Xero Certified Advisor Xero Bank Reconciliation and Cash Management 2

Question 1

In Xero, what does the 'Statement Balance' on the bank reconciliation screen represent?

Accepted Answer

The closing balance from your imported bank statement

Answer

The Statement Balance reflects the closing balance from your bank statement as imported into Xero.

Question 2

Which Xero feature allows you to set rules so that transactions matching certain criteria are automatically coded to specific accounts?

Accepted Answer

Bank rules

Answer

Bank rules in Xero automatically categorize transactions based on conditions such as payee name or amount.

Question 3

When a bank feed transaction in Xero shows as 'Received,' what does this typically indicate?

Accepted Answer

Money has come into the bank account

Answer

A 'Received' transaction indicates funds have been deposited or transferred into the bank account.

Question 4

What happens to a transaction in Xero when you click 'OK' during bank reconciliation?

Accepted Answer

The bank feed transaction is matched and reconciled to an existing Xero transaction

Answer

Clicking 'OK' confirms the match between the bank feed line and the corresponding Xero transaction, marking it as reconciled.

Question 5

In Xero, if a supplier payment appears in the bank feed but no corresponding bill exists, which option should you choose to handle it?

Accepted Answer

Use 'Create' to post it directly to an expense account

Answer

If no bill exists, you can use 'Create' to post the transaction directly as a spend money transaction coded to the relevant expense account.

Xero Certified Advisor Practice Test