QBO Managing Lists & Chart of Accounts 2 — Questions and Answers
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?
- Create two separate bank accounts
- Use sub-accounts under a single income account for each service line
- Use classes to separate the income transactions (Correct answer)
- Create two companies in QBO
Correct answer: Use classes to separate the income transactions
Classes in QBO allow you to segment transactions by department or service line without changing the chart of accounts structure.
Question 2: When merging two accounts in the QBO Chart of Accounts, what happens to the historical transactions?
- Transactions from both accounts are deleted
- Transactions are moved to the account you are keeping (Correct answer)
- Transactions remain in their original accounts
- Transactions must be manually reassigned
Correct answer: Transactions are moved to the account you are keeping
When you merge accounts in QBO, all transactions from the deleted account are moved to the account you retain.
Question 3: Which account type in QBO is used to record the owner's personal withdrawals from the business?
- Expense
- Other Current Liability
- Equity – Owner's Draw (Correct answer)
- Cost of Goods Sold
Correct answer: Equity – Owner's Draw
Owner's Draw is an equity account that tracks money the owner withdraws from the business for personal use.
Question 4: In QBO, what does the 'Detail Type' field in the Chart of Accounts determine?
- The balance of the account
- How QBO maps the account to tax forms and financial reports (Correct answer)
- The order in which accounts appear on the balance sheet
- Whether the account is active or inactive
Correct answer: How QBO maps the account to tax forms and financial reports
The Detail Type helps QBO map accounts to the appropriate lines on tax forms and standard financial reports.
Question 5: A client accidentally deleted a vendor from the Vendor List. How can you restore it in QBO?
- Click Undo in the browser
- Go to Settings > Deleted items and restore
- Filter the Vendor List to show inactive vendors and reactivate (Correct answer)
- Contact QuickBooks Support to restore the vendor
Correct answer: Filter the Vendor List to show inactive vendors and reactivate
Deleted vendors become inactive in QBO and can be restored by filtering the Vendor List to show inactive records and making them active again.
Question 6: What is the maximum number of classes that can be created in QBO Plus?
- 40
- 100
- 250 (Correct answer)
- Unlimited
Correct answer: 250
QBO Plus supports up to 250 classes for tracking purposes.
Question 7: Which of the following lists in QBO is used to store reusable line items that appear on sales forms?
- Chart of Accounts
- Products & Services list (Correct answer)
- Customer list
- Terms list
Correct answer: Products & Services list
The Products & Services list stores items that can be added as line items on invoices, sales receipts, and other sales forms.
QBO Managing Lists & Chart of Accounts 2
A client wants to track income separately for two service lines but only has one bank account.
What is the best approach in QBO?