Free QBCU practice quiz

QuickBooks Certified User practice questions

Ten free practice questions for the QuickBooks Online Certified User exam, two per topic, each with the answer and why it is right. Written by Questiva Consultants; not affiliated with or endorsed by Intuit or Certiport.

1. A bookkeeper is setting up a new QuickBooks Online company for a client whose fiscal year matches the calendar year. Where is the "first month of fiscal year" setting configured?

   1. Account and settings → Advanced → Accounting
   2. Chart of accounts → New
   3. The Reconcile screen
   4. Each individual report's customization panel only

   Answer: A) Account and settings → Advanced → Accounting. The first month of the fiscal year is set under Account and settings, Advanced, Accounting. It sets the default date range for reports like the Profit and Loss, for the whole company (Chapter 2, Advanced Settings).

2. Which QuickBooks Online subscription tier is the lowest that supports tracking inventory quantity and cost?

   1. Simple Start
   2. Essentials
   3. Plus
   4. Self-Employed

   Answer: C) Plus. Inventory tracking (quantity on hand and COGS) first appears in QBO Plus. Simple Start and Essentials do not track inventory, and neither does Self-Employed.

3. A customer pays a $900 invoice by check, and the bookkeeper will deposit it together with two other checks in one bank deposit. Which workflow records this correctly?

   1. Receive Payment to Undeposited Funds, then a Bank Deposit grouping all three checks
   2. Receive Payment deposited directly to Checking
   3. A Sales Receipt for $900
   4. A journal entry crediting Income

   Answer: A) Receive Payment to Undeposited Funds, then a Bank Deposit grouping all three checks. When several payments hit the bank as one deposit, route each Receive Payment to Undeposited Funds, then create one Bank Deposit. That single deposit then matches the one line on the bank feed. Depositing each directly to Checking would create three feed mismatches.

4. What is the difference between an Invoice and a Sales Receipt in QuickBooks Online?

   1. There is none; both create accounts receivable
   2. An Invoice records a sale to be paid later (A/R); a Sales Receipt records a sale paid at the time of sale
   3. A Sales Receipt is only for recurring customers
   4. An Invoice cannot include sales tax

   Answer: B) An Invoice records a sale to be paid later (A/R); a Sales Receipt records a sale paid at the time of sale. Invoices create a receivable to be settled with a later Receive Payment. Sales Receipts are for paid-on-the-spot sales. No receivable is created because money is received immediately.

5. Under accrual accounting, a vendor bill dated March 28 for services received in March is paid April 10. In which month does the expense appear on the Profit and Loss?

   1. April, when cash leaves the account
   2. March, when the obligation was incurred
   3. Split evenly between March and April
   4. Whenever the bank feed clears it

   Answer: B) March, when the obligation was incurred. Under accrual the expense belongs to March, the month of the bill. Paying it in April only reduces Accounts Payable and cash. Cash basis would report it in April (Chapter 1, Accounting Basis: Cash or Accrual?).

6. What is the functional difference between entering a "Bill" and entering an "Expense" in QuickBooks Online?

   1. A Bill records an obligation to pay later (A/P); an Expense records money already spent
   2. They are identical
   3. A Bill can only be paid by check
   4. An Expense always creates a 1099

   Answer: A) A Bill records an obligation to pay later (A/P); an Expense records money already spent. A Bill creates an Accounts Payable liability cleared later by Pay Bills. An Expense records a payment that has already happened. Choosing the wrong one distorts A/P.

7. In the bank feed, a downloaded transaction shows a suggested "Match" to an existing expense you already entered. What does accepting the match do?

   1. Creates a new expense, duplicating the record
   2. Links the downloaded item to the existing transaction and marks it cleared. No duplicate
   3. Deletes the original expense
   4. Sends the item back to the bank

   Answer: B) Links the downloaded item to the existing transaction and marks it cleared. No duplicate. Matching links the bank-feed line to the already-recorded transaction and clears it, preventing duplication. "Add" is what creates a new transaction for items not yet in QBO.

8. During a reconciliation, QuickBooks' ending balance is off from the statement by $36.00. What is the BEST first step?

   1. Force-finish and post the difference to a clearing or adjustment account
   2. Look for missing, duplicated, or misdated transactions before adjusting
   3. Change the statement ending balance to match QBO
   4. Disconnect and reconnect the bank feed

   Answer: B) Look for missing, duplicated, or misdated transactions before adjusting. Small discrepancies are almost always a missed, duplicated, or misdated transaction. Investigate first; a forced adjustment hides the real error.

9. On a standard Profit and Loss, which line equals Total Income minus Cost of Goods Sold?

   1. Net Income
   2. Gross Profit
   3. Net Operating Income
   4. Total Equity

   Answer: B) Gross Profit. Gross Profit = Income − COGS. Operating expenses are subtracted after Gross Profit to reach Net Operating Income, then other income/expense yields Net Income.

10. The fundamental equation the Balance Sheet must always satisfy is:

    1. Income = Expenses + Net Income
    2. Assets = Liabilities + Equity
    3. Debits = Credits + Adjustments
    4. Revenue − COGS = Gross Profit

    Answer: B) Assets = Liabilities + Equity. The Balance Sheet follows Assets = Liabilities + Equity. If it does not balance, an entry went in wrong and needs finding (Chapter 1, the Accounting Equation).

QuickBooks is a trademark of Intuit Inc. These are practice questions written by Questiva Consultants; they are not from the certification exam and are not endorsed by Intuit or Certiport.