QBO Payables and Expenses Workflow 3

Question 1

In QBO, what happens to the Accounts Payable balance when you record a vendor credit?

Accepted Answer

It decreases because the vendor owes you a reduction

Answer

A vendor credit reduces Accounts Payable (debits AP) because it represents an amount the vendor owes you as a reduction against future bills.

Question 2

A company pays for office supplies with a debit card. In QBO, which transaction type is most appropriate to record this?

Accepted Answer

Expense

Answer

An Expense transaction in QBO is designed for immediate payments (cash, debit card, credit card) with no prior bill entered.

Question 3

Which QBO setting must be enabled before you can assign expenses to specific customers for potential reimbursement?

Accepted Answer

Billable Expenses

Answer

The Billable Expenses setting (under Account and Settings > Expenses) must be enabled to mark expenses as billable to a customer.

Question 4

After enabling billable expenses, how does a reimbursable expense flow to the customer's invoice in QBO?

Accepted Answer

It appears in the Add to Invoice drawer when creating the customer's invoice

Answer

Billable expenses appear in the Add to Invoice panel on the right side when creating or editing that customer's invoice.

Question 5

What is the purpose of a Purchase Order (PO) in QBO?

Accepted Answer

To formally request goods or services from a vendor before receiving a bill

Answer

A Purchase Order is a non-posting document sent to a vendor to request goods or services; it converts to a bill when the vendor fulfills the order.

(QBO) Certified QuickBooks ProAdvisor Practice Test