QuickBooks Online Sample Assignment

Question 2

Which 2 statements are true for Projects in QuickBooks Online?

(Select all that apply)

Transactions created in QuickBooks Online can have both a project and a sub-customer assigned to them.

Projects can be added to transactions when processing bank feeds. YEs

Projects with unbilled transactions can be deleted. No have to move them

Clients get one-click access to Project Profitability, which does not exist in the Report Center. yes

Projects are available in all 3 versions of QuickBooks Online. no

Question 3

For how many hierarchical levels deep can you have sub-customers (excluding the parent)?

• 4
• 5
• 6
• 10

You can fave an unlimited number of subcustomers but you can only create sub customers nestled to 5 levels deep. A subcutomer can only have 1 parent.

Question 4

Transactions in which category can be batch-reclassified by a tool in QuickBooks Online Accountant?

• Classes yes
• Locations
• Customers
• Products and Services

Question 4

What lets you set up a unique address, phone number, and email address for invoices that are different from the default in Account and Settings?

• Projects
• Classes
• Locations
• Customers

Question 5

A client manages rental property income and expenditures on behalf of numerous landlords. Landlords own the properties, which are then rented out to the tenants. The client needs to track by landlord, by property, and by tenants.

Which one method of monitoring income and expenditure would be most appropriate, especially if the client needs to re-charge expenses for costs incurred to maintain properties?

• Sub-customers
• Projects
• Locations
• Classes

Question 6

True or False:

Location tracking is used to categorize a different location to each row in an invoice.

• TRUE
• FALSE

Question 7

Which 3 statements regarding sub-accounts are true?(Select all that apply)

• There is no limit to the levels of sub-accounts that can be created.
• Best practice is to set up a sub-account for each subcontractor.
• Data appears indented under the parent account on any report. yes
• They provide more detail of income and expenses in a simple and straightforward yes
• You can collapse or expand individual groups of accounts, depending on the chevron direction next to the group.

Question 5

You want to customize a P&L report to track the profitability of products and services for a specific job or jobs.

What are 2 ways you can customize the P&L report to do this?(Select all that apply)

• Display columns by Customers.
• Add a column for percentage of row.
• Display columns by Product/Service.
• Filter for one or more specific customers or sub-customers.

Question 6

What lets you set up a unique address, phone number, and email address for invoices that are different from the default in Account and Settings?

• Projects
• Classes
• Locations
• Customers

• INVENTORY MODULE
  Identify the steps to set up an inventory valuation adjustment
• Identify when and how to purchase, sell, and adjust inventory

Question 5

Which 3 statements are true about purchase orders in QuickBooks?(Select all that apply)

• You can only create purchase orders for inventory.
• You can close individual lines on a purchase order. yes
• You can add purchase orders to any type of purchase transaction.yes
• QuickBooks Online closes purchase orders, even when not fully received.
• You can add multiple purchase orders to one purchase transaction. yes

Question 2

Which 3 statements are true regarding Product Categories?(Select all that apply)

• A product category can be assigned through bank feeds.
• A transaction can be posted to a product category.
• The Products and Services list can be filtered by product category. yes
• An existing category or adding a new product category can be specified when adding a product/service item.
• Entering the name of a product category in a purchase or sales transaction will produce a drop-down list of products/services that are in that category. yes

Question 1

A client is using and tracking inventory on hand. They purchased 10 widgets at $10 each and 10 widgets at $15 each. All of the widgets are sold in one transaction.

Considering QuickBooks Online uses the FIFO method for tracking inventory, what is the best way to see line items affected in the sales transaction?

• Run a balance sheet, and select Inventory on hand to see the transaction history.
• Open the customer invoice, and select the transaction journal.
• Run an Inventory Valuation Summary.
• Run a Profit & Loss, and select Cost of Sales account to see the transaction history.

Question 1

Consider the following:

• March 15 current year: Linsay bought 80 bags of mulch for $640.00 =640/80
• April 20 current year: Linsay bought 75 bags of mulch for $618.75
• June 12 current year: Linsay sold 125 bags of mulch to Woody’s Weeds
• June 15 current year: Linsay created a new inventory item named birdbath

When creating the item, a beginning quantity of 25 and a cost value of $23.82 per unit was mistakenly entered.

What is the effect on the General Ledger when Linsay saves the new birdbath item?

• Debit Inventory for $23.82, credit Opening Balance Equity for $23.82.
• Debit Inventory Asset for $23.82, credit Inventory Shortage for $23.82
• Debit Opening Balance Equity for $595.50, credit Inventory for $595.50
• Debit Inventory for $595.50, credit Opening Balance Equity for $595.50
• Debit Inventory Shortage for $595.50, credit Opening Balance Equity for $595.50

Question 2 ok

Which 3 actions are required to track inventory in QuickBooks?(Select all that apply)

• Add the Service field to timesheets.
• Subscribe to QuickBooks Online Plus.
• Check the setting to Track inventory quantity on hand.
• Check the setting to Track expenses and items by customer.
• Check the setting to the Show Product/Service column on sales forms.

Question 3

A client wants to donate five widgets (set up as inventory items) to a charity. In the item setup, the cost is $5 and the sales price is $10. Fifty widgets were originally purchased at $6 per widget.

What is the effect on the General Ledger when this is recorded on a Sales Receipt?

• Debit COGS $30; credit inventory $30
• Debit COGS $30; credit inventory $30; debit bank account $50; credit income $50
• Debit COGS $25; credit inventory $25; debit Bank account funds $50; credit income $50
• Debit COGS $25; credit inventory $25
• Debit Donations $30; credit inventory $30

Question 3 ok

Consider the following:

• March 15 current year: Linsay bought 80 bags of mulch for $640.00==
• April 20 current year: Linsay bought 75 bags of mulch for $618.75==
• June 12 current year: Linsay sold 125 bags of mulch to Woody’s Weeds-Be-Gone Inc.

What is the debit entry to cost of goods sold when Lindsay records the sale to Woody’s Weeds-Be-Gone?

• $1,000.00
• $1,011.25
• $1,015.12
• $1,031.25

• Question 4 updated 6.16
• Review the Laura’s Landscaping scenarioand answer the following question.
• Amounts must be entered without dollar signs or commas, and must include two decimals (for example, xxxx.xx).
• Rounding up to the nearest cent, what is the ending inventory value for Ornamental Trees and Decorative Spotlights as of October 31 of the current year?
• Previous

Question 5 ok

A client has a handful of inventory items that are close to the use-by date. They have decided that they will send these products to customers free of charge, so they can use them as samples.

Which method of adjusting the inventory should be used to ensure this is recorded against the customer?

• Create a zero-sales receipt or invoice, and then enter a journal entry to adjust cost of goods sold and promotions.
• Use the inventory adjustment option within products and services, and follow up with a journal entry.
• Create a journal entry that will debit advertising or sales promotions, and credit customers.
• Export products into a spreadsheet, and re-import them with new quantities that will overwrite current data.

Question 6 ok

Which 3 statements are true about revaluing inventory?(Select all that apply)

• An inventory valuation adjustment can be created.
• An Obsolescence inventory asset account should be created.
• Best practice is to use a Clearing bank type of account to record entries.
• Use an inventory adjustment to adjust the quantity (and value) down to zero.
• Use a zero-dollar purchase transaction to revalue the inventory.

NON STADARD TRANS

• Recognize when and how to utilize zero-dollar transactions
• Recognize best practices when handling vendor prepayments and deposits in QuickBooks Online
• Recognize best practice when handling customer retainers in QuickBooks Online

Question 6

A client has a carpentry business that designs, manufactures, and installs domestic kitchens. They have machinery in place to assist with the production of the kitchens and the machinery is being depreciated over time.

The business is required to report financial information to the lender quarterly. The annual depreciation equates to $24,000 each year.

In order for quarterly figures to show consistency, which 2 methods would work?(Select all that apply)

• Create a scheduled journal entry of $24,000, to be entered on an annual basis.
• Create a scheduled journal entry, choosing every quarter from the interval options. $6,000 per quarter.
• Create a scheduled journal entry to record on a monthly interval. $2,000 per month.
• Create a scheduled journal entry, selecting “every 3 months” from the interval options. $6,000 on each journal entry.
• Create a scheduled journal entry, selecting “monthly” from the interval options, and then every 3 months. $6,000 on each journal entry.

Question 4

Which 3 transaction types can be made recurring?(Select all that apply)

• Deposits
• Bill payments
• Journal entries
• Delayed charge
• Receive payments

Question 3

What is one of the steps involved in creating a zero-dollar expense to assign job costs to a project?

• Use a purchase order for zero dollars.
• Set up a Clearing account to record the transaction with the Account Type of Other Current Asset.
• Use a Delayed Charge and offsetting Delayed Credit.
• Put in a negative expense line without assigning a Customer.
• Put in a positive expense line without assigning a Customer.

uestion 2

Which 2 things are involved in creating a report to track deposits by Vendor/Supplier using the Other Current Asset method?(Select all that apply)

• Set Dates to All
• Group by Vendor/Supplier
• Sort by Account
• Filter by Vendor/Supplier Not Specified

Question 1

What are 3 considerations that need to be taken into account when deciding which method to use to track customer prepayments?(Select all that apply)

• Are they issuing financial statements to outside parties?
• How long will the retainers be on the books?
• Does your customer give receipts?
• Is there more than one accounts receivable account?
• How large are the deposits received?

Question 1

A client has created 50 invoices over the last two days, but none of them have been sent out by email.

Which steps need to be taken in order to send the invoices out to their customers?

• Go to “lists” and select “unsent invoices.” From the left-hand side, check boxes to select the invoices to be sent, and use “batch send.”
• Select “all sales” and filter by “send later.” Check boxes to select invoices to send using “batch actions.”
• Select “invoices” and filter by “send later.” Check boxes to select invoices to send using “batch actions.”
• From the Gear icon, turn on “batch send” from within sales. Filter “send later” invoices from within invoices, and use “batch actions” to send.

Question 2

Which 3 transaction types can be made recurring?

(Select all that apply)

Deposits

Bill payments

Journal entries

Delayed charge

Receive payments

Question 3 ok

Review Paula’s Plants and Flowers case study and answer the following question.

When setting up the Retail Sales—Taxable Product/Service item’s “Income Account” field, which account should be selected?

• Sales of Product Income
• Cash-Checking
• Sales Discount
• Undeposited Funds
• Cost of Goods Sold

Question 4

A client has been using the Receive Payments screen to record payments on account from customers before jobs have been completed and invoices created.

At the financial period end, which steps should be taken to account for these credit balances within Accounts Receivable, assuming they are operating on an accrual basis?

• Create invoices to clear the credits. Receive payments with a zero total, and match the credits to the invoices.
• Create a journal entry to debit Accounts Receivable, and credit a liability account within the balance sheet. Once saved, the journal entry should be reversed at the beginning of the next period.
• Create a journal entry to credit accounts receivable for each customer, and debit another asset account within the balance sheet. Once saved, the journal entry should be reversed at the beginning of the next period.
• Create a journal entry to debit Accounts Receivable, and credit unearned income within the profit & loss. Once saved, the journal entry should be reversed at the beginning of the next period.

Question 5

What are 3 reasons to create a zero-dollar expense/check?(Select all that apply)

• To allocate jobs on a purchase order.
• To allocate expenses to jobs after the fact.
• To allocate overhead expenses to classes.
• To allocate expenses to different locations.
• To allocate the value of owners’ time to jobs.

Question 6

A customer made a payment by check in the amount of $226.75. The bank indicates the check was returned for insufficient funds. They are charging a $50 returned check fee.

Based on the training, what is one of the first steps that needs to be taken?

• Delete the payment received.
• Create a delayed charge for the bounced check.
• Delete the deposit and re-enter, excluding the bounced payment.
• Create an invoice using a bounced check and bounced check fee item.
• Create a credit memo for the amount of the invoice and bounced check fee.

Question 7

A client operates a café and is currently only using a cash till. They are advised to set up recurring transactions to record the daily sales.

What is the first step that needs to be taken?

• Set up the recurring transaction.
• Create the sales receipt to save as recurring.
• Add a separate service item for each line item on the Z-out report.
• Set up Petty Cash.

Question 8

A customer wants to add additional work to their original estimate.

What are 2 ways to record this change?(Select all that apply)

• Delete the original estimate.
• Create an additional estimate.
• Open the original estimate and add a line.
• Change the status of the original estimate to Amended.

Question 9

A client has been accepting customer deposits on larger jobs and has created a Customer Deposits liability account as well as a customized report showing the details of this account. When they run the saved customized report it is 150 pages long, even though the client is pretty sure that no customers have any deposits outstanding at this time.

Which 2 situations might cause this long report?(Select all that apply)

• The customized report is not filtered for Cleared Status = Uncleared.
• The client is not up to date on reconciling the Customer Deposits liability account.
• The Customer Deposit account was changed to an asset account.
• The report has been run on a cash basis.

Question 10 ok

Read the Nadia's Nautical Supplies scenario and answer the following question.

Upon review, what are the findings as of the date of the deposit? (Select two)(Select all that apply)

• Inventory is overstated.
• Accounts Payable is overstated.
• COGS is overstated.
• Accounts Payable clearly reflects the prepayment.

Question 11ok

A client has several suppliers they purchase their materials from, and most of the suppliers require part or all payments to be made at the time of order. You advise your client to set up a Prepayments account that can be reconciled each month.

How should this account be set up?

• Set up a Service item called Prepayments.
• Set up a Liability account called Prepayments.
• Set up an Asset account called Prepayments.
• Set up an Expense account called Prepayments.

BILLABLE CHARGES

Question 1

You begin an invoice to a parent customer that has sub-customers, and the client has assured you that all expenses related to the sub-customers have been entered. However, no drawer appears to the right of the new invoice with billable expenses.

What are 2 possible causes?(Select all that apply)

• The expenses have not been marked as billable.
• The sub-customers have been set up as “Bill this customer.”
• An incorrect date was entered on the expenses that were recorded.
• The expenses were entered as Bills and Checks instead of Expense transactions.

Question 2

Your client runs a small cleaning business. Many of their customers sign up for a regular weekly clean, but only want to be charged monthly.

What feature of QuickBooks Online can help your client keep track of how much to invoice at the end of the month?

Estimate

Sales Receipt

Delayed Credit

Delayed Charges

Question 3

Which 4 statements are true about time tracking and billable time in QuickBooks Online?(Select all that apply)

• Weekly and single timesheets are available.
• The starting day of the working week can be changed.
• A maximum of 24 hours per day can be tracked for an individual.
• Employee hours for a pay period flow to a paycheck if using QuickBooks Online Payroll.
• No matter how you enter the time, QuickBooks Online will convert the time to hours and minutes.
• Employees and subcontractors can never see and edit their billing rates in QuickBooks Online.
• Unlimited time tracking users can be invited to enter their own time in all subscription levels of QuickBooks Online.

Question 4

Read the Sadie's Car Parts scenario and answer the following question.

What is the total amount of the billable charges for Mark's Mustang Supply Store?

• 00
• 00
• 00
• 00

Question 5

Which types of entries can be made in QuickBooks Online that are classed as non-posting?(Select all that apply)

• Delayed Charges
• Time Sheet Entries
• Vendor Credits
• Billable Expenses
• Credit-Card Credit

Question 6

QuickBooks Online is able to keep track of charges you wish to invoice at a later date.

What are the 3 types of billable charges?

(Select all that apply)

Billable Expenses

Billable Supplies

Billable Time

Delayed Charges

Billable Customers

MULTICURRENCY

Question 1

A client has been buying items and paying their vendor in euros. As a result of currency fluctuations, the Balance sheet now shows a negative amount for the euro bank account.

Which step should be taken to fix this problem?

• Create a journal entry to debit the bank account and credit the Unrealized Loss and Gain account.
• Create a Vendor Bill, and offset a payment to bring the account to zero.
• Create a home currency adjustment.
• Open the original Vendor Bill, and edit the exchange rate to match the exchange rate when the payment was made.

Question 2

Which 3 transactions can lead to a gain or loss on foreign exchange when dealing with foreign currency transactions?(Select all that apply)

• Pay a bill.
• Enter a bill.
• Enter an invoice.
• Receive payment on an invoice.
• Deposit an invoice payment into a bank account.

Question 3

Which 3 statements regarding multi-currency are correct?(Select all that apply)

• You can only set up bank and credit-card accounts in a foreign currency.
• You can set up loans in a foreign currency.
• QuickBooks Online will set up Accounts Receivable when the first invoice is issued in that currency.
• You need to set up Accounts Receivable and Accounts Payable accounts when you add a new currency.
• When viewing a register, it always shows the home currency value.
• QuickBooks Online will set up Accounts Payable when the first bill is issued in that currency.

Question 4

As part of the end-of-year process, your client wants to see the balance of their Accounts Payable euro account, using the exchange rate as of the last day of the financial year.

What is the best way to create this transaction?

• Create a journal entry, and update the Accounts Payable and Unrealized Currency Loss or Gain accounts.
• Revalue the currency through the Currencies List.
• Create a bill or Vendor Credit for each vendor to revalue individual accounts.
• These accounts will be updated automatically, based on the rate for that particular day.

Question 5

Which 2 statements are true regarding the multicurrency function in QuickBooks Online?(Select all that apply)

• You can invent a currency belonging to an imaginary country for practice purposes.
• You can view a list of a foreign currency’s historical exchange rates used for review.
• Exchange rates are expressed as the number of foreign units it takes to equal one home currency unit.
• Balance sheet accounts that existed prior to turning on multicurrency are assigned the home currency.
• Once you’ve added a transaction in a foreign currency, you cannot delete the currency used from the list.

Question 6

Which 2 statements are true about home currency adjustments?(Select all that apply)

• Home currency adjustments affect credit-card accounts as an unrealized gain or loss.
• Home currency adjustments always affect Accounts Receivable as an unrealized gain.
• Home currency adjustments affect bank accounts as a realized gain or loss.
• Home currency adjustments appear as $0.00 journal entries.

#6

BANK FEEDS:

• Recognize best practice for troubleshooting problems with bank feeds
• Recognize when and why a reconciliation’s beginning balance may need troubleshooting
• Identify best practice when working with bank rules in QuickBooks Online

Question 5

Which 2 logic actions does QuickBooks Online use to try and recognize bank feed items?(Select all that apply)

• Automatically create rule, based on past transactions.
• Match transactions already entered.
• Match amounts to several invoices or bills.
• Apply user-created rule.

Question 4

You are reconciling your client’s bank account using QuickBooks Online. You are using the bank feeds, QuickBooks Balance and Bank Balance are equal, everything has been ticked, and you still have a difference.

There are no transactions left to review. The bank was only reconciled a week ago, so there is not much too much to look through.

What is the quickest way to work out why there is a difference?

• Uncheck all of the transactions marked as reconciled, and then manually re-check them, comparing against the bank statement.
• Ignore the difference and “finish now;” it’s likely to be a future-dated transaction and we can correct next time the reconciliation is performed.
• Clear the statement date filter, and compare posting dates and cleared dates.
• Create a reversing journal entry to agree the balance because it will “auto-correct” next time.
• Undo the previous bank reconciliation and reconcile again.

Question 2

A non-profit organization needs to split utilities among various programs, based on an agreed-upon ratio. The utility payments are set up to be automatically paid out of the bank account.

How should the automatic allocation be created?

• Use the suggestion that bank feeds give you.
• Use the Batch Reclassify tool in QuickBooks Online Accountant.
• Create a rule for the utilities payments, and use the percentage split.
• Use a recurring transaction to reclass the transaction to the different programs.

Question 1ok

Esther’s Bar and Grill wrote a check to their food supplier on March 17 of the current year. The check cleared on September 1. Bank feeds does not find a match.

Why might this happen?

• Esther’s Bar and Grill did not create a rule to record this transaction.
• Esther’s Bar and Grill had never written a check to this supplier before.
• This was not a bill payment, so there was nothing to match.
• The check date in QuickBooks Online is outside the 90-day date range used by bank feeds.

Question 2 ok

Creating Bank Rules can make dealing with the bank feeds easier.

Which 3 transaction types are able to be automated using Bank Rules?(Select all that apply)

• Receive Payment
• Expense
• Check
• Bill Payment
• Deposit

Question 3 ok

Where can you access the Reconciliation Discrepancy report?

• In the accountant toolbox.
• From the alert on the reconciliation screen.
• In the “For my accountant” group of reports.
• In the “History by account” section of the reconciliation screen.

Question 4 ok

Which 2 things happen when you manually match multiple invoices to one deposit in bank feeds?(Select all that apply)

• QuickBooks Online creates one deposit in the bank register.
• QuickBooks Online creates a journal entry and reversing entry.
• QuickBooks Online creates multiple deposits in the bank register.
• QuickBooks Online links the multiple transactions to the one deposit.

Question 5 ok

Which statement is true about importing/exporting Bank Rules?

• The Bank Rules will export as an Excel file.
• The Quick Create icon is selected to import rules.
• Only an accountant user can import/export Bank Rules.
• The vendors have to be the same in all QuickBooks Online companies.

Question 6 ok

When reconciling this month, you see an alert that the beginning balance is not the same as the ending balance. When you select the link to the Reconciliation Discrepancy report, you see that Check 123 was manually marked as reconciled.

What should be done to resolve this issue?

• Open Check 123 transaction and unreconcile.
• Undo the previous month’s reconciliation and re-reconcile.
• Select the transaction in the Reconciliation Discrepancy report and change the cleared status.
• Open the previous month’s reconciliation report, unclear the transaction, and then re-reconcile.

Question 7 ok

When performing a bank reconciliation, a transaction that was previously marked as reconciled has been deleted, and a discrepancy on the opening statement has been highlighted.

Which steps should be taken to correct this?

• Find the transaction within the audit log, reinstate the transaction, and mark it as cleared from within the bank register.
• Look at the history of the deleted transaction, enter a new transaction, and mark as reconciled within the bank register.
• View the voided/deleted report to find the transaction in question, un-delete, then re-reconcile the bank statement to the previous ending balance.
• Undo the previous bank reconciliation, reinstate the deleted transaction, and perform a one-off adjustment reconciliation to the previous ending balance.

Test 7 ADVANCED REPORTING

• Recognize the options that are available in QuickBooks Online to customize reports
• Recall methods for customizing business reports in QuickBooks Online
• Identify the steps to create scheduled reports
• Identify the different ways reports work in QuickBooks Online and how to utilize them

Question 8

What are 2 reasons you might not see the Exceptions to Closing Date report?(Select all that apply)

• The closing date has not been set.
• No one has made any changes since the closing date was set.
• You do not have permission to view the report.
• You are not an Accountant user.

Question 7 ok

The director of a company you are preparing the accounts for has asked for a report of her loan account. The director’s loan account is already opened from within the balance sheet and the report dates have been selected in order to see everything the director needs.

However, the report looks messy. There are headings for totals, adjustments, and others that are not needed. You would like to see the debits and credits displayed separately, instead of positive and negative values under Amount.

What needs to be done to tidy up this report?

• Use the mouse to drag the columns until you no longer see the data. Use the gear icon to add the additional columns you need. Re-order the columns by entering a number against each, starting at 1 being furthest left. Modify the header and save the report.
• Select the report gear icon and remove checkmarks from the columns not required. Select “show more” to add any columns you would like to include. Select “reorder columns” and use the drag-and-drop option. Modify the header and save the report.
• Choose “Customize.” Use the “Filter” option to select and deselect any of the column headers you would like visible. Use drag and drop to reorder the columns. Modify the header of the report and save.
• Choose “Customize.” Select “Headers and Footers.” Select and deselect the column headings desired. Number the columns to reorder, 1 being the furthest left. Modify the header, and save the report.

Question 5 ok

When referring to management reports, which statement is correct?

• An email schedule can be edited to auto-send management reports.
• Management reports can be exported into .PDF or Word documents.
• Management reports can be exported to Word and Excel. nope
• A client does not have the ability to create a management report. not true

Question 4 ok

What are 2 key benefits of budgeting?(Select all that apply)

• A budget can be used as an estimate to get projected revenues as well as costs.
• A budget can be used to estimate income and expenses to help with cash flow.
• A mid-year revised “outlook” can be created with actuals for the first part of the year and revised forecast for rest of year when created mid-year.
• The budget can be adjusted for projected payables and receivables based on terms. nope
• A budget can be created for Loan Balanc nope

uestion 4

If you set up an email schedule for a report, which frequency options are available?

• Daily, Weekly, Monthly, Annually
• Weekly, Monthly, Quarterly, Annually
• Weekly, Bi-Weekly, Bi-Monthly, Quarterly
• Daily, Weekly, Monthly, Twice a Month

Question 2 ok

When creating budgets in QuickBooks Online, which 2 are possible?(Select all that apply)

• Budgets can be imported from Excel or .CSV
• Budgets can be prepared to assist with the forecast of capital expenditure.
• Budgets can be prepared on monthly, quarterly, or annual basis.
• Budgets can be subdivided by className, vendor, or customer.
• Multiple budgets can be created, which can be copied and edited at any time.

Question 1 ok

A client wants to see a current Profit & Loss report compared to the prior year, showing the percentage difference, as part of their Management Report package.

How can this be set up?

• Create a new management report template that includes this pre-setup report.
• Export it to Excel, add the appropriate columns, and add to the Management report.
• On the Profit & Loss report in Management reports, select Advanced and select Compare previous year.
• Create the report outside of Management reports, save the customization, and add to the Management report.

Question 2 ok

A client has created a budget based on their customer, Ash’s Ashtrays. They want a report that shows actuals versus budget for this customer by quarter for the whole year.

Which 3 customizations are necessary?

(Select all that apply)

Filter by Paid status

Select Ash’s Ashtrays budget

Show grid Accounts vs. Quarters

Filter for Ash’s Ashtrays customers

Filter by Product/Service = Specified

Question 3 ok

Review the report for a landscaping company client and answer the following question.

Which three Customizations apply? (Select three)(Select all that apply)

• Group by name
• Sorted by number
• Group by customer
• Add Debit/Credit columns
• Filtered by posting transactions
• Custom date range for October, 2018

Question 4 ok

Which 2 statements are correct regarding Budgets in QuickBooks Online?(Select all that apply)

• Budgets are available in all versions of QuickBooks Online. no
• Budgets can be created in Excel and imported into QuickBooks Online.
• Budgets can be created in QuickBooks Online and exported into Excel.
• Budgets cannot be set up based on last year’s financial data. no
• Budgets can be created for className, Location, Customers, and Projects.

Question 5

A client asked for a report showing all of the customers owing them money at the end of a financial quarter, which was two months ago. Since then, some of the customers have paid.

Which customization method needs to be utilized in order to obtain all open receivables as of the last day of the quarter?

• Current Date Aging method
• Report Date Aging method
• Outstanding Accounts Aging method
• Overdue Accounts Aging method

Question 5 ok

Which 2 statements are correct when creating scheduled reports?(Select all that apply)

• Transactions in bank feeds will automatically update before sending the scheduled report.
• Scheduling a report is done from within the report, on the Customization button.
• Once scheduled, reports will automatically email out.
• All scheduled reports can be attached as an Excel file.

Question 6 ok

QuickBooks Online contains four key reporting types. What are they?

Balance Sheet, Profit and Loss, Customer, Supplier

Summary, Transaction Detail, List, Aging

Cash, Accrual, Summary, Transaction

Balance Sheet, Profit & Loss, Tax, Budget

Question 3

Which 2 statements about management reports are true?(Select all that apply)

• A management report can be created from scratch.
• Reports can be reordered by dragging the nine grid.
• Previous year or period can be compared.
• Brackets denote when QuickBooks Online pulls information from elsewhere.
• Management reports can be shared with other companies by bookmarking the URL.

Question 7 ok

How can a product or service be determined as profitable?

• Run an Item Profitability report.
• Run Transaction Detail by Account and filter for Product/Service = Specified.
• Run Profit & Loss, show columns by Product/Services, and filter for Product/Service = Specified.
• Run Sales by Product & Services report, add a column for cost, and filter for Product/Service = Specified.

END OF PERIOD ACTIVITIES

Question 1 ok

Which 2 statements are true about preparing 1099s?

(Select all that apply)

Question 4

What are 2 of the steps required to clean up billable expenses in a batch?(Select all that apply)

• Choose the date to which you want the tool to apply.
• Select the Batch Clean Up tool from the Accountant Toolbox.
• Change the URL to add “managebillableexpense” after ...app/.
• Open the Unbilled Charges report, select each transaction, and take off billable status.

Question 9 ok

A client, Leanne’s Lollipops, is operating on a cash basis. They are reviewing their year-end accounts receivables before the books are closed. One customer, Kathy’s Kandyland, has a partially paid invoice, but has gone out of business and will not be paying the remainder.

How should the balance due be written off?

• Go back to the original invoice and void it.
• Go back to the original invoice and delete it.
• Go back to the original invoice, and enter a bad-debt item as a negative for the balance due.
• Create a credit memo to reverse the amount of the original invoice, dated the day Kathy went out of business.

Question 7

It is the end of your client’s financial year. You have started checking and fully reconciling all of the accounts. After running a profit and loss report and comparing to the previous year, it appears that profits are considerably higher than last year. You have had a chat with the client, who is surprised with your findings because there is not much money in the bank and they have not taken very much money out of the business.

What might be causing the profits to be overstated?

• Credit-card expenses have been coded directly to a chart of account code instead of marking a supplier bill as paid.
• Deposits have been coded directly to income accounts instead of Sales Receipts.
• Sales Receipts have been entered instead of using “Receive Payments.”
• Supplier bills have been entered against an expense account code instead of an item to track inventory.

Question 6 ok

What are 2 ways to identify inventory items with a negative quantity?(Select all that apply)

• Review the Products and Services list.
• Select total of Inventory Asset account from the Balance Sheet.
• Open up the Troubleshoot Inventory tool from the Accountant Toolbox.
• Run an Inventory Valuation Detail report to see when quantities went negative.

Question 5

Which 3 steps are part of filling out the 1099 Wizard?(Select all that apply)

• Review 1099 vendors.
• Define which box(es) on 1099-MISC should be used.
• Identify which accounts should be used when preparing 1099s.
• Make sure all 1099 transactions have been paid by credit card.
• Check which vendors have been paid over the threshold amount.

Question 2 ok

Which three problems might be caused if a client does not clean up billable expenses when some expenses are not really billable?(Select all that apply)

• Inaccurate unbilled charge reports
• Customers might be overcharged, making them unhappy.
• Billable time will not post to payroll correctly, leading to payroll being overstated.
• Job Costing reports will be skewed, leading to inaccurate pricing issues in the future.
• Customers might be undercharged, leading to profitability and cash flow issues.

Question 1 ok

After reviewing a client’s year-end balance sheet, you see a credit balance in Undeposited Funds.

What is the likely cause?

• This reflects a bad-debt expense.
• This reflects a partially paid invoice.
• The deposit was dated before the Receive Payment transaction.
• The invoice was dated after the payment was received.

1099s are available in QuickBooks Online Simple Smart, Essentials, and Plus.

1099s are available in QuickBooks Online with a payroll subscription added.

Check “Track payments for 1099” on a Vendor’s Details if you want to issue them 1099s.

1099s are available in QuickBooks Online without a payroll subscription at an extra charge.

Question 2 ok

A client has added a deposit through bank feeds and posted it to income rather than receiving payment on the applicable invoices. They have completed the bank reconciliation for the month.

What are 2 methods of remedying this without undoing the bank reconciliation?(Select all that apply)

• Create a Receive Payment and post it to the bank account; delete the incorrectly recorded deposit.
• Create a Receive Payment, go back to the incorrectly recorded deposit and add the payment received, delete the line posting to income.
• Create a Credit Memo against a product/service item that posts to the bank account; apply it against the outstanding invoice(s).
• Go back to the incorrectly recorded deposit, change the posting account from income to Accounts Receivable, and apply the deposit to the applicable invoice(s).

Question 3 ok

What 2 steps should be taken to investigate a discrepancy between the inventory asset balance on the balance sheet and the inventory valuation summary as of the same date?(Select all that apply)

• Filter for Product and Service = Not Specified. ok
• Run a product/service quick report on each product/service.
• Select total of inventory asset account from the balance sheet.
• Review the Inventory Valuation Detail report for transactions not using products/services.

Question 4

Paula’s Plants & Flowers is showing a large amount in the Undeposited Funds account. Their income seems very high compared to previous periods. After investigating, you can see that they have been receiving payments from customers and recording deposits using bank feeds, posting directly to an income account.

They need to produce monthly financial statements for their bank. They have hundreds of payments in the Undeposited Funds account for a six-month period.

What is considered the best-practice method for fixing this type of error?

• Make a journal entry to credit sales and debit undeposited funds for each month.
• Make a journal entry to debit sales and credit undeposited funds for each month.
• Edit each deposit and check the appropriate payment(s), then delete the sales entry. Make sure the total deposit amount does not change. Repeat until all payments have been assigned to the appropriate deposit.
• Create one deposit, select all the outstanding payments, add a new deposit line, select the appropriate income accounts, and enter the total amount of the selected payments as a negative so that the deposit total is zero.
• Create a monthly deposit, selecting all the payments for that month on the deposit screen. Add new deposit lines, selecting the appropriate income accounts, and enter a negative amount so that the deposit total is zero. Repeat for all six months.

Question 5

When using the Direct method of writing off bad debt for an accrual-based client, which 3 steps are part of the process?(Select all that apply)

• Create an expense account for bad debt.
• Create a liability account for bad debt.
• Create a service or non-inventory item for bad debt.
• Create an invoice using an item posting to bad debt, entering as a negative number.
• Create a credit memo using an item posting to bad debt, entering as a positive number.

Question 7

Michelle’s Microbrewery have been entering bills for their purchases as they come in. They pay multiple bills once a week. They use bank feeds to record these transactions, posting to Cost of Goods Sold. They are an accrual-based company.

What is best practice to remedy this with a minimum amount of work?

• Create a journal entry for each vendor.
• Create vendor credits for each open bill.
• Create one journal entry, with lines for each vendor.
• Use the Batch Delete tool, and delete all the open bills.

Question 6 ok

What can be reclassified using the Reclassify Transactions Tool?

• Locations
• Expense accounts
• Payroll transactions
• Inventory adjustments

Question 7 ok

When reviewing a client’s company at period end, what does the Manage Billable Expense tool allow?

• Amends any time recorded as billable to ensure that it no longer appears within unbilled charges.
• Amends bills and expenses marked as billable to one customer/job, and allocates to a different customer/job.
• Deletes any delayed charges that are to be included on the next customer invoice.
• Removes the billable nature from any outstanding unbilled expenses created up to a specified date.

Question 8

You logged in to review your client’s QuickBooks Online company file for period end, and you need to prepare a set of management reports. When reviewing open Accounts Receivable, you notice that there are two customers with several unpaid invoices in each account that have very similar company names. One account is named JR Taylor Ltd, and the other is named JR Taylor & Company.

You discover that they are the same company, and the correct name is JR Taylor Ltd.

What is the most efficient way to get all of the transactions for both company records to appear under the correct name?

• Edit each transaction to amend the company name. no
• Use the Accountant Tools to “Reclassify.” Select Customers as an option, select all records to be changed.
• From the customer list, select the check box on the left. Select “Batch Actions” and use the option to “Merge Records.” no
• Edit the incorrect customer name to be the exact same name as the correct customer, and then merge.

Question 9 ok

From which 2 access points can an Accountant user close the books?(Select all that apply)

• The Accountant Toolbox
• Gear > Account and Settings > Advanced > Accounting
• Left Navigation Bar > Accounting > Advanced
• Gear > Account and Settings > Company > Accounting

Question 2

A client has recently decided to start tracking inventory in QuickBooks Online. Previously, when purchasing goods everything was coded to cost of sales. Now when goods are purchased, the item field on purchase transactions should be utilized. You’ve discovered they are still coding the purchases to cost of sales.

Which 3 effects will this have on the QuickBooks file?(Select all that apply)

• The Accounts Payable account will report incorrect figures.
• The balance sheet will report incorrect figures.
• The profit & loss will report incorrect figures.
• The vendor balance will report incorrect figures.
• Inventory quantities will be incorrect, potentially creating negative inventory amounts.

Question 8

A report is being created to help identify duplicate vendors. The duplicate names might not be adjacent.

Which customization should be done to the vendor contact list to help identification?

• Group by phone; add column for zip; sort by zip.
• Group by phone; add column for phone; sort by zip
• Group by city; add column for last name; sort by full name
• Group by zip; add column for phone; sort by phone number

TAX

Question 1

A client is based in Tennessee (an “origin-based state”). Their office is in Knoxville, and they are shipping to a customer in Pigeon Forge.

Which sales tax rate should be applied?

• Knoxville
• Pigeon Forge
• No sales tax is required.
• It depends on the annual sales to customers in Pigeon Forge.

Question 2

A client calls in a panic. They realize that they did not file July’s sales tax return and it is now October.

How should they be advised to adjust for penalties and interest, and post to their respective accounts, using Automated Sales Tax?

• File zero amounts for July and then add July’s real numbers to October’s filing.
• Record a journal entry dated July 31 to record the penalties and interest and credit sales tax payable.
• File July’s return and make two adjustments (one posting to penalties and one posting to interest expense).
• Post the adjustment to interest expense, and then use a journal entry to reclassify to penalties.

Question 3

Which 2 statements are correct regarding adjusting sales tax on a return?(Select all that apply)

• Rounding up should post to an income account.
• Penalties should post to a contra-income account.
• Interest charged should post to a payable account.
• Rounding down should post to an income account.
• Early payment discount (credit) should post to an income account.

Question 4

Dan’s Digital Services provides computer services to which special sales tax rules apply. The company set up a taxable product/service item for sale, but they neglected to fill in the Sales Tax Category and What You Sell fields.

How will Automated Sales Tax calculate sales tax on invoices for this product?

• It will not calculate sales tax at all.
• It will always calculate the sales tax based on the street address of the seller.
• It will calculate sales tax based on the normal state rate, not the specialty rate.
• It will calculate the sales tax based on the shipping address of the customer.

Question 5

Kaydee’s Kites sold a big order of kites to a taxable customer, Circus Town. They should have charged sales tax, but did not do so. Circus Town already paid that invoice in full.

Which steps should you recommend to charge Circus Town only the sales tax on a follow-up invoice?

• Create a new invoice, entering a sales tax item in the Item Details grid.
• Create a credit memo against the first invoice, and create a new replacement invoice including the sales tax.
• Create an invoice using Kites in the Item Details grid with a quantity of zero, then override the sales tax so that the invoice is sales tax only.
• Create an invoice for a bundle, where the bundle consists of +1 taxable item and -1 non-taxable item, and put the taxable total in the Rate column.

Question 1

Which type of transactions should be created to enter opening balances?

• Sales receipts for Credit balances, and Expense transactions for Debit balances.
• A journal entry transaction to enter the balance sheet balances.
• Opening Balances can be imported through the opening balances import tool.
• Opening Balances are imported as part of the Chart of Accounts Import tool.

Question 2

With regards to importing data using the tools from within QuickBooks Online, which statement is correct?

• Records can be in TXT format.
• Records can be in an Excel or CSV format.
• It is only possible to import customer and vendor names.
• The limit to the number of rows that can be imported is 250.

Question 3

Heather’s Hair Salon is a sole proprietorship that has kept the books manually for several years. They have hired you to move them to QuickBooks Online for the year that begins January 1 of the current year. The books will be kept on accrual basis for management purposes.

Select to view their specifications.

Which 4 accounts would be included in the journal entry for recording beginning balances?(Select all that apply)

• Checking
• Inventory
• Loan payable
• Accounts Payable
• Credit-card payable
• Accounts Receivable
• Cost of goods sold
• Opening balance equity

Question 4

Which 3 steps are considered best practice prior to using the QuickBooks Desktop Pro/Premier Conversion tool?(Select all that apply)

• Make a backup of the data file.
• Update QuickBooks Desktop to latest release.
• Use the Verify Data tool in QuickBooks Desktop.
• Verify total transaction count is less than 350,000.
• Update the browser to Internet Explorer version 11.
• Memorize reports to be sent over to QuickBooks Online.

Question 5

When using the QuickBooks Desktop Conversion tool, which 3 items will be excluded from converting?(Select all that apply)

• Price levels
• P&L budgets
• User permissions
• Custom customer fields
• Classes
• Customer name field

Question 6

Which 2 statements are true about purging data?(Select all that apply)

• You can purge data within the first 60 days of the QuickBooks Online subscription.
• Purging deletes transactions, but leaves the lists.
• Purge data by adding a specific suffix to the qbo.intuit.com URL.
• Purge data by going to the Gear icon>Purge data.
• Purge data can only be done by an accountant user.