QBO Advanced Accounting Tools 3 — Questions and Answers
Question 1: In QuickBooks Online, which tool allows an accountant to undo a previously reconciled period without affecting subsequent reconciliations?
- Journal Entry Reversal
- Undo Reconciliation in Accountant Tools (Correct answer)
- Bank Disconnect
- Audit Log Rollback
Correct answer: Undo Reconciliation in Accountant Tools
The Undo Reconciliation function in Accountant Tools unmarks all transactions in a completed reconciliation so corrections can be made.
Question 2: When setting up a multicurrency company in QBO, what happens to the home currency exchange rate?
- It is always set to 1.0 and cannot change (Correct answer)
- It fluctuates daily based on QBO's automatic updates
- It must be manually entered for each transaction
- It is inherited from the bank feed
Correct answer: It is always set to 1.0 and cannot change
The home currency always has an exchange rate of 1.0; only foreign currency accounts carry variable rates.
Question 3: A company records a customer advance payment. Which account type should be used to properly record this liability in QBO?
- Accounts Receivable
- Deferred Revenue (Other Current Liability) (Correct answer)
- Undeposited Funds
- Sales Tax Payable
Correct answer: Deferred Revenue (Other Current Liability)
Customer advance payments represent an obligation to deliver goods or services and should be recorded as Deferred Revenue, an Other Current Liability.
Question 4: What does the 'Voided/Deleted Transactions' report in the Audit Log help an accountant identify?
- Transactions posted to inactive accounts
- Unauthorized changes or deletions made to transactions (Correct answer)
- Duplicate vendor payments
- Sales tax adjustments
Correct answer: Unauthorized changes or deletions made to transactions
The Voided/Deleted Transactions report surfaces any transaction that was removed or voided, including who made the change and when, supporting fraud detection.
Question 5: Which depreciation method in QBO's Fixed Asset Manager calculates the same dollar amount of depreciation each period over the asset's useful life?
- Double Declining Balance
- Sum of Years' Digits
- Straight-Line (Correct answer)
- Units of Production
Correct answer: Straight-Line
The Straight-Line method spreads the depreciable cost evenly across the asset's useful life, resulting in equal depreciation expense each period.
Question 6: In QBO, which setting must be enabled before you can assign both a Class and a Location to a single transaction line?
- Track classes by customer
- One class per row (line level) (Correct answer)
- Auto-assign classes
- Billable expenses
Correct answer: One class per row (line level)
Selecting 'One class per row' in Class tracking settings allows class assignment at the line level rather than the transaction header, enabling mixed classification.
Question 7: Which QuickBooks Online report would best help identify whether a specific vendor was paid twice for the same invoice?
- Vendor Contact List
- Transaction List by Vendor (Correct answer)
- Accounts Payable Aging Detail
- Check Detail
Correct answer: Transaction List by Vendor
The Transaction List by Vendor groups all payments and bills by vendor, making it straightforward to spot duplicate payments for the same invoice number.
QBO Advanced Accounting Tools 3
In QuickBooks Online, which tool allows an accountant to undo a previously reconciled period without affecting subsequent reconciliations?