QBO Recording Transactions 2 — Questions and Answers
Question 1: A customer pays an outstanding invoice with a check. Which QBO transaction type should you use to record this payment?
- Receive Payment (Correct answer)
- Sales Receipt
- Bank Deposit
- Journal Entry
Correct answer: Receive Payment
Receive Payment is used to apply a customer payment to an existing open invoice in QBO.
Question 2: When recording a bill in QBO, which account is typically debited?
- Accounts Payable
- The expense or asset account for what was purchased (Correct answer)
- Cash
- Accounts Receivable
Correct answer: The expense or asset account for what was purchased
Recording a bill debits the expense or asset account for the item purchased and credits Accounts Payable.
Question 3: Which QBO feature allows you to record a transaction that has NOT yet cleared the bank?
- Bank Rules
- Manually entering the transaction in the register or via a form (Correct answer)
- Bank Feeds only
- Reconciliation tool only
Correct answer: Manually entering the transaction in the register or via a form
You can manually enter transactions in QBO at any time, regardless of whether they have cleared the bank.
Question 4: A vendor offers a 2% discount if you pay within 10 days. Where do you set this up in QBO so it applies automatically when paying bills?
- Chart of Accounts
- Payment Terms on the vendor record (Correct answer)
- Products and Services
- Company Settings > Bills
Correct answer: Payment Terms on the vendor record
Setting payment terms (e.g., 2/10 Net 30) on the vendor record allows QBO to calculate early-payment discounts automatically.
Question 5: What happens to Undeposited Funds when you create a Bank Deposit in QBO?
- The balance increases
- The balance decreases as funds move to the selected bank account (Correct answer)
- It is deleted automatically
- It transfers to Accounts Receivable
Correct answer: The balance decreases as funds move to the selected bank account
Creating a Bank Deposit clears the Undeposited Funds account and moves the selected payments to the chosen bank account.
Question 6: You receive a partial payment on a $1,000 invoice. The customer pays $400. What is the status of the invoice after applying the payment?
- Closed
- Paid
- Partially paid (Correct answer)
- Voided
Correct answer: Partially paid
When a payment does not cover the full invoice amount, QBO marks the invoice as Partially Paid and shows the remaining balance.
Question 7: Which transaction type in QBO is used to record money you spend directly from a bank account WITHOUT a prior bill?
- Pay Bills
- Check or Expense (Correct answer)
- Journal Entry
- Vendor Credit
Correct answer: Check or Expense
A Check or Expense transaction records an immediate payment from a bank account without first creating a bill.
QBO Recording Transactions 2
A customer pays an outstanding invoice with a check.
Which QBO transaction type should you use to record this payment?