QBO Reporting & Reconciliation 3 — Questions and Answers
Question 1: Which customization option in QBO reports allows you to display only accounts with non-zero balances?
- Filter by Account Type
- Show non-zero rows only (Rows/Columns > Non-zero) (Correct answer)
- Active Accounts filter
- Collapse Sub-accounts
Correct answer: Show non-zero rows only (Rows/Columns > Non-zero)
Under Rows/Columns customization, selecting 'Non-zero' hides rows with $0.00 balances, decluttering the report.
Question 2: A client running a cash-basis business wants to see income only when payment is received. Which report setting ensures this?
- Modified cash basis
- Accrual
- Cash (Correct answer)
- Hybrid
Correct answer: Cash
Setting the report to Cash basis shows income and expenses only when money actually changes hands, not when invoices are issued.
Question 3: What is the purpose of the 'Trace' feature when reviewing a number on a QBO financial report?
- It highlights the number in the report
- It drills down to show the individual transactions making up that total (Correct answer)
- It exports the report to Excel
- It flags the amount for auditor review
Correct answer: It drills down to show the individual transactions making up that total
Clicking (tracing) any amount on a QBO report drills down to the underlying transactions that compose that total.
Question 4: Which statement is TRUE about the QBO Balance Sheet report?
- It covers a date range like January–March
- It reflects balances as of a single point in time (Correct answer)
- It shows revenue and expense activity
- It only includes bank and credit card accounts
Correct answer: It reflects balances as of a single point in time
The Balance Sheet is a snapshot report showing assets, liabilities, and equity as of one specific date, not a range.
Question 5: When reconciling in QBO and the statement ending balance is entered incorrectly, how should the ProAdvisor fix it?
- Undo the reconciliation and start over
- Edit the ending balance field directly in the reconciliation window before finishing (Correct answer)
- Create an adjusting journal entry
- Contact QBO support to unlock the field
Correct answer: Edit the ending balance field directly in the reconciliation window before finishing
The statement ending balance field in the reconciliation window can be edited at any time before clicking Finish Now.
Question 6: A client's bank statement shows an NSF (returned check) fee. How should this be recorded during bank reconciliation in QBO?
- Mark the original deposit as cleared and ignore the fee
- Add the fee as a new expense transaction and clear it in the reconciliation (Correct answer)
- Void the original customer payment
- Reclassify the fee as a bank error
Correct answer: Add the fee as a new expense transaction and clear it in the reconciliation
NSF fees should be entered as a new bank charge expense in QBO, then cleared during reconciliation to match the bank statement.
Question 7: Which QBO report helps identify transactions categorized to incorrect accounts after a period is closed?
- Journal Report
- Audit Log
- Transaction Detail by Account
- Reclassify Transactions Tool (Correct answer)
Correct answer: Reclassify Transactions Tool
The Reclassify Transactions tool (in Accountant Tools) lets ProAdvisors find and bulk-reclassify miscategorized transactions efficiently.
QBO Reporting & Reconciliation 3
Which customization option in QBO reports allows you to display only accounts with non-zero balances?