QBO Managing Lists & Chart of Accounts 3

Question 1

In QBO, which account type would you use to record a long-term loan payable over five years?

Accepted Answer

Long-Term Liability

Answer

Loans payable beyond one year are classified as Long-Term Liabilities in QBO.

Question 2

A client needs to track inventory costs. Which Product/Service type in QBO supports inventory tracking with COGS?

Accepted Answer

Inventory

Answer

The Inventory product type in QBO tracks quantity on hand and automatically records Cost of Goods Sold when items are sold.

Question 3

How do you prevent users from adding new accounts to the Chart of Accounts in QBO Advanced?

Accepted Answer

Remove the user's ability to manage accounts under Roles

Answer

In QBO Advanced, custom roles can restrict specific users from creating or managing chart of accounts entries.

Question 4

What happens when you change the account type of an existing account in QBO?

Accepted Answer

QBO warns that the change may affect reports and tax mapping

Answer

QBO displays a warning that changing the account type can affect how transactions appear on financial reports and tax forms.

Question 5

Which QBO list stores payment terms such as 'Net 30' or '2/10 Net 30'?

Accepted Answer

Terms list

Answer

The Terms list in QBO stores payment terms that can be applied to customer invoices and vendor bills.

(QBO) Certified QuickBooks ProAdvisor Practice Test