QBO Advanced Accounting Tools 5

Question 1

In QuickBooks Online, what is the effect of marking an account as 'inactive'?

Accepted Answer

The account no longer appears in transaction dropdowns but historical data is preserved

Answer

All transactions in that account are deleted

Answer

The account balance is zeroed out automatically

Answer

The account is permanently removed from the chart of accounts

Question 2

Which QBO report shows each customer's outstanding balance grouped by how long the invoice has been unpaid?

Accepted Answer

Accounts Receivable Aging Summary

Answer

Customer Balance Detail

Answer

Invoice List

Answer

Collections Report

Question 3

A client switched from accrual to cash basis mid-year. Which QBO setting change controls how the Profit & Loss report displays income and expenses?

Accepted Answer

Toggling the Accounting Method between Accrual and Cash in report settings

Answer

Changing the fiscal year start month

Answer

Enabling the cash flow statement

Answer

Adjusting the closing date

Question 4

Which action should you take in QBO when a customer overpays an invoice and you need to apply the credit to a future invoice?

Accepted Answer

Create a Credit Memo and apply it to the next invoice

Answer

Issue a refund check immediately

Answer

Delete the original invoice and re-enter it for the correct amount

Answer

Record a journal entry to miscellaneous income

Question 5

In QBO's bank reconciliation, what is the correct way to handle a bank service charge that appears on the bank statement but has not been recorded in QBO?

Accepted Answer

Add the charge directly in the reconciliation screen using the 'Add' function

Answer

Ignore it; the bank will reverse it next month

Answer

Create a separate bill for the bank

Answer

Record it as a transfer between accounts

Question 6

What is the purpose of the 'Undeposited Funds' account in QuickBooks Online?

Accepted Answer

To stage customer payments received before they are grouped into a bank deposit

Answer

To hold vendor payments awaiting approval

Answer

To record petty cash transactions

Answer

To track checks that have been written but not yet cleared the bank

Question 7

Which QuickBooks Online Advanced feature enables you to create automated reminders to customers whose invoices are overdue without manual intervention?

Accepted Answer

Automated Invoice Reminders (Workflows)

Answer

Collections Center

Answer

Email Templates

Answer

Recurring Transactions