Which of these decreases the owner's equity?

Paying off a bank loan's principal.

Collecting payments on open invoices.

A cash basis Profit and Loss counts an invoice as income:

Never. Only sales receipts count on cash basis.

When the deposit is reconciled.

When an inventory item is sold on an invoice, QBO:

Records the income and moves its cost to Cost of Goods Sold.

Records the income. The cost is recorded when you pay the vendor's bill.

Debits Inventory Asset and credits Cost of Goods Sold.

Credits Inventory Asset for the sale price.

To remove a check you just printed:

Leave it, and enter a deposit to offset it.

Entering transactions straight into the Checking register:

Can be done, but you should use forms instead.

Is the only way to enter a handwritten check.

Doesn't work, because registers are read-only.

Is faster than using forms and just as complete.

In QuickBooks Online, two companies that file separate tax returns need:

One file, with Locations turned on.

One subscription. Set the second company up as a sub-customer.

A second Chart of Accounts in the same file.

A bank loan doesn't show on the Profit and Loss because:

Liabilities go on the Balance Sheet.

The report is set to cash basis instead of accrual.

No payments have been made on it yet.

QBO is acting up. How can you tell whether the problem is with your computer or with Intuit's website?

Restart the computer and try again.

Sign out of QBO and sign back in.

Intuit releases new QuickBooks Online features:

In waves, to a few companies at a time.

Once a year, in a new version you install.

When you accept the update from the Settings gear.

To every company on the same day.

QBO Skills practice questions

Accounting foundations & the QBO interface

9 practice questions on accounting foundations & the QBO interface, each with the answer and why it is right. From Questiva Learning' QuickBooks® Online skills test. The topic is covered in Chapter 1 of QuickBooks® Online Step-by-Step.

Take the skills assessments

Which of these decreases the owner's equity?
1. A net loss for the year.
2. Paying off a bank loan's principal.
3. Buying a truck with cash.
4. Collecting payments on open invoices.
Answer: A) A net loss for the year.. Income and expenses reach equity through Net Income. When expenses are more than revenue, the loss lowers the owner's equity. (Chapter 1 · Account Types and Financial Reports)
A cash basis Profit and Loss counts an invoice as income:
1. On the invoice date.
2. When the customer pays it.
3. Never. Only sales receipts count on cash basis.
4. When the deposit is reconciled.
Answer: B) When the customer pays it.. On cash basis, income isn't recognized until the customer pays. QBO can run either basis from the same invoice. (Chapter 1 · Accounting Basis: Cash or Accrual?)
When an inventory item is sold on an invoice, QBO:
1. Records the income. The cost is recorded when you pay the vendor's bill.
2. Debits Inventory Asset and credits Cost of Goods Sold.
3. Credits Inventory Asset for the sale price.
4. Records the income and moves its cost to Cost of Goods Sold.
Answer: D) Records the income and moves its cost to Cost of Goods Sold.. The sale price credits income. QBO also moves the item's original cost out of Inventory Asset and into Cost of Goods Sold. (Chapter 1 · Products and Services)
To remove a check you just printed:
1. Void it.
2. Delete it.
3. Change the amount to a penny.
4. Leave it, and enter a deposit to offset it.
Answer: A) Void it.. Void a printed check so you keep a record of it and the check numbers stay in order. It's fine to delete a check you never printed. (Chapter 1 · Voiding a Transaction)
Entering transactions straight into the Checking register:
1. Is the only way to enter a handwritten check.
2. Doesn't work, because registers are read-only.
3. Is faster than using forms and just as complete.
4. Can be done, but you should use forms instead.
Answer: D) Can be done, but you should use forms instead.. You can enter new transactions from a register, but it isn't a good idea because of the limited information available there. Use forms instead. (Chapter 1 · Registers)
In QuickBooks® Online, two companies that file separate tax returns need:
1. One file, with Locations turned on.
2. Two subscriptions.
3. One subscription. Set the second company up as a sub-customer.
4. A second Chart of Accounts in the same file.
Answer: B) Two subscriptions.. Each company in QuickBooks® Online is a separate subscription. Create both with the same email address so one login reaches them. (Chapter 1 · Creating New Company Files)
A bank loan doesn't show on the Profit and Loss because:
1. The report is set to cash basis instead of accrual.
2. Liabilities go on the Balance Sheet.
3. Its Detail Type is wrong.
4. No payments have been made on it yet.
Answer: B) Liabilities go on the Balance Sheet.. Asset, liability and equity accounts are on the Balance Sheet. The Profit and Loss shows income and expenses, and a loan isn't income. (Chapter 1 · Account Types and Financial Reports)
QBO is acting up. How can you tell whether the problem is with your computer or with Intuit's website?
1. Restart the computer and try again.
2. Try it in an Incognito window.
3. Sign out of QBO and sign back in.
4. Reinstall QuickBooks® Online.
Answer: B) Try it in an Incognito window.. An Incognito window doesn't store cookies, a cache or your browsing history. If the problem happens there too, it's with QBO, and if it works, something on your computer is interfering. (Chapter 1 · Incognito Windows)
Intuit releases new QuickBooks® Online features:
1. Once a year, in a new version you install.
2. When you accept the update from the Settings gear.
3. In waves, to a few companies at a time.
4. To every company on the same day.
Answer: C) In waves, to a few companies at a time.. New features go to a few companies at a time, so two files may not show the same options. Your screens won't always match the book either. (Chapter 1 · QuickBooks® Online Updates and New Features)