Xero Certified Advisor Xero Setup and Configuration 2 — Questions and Answers
Question 1: When setting up a new Xero organization, which section do you use to configure the financial year-end date?
- Accounts > Chart of Accounts
- Settings > General Settings (Correct answer)
- Reports > Financial Settings
- Payroll > Settings
Correct answer: Settings > General Settings
The financial year-end date is configured under Settings > General Settings in Xero.
Question 2: A client's Xero organization needs to track inventory items by multiple warehouses. Which Xero feature supports this?
- Tracking categories (Correct answer)
- Projects
- Fixed assets
- Expense claims
Correct answer: Tracking categories
Tracking categories in Xero allow businesses to segment transactions, including by location or warehouse.
Question 3: What is the maximum number of tracking categories you can create in a single Xero organization?
- 1
- 2 (Correct answer)
- 5
- 10
Correct answer: 2
Xero limits each organization to a maximum of 2 tracking categories.
Question 4: When importing a chart of accounts into Xero via CSV, which field is required for each account?
- Account Name and Account Code only
- Account Name, Account Code, and Account Type (Correct answer)
- Account Code and Tax Rate only
- Account Name and Description only
Correct answer: Account Name, Account Code, and Account Type
A valid Xero chart of accounts CSV import requires at minimum the Account Name, Account Code, and Account Type for each row.
Question 5: In Xero, which account type should be used for a business credit card liability?
- Current Asset
- Current Liability (Correct answer)
- Expense
- Equity
Correct answer: Current Liability
A business credit card is a Current Liability because it represents money owed in the short term.
Question 6: A Xero advisor needs to set up automatic payment reminders for overdue invoices. Where is this configured?
- Settings > Invoice Settings
- Business > Invoices > Reminders
- Settings > Invoice Reminders (Correct answer)
- Contacts > Reminder Settings
Correct answer: Settings > Invoice Reminders
Invoice reminders are configured under Settings > Invoice Reminders in Xero.
Question 7: Which Xero setting controls the default due date applied to new sales invoices?
- Payment terms in Invoice Settings (Correct answer)
- Branding theme defaults
- Chart of Accounts configuration
- Bank account settings
Correct answer: Payment terms in Invoice Settings
Default payment terms for invoices are set in Settings > Invoice Settings, which applies them to all new invoices.
Xero Certified Advisor Xero Setup and Configuration 2
When setting up a new Xero organization, which section do you use to configure the financial year-end date?