QBO Banking and Reconciliation 2 — Questions and Answers
Question 1: A client's bank feed shows a transaction downloaded twice due to a sync error. What is the correct way to handle this in QBO?
- Delete both and re-enter manually
- Exclude the duplicate transaction (Correct answer)
- Match both to the same register entry
- Archive one and approve the other
Correct answer: Exclude the duplicate transaction
In QBO, duplicate downloaded transactions should be excluded so they do not post to the books.
Question 2: When reconciling in QBO, what does the 'Finish Later' option do?
- Saves the reconciliation progress without finalizing it (Correct answer)
- Posts all matched transactions and closes the window
- Resets all cleared checkmarks
- Locks the period from further edits
Correct answer: Saves the reconciliation progress without finalizing it
'Finish Later' saves your in-progress reconciliation so you can return to it without losing cleared marks.
Question 3: A deposit recorded in QBO on 7/31 does not appear on the July bank statement. How should this be handled during reconciliation?
- Delete the deposit and re-enter it in August
- Leave it unchecked — it is an outstanding deposit (Correct answer)
- Check it off as cleared anyway
- Void the deposit and create a new one
Correct answer: Leave it unchecked — it is an outstanding deposit
An outstanding deposit is simply left unchecked during reconciliation; it will appear on the next statement.
Question 4: Which QBO report shows all transactions that have been cleared versus those still outstanding for a bank account?
- Balance Sheet
- Reconciliation Report (Correct answer)
- Transaction Detail by Account
- Audit Log
Correct answer: Reconciliation Report
The Reconciliation Report in QBO lists cleared and outstanding transactions for a reconciled period.
Question 5: A bank service charge appears on the statement but was not entered in QBO. Where can you add it during reconciliation?
- It must be entered in the Chart of Accounts first
- Directly in the reconciliation screen under Service Charge field (Correct answer)
- Via the bank feed rules only
- Through the Expense form before starting reconciliation
Correct answer: Directly in the reconciliation screen under Service Charge field
QBO's reconciliation screen has a Service Charge field where you can enter charges and assign an expense account on the spot.
Question 6: What happens to the opening balance in QBO when you start reconciling an account for the very first time?
- QBO requires a manual journal entry to set it
- QBO auto-populates it from the balance in the Chart of Accounts
- QBO creates an Opening Balance Equity transaction automatically (Correct answer)
- It must be imported from the prior accounting system
Correct answer: QBO creates an Opening Balance Equity transaction automatically
QBO creates an Opening Balance Equity journal entry to set the starting balance when you first reconcile an account.
Question 7: A client wants to connect their bank account to QBO via bank feeds. Which connection method provides the most real-time data with the fewest errors?
- Manual CSV import
- Direct Connect (bank-hosted connection) (Correct answer)
- WebConnect file download
- Third-party aggregator via OAuth
Correct answer: Direct Connect (bank-hosted connection)
Direct Connect uses a bank-hosted connection, providing the most reliable and real-time transaction feed.
QBO Banking and Reconciliation 2
A client's bank feed shows a transaction downloaded twice due to a sync error.
What is the correct way to handle this in QBO?