QBO Payables and Expenses Workflow 2 — Questions and Answers
Question 1: A vendor sends a bill with net-30 terms. Which QBO feature automatically calculates the due date when you enter the bill?
- Payment Schedule
- Terms field on the bill form (Correct answer)
- Accounts Payable aging report
- Recurring transactions
Correct answer: Terms field on the bill form
The Terms field on the bill form uses the vendor's payment terms to automatically calculate the due date from the bill date.
Question 2: When using the 'Pay Bills' screen in QBO, what does checking the 'Auto' checkbox next to a bill do?
- Marks the bill for automatic recurring payment
- Applies available vendor credits automatically (Correct answer)
- Schedules the payment via bank auto-pay
- Splits the payment across multiple bank accounts
Correct answer: Applies available vendor credits automatically
The Auto checkbox on the Pay Bills screen automatically applies any available vendor credits to reduce the amount owed on that bill.
Question 3: A client wants to track mileage as a business expense in QBO. Which feature should you direct them to use?
- Journal Entry with a mileage account
- Mileage tracking under the + New menu (Correct answer)
- Expense form with a custom mileage field
- Class tracking for vehicle costs
Correct answer: Mileage tracking under the + New menu
QBO has a built-in Mileage tracking feature accessible from the + New menu that calculates reimbursable mileage at the IRS rate.
Question 4: Which report in QBO shows all outstanding bills grouped by how many days they are past due?
- Vendor Balance Detail
- Transaction List by Vendor
- Accounts Payable Aging Summary (Correct answer)
- Unpaid Bills
Correct answer: Accounts Payable Aging Summary
The Accounts Payable Aging Summary groups outstanding bills into aging buckets (Current, 1-30, 31-60, etc.) to show overdue amounts.
Question 5: A bill was entered in QBO with the wrong vendor. What is the correct way to fix this?
- Delete the bill and re-enter it
- Open the bill and change the Vendor field directly (Correct answer)
- Use a journal entry to reclassify the payable
- Void the bill and create a new one
Correct answer: Open the bill and change the Vendor field directly
In QBO you can open an existing bill and change the Vendor field directly, then save, without needing to delete or void it.
Question 6: When recording a credit card expense in QBO for a business lunch, which field determines how it affects financial reports by department?
- Memo field
- Customer/Project field
- Class field (Correct answer)
- Location field
Correct answer: Class field
The Class field segments transactions by department or business unit, enabling profit-and-loss reporting by class.
Question 7: A vendor offers a 2/10 net 30 discount. In QBO, where do you set this up so early-payment discounts are captured automatically?
- Vendor profile under Payment terms (Correct answer)
- Bill form's Discount field each time
- Chart of accounts discount account
- Accounts Payable settings
Correct answer: Vendor profile under Payment terms
Setting the vendor's payment terms (e.g., 2% 10 Net 30) in the vendor profile allows QBO to remind you of the discount window when paying bills.
QBO Payables and Expenses Workflow 2
A vendor sends a bill with net-30 terms.
Which QBO feature automatically calculates the due date when you enter the bill?