QuickBooks Online Certification Test Study Guide (2022/2023) Rated A+

QuickBooks Online Certification Test Study Guide (2022/2023) Rated A+ You spend hours customizing a report to contain all the information you want. You want to run this report without having to do this customization a ...

QuickBooks Online Certification Test Study Guide (2022/2023) Rated A+ You spend hours customizing a report to contain all the information you want. You want to run this report without having to do this customization again, how would you do that? ✔✔1. When the report is customized to your liking, click "save customizations" 2.Name the report and click "Save" 3.To run the customized report, select Reports from the navigation bar 4.Select the Custom reports tab 5.Click on the name of the report to open it, then select Run report Can you delete or make inactive something on a list if it has a balance (e.g. Customer, Vendor, or Stock Product, or Account)? ✔✔Yes, QuickBooks will automatically create a transaction to make the balance zero. While setting up a QuickBooks Online account, you accidentally entered the wrong company address. How would you fix this error? ✔✔Change it in Account and Settings window, which you can access by clicking the Gear icon and select Account and Settings. If you use QuickBooks Online Plus, how do you charge a customer for expenses you incurred on a project? ✔✔When entering the expense, enter the customer name and select the Billable checkbox. Which transaction does not affect the customer's balance? ✔✔Estimate Which transactions CANNOT be made recurring? ✔✔Deposit What do you use Terms for in QuickBooks? ✔✔To determine when a customer's invoice is due. Select the statement that's NOT true about using the QuickBooks app on a mobile device. ✔✔You can do everything (all QuickBooks functionality) on the app that can do in your regular QuickBooks (using a browser). Your Accountant is upset that changes are being made to last year's numbers. How can you stop this from happening? ✔✔In the Advanced section of the company settings, set a Closing Date. Which of the following statements is TRUE regarding products and services? ✔✔When you purchase or sell a product, the value of the purchase or sale flows to the account (and therefore the financial statement) you selected when you set up the product or service. Which is NOT a good reason to enter a General Journal Entry? ✔✔To avoid using the built-in forms (e.g. checks and invoices) Put the 2 steps for entering a vendor credit and using it when you pay the bill in the correct order. ✔✔1. Click the Global Create Button, Plus sign, and select Vendor Credit. 2. Click the Global Create Butto, Plus sign and select Pay Bills. When should you use the Items Details area (bottom of the screenshot below) on a bill, check or expense? ✔✔To track sales tax When you want to send someone a bill for items When you purchase stock The Accounts Payable Aging report can help you stay on top of your business because it lists which of the following? ✔✔You can view what you owe and when it's due. What information does QuickBooks NOT ask/need when you create a new QuickBooks Online account for a company? ✔✔The owner's name Which section of the Balance Sheet shows your Accounts Receivable balance? ✔✔Assets Your Employer wants to see profit in department A separate from department B. What is the best way to set this up? ✔✔Turn on Classes and set up each department as its own class. You have a customer who hires you to work on several projects. How do you keep the sales and expenses for each project separate so you run reports to see how profitable each project is? ✔✔Select the "Track separately" checkbox on the invoices for each job. Which of the following statements about Users is TRUE? ✔✔You can have as many Reports Only and Time Tracking Only users as you want. Which of the following could explain why a Profit and Loss shows a profit, but the business owner does not have any money in the bank? ✔✔The profit and loss was run on the Accrual Basis instead of the Cash Basis To speed up the set up process you can import certain lists into QuickBooks. Which of the following CAN be imported? ✔✔Chart of Accounts, Products and Services, Customers and Vendors How do you hide all subaccounts on a report? ✔✔Click the Collapse button. You entered a check in QuickBooks to record a purchase of office supplies. Later, you realize this was a credit card purchase. How do you handle this? ✔✔Change the Check number to CREDIT You paid an insurance premium online with an electronic fund transfer (EFT). How would you record this transaction in QuickBooks? ✔✔Click the Global Create button(+) and select Expense. Fill out the expense and create/select EFT as the payment method. Save the transaction. You were hired to set up QuickBooks for a consulting company. The owner asks you to set up the chart of accounts for that industry. This is easy because... ✔✔QuickBooks automatically creates a chart of accounts for you based on the industry. And you can edit this list later to remove accounts you do not need or add ones that you do. Which of the following IS a list in QuickBooks Online? ✔✔Other Names What limitations does QuickBooks have when it comes to browser access? ✔✔None of the above. Your company no longer sells a particular product/service. What is the process for removing the product or service? ✔✔1. Click the Gear Icon 2. Under Lists, click Products and Services 3. To the right of the product you want to remove, click the drop list and select " Make Inactive" You just BOUGHT something from a CUSTOMER. How do you set this customer up as a VENDOR in QuickBooks? ✔✔Navigate to the Vendors lists and create a new vendor. In the "Display Name As" field, enter customer's name, but add something unique, like "(vendor)' at the end of the name You are setting up a product or service. What happens if you select the box next to "I purchase this product/service from a vendor"? ✔✔QuickBooks provides fields so you can track purchases of that product/service (in addition to sales) Where should you begin the process of importing lists from Excel to QuickBooks ✔✔Click the Gear icon Two customers with unpaid invoices paid you in cash today. Here is the issue. The bank statement will show just ONE deposit of $1000. However, you received 2 payments of $500 each. What is the process of recording these payments, so your Bank register shows ONE deposit of $1000? ✔✔1. Click receive payment next to customer 1 2. Record the payment and deposit the money to "Undeposited Funds" 3. Click receive payment next to customer 2 4. Record the payment and deposit the money to "Undeposited Funds" 5. Click the Plus icon and select Bank Deposit. Select both payments from the list and save the $1000 deposit Why would you recommend recording sales with invoices or Sales Receipts instead of recording the sale with Journal Entry or on the Record Deposit screen? ✔✔- The sales will appear on sales reports (they don't if you use the "Record Deposit" or Journal entry screen) - You can e-mail or print the sale for customers. - You can run reports that show your sales by product or service You're tired of using your mouse to record transactions. You decide to start using shortcuts. How can you see a list of keyboard shortcuts in QuickBooks? ✔✔Hold down the "CTRL", "ALT", and "?" keys at the same time What account do you use to record an expense purchased made with your Visa DEBIT CARD ✔✔Checking/Current Which transaction can be made recurring? ✔✔- General Journal Entry - Check - Expense Available in the company settings, what are two options for categorizing sales and expenses into different locations and departments of a business? ✔✔Classes and Locations Select the statement that's true about using the QuickBooks app on a mobile device ✔✔-There is a QuickBooks app for Android and Apple (IOS) devices -You can NOT perform all the functions of QuickBooks on the mobile app. -The mobile app uses built in functionality of your device (e.g. the camera to take pictures of receipts or other documents to attach transactions) You accidentally entered the same customer twice (the first time you spelled the first name Abbie, the second time you spelled it Abby). You only want ONE customer on the list (Abbie Smith) Select the steps in the proper order ✔✔1. Edit the customer you want to get rid of (Abby Smith) 2. In the Display Name field, enter the name you want keep (Abbie Smith) 3. Click Yes when QuickBooks asks if you'd like to Merge the names You spend hours customizing a report so it contains the exact information you need. However, you don't want to spend hours every time you want the same report. You want to be able to run the report without customizing it again. Place the steps to do this in the correct order. ✔✔1. When the report is customized to your liking click "Save Customizations" 2. Name the report and click save 3. To run the report click the Reports tab and select the My Custom Reports tab 4. Click on the name of the report to run it You created an estimate for a customer, When does the customer's balance go up? ✔✔When you invoice based on the estimate If you make a customer with an unpaid balance inactive, what happens to the open balance? ✔✔QuickBooks creates a Journal Entry to write off the balance as Bad Debt When looking at your customer list, you notice an inactive customer that you want to make active again. From the customer's list, how would you do this? ✔✔Click the small gear icon above the action menu to select "include inactive". Your employer wants to invoice for the purchases they make but there isn't a billable checkmark or field to record which customer should be invoiced for the expense. Put the steps to set up QuickBooks to handle billable expenses in the correct order. ✔✔1. Click the Gear icon 2. Click Account and Settings 3. Click the Expenses Tab. Select "Track expenses and items as billable" Your employer hates that if anyone looks at her computer while she's on the home page, they can see her bank balances and other sensitive financial information. How can you solve this? ✔✔On the home page, select "Privacy Mode" to turn it on You set up a company and QuickBooks sets up a chart of accounts for you. Which of the following is TRUE about what you can do? You.... ✔✔CAN add more accounts later When you sell a product/service on an Invoice or Sales Receipt, how does QuickBooks know where to show those sales (income account) on the Profit and Loss? ✔✔You select an income account during the setup of the product/service. Sales of that product/service increase the income account you selected Your customer walked in, purchased two widgets and gave you cash. After receiving the payment, and thanking them, you decided to record the sale in QuickBooks. Put the steps for recording this sale in the correct order. ✔✔1. Click the Plus icon 2. Click Sales Receipt 3. Enter the sale and payment information 4. Save the transaction When creating a new QuickBooks Online account, what company information does QuickBooks ask for? ✔✔The industry of the business You set a closing date to make sure no one changes anything date on or before December 31st of last year. However, people are still making changes! Why is this happening? ✔✔You didn't set a password for your closing date How did you find the company settings in QuickBooks? ✔✔Click the Gear icon on the home page and select Account and Settings. You need to find an expense, but all you know is the amount (you can't remember the date or vendor). What's the best way to do this? ✔✔Press the Magnifying Glass icon, and search for the exact amount. You returned some office supplies you recorded on bill #1234. You haven't paid the bill yet. Which is the correct sequence of steps to record the Vendor Credit and apply it to the bill payment? ✔✔Step 1: Click the Global Create button, Plus icon, and select Vendor Credit. Enter the information on the form and save the transaction. Step 2: Click the Global Create button, Plus icon, and select Pay Bills, Select the bill to apply the credit towards. Step 3: Enter the amount of credit to use in the Credit Applied column. Step 4: Save the bill payment. Which report is also known as a statement of performance, and summarizes income and expenses for a period of time? ✔✔Profit & Loss Name the major sections of the Balance Sheet that correspond to the accounting Equation ✔✔Assets, Liabilities, and Equity You just received an invoice from a new vendor. Your company keeps track of Accounts Payable (A/P). Place the steps for tracking and paying this invoice in the correct order. ✔✔1. Click the Global Create button, Plus icon, and select Bill 2. Enter the details from the invoice 3. Click the Global Create button, Plus icon and select Pay Bills 4. Select the bills you want to pay. Ensure the payment account, and payment date are correct, and save your work Which of the following statements about Users is TRUE? ✔✔In addition to Regular or Custom users, you can also set up Reports only and Time Tracking only users Which of the following is TRUE regarding Journal Entries? ✔✔Journal entries require a good understanding of debts and credits and a great deal of care should be taken by non-accountants when entering them Why would you hide (or collapse) subaccounts on a report? ✔✔To temporarily hide unnecessary detail and only show parent accounts You created a Customer Balance Summary Report and your employer wants you to multiply each customer's sales by 23.67%. How can you do this quickly (without using a calculator)? ✔✔Select Export to Excel. Open the report in Excel and add a column to do the multiplication for you What is the proper sequence of purchasing inventory using a purchase order? ✔✔1. Click the Global Create button, Plus icon, and select Purchase order 2. Click the Global Create button, Plus icon, and select Bill 3. Click the Vendors button and select Purchase Order Sub-customers can make tracking jobs/projects or locations for a particular customer easy. One of your customers just called to request work on their new location. How do you keep track of this in QuickBooks? ✔✔Create a New Customer and tick the option 'Is sub-customer' Which of the following is NOT a list in QuickBooks Online? ✔✔Subcontractors You're a consultant and you invoiced a customer last year for 6 hours of service. They still haven't paid you! You spoke with them today and found out that you accidently invoiced them for 10 hours! NOTE: You've already filed your taxes for last year. Put the steps to record that they only owe you for 6 hours in the right order. ✔✔1. Click the Plus icon 2. Click Credit Memo 3. Enter the customer information, the service you used on the original invoice, and a quantity of 4 4. Save the transaction You printed a check from QuickBooks. Before you can send it to your vendor, you spill coffee on it, ruining the check. How do you handle this? ✔✔Void the check You suspect that someone is changing transactions in QuickBooks. List the steps to see who has made changes (and what they've changed) in the correct order (you don't have to select all the steps). ✔✔1. Click the Gear icon 2. Click Audit Log What feature of QuickBooks lets you set how long a customer has to pay an invoice? ✔✔Terms You used a credit card and need to record the transaction in QuickBooks (you DO NOT use online banking so you have to do this manually). Put the 3 steps to record this purchase in the correct order ✔✔1. Click the Global Create button, Plus icon, and select Expense 2.Record how much you charged and what you purchased 3. In the account field at the top, select the Credit Card account Place the steps to set up QuickBooks to automatically email a report in the correct order ✔✔1. Click "Save Customizations" 2. Click the reports tab and select the "My Custom Reports" Tab 3. Next to the report you want QuickBooks to email, click Edit 4. Set up the details of the email schedule Put the 2 steps for customizing an invoice in the correct order. ✔✔1. Click the Gear icon 2. Select Custom Form from Styles Select the statement that's true about the Apps tab in QuickBooks ✔✔Use it to find an app designed for specific business functions that also syncs with QuickBooks so you don't have to enter data twice How do you backup and keep QuickBooks up to date between users? ✔✔You don't need to backup because it's always backed up in the cloud The Name field (Customer/Vendor) is optional on Invoices and Bills ✔✔False Your employer can see what (s)he owes and what's overdue. But (s)he wants to see all the bills that are overdue grouped by how late they are (30-60 days, 61-90 days, etc). Which report provides this information? ✔✔Accounts Payable Aging Your company has sales reps and you need to keep track of the sales reps associated with each sale. How would you track sales reps on sales forms? ✔✔Navigate to Account and Settings and in the Sales category or settings create a custom field for sales rep When should you use an Invoice? ✔✔You made a sale but your customer still owes you payment-Increases customer's balance When should you use "Receive Payment"? ✔✔You received a payment for a customer you've already invoiced-Decreases the customer's balance When should you use a "Sales Receipt"? ✔✔Your customer paid you at the time of the saleDoesn't affect the customer's balance When should you use an "Estimate"? ✔✔Your customer isn't sure if they want to purchase anything but they might do so in the future-Doesn't affect the customer's balance. When should you use a "Delayed Charge"? ✔✔You provide a service or product that you want to add to an invoice in the future-Doesn't affect customer's balance When should you use the plus icon (+)? ✔✔Click this icon to create any new transactions, no matter where you are in QuickBooks When should you use the navigation bar? ✔✔The navigation bar lets you see information and transactions within a specific area. You can also create new transactions within an area directly from one of the tabs/pages When should you use the gear icon? ✔✔Click this icon to change Account Settings, access all your lists, and use tools that you don't need often (reconciling, budgeting, etc). You can also manage your account and add users from this area. If you DON'T download bank transactions, how do you enter a business lunch paid for with the company debit card? ✔✔Click the Global Create button, Plus icon, and Select Expense. Fill out the expense and use Debit Card as the payment method. Your company is interested in tracking sales by product and services. What is true if you choose to record sales using a Journal Entry instead of an Invoice or Sales Receipt? ✔✔The goal of tracking sales by products and services will NOT be accomplished by using a Journal Entry because there is no place to select the products or services sold on a Journal Entry form. Your company would like to sell their products online. They ask you to look for an app that makes it easy for customers to purchase online. They do NOT want to enter these transactions manually, they want QuickBooks to update automatically. What's a good place to start looking for an app that can do this? ✔✔The Apps tab in QuickBooks If you use QuickBooks Online Plus, how do you charge a customer for expenses you incurred on a project? ✔✔When entering the expense, enter the customer's name and select the "billable" checkbox. Your company no longer sells a particular product/service and has made that product/service inactive. What is true about that inactive product/service? ✔✔The inactive product or service is no longer available to add to sales to sales documents. Which of the following is not a list in QB? Chart of Accounts Subcontractors Vendors Classes ✔✔Subcontractors Your company has sales reps and you need to keep track of the sales rep associated with each sale. How would you track the sales rep on your sales forms? ✔✔Go to the Account and Settings and in the Sales category create a custom field for the sales rep. I ask you to remove an account from the Chart of Accounts (that we don't use anymore). How do you do this? ✔✔You can't delete and Account from QB. How does an estimate impact the customer's account balance. ✔✔No change (They do not owe you any money until they make a purchase) How does an Invoice impact the customer's account balance. ✔✔Customer account balance increases. (they owe you MORE) How does an Customer payment impact the customer's account balance. ✔✔Customer account balance decreases. (They owe you LESS) How does an credit memo impact the customer's account balance. ✔✔Customer account balance decreases. (They owe you LESS) How do you backup and keep QuickBooks up to date between users? ✔✔You don't need to backup. It's always saved in the cloud. What is true about users? ✔✔In addition to regular users, you can set up "reports only" and "time tracking only" users. While setting up QuickBooks Online, how would you correct your company address? ✔✔Change it in Account and Settings. Click the gear menu and select Account and settings to change it. Subcontractors can make tracing jobs, projects, or locations for a particular customer easy. One of your customers called to request work on their new location. How do you keep track of this in QB? ✔✔Create a New Customer and tick the option 'Is sub-customer' What is NOT a good reason to enter a General Journal Entry? ✔✔To avoid using the built-in forms (checks, invoices, sales receipts) You just BOUGHT something from a CUSTOMER. How doe you set this customer up as a VENDOR in company? ✔✔Go to the vendors list and add them as a new vendor. Enter the customer's name, but at the end, add something unique such as (Vendor) at the end of the name. How do you hide sub accounts on the report? ✔✔Click the collapse button You are at a coffee shop and don't want others to see sensitive financial information, what should you do? ✔✔Turn on "privacy mode" from the home screen. Select three statements that are true about the QuickBooks mobile app? ✔✔1. The mobile app is free 2. There are versions for Apple IOS and Android Systems. 3. The app can use your camera to take pictures of receipts and other documents to attach to transactions. Which TWO steps are required to enter a vendor credit and use it to pay the bill in the correct order? -Click the global create (+) and select check -Click the global create (+) and select Vendor Credit -Click the global create (+) and select Enter Bill -Click the global create (+) and select Card Credit -Click the global create (+) and select Bank Deposit -Click the global create (+) and select Pay Bills ✔✔Click the global create (+) and select Vendor Credit Click the global create (+) and select Pay Bills You printed a check from QuickBooks. Before you can send it, it gets ruined. How should you handle this? ✔✔Void the check You are setting up a product or service. What happens if you select the box next to "I purchase this product/service from a vendor? ✔✔QB provides fields so you can track purchase and sales information A vendor decides to become a customer. You need to add them to the customer list. How do you do that? ✔✔Create a new customer, BUT spell the name differently in the "display name as" field. For example add "-customer" at the end. Which statement is false? 1. You cannot enter a bill if the Vendor field is empty. 2. You cannot enter a Sales Receipt if the Customer field is empty. 3. You can enter a Sales Receipt if the Customer field is empty. 4. You cannot enter an Invoice if the Customer field is empty. ✔✔You CANNOT enter a Sales Receipt if the Customer field is empty-is false. In what situation should you use the item details area on a bill? ✔✔Enter a bill for the purchase of inventory items that you sell to customers. In what situation should you use the Category Details area on a bill? ✔✔Enter a bill for the purchase of office supplies In what situation should you use the Category Details area on a bill? ✔✔Enter a bill for the monthly telephone service