Xero Certified Advisor Xero Reporting and Financial Analysis 5

Question 1

Which Xero feature allows you to schedule a report to be emailed to stakeholders automatically each month?

Accepted Answer

Report subscriptions

Answer

Report subscriptions in Xero let you set up automatic delivery of a saved report to specified email addresses on a recurring schedule.

Question 2

A Xero user wants to export the Profit and Loss report data for further analysis in a spreadsheet. What export option does Xero offer?

Accepted Answer

PDF and Excel (XLSX) export

Answer

Xero reports can be exported as PDF for presentation or as Excel (XLSX) for further analysis in a spreadsheet application.

Question 3

In Xero financial reporting, what does a negative figure in the 'Other Income' section of the Profit and Loss typically indicate?

Accepted Answer

Income has been coded in reverse (debit to income account)

Answer

A negative balance in an income account on the P&L usually means a transaction was debited to that account, reversing the income, such as a credit note or miscoding.

Question 4

Which Xero report is best for verifying that opening balances entered during a migration match the previous accounting system's closing balances?

Accepted Answer

Trial Balance as at the conversion date

Answer

Running a Trial Balance as at the Xero conversion date confirms that all opening balance entries net to zero and agree with the previous system.

Question 5

When a Xero Profit and Loss is run on a 'cash basis', which transactions are excluded?

Accepted Answer

Unpaid (outstanding) invoices and bills

Answer

On a cash basis P&L, only transactions where cash has moved are included; unpaid invoices and bills are excluded until payment is received or made.

Xero Certified Advisor Practice Test

Xero Certified Advisor Practice Test

Xero Certified Advisor Xero Reporting and Financial Analysis 5