QBO Financial Reporting 2

Question 1

A client wants to see how much revenue was earned but not yet collected. Which report best shows this?

Accepted Answer

Accounts Receivable Aging Summary

Answer

The Accounts Receivable Aging Summary shows outstanding invoices grouped by how long they have been unpaid, revealing uncollected revenue.

Question 2

When running a Profit and Loss report in QBO, what does the 'Compare another period' option allow you to do?

Accepted Answer

Show two date ranges side by side for trend analysis

Answer

The 'Compare another period' option displays two date ranges side by side so users can analyze performance trends over time.

Question 3

Which financial statement in QBO shows the net change in cash during a specific period?

Accepted Answer

Statement of Cash Flows

Answer

The Statement of Cash Flows categorizes cash inflows and outflows into operating, investing, and financing activities to show net cash change.

Question 4

A business owner notices their net income is positive but cash is decreasing. Which report would best explain why?

Accepted Answer

Statement of Cash Flows

Answer

The Statement of Cash Flows reconciles net income to actual cash movement, revealing non-cash items and working capital changes causing the discrepancy.

Question 5

In QBO, what is the purpose of the 'Collapse' button on a Profit and Loss report?

Accepted Answer

Groups sub-accounts under their parent accounts to summarize data

Answer

The Collapse button hides individual sub-accounts and rolls their totals into parent account lines for a cleaner, higher-level view.

(QBO) Certified QuickBooks ProAdvisor Practice Test

(QBO) Certified QuickBooks ProAdvisor Practice Test

QBO Financial Reporting 2