QBO Financial Reporting 3

Question 1

When customizing a QBO report, what does setting a 'Accounting method' filter to 'Cash' do?

Accepted Answer

Converts accrual balances to cash basis for the report display

Answer

Switching the accounting method to Cash in a report converts the display so revenue and expenses appear only when cash is received or paid, without changing underlying data.

Question 2

Which QBO report lists all open invoices grouped by how many days past due they are?

Accepted Answer

Accounts Receivable Aging Detail

Answer

The Accounts Receivable Aging Detail report groups unpaid invoices by aging buckets such as Current, 1-30 days, 31-60 days, and beyond.

Question 3

What does the 'Net Income' line on a QBO Profit and Loss report represent?

Accepted Answer

Total revenue minus total expenses for the period

Answer

Net Income is the bottom-line figure showing total revenues minus total expenses, representing the company's profitability for the period.

Question 4

A client wants to see profitability broken down by each product or service sold. Which QBO report should you recommend?

Accepted Answer

Sales by Product/Service Summary

Answer

The Sales by Product/Service Summary report breaks down quantity sold, amount, and profitability metrics by each individual product or service.

Question 5

In QBO, which Balance Sheet section would you find 'Accounts Payable'?

Accepted Answer

Current Liabilities

Answer

Accounts Payable represents amounts owed to vendors that are typically due within one year, classifying it as a current liability on the Balance Sheet.

(QBO) Certified QuickBooks ProAdvisor Practice Test

(QBO) Certified QuickBooks ProAdvisor Practice Test

QBO Financial Reporting 3