QBO Skills practice questions

Customer sales: invoices, sales receipts, payments & deposits

9 practice questions on customer sales: invoices, sales receipts, payments & deposits, each with the answer and why it is right. From Questiva Learning' QuickBooks® Online skills test. The topic is covered in Chapter 4 of QuickBooks® Online Step-by-Step.

1. When a customer pays by credit card at the time of sale, enter:

   1. An Invoice, then Receive Payment.
   2. A Sales Receipt.
   3. A Bank Deposit to Checking.
   4. An Estimate, then turn it into an Invoice.

   Answer: B) A Sales Receipt.. Paying at the time of sale makes them a cash customer, even with a credit card, so use a Sales Receipt. (Chapter 4 · Cash vs. Credit Customers)

2. When you save an invoice, which accounts go up?

   1. Checking and Income.
   2. Undeposited Funds and Income.
   3. Accounts Receivable and Income.
   4. None. That happens when the customer pays.

   Answer: C) Accounts Receivable and Income.. An Invoice increases (debits) Accounts Receivable and increases (credits) Income. No money has come in yet. (Chapter 4 · Creating Invoices)

3. In the Checking register, a deposit with Services in the Account column means:

   1. It came through Payments to Deposit correctly.
   2. Nothing's wrong. Deposits always show the income account.
   3. Several sales were combined into one deposit.
   4. The income has been counted twice.

   Answer: D) The income has been counted twice.. Someone added the deposit from the Bank Transactions feed and typed in an income account, which duplicates the income. Delete it and make a Bank Deposit that gathers the existing payments. (Chapter 4 · Viewing Deposits in the Register)

4. A customer pays a newer invoice before an older one. In Receive Payment, check off:

   1. The older invoice first, then the newer one.
   2. The newer invoice only.
   3. Both, with the payment split evenly.
   4. Neither, so it's held as a credit.

   Answer: B) The newer invoice only.. Check off the invoice the customer is actually paying. Paying oldest to newest out of habit is a common error. (Chapter 4 · Handling Partial Payments)

5. When you save an Estimate, the Profit and Loss and Balance Sheet:

   1. Show more income and Accounts Receivable.
   2. Don't change.
   3. Show the income now, and A/R once it's invoiced.
   4. Show Accounts Receivable as a pending balance.

   Answer: B) Don't change.. Estimates are non-posting, so they don't show up on either report until you turn them into an Invoice. (Chapter 4 · What Are Estimates?)

6. A customer's head office pays for two locations with one check. To see sales for each, set up:

   1. One customer, with the location in each invoice's memo.
   2. Two separate customers.
   3. Sub-customers, with Bill Parent Customer on.
   4. Two customers, with a custom field for the head office.

   Answer: C) Sub-customers, with Bill Parent Customer on.. Make each location a sub-customer and turn on Bill Parent Customer. You can report on each one, and the parent can pay for them in one payment. (Chapter 4 · Sub-customers)

7. In a new company file, bring in a customer's old unpaid invoices by entering:

   1. Each invoice, with its original date.
   2. The total in the Opening Balance field.
   3. One Sales Receipt for the total.
   4. A journal entry debiting Accounts Receivable.

   Answer: A) Each invoice, with its original date.. Always leave the customer's Opening Balance field blank. Enter the open invoices with their original dates. (Chapter 4 · Setting Up Customers)

8. The right way to stop charging sales tax to a tax-exempt customer is to:

   1. Uncheck the Tax box on their sales.
   2. Uncheck This Customer Is Taxable on their record.
   3. Charge the tax, then give it back with a credit memo.
   4. Change the taxable items to non-taxable.

   Answer: B) Uncheck This Customer Is Taxable on their record.. Uncheck This Customer Is Taxable and enter their exemption details. Unchecking the Tax box on a line isn't the fix, because the Sales Tax Liability report goes by the item's tax status, not by whether you collected the tax. (Chapter 4 · Setting Up Customers)

9. A refund on a premium you coded to Insurance is deposited with the day's customer checks. Enter it:

   1. In Add Funds to This Deposit, coded to Other Income.
   2. As a customer payment.
   3. As a separate deposit.
   4. In Add Funds to This Deposit, coded to Insurance.

   Answer: D) In Add Funds to This Deposit, coded to Insurance.. Code a refund to the same account as the original expense. That reduces Insurance on your reports. (Chapter 4 · Adding Additional Funds to the Deposit)