Xero Certified Advisor Xero Bank Reconciliation and Cash Management 3

Question 1

In Xero, what is 'Cash Coding' primarily used for?

Accepted Answer

Quickly coding multiple bank transactions at once without creating individual bills or invoices

Answer

Cash Coding allows users to code multiple transactions in a spreadsheet-style view, speeding up the reconciliation process.

Question 2

When setting up a bank rule in Xero, which condition type would you use to match transactions from a specific supplier by their reference number?

Accepted Answer

Reference

Answer

The 'Reference' condition in bank rules matches transactions based on text in the reference field of the bank feed.

Question 3

In Xero, what does 'Find & Match' allow you to do during bank reconciliation?

Accepted Answer

Search for and link a bank feed transaction to one or more existing Xero transactions

Answer

'Find & Match' lets you search existing invoices, bills, or transactions in Xero to match against the selected bank feed line.

Question 4

A $500 bank deposit appears in the Xero feed but relates to a loan received, not a sales invoice. How should it be correctly reconciled?

Accepted Answer

Create a receive money transaction coded to the loan liability account

Answer

A loan receipt should be coded to a liability account (e.g., Loan Payable) using a receive money transaction to accurately reflect the obligation.

Question 5

What is the purpose of the 'Exclude' option in Xero's bank reconciliation?

Accepted Answer

To remove a transaction from the reconciliation list without posting it to the ledger

Answer

Excluding a transaction hides it from the reconciliation screen without creating any accounting entries, useful for duplicates or errors.

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