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

Making an account inactive hides it from dropdowns and forms while retaining all historical transactions and balances for reporting purposes.

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

The Accounts Receivable Aging Summary categorizes unpaid customer invoices into buckets (Current, 1-30, 31-60, 61-90, 90+) to prioritize collections.

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

QBO allows you to switch the Accounting Method between Accrual and Cash on any report without changing underlying transaction data.

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

A Credit Memo records the overpayment as a customer credit that can be applied to reduce the balance on any future invoice.

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

During reconciliation you can click 'Add' on unmatched statement items to create the transaction in QBO on the spot, keeping the reconciliation balanced.

(QBO) Certified QuickBooks ProAdvisor Practice Test

(QBO) Certified QuickBooks ProAdvisor Practice Test

QBO Advanced Accounting Tools 5