QBO Online Setup 2 — Questions and Answers
Question 1: When setting up a new QuickBooks Online company, which step must be completed before you can connect a bank account?
- Create at least one invoice
- Complete the company profile including legal business name and address (Correct answer)
- Set up payroll
- Import a chart of accounts from Excel
Correct answer: Complete the company profile including legal business name and address
QuickBooks Online requires the company profile (legal name, address, industry) to be completed before bank connections can be established.
Question 2: A client wants to migrate from QuickBooks Desktop to QuickBooks Online. Which tool is recommended for this conversion?
- Manual data re-entry
- The built-in QuickBooks Desktop migration utility (Export to QBO) (Correct answer)
- A third-party CSV import tool
- Intuit Data Protect
Correct answer: The built-in QuickBooks Desktop migration utility (Export to QBO)
Intuit provides a built-in migration utility within QuickBooks Desktop to export company data directly to QuickBooks Online.
Question 3: Which QBO subscription tier is required to track inventory using the First In, First Out (FIFO) costing method?
- Simple Start
- Essentials
- Plus (Correct answer)
- Advanced
Correct answer: Plus
Inventory tracking with FIFO costing is available starting with the QuickBooks Online Plus plan.
Question 4: During initial QBO setup, what does the 'closing date' setting in Account and Settings protect?
- It prevents all users from logging in after business hours
- It restricts editing or deleting transactions before a specified date without a password (Correct answer)
- It automatically closes open invoices at month-end
- It locks the payroll module after each pay run
Correct answer: It restricts editing or deleting transactions before a specified date without a password
The closing date requires a password to edit transactions dated on or before that date, protecting reconciled historical data.
Question 5: When configuring sales tax in QuickBooks Online, which setup step automatically calculates the correct tax rate for each transaction?
- Manually entering tax rates on each invoice
- Using the Automated Sales Tax feature linked to the customer's billing address (Correct answer)
- Applying a single flat rate to all sales
- Importing tax tables from the IRS website
Correct answer: Using the Automated Sales Tax feature linked to the customer's billing address
QBO's Automated Sales Tax feature uses the customer's billing address to apply the correct jurisdiction rate automatically.
Question 6: A ProAdvisor is setting up a client's QBO file and wants to enable the 'Multicurrency' feature. What is a critical warning to communicate before activation?
- Multicurrency cannot be used with bank feeds
- Once enabled, Multicurrency cannot be turned off (Correct answer)
- Multicurrency requires the Advanced plan
- Multicurrency disables the sales tax module
Correct answer: Once enabled, Multicurrency cannot be turned off
Enabling Multicurrency in QBO is irreversible — it cannot be disabled once turned on for a company file.
Question 7: Which section of Account and Settings in QBO controls whether purchase orders are available in the company?
- Sales settings
- Advanced settings
- Expenses settings (Correct answer)
- Payments settings
Correct answer: Expenses settings
Purchase orders are enabled under the Expenses section of Account and Settings in QuickBooks Online.
QBO Online Setup 2
When setting up a new QuickBooks Online company, which step must be completed before you can connect a bank account?