QBO Banking and Reconciliation 3 — Questions and Answers
Question 1: During reconciliation you notice the difference is exactly $25 — the same amount as a check written this period. What likely caused this?
- The check was entered twice in QBO
- The check was not cleared on the bank statement (Correct answer)
- The bank charged an extra fee
- The check amount was transposed in QBO
Correct answer: The check was not cleared on the bank statement
An unreconciled check with the exact difference amount usually means it has not yet cleared the bank.
Question 2: Which account type in QBO supports bank feed connections?
- Accounts Payable
- Bank or Credit Card accounts (Correct answer)
- Equity accounts only
- Any balance sheet account
Correct answer: Bank or Credit Card accounts
QBO bank feeds are supported for Bank and Credit Card account types only.
Question 3: A client accidentally reconciled a transaction that should not have been cleared. How do you fix this without undoing the entire reconciliation?
- Delete the transaction and re-enter it
- Edit the transaction and uncheck the reconciled status (R) in the register (Correct answer)
- Re-open the reconciliation and uncheck it
- Create a reversing journal entry
Correct answer: Edit the transaction and uncheck the reconciled status (R) in the register
You can open the register, find the transaction, and change its status from R (reconciled) to C (cleared) or blank.
Question 4: What does the 'Match' action in QBO's For Review tab do?
- Creates a new transaction in the register
- Links the downloaded bank transaction to an existing QBO transaction (Correct answer)
- Sends the transaction to the excluded list
- Splits the transaction across multiple accounts
Correct answer: Links the downloaded bank transaction to an existing QBO transaction
Match links a downloaded bank transaction to an already-existing QBO transaction so it is not duplicated.
Question 5: A reconciliation is off by a small amount that cannot be found. A ProAdvisor decides to force the reconciliation to zero. Which account is typically used for this adjustment?
- Retained Earnings
- Opening Balance Equity
- Reconciliation Discrepancies (Correct answer)
- Uncategorized Expenses
Correct answer: Reconciliation Discrepancies
QBO posts forced reconciliation adjustments to the Reconciliation Discrepancies account.
Question 6: When reviewing bank feed transactions, a client sees a payroll direct deposit. What is the recommended QBO workflow?
- Categorize it directly as Payroll Expense
- Match it to a payroll journal entry previously recorded (Correct answer)
- Exclude it because payroll is handled outside QBO
- Split it equally among all employees
Correct answer: Match it to a payroll journal entry previously recorded
Best practice is to record payroll via a journal entry first, then match the bank feed transaction to it.
Question 7: A bank statement ending balance is $10,000. QBO's register shows $9,800. What is the most common next step?
- Adjust the bank statement to match QBO
- Identify uncleared or missing transactions totaling $200 (Correct answer)
- Close the books immediately
- Delete all transactions from the period
Correct answer: Identify uncleared or missing transactions totaling $200
A $200 difference means you need to find uncleared transactions or missing entries that account for the gap.
QBO Banking and Reconciliation 3
During reconciliation you notice the difference is exactly $25 — the same amount as a check written this period.
What likely caused this?