5

In QBO, which transaction type records money paid directly back to a customer when they return goods?

Accepted Answer

Refund Receipt

Answer

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

(QBO) Certified QuickBooks ProAdvisor Practice Test