Xero Certified Advisor Xero Setup and Configuration 3

Question 1

When connecting a bank account in Xero, what does the 'bank feed' feature do?

Accepted Answer

Automatically imports bank transactions into Xero daily

Answer

A bank feed automatically pulls transactions from the bank directly into Xero, reducing manual data entry.

Question 2

A client wants to use Xero in multiple currencies. What must be enabled first?

Accepted Answer

Multi-currency in the Xero subscription plan

Answer

Multi-currency is a premium feature that must be enabled as part of an eligible Xero subscription plan.

Question 3

In Xero's tax settings, what does the 'Tax Exclusive' option mean on an invoice line item?

Accepted Answer

Tax is calculated on top of the unit price shown

Answer

Tax Exclusive means the price shown does not include tax, and tax is added on top when calculated.

Question 4

A new Xero organization is set up but the default sales tax rate is incorrect. Where should the advisor go to correct the default tax rate on sales?

Accepted Answer

Settings > Tax Rates

Answer

Tax rates, including defaults for sales and purchases, are managed under Settings > Tax Rates in Xero.

Question 5

Which of the following correctly describes a 'lock date' in Xero?

Accepted Answer

A date that prevents editing of transactions on or before it

Answer

A lock date in Xero prevents users from creating, editing, or deleting transactions dated on or before that date.

Xero Certified Advisor Practice Test