QBO Reporting & Reconciliation 2 — Questions and Answers
Question 1: Which QuickBooks Online report shows all transactions that have been reconciled versus those still outstanding?
- Reconciliation Summary
- Reconciliation Discrepancy Report
- Previous Reconciliation Report (Correct answer)
- Bank Register Report
Correct answer: Previous Reconciliation Report
The Previous Reconciliation Report shows all cleared and outstanding transactions from past reconciliations.
Question 2: A client notices their Profit & Loss report differs from their Balance Sheet net income. What is the most likely cause?
- Different fiscal year settings
- Accrual vs. cash basis mismatch in report settings (Correct answer)
- Undeposited funds not cleared
- Chart of accounts error
Correct answer: Accrual vs. cash basis mismatch in report settings
Running P&L on cash basis and Balance Sheet on accrual basis (or vice versa) causes net income discrepancies between reports.
Question 3: When reconciling a credit card account in QBO, what does the 'Payments' section in the reconciliation screen represent?
- Charges made to the card
- Payments made to reduce the credit card balance (Correct answer)
- Refunds from vendors
- Bank transfers only
Correct answer: Payments made to reduce the credit card balance
The Payments section shows credits to the credit card account, which reduce the amount owed.
Question 4: A client wants a report showing customer balances grouped by how long they've been outstanding. Which report should you recommend?
- Customer Balance Summary
- Accounts Receivable Aging Detail (Correct answer)
- Open Invoices Report
- Transaction List by Customer
Correct answer: Accounts Receivable Aging Detail
The A/R Aging Detail report groups outstanding customer balances into time buckets (Current, 1-30, 31-60, 61-90, 90+).
Question 5: In QBO, what happens to the beginning balance in a new reconciliation if the previous reconciliation was undone?
- It resets to zero
- It reverts to the balance from the reconciliation before the undone one (Correct answer)
- It stays at the last reconciled amount
- QBO locks the account and prevents new reconciliations
Correct answer: It reverts to the balance from the reconciliation before the undone one
Undoing a reconciliation reverts the beginning balance to the ending balance of the previous reconciliation period.
Question 6: Which QBO report would best help identify duplicate vendor payments?
- Vendor Balance Summary
- Transaction List by Vendor (Correct answer)
- Accounts Payable Aging Detail
- Check Detail Report
Correct answer: Transaction List by Vendor
The Transaction List by Vendor shows all transactions per vendor chronologically, making duplicate payments easy to spot.
Question 7: A reconciliation has a $50 discrepancy. After investigation, no error is found. What is the recommended QBO approach?
- Force-finish and ignore the discrepancy
- Create a journal entry to a Reconciliation Discrepancies account (Correct answer)
- Delete the oldest transaction in the period
- Undo the reconciliation and start over
Correct answer: Create a journal entry to a Reconciliation Discrepancies account
QBO creates a Reconciliation Discrepancies account automatically when you force-finish, posting the difference there for later investigation.
QBO Reporting & Reconciliation 2
Which QuickBooks Online report shows all transactions that have been reconciled versus those still outstanding?