QBO Payables and Expenses Workflow 4 — Questions and Answers
Question 1: A client accidentally applied a vendor credit to the wrong bill. How do you fix this in QBO?
- Delete the vendor credit and re-enter it
- Open the bill payment and uncheck the credit, then re-apply to the correct bill (Correct answer)
- Use a journal entry to transfer the credit
- Void the original bill and create a new one
Correct answer: Open the bill payment and uncheck the credit, then re-apply to the correct bill
Open the bill payment where the credit was applied, uncheck it from the wrong bill, save, then apply it to the correct bill.
Question 2: Which QBO feature allows you to automatically import and categorize credit card transactions from your bank?
- Recurring Transactions
- Bank Feeds (Connect Bank) (Correct answer)
- Expense Rules
- Batch Transactions
Correct answer: Bank Feeds (Connect Bank)
Bank Feeds (Connect Bank) pulls in credit card and bank transactions automatically for review and categorization in QBO.
Question 3: When setting up a recurring bill in QBO, which recurrence type creates a bill automatically without any user review?
- Reminder
- Scheduled (Correct answer)
- Unscheduled
- Memorized
Correct answer: Scheduled
A Scheduled recurring transaction in QBO creates and posts the bill automatically on the specified interval without requiring user action.
Question 4: A company records a prepaid insurance payment covering 12 months. In QBO, how should this be initially recorded?
- Debit Insurance Expense for the full amount
- Debit Prepaid Insurance (asset) for the full amount (Correct answer)
- Split the bill across 12 future-dated expense transactions
- Record as Accounts Payable with a 12-month note
Correct answer: Debit Prepaid Insurance (asset) for the full amount
Prepaid expenses are recorded as assets (Prepaid Insurance) initially, then expensed monthly via journal entry as the coverage is consumed.
Question 5: In QBO, what does the 'Location' tracking field allow you to do that 'Class' tracking cannot?
- Track expenses by department
- Assign transactions to a physical business location or profit center (Correct answer)
- Allocate costs across multiple projects simultaneously
- Filter reports by geographic region on a map
Correct answer: Assign transactions to a physical business location or profit center
Location tracking in QBO is designed to segment financials by physical store, office, or profit center, complementing Class which is used for departments or product lines.
Question 6: A vendor issues a statement showing a balance different from QBO's Accounts Payable balance. Which QBO report best helps you reconcile the difference?
- Vendor Balance Summary
- Transaction List by Vendor
- Accounts Payable Aging Detail (Correct answer)
- Bill Payment List
Correct answer: Accounts Payable Aging Detail
The AP Aging Detail report lists every open bill and credit by vendor with dates and amounts, making it easy to match against the vendor's statement line by line.
Question 7: Which user permission level in QBO allows a bookkeeper to enter and pay bills but prevents them from viewing payroll data?
- Company Admin
- Standard User with All access
- Standard User with limited access (no payroll) (Correct answer)
- Reports Only
Correct answer: Standard User with limited access (no payroll)
A Standard User role with customized access can grant bills and expense permissions while specifically excluding payroll visibility.
QBO Payables and Expenses Workflow 4
A client accidentally applied a vendor credit to the wrong bill.
How do you fix this in QBO?