QBO QuickBooks Setup & Navigation 3 — Questions and Answers
Question 1: A client accidentally deleted a transaction in QuickBooks Online. Where can a ProAdvisor find a record of this deletion?
- Reports > Transaction History
- Gear > Audit Log (Correct answer)
- Accounting > Journal Entries
- Banking > Excluded Transactions
Correct answer: Gear > Audit Log
The Audit Log (Gear > Audit Log) records all changes, additions, and deletions made to transactions, including who made the change and when.
Question 2: Which keyboard shortcut opens a new Invoice form in QuickBooks Online?
- Ctrl+I (Correct answer)
- Alt+I
- Ctrl+Alt+I
- There is no keyboard shortcut for invoices
Correct answer: Ctrl+I
Pressing Ctrl+I (or Cmd+I on Mac) opens a new Invoice form directly in QuickBooks Online.
Question 3: What happens to the opening balance equity account when a ProAdvisor enters beginning balances during initial company setup?
- It is automatically closed to retained earnings at year end
- It receives offsetting entries to keep the balance sheet in balance (Correct answer)
- It remains permanently on the balance sheet as a reference
- It is used only for bank reconciliation adjustments
Correct answer: It receives offsetting entries to keep the balance sheet in balance
Opening Balance Equity receives offsetting credit or debit entries whenever beginning balances are entered so the balance sheet remains balanced.
Question 4: In QuickBooks Online, what is the function of the 'Excluded' tab in the Banking center?
- It stores transactions that have been matched and reconciled
- It holds transactions the user has chosen not to add to the books (Correct answer)
- It shows transactions with errors that need correction
- It displays voided bank transactions
Correct answer: It holds transactions the user has chosen not to add to the books
The Excluded tab stores bank feed transactions that the user has manually excluded and does not want to import into QuickBooks.
Question 5: A QuickBooks Online company file was set up with the wrong industry type. What is the impact of changing the industry in Account and Settings?
- It rebuilds the chart of accounts to match the new industry
- It updates the default report templates and suggested accounts (Correct answer)
- It changes the tax form assigned to the company
- It has no effect after the initial setup is complete
Correct answer: It updates the default report templates and suggested accounts
Changing the industry type updates suggested account names and default report layouts, but it does not alter existing accounts already created.
Question 6: Which QuickBooks Online navigation element allows users to quickly search for any customer, vendor, account, or transaction by name or number?
- The Plus (+) icon menu
- The Search (magnifying glass) icon in the top bar (Correct answer)
- The Gear icon > Find
- The Reports > Search function
Correct answer: The Search (magnifying glass) icon in the top bar
The magnifying glass Search icon in the top navigation bar allows global search across all records including transactions, customers, vendors, and accounts.
Question 7: When a ProAdvisor sets up sales tax in QuickBooks Online, what does the automated sales tax feature use to calculate the correct rate?
- A manual rate table entered by the user
- The customer's billing address and the product/service taxability (Correct answer)
- The company's state registration number only
- The invoice date and fiscal year settings
Correct answer: The customer's billing address and the product/service taxability
QBO's automated sales tax engine uses the customer's ship-to address combined with the taxability of the product or service to determine the correct rate.
QBO QuickBooks Setup & Navigation 3
A client accidentally deleted a transaction in QuickBooks Online.
Where can a ProAdvisor find a record of this deletion?