Xero Certified Advisor Xero Reporting and Financial Analysis 2 — Questions and Answers
Question 1: In Xero, which report would you use to see all transactions posted to a specific account during a period?
- Account Transactions report (Correct answer)
- Trial Balance
- Aged Receivables
- General Ledger Summary
Correct answer: Account Transactions report
The Account Transactions report in Xero lists every transaction posted to a chosen account within a selected date range.
Question 2: When comparing budget vs. actuals in Xero, which report displays the variance between the two?
- Budget Summary
- Budget Variance report
- Profit and Loss (Budget vs. Actual) (Correct answer)
- Cash Flow Forecast
Correct answer: Profit and Loss (Budget vs. Actual)
The Profit and Loss (Budget vs. Actual) report in Xero shows actual figures alongside budgeted amounts and the resulting variance.
Question 3: A Xero user wants to see outstanding invoices grouped by how long they are overdue. Which report provides this?
- Invoice Summary
- Aged Receivables report (Correct answer)
- Sales by Contact
- Cash Summary
Correct answer: Aged Receivables report
The Aged Receivables report groups unpaid customer invoices into overdue buckets (e.g., 0–30, 31–60 days).
Question 4: Which Xero feature allows you to save a customized version of a report with specific filters and layouts for repeated use?
- Report templates
- Custom report (saved) (Correct answer)
- Report subscriptions
- Publish to Files
Correct answer: Custom report (saved)
Xero lets you save a customized report configuration as a custom report so you can reopen it with the same settings anytime.
Question 5: In Xero's Profit and Loss report, which layout option groups income and expense accounts by tracking category?
- Comparison layout
- By tracking category layout (Correct answer)
- Department view
- Segment split
Correct answer: By tracking category layout
The 'By tracking category' layout in the Xero P&L report splits results across the tracking categories you have set up.
Question 6: What does the 'Cash Basis' option do when enabled on a Xero Profit and Loss report?
- It excludes GST/VAT from totals
- It reports income and expenses when cash is received or paid rather than when invoiced (Correct answer)
- It converts foreign currency to the base currency
- It applies only to bank-reconciled transactions
Correct answer: It reports income and expenses when cash is received or paid rather than when invoiced
Cash Basis reporting recognizes revenue and expenses at the point of actual cash movement, not when invoices or bills are raised.
Question 7: A business has two tracking categories: Region and Product Line. In Xero reporting, how many tracking options can be applied to a single transaction line?
- One tracking category only
- Up to two tracking categories (Correct answer)
- Up to five tracking categories
- Unlimited tracking categories
Correct answer: Up to two tracking categories
Xero supports a maximum of two tracking categories per organisation, and both can be applied to each transaction line.
Xero Certified Advisor Xero Reporting and Financial Analysis 2
In Xero, which report would you use to see all transactions posted to a specific account during a period?