QBO Managing Lists & Chart of Accounts 2

Question 1

A client wants to track income separately for two service lines but only has one bank account. What is the best approach in QBO?

Accepted Answer

Use classes to separate the income transactions

Answer

Create two separate bank accounts

Answer

Use sub-accounts under a single income account for each service line

Answer

Create two companies in QBO

Question 2

When merging two accounts in the QBO Chart of Accounts, what happens to the historical transactions?

Accepted Answer

Transactions are moved to the account you are keeping

Answer

Transactions from both accounts are deleted

Answer

Transactions remain in their original accounts

Answer

Transactions must be manually reassigned

Question 3

Which account type in QBO is used to record the owner's personal withdrawals from the business?

Accepted Answer

Equity – Owner's Draw

Answer

Expense

Answer

Other Current Liability

Answer

Cost of Goods Sold

Question 4

In QBO, what does the 'Detail Type' field in the Chart of Accounts determine?

Accepted Answer

How QBO maps the account to tax forms and financial reports

Answer

The balance of the account

Answer

The order in which accounts appear on the balance sheet

Answer

Whether the account is active or inactive

Question 5

A client accidentally deleted a vendor from the Vendor List. How can you restore it in QBO?

Accepted Answer

Filter the Vendor List to show inactive vendors and reactivate

Answer

Click Undo in the browser

Answer

Go to Settings > Deleted items and restore

Answer

Contact QuickBooks Support to restore the vendor

Question 6

What is the maximum number of classes that can be created in QBO Plus?

Accepted Answer

250

Answer

40

Answer

100

Answer

Unlimited

Question 7

Which of the following lists in QBO is used to store reusable line items that appear on sales forms?

Accepted Answer

Products & Services list

Answer

Chart of Accounts

Answer

Customer list

Answer

Terms list