QBO Skills practice questions

Bank feeds, rules, receipts & reconciliation

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

1. The Checking feed shows a $1,250.00 deposit dated June 3. On June 2 you recorded a Bank Deposit of $1,250.00 that grouped three customer payments from Undeposited Funds (Payments to deposit), and the feed line shows it as a suggested match in green. What should you do?

   1. Click Categorize, choose the customer and a Sales income category, and Post so the deposit is recorded in the register.
   2. Exclude the line, because the deposit is already in QuickBooks and the feed entry must therefore be a duplicate of it.
   3. Check the amount and date against the existing Bank Deposit, then click Match so it is cleared, not entered twice.
   4. Post the line as a Transfer from Undeposited Funds to Checking so that both accounts show the money moving into the bank account.

   Answer: C) Check the amount and date against the existing Bank Deposit, then click Match so it is cleared, not entered twice.. A deposit that already exists is matched, never re-entered; matching marks it C (cleared) in the register. Categorizing it records the income a second time — the chapter's "you are duplicating your revenue" warning. Exclude is for a line that is a true duplicate or already reconciled, not for a legitimate match. (Chapter 7 · Matched and Partially-matched Transactions)

2. You connected a new credit card and also uploaded a CSV for the same month, so every March charge shows twice. The first copies are matched. What do you do with the second copies?

   1. Exclude them, since each charge is already recorded and matched
   2. Match them to the same register transactions a second time
   3. Categorize them to Uncategorized Expense and sort it out at month end
   4. Post them as new expenses, then void the duplicates after reconciling

   Answer: A) Exclude them, since each charge is already recorded and matched. Exclude is for a feed line already in the register that will not match, and an import that came in twice is the book's example. Excluded lines stay on the Excluded tab, where you can undo them. Posting them would create duplicate expenses. (Chapter 7 · Excluding Transactions)

3. The Checking feed shows one $2,180.00 deposit. There is no $2,180 transaction in QuickBooks, but there are three invoice payments received on June 14 — $1,000, $780 and $400 — each recorded with Deposit To set to Checking. Find Other Matches offers the three as a group. What should you do so that the register will match the bank statement when you reconcile?

   1. Accept the Find Other Matches group of three; the bank balance comes out right and the register will still mirror the statement line for line.
   2. Post the $2,180 as a new deposit categorized to Sales income, then delete the three invoice payments as duplicates of the new deposit.
   3. Exclude the feed line, because the three payments already add up to $2,180 and are sitting in the Checking register as cleared.
   4. Move the three payments to Undeposited Funds (Payments to deposit), record one $2,180 Bank Deposit, and Match it — fix the workflow.

   Answer: D) Move the three payments to Undeposited Funds (Payments to deposit), record one $2,180 Bank Deposit, and Match it — fix the workflow.. Find Other Matches marks the three payments cleared, but the register keeps three lines where the bank shows one, which bites at reconciliation; the chapter calls the tool a band-aid for an incorrect procedure. Posting the deposit to income duplicates revenue and excluding leaves the deposit uncleared. Grouping through Undeposited Funds makes the deposit equal the bank's total. (Chapter 7 · Using Find Other Matches)

4. You moved $3,000 from Checking to Savings on May 20. The Savings feed shows +$3,000 and the Checking feed shows −$3,000, but QuickBooks did not offer to Pair them. What is the cleanest way to record it?

   1. Categorize the Savings line as a Transfer and the Checking line as a Transfer separately, so that the movement is recorded in both account registers.
   2. Record it once — from the money-in side, make the Savings line a Transfer from Checking — then Match the Checking side so it isn't entered twice.
   3. Post the Savings line to Owner Contributions and the Checking line to Owner Draws so that both registers balance to the bank statement.
   4. Exclude both lines; a transfer between the company's own accounts does not change the books, so it needs no entry in either register.

   Answer: B) Record it once — from the money-in side, make the Savings line a Transfer from Checking — then Match the Checking side so it isn't entered twice.. A transfer is one transaction that touches two registers. Record it once — the chapter says work from the money-in side — then Match the other side. Categorizing both lines creates two transfers, and excluding them leaves both registers wrong; the money did move. (Chapter 7 · Entering Transfers)

5. You are deciding which bank rules should have Auto-post switched on. Which of these transactions is the right candidate?

   1. Amazon purchases that vary between office supplies, job materials and, every so often, the owner's personal items.
   2. Customer deposits from the card processor, each of which must be matched to a sales receipt already in QuickBooks.
   3. A fixed monthly propane delivery from the same vendor, always coded to Utilities, never job-costed or annotated.
   4. Checks, where the bank description only ever says CHECK and the payee is a different person or company almost every time.

   Answer: C) A fixed monthly propane delivery from the same vendor, always coded to Utilities, never job-costed or annotated.. Auto-post belongs to routine transactions with a stable payee and category, no job costing and nothing to annotate — the chapter's propane example. Varying Amazon purchases and bare CHECK lines need a person to categorize them, and sales deposits must be matched, never added. (Chapter 7 · Creating Rules)

6. An Intuit charge hits two accounts: on the checking account it is the merchant-service fee, on the company credit card it is the QuickBooks subscription. Your rule "Intuit → Merchant Services" applies to All Bank Accounts, and the subscription is now posting as merchant fees. What is the fix?

   1. Limit the rule to the checking account and add a second rule for the credit card that categorizes the charge as the subscription.
   2. Change the rule's Category to a split — half Merchant Services, half the subscription — so that every Intuit charge carries both.
   3. Turn the rule's Auto-post off; with the charges back in Pending, QuickBooks will suggest the correct category for each one as it is reviewed.
   4. Delete the rule and Exclude the credit-card charges from the feed so that they stop being categorized as merchant fees.

   Answer: A) Limit the rule to the checking account and add a second rule for the credit card that categorizes the charge as the subscription.. The chapter's own example: specify the bank account when the same description should be categorized differently depending on where it was paid from. A split codes every charge half wrong; turning off Auto-post only forces a review and does not change the rule's category; excluding real charges leaves them out of the books. (Chapter 7 · Creating Rules)

7. A bookkeeper who records every sale with a sales receipt or an invoice opens the Checking feed, clicks each customer deposit, types the customer's name, picks Sales as the category and posts it. What has happened to the books?

   1. Nothing is wrong; each sale is now recorded exactly once from the feed, and the sales receipts simply stay in Undeposited Funds (Payments to deposit) until cleared.
   2. Revenue is recorded twice — on the sales receipts and again from the feed — and the original payments still sit unmatched in Undeposited Funds.
   3. Accounts Receivable has been reduced twice for each customer, so income for the month is understated by the amount of the deposits.
   4. The deposits were excluded automatically once the matching sales receipts were found, so only the sales receipts count toward income.

   Answer: B) Revenue is recorded twice — on the sales receipts and again from the feed — and the original payments still sit unmatched in Undeposited Funds.. Deposits in the feed must be matched to the existing sales transactions. Typing a customer and an income category creates a second sale — the chapter: "you are duplicating your revenue." The fix is to edit the deposit, select the waiting payments from the grid and delete the extra Add Funds line. (Chapter 7 · How NOT to Use the Bank Transactions Feed)

8. A new bookkeeper reconciles checking, savings and the company credit card every month and nothing else. According to the chapter, which other accounts should get the same monthly treatment?

   1. Every income and expense account, so that the Profit and Loss is verified line by line against the receipts on file.
   2. Accounts Receivable and Accounts Payable only, tied out to customer and vendor statements at the end of each month.
   3. Only the accounts that a bank feed connects to; every other balance is left for the year-end accountant to review and adjust.
   4. Loans, Other Current Assets, Other Current Liabilities, Long Term Liabilities and most Equity accounts, the same way.

   Answer: D) Loans, Other Current Assets, Other Current Liabilities, Long Term Liabilities and most Equity accounts, the same way.. Bank, credit-card and loan accounts come first because they have statements, but the chapter says to reconcile Other Current Assets, Other Current Liabilities, Long Term Liabilities and most Equity accounts the same way. Income and expense accounts are not reconciled — they have no external balance to tie to. (Chapter 7 · Reconciling Bank Accounts)

9. The bank could only connect from March forward, so you download January and February as a CSV and upload it to the Checking feed. On the verification screen, expenses show as positive amounts and deposits as negative. What do you do before importing?

   1. Click Reverse All Values so money out is negative and money in positive, then select the transactions and continue.
   2. Import the file as it is; QuickBooks recognizes expenses by the payee name and corrects the sign on each line for you.
   3. Edit the CSV to remove the deposits, import only the expenses, and enter the two months of deposits by hand afterwards.
   4. Cancel the import; only a direct bank connection can bring historic transactions into the feed with the correct signs.

   Answer: A) Click Reverse All Values so money out is negative and money in positive, then select the transactions and continue.. The last import step is "Let's Verify and Import Your Transactions": check the signs, and if expenses are positive and deposits negative, click Reverse All Values. QuickBooks does not infer the sign from the payee, and uploading a file is exactly how the chapter brings in dates a connection cannot reach. (Chapter 7 · Importing Transactions Downloaded from Your Bank)

10. You are about to click Start Reconciling for the checking account. According to the chapter, which of these should already be true?

    1. Every customer invoice dated in the statement month has been paid and deposited, so Accounts Receivable is clear.
    2. The Pending tab can be left as it is, because starting the reconciliation processes the waiting feed lines for you.
    3. Every transaction is entered, the Pending tab is empty, and any statement fee or interest not already in QBO has been added.
    4. The previous month's reconciliation has been undone so that the beginning balance can be typed in fresh from the printed statement.

    Answer: C) Every transaction is entered, the Pending tab is empty, and any statement fee or interest not already in QBO has been added.. The chapter's pre-flight: enter everything, clear the Pending tab (QuickBooks warns if pending items precede the statement date) and add fees or interest that did not arrive through the feed. Reconciling does not process the feed for you, and a finished prior reconciliation is what supplies the correct beginning balance. (Chapter 7 · How to Reconcile)

11. Every line is ticked and the Difference is −$900.00, but the Payments total matches the statement. What do you check first?

    1. Open the Reconciliation Discrepancy Report, since any Difference means a reconciled transaction was changed
    2. Check that the ending balance and date were typed correctly, then compare the Deposits totals
    3. Click Finish Now and accept it, since a round Difference is a timing item that clears next month
    4. Untick recent deposits one at a time until the Difference reaches zero, then click Finish Now

    Answer: B) Check that the ending balance and date were typed correctly, then compare the Deposits totals. First rule out a typo in the ending balance or date, then compare the Payments and Deposits totals. The column that disagrees holds the missing or mis-marked item. The Discrepancy Report is for a wrong beginning balance. (Chapter 7 · Part 3: If the Difference Still Is Not Zero)

12. The April Beginning Balance is $150.00 less than the March ending balance you reconciled to a $0.00 Difference. What do you do first?

    1. Enter a $150 adjustment in the register, then start April normally
    2. Edit the March ending balance from the April screen, then carry on
    3. Click Finish Now and let QuickBooks net out the $150 automatically
    4. A reconciled March transaction was changed, so redo the March reconciliation first

    Answer: D) A reconciled March transaction was changed, so redo the March reconciliation first. QuickBooks calculates the Beginning Balance from previously reconciled transactions, so a mismatch means one of them was changed. Repeat the most recent reconciliation first, then use the Discrepancy Report to find the changed items. (Chapter 7 · When the Beginning Balance is Incorrect)

13. The credit-card statement shows $42.00 of interest. That charge already came through the feed and was posted on the 28th. The Reconcile screen for the card offers an Interest field. What should you do?

    1. Leave the field blank and tick the posted $42.00 charge; filling the field in would record the interest a second time.
    2. Enter $42.00 in the field so the reconciliation shows the interest where the statement does, and exclude the feed copy afterwards.
    3. Enter $42.00 in the field and also tick the posted charge; the two amounts will net against each other on the report.
    4. Delete the posted charge and enter the $42.00 in the field instead, because statement fields post more reliably than the feed.

    Answer: A) Leave the field blank and tick the posted $42.00 charge; filling the field in would record the interest a second time.. The service-charge and interest fields create new register transactions. If the charge already arrived through the feed, skip the field and clear the existing entry — the chapter's tip exactly. Entering it as well duplicates the expense, and deleting a correctly posted feed transaction only to re-enter it costs effort for nothing. (Chapter 7 · How to Reconcile)

14. At the end of the reconciliation the Difference is $0.00, but two checks written six weeks ago — $55.00 and $100.00 — are still unticked. What is the right handling?

    1. Tick them anyway so the register is clean; checks that old will certainly clear on the next statement.
    2. Delete them; a check that has not cleared in six weeks was never received and should not be in the books.
    3. Leave them unticked as outstanding, and contact the payees to find out whether the checks were lost.
    4. Void both checks and reissue new ones immediately so the reconciliation can be finished with nothing outstanding.

    Answer: C) Leave them unticked as outstanding, and contact the payees to find out whether the checks were lost.. Part 4 of a reconciliation is analyzing what is NOT on the statement. Old uncashed checks are outstanding items: leave them unchecked and find out whether they are pending, issued in error or lost before voiding or reissuing. Ticking or deleting them misstates the bank balance and the books. (Chapter 7 · Part 4: Analyzing the Remaining Transactions)

15. On an accrual-basis client whose books are closed and tax return filed, a $240.00 expense dated November 15 of last year turns out to be a duplicate that will never clear the bank. How do you remove it?

    1. Void the November expense; voiding keeps the audit trail, so the closed period is not considered to have been changed.
    2. Enter a Bank Deposit on the first day of the current period to the same vendor and account, cross-reference both, and reconcile them.
    3. Delete both the November expense and its duplicate; deleting leaves the register cleaner than voiding and nothing is left behind to explain.
    4. Change the November expense's date to today so that it falls in the open period, then void it from the register as usual.

    Answer: B) Enter a Bank Deposit on the first day of the current period to the same vendor and account, cross-reference both, and reconcile them.. Never change a transaction in a closed accrual period — it rewrites reports you have already issued. Reverse it instead: a deposit in the open period that mirrors the expense, each noting the other's date and number, and the two clear together at the next reconciliation. Voiding, deleting or re-dating the original all alter the closed period. (Chapter 7 · Correcting Transactions in Closed Accounting Periods)

16. You finish reconciling the company Visa and QuickBooks asks whether you want to pay all or a portion of the bill now, or enter a bill to pay later. The payment will actually be made next week from checking. What should you do?

    1. Choose Enter a Bill to Pay Later, so that the amount due is tracked in Accounts Payable until the payment actually goes out of checking next week.
    2. Choose Pay All Now and date the payment today, so that the credit-card balance returns to $0 on the Balance Sheet right away.
    3. Click Done and create nothing; record next week's payment with Pay Down Credit Card (or match it in the feed) so the balance stays on the card.
    4. Choose Pay a Portion and enter $0.00, so that the window closes without a bill or a payment being created in either account.

    Answer: C) Click Done and create nothing; record next week's payment with Pay Down Credit Card (or match it in the feed) so the balance stays on the card.. Creating a bill moves the balance from the credit-card liability into Accounts Payable and zeroes the card, which hides credit-card activity on the Balance Sheet. The chapter says just click Done and use Pay Down Credit Card. Paying "now" records a payment that has not happened. (Chapter 7 · Reconciling Credit Cards)

17. Reviewing the Mastercard feed, Dana opens a $312.00 charge from a vendor the company has never used before. The Category field is pre-filled with Job Expenses, and an orange alert sits beside it. What is the orange alert telling her?

    1. A rule fired on this charge and auto-added it to the register already, so the line no longer needs her review.
    2. QuickBooks has strong data behind the suggestion from her own history, so she can post the charge exactly as it stands.
    3. QuickBooks found nothing in her categorization history to match, so the category is a guess she must verify before posting.
    4. The charge is a duplicate of an entry already in the register, and QuickBooks is warning her not to record it twice.

    Answer: C) QuickBooks found nothing in her categorization history to match, so the category is a guess she must verify before posting.. An orange alert means nothing in the company's categorization history matched, so QuickBooks either leaves the fields blank or guesses from industry standards — update the transaction before posting. A green checkmark means strong data behind the suggestion; a blue info signal means some history but confirm it. Neither signal reports duplicates or rule activity. (Chapter 7 · Review Signals)

18. A client is setting up the Bank Transactions feed. She has a business checking account, a business savings account she barely uses, two business credit cards (one sitting at a $0 balance), and a personal checking account the owner sometimes taps for supplies. Which accounts should she connect?

    1. Checking, savings and both credit cards, including the one at $0; the personal account stays out of the company file.
    2. Checking and the credit card that carries a balance; an unused savings account and a $0 card have nothing to download.
    3. Every account on the list, the personal checking included, so that supplies bought with the owner's money are captured.
    4. Checking only; savings and credit cards are reconciled from paper statements each month and need no live connection.

    Answer: A) Checking, savings and both credit cards, including the one at $0; the personal account stays out of the company file.. Connect all business checking, savings and credit-card accounts — the chapter says include them even at a $0 balance or when rarely used — and ignore personal accounts, because personal funds do not belong in a business's financial reports. Skipping a quiet account or a $0 card only means keying those transactions by hand later. (Chapter 7 · Connecting Your Bank and Credit Cards)

19. One $1,200.00 charge from A1 Rental in the Checking feed covers $1,000 of backhoe rental that will be billed on to Amy's Bird Sanctuary and $200 of debris disposal that Craig absorbs as a job cost. How should the line be recorded?

    1. Post the whole $1,200 to Equipment Rental as billable to Amy's Bird Sanctuary, then trim her invoice by $200 by hand when it is raised.
    2. Split it: $1,000 to Equipment Rental, billable to Amy's Bird Sanctuary, and $200 to Disposal Fees, assigned to her but not billable.
    3. Post the $1,200 to Equipment Rental with no customer, then enter a separate $200 expense to Disposal Fees so both costs reach the job.
    4. Exclude the line and enter two expenses in the register instead, because one feed transaction cannot carry two categories.

    Answer: B) Split it: $1,000 to Equipment Rental, billable to Amy's Bird Sanctuary, and $200 to Disposal Fees, assigned to her but not billable.. The Split button divides one feed transaction across any mix of categories, customers and classes, and Billable is set line by line — exactly this case. Posting the full amount as billable overcharges the customer; a separate $200 expense records money that never left the bank; and a feed line can be split, so excluding it is unnecessary. (Chapter 7 · Splitting a Transaction)

20. A $108.09 charge from Tania's Nursery paid for 10 bags of soil. Selena switches the line to Categorize, selects Soil in Product/Service, and clicks Post. The posted expense shows a quantity of 1 at a rate of $108.09. What should she do?

    1. Split the feed line into ten rows of $10.81, one bag on each row, so the quantity received matches what was actually bought.
    2. Undo the line from the Posted tab and key the purchase in by hand, because feed transactions cannot carry products or services.
    3. Leave it; the expense total and category are already correct, and the quantity on a posted expense has no effect on anything.
    4. Open the posted expense, change Qty to 10, clear the Rate, and type 108.09 in Amount so QuickBooks backfills the rate.

    Answer: D) Open the posted expense, change Qty to 10, clear the Rate, and type 108.09 in Amount so QuickBooks backfills the rate.. Products assigned inside the Bank Transactions feed always arrive at a quantity of 1. Open the posted expense and edit the Item Details grid: set Qty, erase the Rate, then enter the original total in Amount, and QuickBooks backfills the rate. Splitting the line or re-keying the purchase is unnecessary, and leaving the quantity at 1 misstates what was received. (Chapter 7 · Purchasing Products)

21. Ledger Line Bookkeeping billed Craig's Landscaping twice for the same $95.00 monthly fee and refunded one of the charges. Both charges were posted to Legal & Professional Fees:Bookkeeper, and the $95.00 refund now shows in the Received column of the Checking feed. How should the refund be recorded?

    1. Categorize it to Ledger Line Bookkeeping using the same expense category as the original charge, Legal & Professional Fees:Bookkeeper.
    2. Categorize it to Ledger Line Bookkeeping and an income account such as Other Income, since the money came into the checking account.
    3. Match it against the original $95.00 expense so that the charge and the refund clear each other out on a single feed line.
    4. Exclude it, because the duplicate charge was never a real cost and the refund only cancels an entry the books should not show.

    Answer: A) Categorize it to Ledger Line Bookkeeping using the same expense category as the original charge, Legal & Professional Fees:Bookkeeper.. A vendor refund is entered from the feed with the vendor's name and the same category as the original expense, which reverses that cost. Coding it to income inflates revenue and leaves the expense overstated. Match pairs a feed line with an existing entry running the same direction, and excluding it would leave real money in the bank unrecorded. (Chapter 7 · Entering Refunds)

22. A bookkeeper wants every expense in the Checking feed to carry a scan of its paper receipt so the documentation travels with the transaction. Working from the Bank Transactions feed itself, how can she attach the file?

    1. Open the posted transaction afterwards and use its Attachments box; the feed row can display bank-supplied images but takes no new ones.
    2. Upload it to the Attachments list under the Settings gear first, then link it to the transaction from that list.
    3. Drag the file onto the transaction's row or panel, or use the + under the Paperclip column or the panel's Upload button.
    4. Forward the scan to the company's receipt-capture email address, since a document reaches a transaction only through Receipts.

    Answer: C) Drag the file onto the transaction's row or panel, or use the + under the Paperclip column or the panel's Upload button.. Documents can be added straight from the feed: drag and drop them onto the row or the transaction panel, click the + in the Paperclip column, or use the Upload button at the bottom of the panel. The Paperclip column also shows check and deposit-slip images some banks send, so the feed both displays and accepts files — no gear list or receipt inbox required. (Chapter 7 · Attachments)

23. In the Checking feed the Bank Description reads "A Rental", but the bank's own text is "A1 Rental Backhoe Rental". The bookkeeper also cannot find posted transactions later by searching for the bank's wording. Which pair of Grid Gear settings fixes both complaints?

    1. Group and Sort by Column with Alternate Row Color, so identical bank wording lines up together and is easier to read down the grid.
    2. Show Full Bank Description with Copy Full Bank Description to Memo, so the bank's own text shows and lands in each transaction's memo.
    3. Warn If Missing Vendor/Customer with Make Date Field Editable, so nothing posts without a payee and dates can be corrected.
    4. Add New Vendors with a larger Page Size, so every bank description becomes a vendor record that can be searched from the vendor list.

    Answer: B) Show Full Bank Description with Copy Full Bank Description to Memo, so the bank's own text shows and lands in each transaction's memo.. Show Full Bank Description replaces QuickBooks' sanitized guess with the bank's own text, and Copy Full Bank Description to Memo carries that text into the transaction so it surfaces in searches and reports. Sorting and row colors only change the view; the chapter recommends turning Add New Vendors off, and it never builds vendor records from bank descriptions. (Chapter 7 · Customizing the Bank Transactions Feed)

24. Fuel is bought on the company card from five brands — Chevron, Shell, Gulf, Amoco and BP — and every one of those charges belongs in Fuel Expense. How should the rule be built?

    1. One rule with five Bank Text Contains conditions set to Any, one for each brand, categorized to Fuel Expense.
    2. One rule with the same five Bank Text conditions set to All, so that the rule recognizes each of the five fuel vendors.
    3. One rule whose Bank Text Is Exactly "Chevron Shell Gulf Amoco BP", which QuickBooks reads as a list of alternatives.
    4. One rule with Bank Text Contains Fuel, since a fuel purchase always carries the word Fuel in the bank's description.

    Answer: A) One rule with five Bank Text Contains conditions set to Any, one for each brand, categorized to Fuel Expense.. Any means the bank text can match any one of the listed possibilities — the chapter's own fuel example — and a rule allows up to five conditions. All would require every brand name in the same description, so the rule would never fire. Is Exactly demands a literal match on that whole string, and bank descriptions carry the brand name, not the word Fuel. (Chapter 7 · Creating Rules)

25. The owner's cell phone bill hits the business card every month for a slightly different amount, and roughly 75% of the use is business and 25% personal. How should a rule handle it?

    1. Code the whole bill to Telephone; the personal share is the owner's own affair and does not belong in the company's books at all.
    2. Build two rules on the same bank text, one posting 75% to Telephone and one posting 25% to Owner Draws, creating two transactions.
    3. Add an Amount condition equal to last month's bill so the rule fires only on that total, and hand-split any bill that comes in different.
    4. Use Add a Split by percentage inside one rule: 75% to Telephone and 25% to Owner Draws, whatever the month's total turns out to be.

    Answer: D) Use Add a Split by percentage inside one rule: 75% to Telephone and 25% to Owner Draws, whatever the month's total turns out to be.. A rule can split a transaction by percentage across several categories — the chapter's cell-phone example — so one rule handles a bill that changes every month. Coding it all to Telephone overstates the expense; one feed line becomes one transaction, so two rules cannot produce two entries; and an exact-amount condition stops firing as soon as the bill moves. (Chapter 7 · Creating Rules)

26. In the Checking register most lines carry a green square and a C, several older ones show an R, and one shows a green square with a plus sign. A $340.00 check written three weeks ago has nothing in that column — no square and no letter. What does that tell you about the check?

    1. It was created by an Auto-add rule and went straight into the register, which is why no clearing status was ever applied to it.
    2. It was entered by hand and has never matched anything in the feed, so it has not hit the bank — treat it as outstanding or an error.
    3. It was reconciled in an earlier month; the status column empties once a reconciliation is finished, which is why nothing shows beside it.
    4. It was excluded from the feed, so QuickBooks stripped its clearing status but left the transaction sitting in the register.

    Answer: B) It was entered by hand and has never matched anything in the feed, so it has not hit the bank — treat it as outstanding or an error.. A green square with a C means the feed matched or created the transaction; a green square with a plus marks an Auto-add rule; an R means reconciled. No square at all means the entry was made manually and never hit the bank — the chapter's clue for spotting outstanding checks and errors. Reconciled transactions keep their R. (Chapter 7 · Viewing the Bank Register)

27. The Checking feed suggests a $780.00 deposit as Uncategorized Income. You recorded that customer's $780.00 invoice payment last week, but no matching deposit is in the Checking register. What do you do?

    1. Leave it pending and work out why it will not match
    2. Post it as suggested and let the accountant reclassify it at year end
    3. Post it to sales income and delete the recorded payment
    4. Exclude the line, since the invoice payment already recorded the income

    Answer: A) Leave it pending and work out why it will not match. Uncategorized entries in the general ledger are data errors, because QuickBooks found no match. When the payment is already recorded, find out why it will not match. Here it is likely still in Undeposited Funds. (Chapter 7 · Uncategorized Transactions)

28. The owner used the business debit card for 14 personal purchases at 11 different stores last month, and all 14 lines are sitting on the Pending tab of the Checking feed. What is the efficient and correct way to clear them?

    1. Tick all 14 and choose Exclude, because personal spending has no place in the business's financial reports.
    2. Post each line to Uncategorized Expense now and move the whole group to Owner Draws with a journal entry at month end.
    3. Tick all 14 and use the batch Edit action to set the owner as the From/To and Owner Draws as the category in one pass.
    4. Build one Auto-post rule listing all 11 store names as conditions so these and any future personal charges reach Owner Draws.

    Answer: C) Tick all 14 and use the batch Edit action to set the owner as the From/To and Owner Draws as the category in one pass.. The batch Edit action assigns the same From/To and category to many rows at once, and the chapter names commingling as its best use. The money really left the business account, so excluding the lines would leave the register wrong; uncategorized entries are data errors; and a rule accepts at most five conditions, so 11 store names will not fit. (Chapter 7 · Batch Actions)

29. You are reconciling March against a statement that ends March 31. The statement shows an $875.00 deposit that does not appear in the Reconcile list; you find it in the register dated April 1, and the Difference is $875.00. What should you do?

    1. Extend the Statement Ending Date to April 1 and raise the Statement Ending Balance by $875.00 so the deposit falls inside the period.
    2. Click the Statement Ending Date link to show the hidden transactions, tick the April 1 deposit so the Difference reaches $0.00, then reset it.
    3. Enter a second $875.00 deposit dated March 31 and delete the April 1 entry, so that the register agrees with the statement period.
    4. Finish now and let QuickBooks post the $875.00 to Reconciliation Discrepancies; next month's statement will clear the entry out.

    Answer: B) Click the Statement Ending Date link to show the hidden transactions, tick the April 1 deposit so the Difference reaches $0.00, then reset it.. The Reconcile list is filtered by the statement ending date. Click the x Statement Ending Date link to lift the filter, tick the deposit that cleared in the period, then click Reset Statement Ending Date. Changing the statement's own figures hides the problem, re-keying the deposit duplicates it, and finishing with a Difference posts a plug that misstates net income. (Chapter 7 · Are There Post-Dated Transactions?)

30. You are reconciling June, an open period. The statement shows a $400.00 check to Norton Lumber; the register shows that check at $40.00, and a separate $400.00 expense the feed created for the same charge is sitting in the register too. How do you clear this up?

    1. Tick the feed's $400.00 expense against the statement line and leave the $40.00 check alone; the Difference reaches $0.00 either way.
    2. Enter a $360.00 expense coded to Reconciliation Discrepancies, then tick it together with the $40.00 check against the statement line.
    3. Raise the Statement Ending Balance by $360.00 so that the Difference clears, and correct the check once the reconciliation is finished.
    4. Edit the check to $400.00 from the Reconcile window, delete the duplicate expense the feed created, and re-match the feed line to the check.

    Answer: D) Edit the check to $400.00 from the Reconcile window, delete the duplicate expense the feed created, and re-match the feed line to the check.. When the error is yours, correct your own record: edit the check to $400 from the Reconcile window. The feed's $400 entry is a duplicate — delete it, and the feed line returns to Pending to match the corrected check. Ticking the feed's copy leaves a $40 check outstanding, and a doctored ending balance or a discrepancy entry buries the error. (Chapter 7 · If You Made the Error)