QBO Skills practice questions

Customizing QBO: terms, sales tax, classes, users

30 practice questions on customizing QBO: terms, sales tax, classes, users, each with the answer and why it is right. From Questiva Consultants' QuickBooks Online skills test. The topic is covered in Chapter 3 of QuickBooks Online Step-by-Step.

1. A taxable customer is invoiced for a $200 marble bird bath (a taxable product) and $150 of landscape design (a non-taxable service). The applicable sales-tax rate is 8%. How much sales tax should QuickBooks Online add to the invoice?

   1. $16.00, because only the taxable line is multiplied by the rate.
   2. $28.00, because the customer is taxable so every line is taxed.
   3. $12.00, because services are taxed and products are exempt.
   4. $0.00 until the bookkeeper ticks the Tax box on each line by hand.

   Answer: A) $16.00, because only the taxable line is multiplied by the rate.. Sales tax is calculated from the combination of customer and item: only a taxable customer is charged, and only on taxable items. $200 × 8% = $16.00. Taxing every line ($28) ignores the item setup, and QBO does the calculation automatically once agencies, items and customers are set up. (Chapter 3 · Applying Sales Tax on Forms)

2. One Grass Seed item is taxable for homeowners, and the bookkeeper unticks Tax on farm invoices. The Sales Tax Liability report now shows more owed than was collected. What is the fix?

   1. The filing frequency is monthly instead of quarterly, so change the agency's frequency
   2. The report follows the item's tax status, so add a second, non-taxable Grass Seed item
   3. Farm customers were never marked tax-exempt, so delete and re-enter every farm invoice
   4. Sales tax was charged on shipping, so remove it from the farm invoices and refund the difference

   Answer: B) The report follows the item's tax status, so add a second, non-taxable Grass Seed item. The Tax checkbox changes what you collect on one form, but the Sales Tax Liability report calculates from the item sold. If an item is sometimes taxable and sometimes not, create two items and pick the right one. (Chapter 3 · Collecting Sales Tax on Products and Services)

3. On April 20 the bookkeeper pays the state $1,240 of sales tax collected in March by entering a Check to the agency categorized to a Sales Tax Expense account. What is the result in the books?

   1. Correct: sales tax remitted to the state is an ordinary cost of doing business, so a check posted to an expense account is the normal entry.
   2. Correct as long as the check is matched to the bank-feed withdrawal afterwards, which is what updates the sales-tax balance.
   3. Wrong: expenses are overstated and the Sales Tax Payable liability stays on the Balance Sheet; the payment belongs in the Sales Tax center.
   4. Wrong: the payment should have been entered as a Bill to the state agency and then paid through Pay Bills so it ages properly.

   Answer: C) Wrong: expenses are overstated and the Sales Tax Payable liability stays on the Balance Sheet; the payment belongs in the Sales Tax center.. Collected sales tax is money held for the state, tracked in an Other Current Liability account. Paying it through the Sales Tax center debits that liability and clears what is owed. A plain check to an expense account overstates expenses and leaves the liability on the Balance Sheet; matching the check in the feed later does not change where it was posted. (Chapter 3 · The Sales Tax Center)

4. A property manager uses date-driven terms: invoices are due on the 1st of the month, and an invoice issued within 5 days of that due date rolls to the following month. An invoice to a tenant is dated March 29. What due date will QuickBooks Online calculate?

   1. April 28, because QuickBooks Online counts thirty days from the invoice date regardless of the terms type.
   2. April 1, the first day of the month that follows the invoice date, since that is the day the terms name.
   3. March 29, because date-driven terms are treated as Due on Receipt when the invoice is issued late in the month.
   4. May 1, because April 1 falls within 5 days of the invoice date, so the due date rolls to the following month.

   Answer: D) May 1, because April 1 falls within 5 days of the invoice date, so the due date rolls to the following month.. Date-driven terms calculate from a day of the month, not a number of days. Because March 29 is within the 5-day window before April 1, the due date rolls to May 1. A 30-day answer is Standard (Net 30) thinking; Due on Receipt applies only when those terms are chosen. (Chapter 3 · The Terms List)

5. On June 15 a bookkeeper creates a new Inventory item for bird baths and, in the Initial Quantity on Hand and As of Date fields, enters the 12 units currently in the warehouse and today's date. Purchases of bird baths were recorded on bills in April and May. What problem has this created?

   1. The stock value was posted to Opening Balance Equity, and the April and May bills cannot be entered because they predate the item's as-of date.
   2. Nothing serious: QuickBooks Online will net the April and May bills against the 12 units the next time an inventory valuation report is run.
   3. The Reorder Point defaulted to the initial quantity, so the Low Stock Indicator will never fire until it is manually reset to a smaller number.
   4. The item was created as Non-inventory by mistake; its type must be changed to Inventory before the April and May bills will post to Inventory Asset.

   Answer: A) The stock value was posted to Opening Balance Equity, and the April and May bills cannot be entered because they predate the item's as-of date.. The initial quantity and as-of date are starting points, not today's count. Using today's values posts the stock to Opening Balance Equity and blocks any transaction involving the item dated earlier. The book's rule: start at 0 as of a date long before the first transaction, then let the bills and sales build the quantity. (Chapter 3 · Inventory Products)

6. The company has started accepting Zelle transfers from customers. The bookkeeper adds Zelle to the Payment Methods list and ticks "This is a credit card" so it shows up with the other electronic methods. What should have been done instead?

   1. Skip the Payment Methods list and record each Zelle receipt as a Bank Deposit straight to income, since the money is already in the bank.
   2. Add Zelle with the credit-card box unticked; that box is only for methods that will run a card through QuickBooks Payments inside QBO.
   3. Add Zelle to the Products and Services list as a Service item so it can be selected on sales receipts and tracked on sales reports.
   4. Nothing needs to change; the credit-card flag only controls the icon shown next to the method on customer statements and reports.

   Answer: B) Add Zelle with the credit-card box unticked; that box is only for methods that will run a card through QuickBooks Payments inside QBO.. The Payment Methods list should be customized to what the business actually accepts, and the credit-card flag is reserved for methods that will run a card inside QBO through QuickBooks Payments. Depositing straight to income skips the payment record entirely, and the flag is not cosmetic. (Chapter 3 · Payment Methods)

7. A landscaping company serves residential and commercial clients and wants a Profit and Loss with one column for each, using the same income and expense accounts for both. Rent and insurance apply to the whole business. Which setup delivers this with the least ongoing effort?

   1. Create duplicate income and expense accounts for Residential and Commercial and post to the matching pair every time.
   2. Set up Residential and Commercial as sub-customers under each client and filter the Profit and Loss by customer.
   3. Turn on class tracking, add Residential, Commercial and Overhead classes, tag every transaction, and run Profit and Loss by Class.
   4. Run two separate Profit and Loss reports, one per date range of residential and commercial jobs, and combine them in a spreadsheet.

   Answer: C) Turn on class tracking, add Residential, Commercial and Overhead classes, tag every transaction, and run Profit and Loss by Class.. Classes separate income and expenses by revenue stream without duplicating the chart of accounts, and Profit and Loss by Class puts each class in its own column. The book says to add an Overhead class for costs that span every class. Duplicating accounts bloats the chart of accounts, and customers are not revenue streams. (Chapter 3 · Activating Class Tracking)

8. Class tracking is on with Residential and Commercial classes. The bookkeeper enters the monthly liability-insurance bill and leaves the Class field blank because the policy covers both sides of the business. What does the book recommend instead?

   1. Split the bill 50/50 between Residential and Commercial on two lines of the same bill.
   2. Assign the bill to an Overhead class created for transactions that apply across all classes.
   3. Leave it blank; untagged transactions are automatically spread across the classes on reports.
   4. Post the bill to a Balance Sheet account so it does not appear on the Profit and Loss by Class.

   Answer: B) Assign the bill to an Overhead class created for transactions that apply across all classes.. Every business has income or expenses that belong to all or none of its classes, so the book's rule is to always add an Overhead class and assign those transactions there. Blank classes are not spread across columns, a 50/50 split invents an allocation, and hiding a real expense on the Balance Sheet misstates the P&L. (Chapter 3 · Activating Class Tracking)

9. A firm hires a part-time collections clerk who must create invoices, receive customer payments and send statements, but must not see banking, pay bills, or view payroll. Which user role fits?

   1. Standard All Access
   2. Standard Limited Customers and Vendors
   3. View Company Reports
   4. Accounts Receivable Manager

   Answer: D) Accounts Receivable Manager. The Accounts Receivable Manager role can work with A/R transactions but cannot perform A/P, banking, bookkeeping or payroll tasks. Standard All Access can do everything except manage users and the subscription, which exposes banking and bills, and View Company Reports cannot change data at all. (Chapter 3 · Setting Up Users in the Company File)

10. A QuickBooks Online Plus file already has its five users. The owner's business partner wants to look at the Profit and Loss and Balance Sheet every month but will never enter anything. What is the right way to give them access?

    1. Add them as a View Company Reports user, which sees every report, changes nothing and does not use a seat.
    2. Share the Primary Admin login with them for the monthly review so that no additional user seat is consumed.
    3. Upgrade the file to QuickBooks Online Advanced, which raises the user limit to 25, and add them as a Company Admin.
    4. Add them as a Standard No Access user, the role designed for people who only need to read reports.

    Answer: A) Add them as a View Company Reports user, which sees every report, changes nothing and does not use a seat.. Plus includes unlimited Reports Only users, so a partner who only reads reports should be added as a View Company Reports user. Sharing a login defeats the Audit Log, an upgrade is unnecessary, and Standard No Access can submit timesheets and manage the subscription but cannot work with data. (Chapter 3 · Setting Up Users in the Company File)

11. At year end an outside CPA needs to undo a reconciliation, reclassify transactions and write off bad debts. Which access gives them those tools?

    1. A Company Admin added under the Users tab of Manage Users
    2. A Standard All Access user, with every data permission
    3. An accountant user invited under the Accounting Firms tab
    4. The Primary Admin's login, shared with the CPA

    Answer: C) An accountant user invited under the Accounting Firms tab. Accountant logins, invited from the Accounting Firms tab, have tools company users lack: undo reconciliations, reclassify transactions, write off bad debts and make books-to-tax adjustments. A Company Admin has full data access but not those tools. (Chapter 3 · Accounting Firm Users)

12. A key customer refuses invoices that do not show its internal purchase-order number, and the owner wants to filter sales reports by which of two sales reps made the sale. What is the QuickBooks Online Plus way to handle both?

    1. Type the PO number and the rep's name into the Message on Invoice box each time, since that text prints on the customer's copy.
    2. Create a Class for each sales rep, and put the customer's PO number at the end of the customer's display name.
    3. Create a separate customer record for every PO number so the number appears in the customer name on the invoice.
    4. Two transaction Custom Fields, PO Number (Text and Number) and Sales Rep (Dropdown List), with Print on Form turned on.

    Answer: D) Two transaction Custom Fields, PO Number (Text and Number) and Sales Rep (Dropdown List), with Print on Form turned on.. Custom Fields (up to three in Plus) add structured information to transactions that prints on forms and is available as columns or filters on reports. A message box is unstructured and cannot be filtered, classes are for revenue streams, and one customer record per PO corrupts the customer list. (Chapter 3 · Implementing Custom Fields)

13. Priya is setting up a brand-new QuickBooks Online file for a Fresno nursery that sells taxable goods and non-taxable delivery. She plans to import the product list on Monday, add the customer list on Tuesday, and turn on the Sales Tax Center on Friday. What should she change about that plan?

    1. Nothing needs to change — turning on the Sales Tax Center later recalculates the tax on the products and customers already entered.
    2. Set up the sales tax agencies first, because tax is calculated from what was sold, to whom and where, and items and customers are given a tax status as they are created.
    3. Add the customer list first, since the rate comes from each customer's billing address and the items simply inherit whatever that customer is charged.
    4. Leave sales tax off until the first return is due, then post the tax collected for the period as a single adjusting journal entry.

    Answer: B) Set up the sales tax agencies first, because tax is calculated from what was sold, to whom and where, and items and customers are given a tax status as they are created.. Sales Tax Agencies must exist before Products and Services and Customers are added, because tax is calculated from what you sold, who you sold it to, and where. Items and customers are given a tax status as they are created; turning the center on later does not go back and do that, and a period-end journal entry leaves every invoice under-billed. (Chapter 3 · Setting Up Sales Tax)

14. Craig's Landscaping does business in California and Arizona. After the tax agencies are saved, QuickBooks Online reports that a filing frequency is still needed. California returns are filed monthly and Arizona's yearly. How is that recorded?

    1. Choose a single filing frequency for the company in Account and Settings; every agency on the file then reports on that schedule.
    2. Leave it blank — QuickBooks Online assigns each agency a frequency automatically from how much tax that agency has collected.
    3. Open Sales Tax Settings and use the Edit link beside each agency, setting California to Monthly and Arizona to Yearly.
    4. Set the frequency on the tax rate itself; it is fixed when the rate is created for the state and cannot be changed afterwards.

    Answer: C) Open Sales Tax Settings and use the Edit link beside each agency, setting California to Monthly and Arizona to Yearly.. Filing frequency is a per-agency setting. From the alert, go to Sales Tax Settings and click Edit next to each agency — Arizona yearly, California monthly — so each return covers the right period. It is not one company-wide preference, it is not derived from the tax rate, and QuickBooks Online does not pick it from the amount collected. (Chapter 3 · Adding State Agencies)

15. An invoice to a customer two counties away calculated $41.90 of sales tax. While adding delivery details the bookkeeper clicked Add shipping info, and the tax on the same invoice changed to $37.60 without a single line item being touched. What happened?

    1. The shipping charge is a non-taxable line, so entering shipping information removed the tax that had been calculated on freight.
    2. Revealing the shipping address changed the Location of Sale, and in a location-based state the rate follows the customer's address — See the Math shows which one was used.
    3. The customer's exemption certificate took effect only once a full shipping address was on file, which gave a partial exemption on the sale.
    4. QuickBooks Online switched to the lower of the company's rate and the customer's rate because two addresses now appeared on the same form.

    Answer: B) Revealing the shipping address changed the Location of Sale, and in a location-based state the rate follows the customer's address — See the Math shows which one was used.. The Billing Address and Location of Sale fields pick the rate: home rule states tax from the company's address, location-based states from the customer's billing or shipping address. Toggling the shipping address open or closed can change the Location of Sale and therefore the rate. The See the Math link shows the calculation. Nothing about the freight or the customer's exemption changed. (Chapter 3 · Applying Sales Tax on Forms)

16. A Nevada retailer shipped 14 small orders to Oregon and Idaho last year, and the owner wants both states added as sales tax agencies "to be safe." What do you do?

    1. Add both agencies, since shipping into another state means collecting that state's sales tax
    2. Charge those customers the Nevada rate, since the company's own address always sets the tax
    3. Add both agencies but set the filing frequency to Yearly so collection is held until you decide
    4. Check each state's rules first, and confirm with the state or an accountant before adding an agency

    Answer: D) Check each state's rules first, and confirm with the state or an accountant before adding an agency. Nexus decides where tax is owed, and a few transactions in a state may create no obligation. The book says to ask the state agency, a QuickBooks Online ProAdvisor or an accountant instead of guessing. (Chapter 3 · Setting Up Sales Tax)

17. Imagine Photography wants a $35 rush-processing charge to appear as its own line on invoices and post to an income account, so the owner can see how much rush work is booked. Nothing physical is delivered. How should the charge be set up?

    1. As a Service item with a Sales price/rate of 35 and an income account — Service items cover charges that are not tangible goods, including shipping and finance fees.
    2. As a Non-inventory product, because any fixed-price charge that is billed to a customer on an invoice is treated as a product.
    3. As a product Category named Admin, which can then be chosen on an invoice line the same way an item is chosen.
    4. As a transaction Custom Field named Rush, so that the $35 prints on the invoice and can be filtered on the sales reports.

    Answer: A) As a Service item with a Sales price/rate of 35 and an income account — Service items cover charges that are not tangible goods, including shipping and finance fees.. Service items are used for everything on a sales form that is not a tangible good, administrative charges such as shipping and finance charges included, and the item carries the price and the income account. Non-inventory is for physical goods. Categories only group items and cannot be entered on a line, and a custom field records information, not an amount. (Chapter 3 · Service Items)

18. Craig bills tree trimming at $120 and pays Tony Rondonuwu $75 a tree for the work. Craig wants to see the profit on subcontracted tree trimming without reading two separate reports. Which setup gives him that?

    1. Two items — a Tree Trimming service used on invoices and a Tree Trimming Cost item used on Tony's bills — so each side of the job posts to its own account.
    2. One Service item on the invoice, with Tony's bill coded straight to the Cost of Goods Sold account instead of to an item.
    3. One Service item with “I purchase this product/service from a vendor” checked: income on the sale, Cost of Goods Sold on the purchase, one item on both forms.
    4. A Class named Subcontractors applied to Tony's bills, and a Profit and Loss filtered to that class each month.

    Answer: C) One Service item with “I purchase this product/service from a vendor” checked: income on the sale, Cost of Goods Sold on the purchase, one item on both forms.. A two-sided service item records the sale and the subcontractor's cost against the same item, so item profitability reports show the margin on the work. Two separate items, or a bill coded to an account with no item, split the story across reports. Tagging only the bills with a class captures the cost side and none of the income. (Chapter 3 · Subcontracted Services)

19. Grass seed has its own California sales tax category. Where do you set that up so every sale is taxed correctly?

    1. On each invoice, with the Select Tax Rate link at the bottom.
    2. On the Grass Seed item, using the Edit sales tax link.
    3. On each customer, by marking seed buyers as exempt.
    4. In Sales Tax Settings, by adding a second California agency.

    Answer: B) On the Grass Seed item, using the Edit sales tax link.. Sales tax is set on each product or service. Open the item, click Edit sales tax and search for the category; typing “grass” finds grass seed. The Select Tax Rate link on a form only changes the agency for that one sale. (Chapter 3 · Non-Inventory Products)

20. A shop bought 6 bird baths at $200 each in February and 6 more at $260 each in May. Four of the February units are still on hand when one bird bath sells for $350 in June. What does QuickBooks Online post to Cost of Goods Sold on that sale?

    1. $200, the cost of the oldest unit on hand, because QuickBooks Online values inventory First In, First Out.
    2. $230, the average cost of the twelve units purchased, which is the method QuickBooks Online uses for inventory.
    3. $260, the most recent purchase price, so that the reported margin reflects what replacement stock costs today.
    4. Nothing yet: the $350 posts to income, and Cost of Goods Sold is recorded when an inventory adjustment is entered at year end.

    Answer: A) $200, the cost of the oldest unit on hand, because QuickBooks Online values inventory First In, First Out.. QuickBooks Online uses FIFO, so the unit sold is the oldest one on hand and its actual purchase price of $200 moves out of Inventory Asset and into Cost of Goods Sold. Average cost is QuickBooks Desktop's method, and the newest price is neither. The entry happens on the sale itself, not through a year-end adjustment. (Chapter 3 · Inventory Products)

21. Tim Philip Masonry raises the price of the bird baths Craig resells from $200 to $235. The bookkeeper types 235 on the new bill and saves it. What else, if anything, should be done?

    1. Nothing further: QuickBooks Online writes the newest purchase price into the item's Cost field each time a bill is saved.
    2. Raise the item's Sales price/rate by the same $35, because an item's cost and its sales price are locked to one another.
    3. Enter an inventory quantity adjustment so that the units already on hand are revalued at the new $235 cost.
    4. Edit the item and change its Cost to 235 — the override applies to that one bill, so purchase orders and bills would keep defaulting to $200.

    Answer: D) Edit the item and change its Cost to 235 — the override applies to that one bill, so purchase orders and bills would keep defaulting to $200.. The Cost field is the default that fills in on purchase orders, bills, checks and credit card charges. You may override it on any single transaction, but when the vendor's price really changes you go back and edit the item. QuickBooks Online does not rewrite the field for you, the sales price is set independently, and FIFO leaves older units at what they actually cost. (Chapter 3 · Inventory Products)

22. A retailer with 900 SKUs already runs stock levels, reorder alerts and valuation in an ecommerce platform that does not sync with QuickBooks Online. The owner asks whether all 900 should be rebuilt as Inventory items in QBO. What is the sound recommendation?

    1. Rebuild all 900 as Inventory items, so that the Balance Sheet is driven by QuickBooks Online rather than by the store software.
    2. Keep stock management in the ecommerce platform and record the daily sales totals in QuickBooks Online rather than running inventory in two systems.
    3. Rebuild them as Inventory items but leave every initial quantity at zero, which avoids creating any Opening Balance Equity.
    4. Set the 900 up as Bundles, which track the quantities of their components behind the scenes without inventory tracking.

    Answer: B) Keep stock management in the ecommerce platform and record the daily sales totals in QuickBooks Online rather than running inventory in two systems.. The book is explicit: when another system already tracks your wares there is no need to maintain inventory in two independent systems — manage stock there and limit QuickBooks Online to the daily sales totals. Rebuilding 900 items duplicates the work and invites drift between the two, and bundles group items on sales forms; they are not a stock-tracking tool. (Chapter 3 · Inventory Products)

23. Rock Fountain Installation is a bundle of one rock fountain, one pump, two bags of concrete and two hours of installation. On an invoice the sales rep enters the bundle and changes its quantity to 2. What happens on the form and behind the scenes?

    1. The bundle stays a single line at twice the price, and the components have to be typed in by hand if the customer wants to see them.
    2. The component lines double, but the inventory quantities are relieved only when someone opens and edits the bundle item itself.
    3. The bundle bursts into its component lines and every quantity and price recalculates for two — four bags of concrete, four hours of installation.
    4. QuickBooks Online will not accept a quantity above 1 on a bundle line, so the second bundle has to be entered on a line of its own.

    Answer: C) The bundle bursts into its component lines and every quantity and price recalculates for two — four bags of concrete, four hours of installation.. Adding a bundle to a sales form bursts it into a header plus its component lines, and changing the bundle quantity recalculates every component's quantity and price. Quantities are tracked behind the scenes for each product in the bundle, so the inventory accounting updates automatically. Whether the customer sees the components is set by the Display bundle components checkbox. (Chapter 3 · Bundles)

24. A distributor gives most customers Net 30 but has agreed to Net 60 on one large project invoice, for a customer whose record says Net 30. What is the correct handling?

    1. Leave the customer's default at Net 30 and change the Terms field to Net 60 on that one invoice.
    2. Change the customer's default terms to Net 60, since A/R aging reads the terms on the customer record rather than the invoice.
    3. Leave the invoice on Net 30 and simply hold that customer's statements and late notices for an extra thirty days.
    4. Create a second customer record for the project, so that each set of terms can sit on its own customer default.

    Answer: A) Leave the customer's default at Net 30 and change the Terms field to Net 60 on that one invoice.. Customers and vendors carry default terms that may be overridden on any individual sale or purchase, and A/R and A/P reports use the due date calculated from the terms on each transaction. Moving the customer default would push every future invoice to Net 60, withholding statements does not change a due date, and a duplicate customer record splits the customer's history. (Chapter 3 · The Terms List)

25. A consultant sends an invoice dated September 3 with Terms of Due on Receipt. Nothing has been paid by the morning of September 4. How does QuickBooks Online treat the invoice?

    1. Open but not overdue until October 3, because QuickBooks Online applies a thirty-day grace period before it flags any invoice.
    2. Open but not overdue until the consultant sends a statement, which is what starts the clock on Due on Receipt terms.
    3. Overdue — payment on Due on Receipt terms is due immediately, so an unpaid invoice is late the very next day.
    4. Overdue only if late fees have been set up on the file, because terms on their own do not mark an invoice late.

    Answer: C) Overdue — payment on Due on Receipt terms is due immediately, so an unpaid invoice is late the very next day.. Due on Receipt means the payment is due immediately, and QuickBooks Online marks unpaid invoices and bills overdue the very next day. Thirty days is Net 30, a different term on the same list. Neither sending a statement nor switching on late fees changes the due date — the terms on the transaction calculate it. (Chapter 3 · The Terms List)

26. Staff keep choosing Net 15 from the Terms drop-down on invoices even though the company stopped offering those terms last year, and older invoices already use Net 15. What should the bookkeeper do?

    1. Rename Net 15 to Net 30 on the Terms list, so that anyone who picks that row lands on terms the company actually offers.
    2. Use the drop-down beside Net 15 on the Terms list and choose Make Inactive so that it no longer appears on new forms.
    3. Edit the older invoices onto different terms first, because a term that is used on transactions cannot be taken off the list.
    4. Leave it and remind the staff to be careful — the Terms list ships with QuickBooks Online and its entries cannot be changed.

    Answer: B) Use the drop-down beside Net 15 on the Terms list and choose Make Inactive so that it no longer appears on new forms.. Lists are trimmed to the way the business actually works: on the Terms list, click the drop-down arrow on the row and choose Make Inactive, then confirm, and the older invoices keep the terms they were written on. Renaming Net 15 changes only the label, not the 15-day calculation, and both the Terms and Payment Methods lists are editable. (Chapter 3 · The Terms List)

27. A construction company on QuickBooks Online Plus already prints Sales Rep, PO Number and Crew on its invoices as custom fields. It now wants a fourth, Job Site, on the same forms. What should the bookkeeper tell them?

    1. A fourth opens up as soon as Print on form is switched off for one of the three existing fields, which frees a slot.
    2. Adding it to the customer record instead costs nothing, because custom fields attached to customers are not counted against the limit.
    3. Turn on class tracking and use a class for each job site, which then prints in the custom field area of the invoice.
    4. Plus allows three custom fields in total; a fourth needs QuickBooks Online Advanced, which extends them to 48 across transactions, customers and vendors.

    Answer: D) Plus allows three custom fields in total; a fourth needs QuickBooks Online Advanced, which extends them to 48 across transactions, customers and vendors.. Plus lets you define up to three custom fields in total, and the way to get more is Advanced, where up to 48 can be attached to transactions, vendors and customers. The Print on form slider controls whether a field appears on the printed form, not how many exist, and a class is a reporting dimension, not a field on a form. (Chapter 3 · Implementing Custom Fields)

28. A bookkeeper opens the Settings gear, clicks All Lists and finds no Classes option, even though the file is on QuickBooks Online Plus. What should be checked first?

    1. Whether class tracking is turned on in Account and Settings — Classes appears under All Lists only once that preference is on.
    2. Whether a transaction has been saved with a class on it, since the list is built from the classes that have been used.
    3. Whether the file is on Advanced, because class and location tracking are Advanced-only features in QuickBooks Online.
    4. Whether the Class column has been added to a Profit and Loss report, which is what publishes the list to the Settings gear.

    Answer: A) Whether class tracking is turned on in Account and Settings — Classes appears under All Lists only once that preference is on.. Class tracking is a preference that has to be switched on in Account and Settings; once it is, Classes appears under All Lists and the Class field appears on transactions. Classes and locations are available in Plus as well as Advanced, the list is not assembled from saved transactions, and customizing a report never creates a list. (Chapter 3 · Activating Class Tracking)

29. A 1099 subcontractor on a QuickBooks Online Plus file needs to enter his own hours each week so they reach the job costing reports. He must never see customer balances, banking or payroll, and he must not be able to change the subscription or invite other users. Which role fits?

    1. Standard All Access, which stops short only of the subscription and the user settings the owner wants protected.
    2. Standard No Access, since a user holding that role is blocked from working with any of the company's data.
    3. Track Time Only — the role for vendors and employees who submit timesheets to feed payroll and job costing reports.
    4. View Company Reports, which sits outside the user limit and opens the Projects Center for entering time.

    Answer: C) Track Time Only — the role for vendors and employees who submit timesheets to feed payroll and job costing reports.. Track Time Only users are vendors and employees who can only submit timesheets to populate payroll and job costing reports, and the permissions do not even count against the user limits. Standard No Access can submit time but also administers the subscription and users; Standard All Access opens every data area; View Company Reports reads reports and cannot enter time. (Chapter 3 · Setting Up Users in the Company File)

30. Three office staff share one QuickBooks Online login. An invoice was deleted last Thursday, the owner wants to know who did it, and the Audit Log names only the shared user. What does this show about how access should have been set up?

    1. The Audit Log records only the Primary Admin's activity, so the answer was never going to be there whatever roles were used.
    2. Every person needs their own username and password — that is what lets the Audit Log attribute each change to whoever made it.
    3. Each of the three should have held a Company Admin role, because deletions are written to the log only for administrators.
    4. The shared password was too weak; replacing it with a complex one will restore real names to the entries already in the log.

    Answer: B) Every person needs their own username and password — that is what lets the Audit Log attribute each change to whoever made it.. The reason the book gives for separate logins is exactly this: a username and password per person means the Audit Log shows who made what change and when. The log covers every user, not just the Primary Admin, and an entry does not depend on holding an admin role. A complex password protects the file but cannot re-attribute history. (Chapter 3 · Setting Up Users in the Company File)