QBO Skills practice questions

Bank feeds, rules, receipts & reconciliation

10 practice questions on bank feeds, rules, receipts & reconciliation, each with the answer and why it is right. From Questiva Learning' QuickBooks® Online skills test. The topic is covered in Chapter 7 of QuickBooks® Online Step-by-Step.

1. When an import brings in the same bank transactions twice, the extra copies should be:

   1. Excluded.
   2. Matched to the same transactions again.
   3. Posted to Uncategorized Expense.
   4. Posted, then voided after you reconcile.

   Answer: A) Excluded.. Exclude a feed line that's already in your books but won't match, such as a second copy from a double import. You can undo it from the Excluded tab. (Chapter 7 · Excluding Transactions)

2. To record a Checking to Savings transfer that QuickBooks® didn't offer to Pair:

   1. Categorize each line as a Transfer.
   2. Create it from the Savings side, then Match the Checking side.
   3. Code one side to Owner Contributions and the other to Owner Draws.
   4. Exclude both lines.

   Answer: B) Create it from the Savings side, then Match the Checking side.. Create the transfer from the money-in side, then Match the other side so it isn't entered twice. (Chapter 7 · Entering Transfers)

3. Which of these suits a bank rule with Auto-post turned on?

   1. Amazon purchases of all kinds.
   2. Card deposits for sales you've already entered.
   3. A monthly propane charge.
   4. Checks to different vendors.

   Answer: C) A monthly propane charge.. Auto-post fits a routine transaction with no job costing that you don't need to review each month, like Craig's propane from Chin's Gas and Oil. (Chapter 7 · Creating Rules)

4. The Difference isn't zero, but the Payments total agrees with the statement. What do you check first?

   1. The Reconciliation Discrepancy report.
   2. Your ending balance and date, then the deposits.
   3. Nothing. Click Finish Now.
   4. Untick recent deposits one at a time until the Difference is zero.

   Answer: B) Your ending balance and date, then the deposits.. Rule out a typo in the ending balance or date first. If those are right, look in the deposits, since the payments already agree. (Chapter 7 · Part 3: If the Difference Still Is Not Zero)

5. When you reconcile, checks more than a month old that haven't cleared should be:

   1. Checked off.
   2. Deleted.
   3. Left unchecked. Call the payees.
   4. Voided and reissued with today's date.

   Answer: C) Left unchecked. Call the payees.. Uncleared checks stay unchecked as outstanding. When one is over a month old, call the payee to make sure it wasn't lost. (Chapter 7 · Part 4: Analyzing the Remaining Transactions)

6. To remove a duplicate expense from a closed accounting period in accrual books:

   1. Void it.
   2. Reverse it with a Bank Deposit dated this period.
   3. Delete it.
   4. Move its date into the current period, then void it.

   Answer: B) Reverse it with a Bank Deposit dated this period.. In an accrual-based company, never change a transaction in a closed period. Reverse it with a Bank Deposit dated the first day of the current period, and reconcile the two together. (Chapter 7 · Correcting Transactions in Closed Accounting Periods)

7. To bill a customer for only part of one bank charge:

   1. Post it all as Billable, then lower the invoice.
   2. Split it and mark only that line Billable.
   3. Post it to one category and enter a second expense for the rest.
   4. Exclude it and enter two expenses in the register.

   Answer: B) Split it and mark only that line Billable.. Split divides one bank transaction across categories and customers, and Billable is set line by line. (Chapter 7 · Splitting a Transaction)

8. To record a vendor refund from the Bank Transactions feed:

   1. Enter the vendor and the original category.
   2. Enter the vendor and code it to Other Income.
   3. Match it to the original charge.
   4. Exclude it.

   Answer: A) Enter the vendor and the original category.. Use the vendor's name and the same category as the original expense, so the refund reverses the charge. (Chapter 7 · Entering Refunds)

9. You recorded a customer's payment, but it isn't in the Checking register. The feed shows its deposit as Uncategorized Income. You should:

   1. Find out why it won't match.
   2. Post it as suggested.
   3. Post it, then delete the payment.
   4. Exclude it.

   Answer: A) Find out why it won't match.. Don't add or exclude it. Find out why it won't match, since the payment may still be waiting in Undeposited Funds (Payments to Deposit) for a Bank Deposit. (Chapter 7 · Uncategorized Transactions)

10. To post several of the owner's personal charges from the feed at once:

    1. Select them and Exclude them.
    2. Post them to Uncategorized Expense, then fix them with a journal entry.
    3. Select them and use Edit to add the owner and Owner Draws.
    4. Use Find Other Matches to combine them.

    Answer: C) Select them and use Edit to add the owner and Owner Draws.. Batch Edit puts the same From/To and category on many rows at once. The money did leave the business, so don't Exclude it. (Chapter 7 · Batch Actions)