QBO Advanced Accounting Tools 4

Question 1

What is the primary function of the 'Closing Date' feature in QuickBooks Online?

Accepted Answer

It password-protects prior-period transactions to prevent unauthorized changes

Answer

It prevents any new transactions from being entered into the company file

Answer

It automatically generates year-end adjusting entries

Answer

It archives transactions older than the closing date

Question 2

A QuickBooks Online company needs to record a transaction that debits an expense and credits a liability but does not relate to any customer or vendor. Which transaction type is most appropriate?

Accepted Answer

Journal Entry

Answer

Bill

Answer

Expense

Answer

Transfer

Question 3

In QuickBooks Online Advanced, which feature allows you to set user-level permissions so that one employee can only view reports but cannot enter transactions?

Accepted Answer

Custom Roles

Answer

Audit Log

Answer

Multi-Factor Authentication

Answer

Approval Workflows

Question 4

When reconciling a bank account in QBO and the ending balance does not match the statement, which tool helps identify the discrepancy quickly?

Accepted Answer

Reconciliation Discrepancy report

Answer

Profit & Loss report

Answer

Balance Sheet Comparison

Answer

Bank Register

Question 5

A client wants to bill customers for actual time spent on projects. Which two features must be turned on in QBO settings to enable this workflow?

Accepted Answer

Time tracking and Billable expenses/hours

Answer

Inventory tracking and Purchase Orders

Answer

Projects and Multicurrency

Answer

Budgeting and Classes

Question 6

Which QuickBooks Online account type is used to record the owner's personal withdrawals from a sole proprietorship?

Accepted Answer

Owner's Draw (Equity)

Answer

Expense

Answer

Other Current Liability

Answer

Accounts Payable

Question 7

What does the 'Exclude' action on a bank feed transaction in QBO do?

Accepted Answer

Marks the transaction as reviewed without creating a QBO record

Answer

Permanently deletes the transaction from the bank feed

Answer

Hides the transaction until next month

Answer

Sends the transaction to the Undeposited Funds account