QBO Skills practice questions

Advanced workflows: recurring, journal entries, contractors, loans

10 practice questions on advanced workflows: recurring, journal entries, contractors, loans, each with the answer and why it is right. From Questiva Learning' QuickBooks® Online skills test. The topic is covered in Chapter 10 of QuickBooks® Online Step-by-Step.

1. Which recurring type prompts you each month for a cell phone bill whose amount changes?

   1. Scheduled, with last month's amount as a placeholder.
   2. Unscheduled.
   3. Scheduled, with Automatically Send Emails turned on.
   4. Reminder.

   Answer: D) Reminder.. Reminder transactions go on the Reminders List when they're due, so you can change the amount before you save. (Chapter 10 · Creating Recurring Transactions)

2. If you don't use QuickBooks® Payments, a scheduled recurring sales receipt paid by MasterCard:

   1. Charges the card on schedule.
   2. Can't be saved as a recurring template.
   3. Records the sale but never charges the card.
   4. Sends the customer an invoice to pay online instead.

   Answer: C) Records the sale but never charges the card.. Only QuickBooks® Payments runs the card for you. Without it, set up the same charge in your merchant services portal or the money never comes in. (Chapter 10 · Memorizing a Transaction)

3. A supplier takes some money off what you owe for a late delivery. Record it with:

   1. A journal entry debiting Accounts Payable.
   2. A journal entry crediting Accounts Payable.
   3. A Vendor Credit.
   4. A Bill with a negative amount.

   Answer: C) A Vendor Credit.. Don't use a journal entry when a QuickBooks® Online form does the job. For a vendor's credit, that form is the Vendor Credit. (Chapter 10 · Using Journal Entries)

4. When the bank pays the dealer directly, the journal entry for a trailer loan debits:

   1. Checking.
   2. Trailer Loan.
   3. An equipment expense account.
   4. The Trailer fixed asset.

   Answer: D) The Trailer fixed asset.. The bank paid the dealer, so the money never went through checking. Debit the Trailer fixed asset and credit Trailer Loan. (Chapter 10 · Entering the Bank Loan)

5. A monthly loan payment from checking is entered as:

   1. An Expense split into principal and interest.
   2. A Transfer from checking to the loan account.
   3. An Expense to Interest Paid.
   4. A Bill to the bank, coded to Loan Expense and paid through Pay Bills.

   Answer: A) An Expense split into principal and interest.. Each payment is part principal and part interest, so split the Expense between the loan account and Interest Paid. (Chapter 10 · Making Loan Payments)

6. To find out what happened to an invoice that's gone from the file, open:

   1. The bank reconciliation report.
   2. Transaction List by Customer.
   3. The Accounts Receivable register.
   4. The Audit Log.

   Answer: D) The Audit Log.. The Audit Log records every addition, deletion and edit with the date, time and user. Filter it by User, Date Changed or Event. (Chapter 10 · The Audit Log)

7. How do you record a card purchase from the Receipts App once, with the receipt attached?

   1. Create the Expense from the receipt, then match the charge in the bank feed.
   2. Delete the receipt and add the charge from the bank feed.
   3. Create the Expense from the receipt, and also add the charge from the bank feed.
   4. Enter it as a Bill to the store.

   Answer: A) Create the Expense from the receipt, then match the charge in the bank feed.. The Receipts App turns the receipt into an Expense with the image attached. When the charge shows up in the Bank Transactions feed, it matches that Expense. (Chapter 10 · The Receipts App)

8. To put logged trips on a client's invoice or an employee's paycheck:

   1. Turn on billable expenses, and logged trips show up as unbilled charges.
   2. Add the mileage to the invoice or paycheck by hand.
   3. Mark the trip Billable in the Add Trip window.
   4. Log the trip as Personal so it becomes reimbursable.

   Answer: B) Add the mileage to the invoice or paycheck by hand.. The Mileage App can't put mileage on paychecks, invoices or bills. Pass-through travel costs are entered manually. (Chapter 10 · Tracking Vehicle Mileage)

9. How do you pay a contractor from the Contractors App without QuickBooks® Payroll or a Contractors Payments plan?

   1. Click Write Check, or use its drop-down for an Expense or a Bill.
   2. Open Contractors under Payroll instead. It pays by direct deposit for free.
   3. Click Pay Contractors to send a direct deposit.
   4. You can't. They have to be paid from the Vendors App.

   Answer: A) Click Write Check, or use its drop-down for an Expense or a Bill.. Write Check and its drop-down work without either plan. Bulk direct deposit through Pay Contractors needs QuickBooks® Payroll or the Contractors Payments plan. (Chapter 10 · Paying Contractors)

10. To move one month of Prepaid Insurance into Insurance Expense:

    1. Recategorize the original payment to Insurance Expense.
    2. Enter an Expense from checking for one month's share.
    3. Use a Transfer.
    4. Post a journal entry.

    Answer: D) Post a journal entry.. Transfers can't move money between Balance Sheet and Profit and Loss accounts. Each month, debit Insurance Expense and credit Prepaid Insurance. (Chapter 10 · Using Journal Entries)