QBO Managing Lists & Chart of Accounts 5

Question 1

Which QBO setting must be enabled before you can assign classes to transactions?

Accepted Answer

Turn on class tracking under Advanced settings

Answer

Class tracking must be turned on in the Advanced section of Account and Settings before classes can be assigned to transactions.

Question 2

A client in QBO wants all expense transactions to require a class assignment. How is this enforced?

Accepted Answer

Enable 'Warn me when a transaction isn't assigned a class' in Advanced settings

Answer

QBO Advanced settings include a warning option that alerts users when a transaction is saved without a class assignment.

Question 3

What is the recommended way to handle a Chart of Accounts entry that is no longer used but has historical transactions?

Accepted Answer

Make the account inactive

Answer

Making an account inactive hides it from transaction forms while preserving all historical transactions and reports.

Question 4

In QBO, which report shows a full list of all accounts along with their current balances?

Accepted Answer

Trial Balance

Answer

The Trial Balance report in QBO lists every account with its debit or credit balance, useful for verifying that the books are in balance.

Question 5

A client's Chart of Accounts has grown unwieldy with over 300 accounts. As a ProAdvisor, what is your first recommended step?

Accepted Answer

Run a Transaction Detail by Account report to identify accounts with no recent activity

Answer

Running a Transaction Detail by Account report helps identify dormant accounts safely before taking any action to clean up the chart of accounts.

(QBO) Certified QuickBooks ProAdvisor Practice Test