QBO Online Setup 3 — Questions and Answers
Question 1: A new QBO company defaults to cash-basis accounting. Where does a ProAdvisor change this to accrual-basis?
- Reports > Report Settings
- Account and Settings > Advanced > Accounting method (Correct answer)
- Chart of Accounts > Settings
- Banking > Bank Feeds Settings
Correct answer: Account and Settings > Advanced > Accounting method
The default accounting method (cash or accrual) is set under Account and Settings > Advanced in QuickBooks Online.
Question 2: When importing a chart of accounts using a CSV file into a new QBO company, which column is mandatory?
- Account Number
- Account Name and Account Type (Correct answer)
- Opening Balance
- Tax Line Mapping
Correct answer: Account Name and Account Type
The Account Name and Account Type columns are required in the CSV import — QBO cannot create an account without both.
Question 3: A client's QBO company is set up under the wrong industry type. What is the primary impact of changing the industry setting later?
- All transactions are deleted and must be re-entered
- The recommended chart of accounts changes but existing accounts are unaffected (Correct answer)
- The subscription price changes automatically
- Bank feeds are disconnected and must be reconnected
Correct answer: The recommended chart of accounts changes but existing accounts are unaffected
Changing the industry type updates QBO's default account recommendations but does not modify any accounts or data already created.
Question 4: Which user role in QBO has permission to manage subscriptions and billing but cannot enter transactions?
- Standard User
- Reports Only
- Company Admin
- Billing Manager (or the Master Admin for billing only) (Correct answer)
Correct answer: Billing Manager (or the Master Admin for billing only)
The Master Admin or a Billing Manager role can manage subscription and billing information without necessarily having transaction access.
Question 5: During QBO setup, a ProAdvisor wants to customize invoice numbering to start at 1001. Where is this configured?
- Account and Settings > Sales > Sales form content > Custom transaction numbers (Correct answer)
- Reports > Customize
- Products and Services > Settings
- Banking > Transactions
Correct answer: Account and Settings > Sales > Sales form content > Custom transaction numbers
Custom transaction numbers, including starting invoice numbers, are configured under Account and Settings > Sales > Sales form content.
Question 6: What happens to a QBO company's data if the subscription lapses and is not renewed within the grace period?
- Data is permanently deleted immediately
- Data is frozen and inaccessible until payment is made, then deleted after approximately one year (Correct answer)
- Data is automatically exported to QuickBooks Desktop
- Data remains fully accessible indefinitely for read-only use
Correct answer: Data is frozen and inaccessible until payment is made, then deleted after approximately one year
Intuit freezes QBO company data after the grace period and typically deletes it after approximately one year if the subscription is not renewed.
Question 7: A ProAdvisor is setting up classes in QBO for a nonprofit client to track programs. Under which setting must 'Track classes' first be enabled?
- Account and Settings > Advanced > Categories (Correct answer)
- Account and Settings > Sales > Products and Services
- Account and Settings > Expenses > Bills and expenses
- Reports > Management Reports
Correct answer: Account and Settings > Advanced > Categories
Class tracking must be enabled under Account and Settings > Advanced > Categories before classes can be assigned to transactions.
QBO Online Setup 3
A new QBO company defaults to cash-basis accounting.
Where does a ProAdvisor change this to accrual-basis?