QBO Advanced Accounting Tools 2 — Questions and Answers
Question 1: Which QuickBooks Online feature allows you to allocate income and expenses across multiple departments or locations?
- Tags
- Classes and Locations (Correct answer)
- Custom Fields
- Projects
Correct answer: Classes and Locations
Classes and Locations in QBO allow segment-level tracking of income and expenses across departments, regions, or business units.
Question 2: In QuickBooks Online, what is the purpose of the 'Reclassify Transactions' tool available in the Accountant Tools menu?
- To reverse journal entries in bulk
- To move transactions to a different account, class, or location in bulk (Correct answer)
- To archive old transactions
- To split transactions across multiple accounts
Correct answer: To move transactions to a different account, class, or location in bulk
Reclassify Transactions lets accountants bulk-move posted transactions to correct accounts, classes, or locations without editing each one individually.
Question 3: Which report in QuickBooks Online Advanced provides a fully customizable grid view similar to a spreadsheet for deeper financial analysis?
- Custom Summary Report
- Business Snapshot
- Management Reports
- Spreadsheet Sync (Correct answer)
Correct answer: Spreadsheet Sync
Spreadsheet Sync in QBO Advanced pushes live QBO data into Excel, enabling pivot-table-style analysis with two-way sync capability.
Question 4: When using QuickBooks Online's Fixed Asset Manager, what triggers the creation of a depreciation journal entry?
- Purchasing an asset via a bill
- Running the Calculate Depreciation function for a period (Correct answer)
- Categorizing a transaction as a fixed asset account
- Activating the asset in the asset register
Correct answer: Running the Calculate Depreciation function for a period
You must run the Calculate Depreciation function in Fixed Asset Manager to generate the depreciation journal entry for the selected period.
Question 5: A client needs to track project profitability including labor costs. Which QBO feature should you enable?
- Classes
- Projects with Time Tracking (Correct answer)
- Tags
- Custom Reports
Correct answer: Projects with Time Tracking
The Projects feature combined with Time Tracking allows QBO to allocate labor costs, expenses, and revenue to individual projects for profitability reporting.
Question 6: What is the maximum number of custom fields available per form type in QuickBooks Online Advanced?
- 3
- 5
- 12 (Correct answer)
- 48
Correct answer: 12
QBO Advanced allows up to 12 custom fields per form type, enabling businesses to capture additional data on invoices, bills, and other transactions.
Question 7: Which QuickBooks Online feature enables automated approval workflows for purchase orders and bills before they are posted?
- Audit Log
- Custom Roles
- Workflows (Approvals) (Correct answer)
- Vendor Credits
Correct answer: Workflows (Approvals)
QBO Advanced's Workflows feature lets you define multi-step approval chains so bills or POs above a threshold must be approved before payment.
QBO Advanced Accounting Tools 2
Which QuickBooks Online feature allows you to allocate income and expenses across multiple departments or locations?