QBO Skills practice questions

Company setup, Chart of Accounts & lists

30 practice questions on company setup, Chart of Accounts & lists, each with the answer and why it is right. From Questiva Consultants' QuickBooks Online skills test. The topic is covered in Chapter 2 of QuickBooks Online Step-by-Step.

1. Invoices are going out showing the owner's home address, which is also where Intuit sends the subscription bills — and that part should stay as it is. Where do you change the address customers see?

   1. The Company Info address in Account and Settings — it is the only address field QuickBooks Online keeps.
   2. The Legal Info address, since that is the one printed on official documents sent outside the company.
   3. The Customer Contact Info section (Customer Address) in Account and Settings.
   4. The invoice template's header block, which overrides whatever company address is on file.

   Answer: C) The Customer Contact Info section (Customer Address) in Account and Settings.. Account and Settings keeps three addresses apart: Company Info is what Intuit uses for billing, Legal Info goes on tax forms, and Customer Contact Info is what customers see on forms. Change only the customer-facing one. (Chapter 2 · Company Settings)

2. A bakery opened in March and wants reports that run January through December. First Month of Fiscal Year is set to March. What happens, and what should it be?

   1. No effect. The setting only labels the reports, so March can stay.
   2. Reports default to a March to February year, so set it to January.
   3. It only controls the income tax year; change First Month of Income Tax Year.
   4. Reports skip January and February until it is changed to December.

   Answer: B) Reports default to a March to February year, so set it to January.. First Month of Fiscal Year sets the default date range for the Profit and Loss and Balance Sheet. Set it to when the reporting year starts, usually January, not when the business opened. The tax year has its own field. (Chapter 2 · Advanced Settings)

3. A customer's $400 credit memo was meant to be held for their next project, but it has already been applied to their oldest open invoice and nobody on staff did it. What explains this, and how do you stop it?

   1. Pre-fill Forms With Previously Entered Content is on; switch that automation off so new invoices start blank.
   2. The credit was entered as a refund receipt by mistake; delete it and re-enter it as a credit memo for the customer.
   3. Automatically Apply Credits is on in the Automation settings; switch it off so credits wait to be applied by hand.
   4. QuickBooks Online always applies credits to the oldest open invoice; post a journal entry to move the $400 back again.

   Answer: C) Automatically Apply Credits is on in the Automation settings; switch it off so credits wait to be applied by hand.. The Automation settings can apply credit memos to the oldest open invoices without alerting you. Handy for a tiny business, risky where Accounts Receivable must be monitored — turn the slider off. Pre-fill only copies line items onto new forms, and a refund receipt would have returned money, not created a credit. (Chapter 2 · Advanced Settings, Automation)

4. A client has just opened a company Visa card and taken a five-year equipment loan from the bank. Which Account Types should you use when adding the two to the Chart of Accounts?

   1. Credit Card for the Visa; Long Term Liabilities for the loan.
   2. Bank for the Visa; Other Current Liabilities for the loan.
   3. Credit Card for the Visa; Fixed Assets for the loan it bought.
   4. Other Current Liabilities for the Visa; Other Current Assets for the loan.

   Answer: A) Credit Card for the Visa; Long Term Liabilities for the loan.. QBO's liability subtypes are Accounts Payable, Credit Card, Other Current Liabilities and Long Term Liabilities. A card gets its own type so charges and payments behave like a card; a five-year loan is long term. The equipment itself is a Fixed Asset — the loan is what you owe for it. (Chapter 2 · Account Types)

5. The tax preparer asks you to double-check the Detail Type on every expense account you added this year. What does Detail Type actually control?

   1. The order in which the accounts appear on the Profit and Loss report.
   2. Which users in the file are allowed to post transactions to the account.
   3. Whether the account lands on the Balance Sheet or on the Profit and Loss when reports run.
   4. How the account maps to lines on the tax return when tax software reads the file.

   Answer: D) How the account maps to lines on the tax return when tax software reads the file.. Detail Type is the tax mapping: TurboTax, ProConnect and similar tools use it to place each account on the right return line. Account Type decides which financial statement the account belongs to, and sorting is by type then name (or by number). (Chapter 2 · Adding Accounts)

6. On the Profit and Loss, Utilities shows an amount on the Utilities header line as well as amounts under its sub-accounts Gas & Electric, Telephone and Garbage. What does that tell you, and how do you keep it from recurring?

   1. The sub-accounts are double-counting into the header; collapse the report so the header line is hidden whenever the P&L runs.
   2. A transaction was coded to the Utilities header, not a sub-account; recode it, then lock the parent or add an Other sub-account.
   3. The sub-accounts carry a different Account Type from the header; edit each of them so all four accounts match exactly.
   4. Utilities needs account numbers so QuickBooks Online can tell the header apart from its three sub-accounts on reports.

   Answer: B) A transaction was coded to the Utilities header, not a sub-account; recode it, then lock the parent or add an Other sub-account.. A header account should only total its sub-accounts. An amount on the header line means a transaction was posted straight to it. Fix that transaction, then lock the parent — QBO offers this when you create a sub-account — or give every case a home with an Other sub-account. (Chapter 2 · Adding Sub-accounts)

7. A bookkeeper turned on account numbers and gave the main Checking account 7000 so it would "stand out". Now Checking sits near the bottom of the Chart of Accounts, below the expense accounts. Why, and what is the fix?

   1. With numbers on, the list sorts by number and 7000s are Other Income; give Checking a number in the 1000s asset range.
   2. Turning numbers on makes the list sort alphabetically by name instead, so rename the account so that it starts with the letter A.
   3. The Bank account type always sorts last when account numbers are enabled; turn account numbers back off.
   4. Account numbers can't be changed once assigned, so create a new Checking account with a low number and merge.

   Answer: A) With numbers on, the list sorts by number and 7000s are Other Income; give Checking a number in the 1000s asset range.. Once numbers are active the Chart of Accounts sorts numerically, so a 7000 bank account drops into the Other Income range. Follow the conventional ranges — 1000s assets, 2000s liabilities, 3000s equity, 4000s income, 5000s COGS, 6000s expenses — and leave gaps for new accounts. (Chapter 2 · Activating Account Numbers)

8. A client asks you to make the old Petty Cash bank account inactive. It still shows a $140 balance. What happens if you inactivate it now, and what should you do first?

   1. QuickBooks Online blocks it until the balance is zero, so post a journal entry moving the $140 to Opening Balance Equity, then inactivate.
   2. The $140 sweeps into Opening Balance Equity and distorts equity; first record where the cash actually went, then inactivate.
   3. The balance is simply hidden along with the account; reactivate it at any time and the $140 comes straight back.
   4. The $140 posts to Retained Earnings as a closing entry, which is the correct accounting treatment for a closed account.

   Answer: B) The $140 sweeps into Opening Balance Equity and distorts equity; first record where the cash actually went, then inactivate.. Inactivating a Balance Sheet account with a balance sweeps it into Opening Balance Equity — an equity error. Find out where the $140 went (spent, deposited, lost) and record that, then inactivate. Writing a check to Checking only works if the cash really went there. (Chapter 2 · Inactivating Accounts)

9. Two expense accounts, Accounting and Bookkeeper, both have the Detail Type Legal & Professional Fees and hold similar transactions. The owner wants one account called Accounting. What is the correct way to combine them?

   1. Delete the Bookkeeper account; QuickBooks Online moves its transactions to an uncategorized account that you can recode later.
   2. Make Bookkeeper inactive and re-enter each of its transactions under the Accounting account by hand, then reconcile.
   3. Post a journal entry moving the Bookkeeper balance into Accounting, then make the Bookkeeper account inactive.
   4. Edit Bookkeeper so its name, type, detail type and parent match Accounting exactly, then save and confirm the merge.

   Answer: D) Edit Bookkeeper so its name, type, detail type and parent match Accounting exactly, then save and confirm the merge.. Merging is done by renaming the account you don't want to exactly match the one you keep — name, type, detail type and parent; QBO recognizes the duplicate and offers to merge, re-pointing every transaction. It cannot be undone, so consider a backup first. A journal entry moves a balance but leaves the history split. (Chapter 2 · Merging Accounts)

10. A Profit and Loss report shows several transactions under "Purchases (deleted)". The owner is alarmed that data has been lost. What is actually going on?

    1. The transactions were deleted and are showing from the Audit Log; they no longer affect the report's totals.
    2. Someone deleted the account and QuickBooks Online created a placeholder; the amounts will have to be re-entered from source documents.
    3. The account was inactivated or merged; the transactions are intact and still report, and an inactive account can be reactivated.
    4. The report is on cash basis; switching it to accrual basis removes the (deleted) label from the account name.

    Answer: C) The account was inactivated or merged; the transactions are intact and still report, and an inactive account can be reactivated.. (deleted) after a name means the list item was made inactive or merged — history is preserved and still reports. An inactivated account can be made active again; a merged one cannot be un-merged. Nothing was lost. (Chapter 2 · Seeing Inactive Accounts)

11. You are setting up a brand-new QuickBooks Online file for a retailer leaving a point-of-sale system that holds 400 customers, already exported to a spreadsheet. What is the efficient way to get them in?

    1. Type each customer as they appear on their first invoice; QuickBooks Online builds the list as you go.
    2. Import works only from a QuickBooks Desktop company file, so the 400 customers must be keyed in by hand.
    3. Upload the spreadsheet through the Bank Transactions import, which accepts any CSV file with a Name column.
    4. Use Import Data: download the sample file as a template, upload the spreadsheet, map its columns, then import.

    Answer: D) Use Import Data: download the sample file as a template, upload the spreadsheet, map its columns, then import.. Import Data brings in Customers, Vendors, Chart of Accounts, Products and Services and historic Invoices from Excel or CSV. Use the sample file for the layout, map the headings, check the preview for errors (fix the spreadsheet, not the preview), then import. (Chapter 2 · Importing Lists)

12. A landscaper's Chart of Accounts lists income as Landscaping Services → Job Materials → Decks and Patios, Fountains, Plants, Sprinklers, plus Labor → Installation and Maintenance. The Profit and Loss runs to twenty income lines. How would you tighten it without losing the detail the owner wants?

    1. Keep Job Materials and Labor as income accounts; make each thing sold a product or service pointed at them, and report by item.
    2. Merge everything into a single Sales income account; the detail the owner wants belongs in the memo field of each transaction instead.
    3. Keep all twenty income accounts but give each one an account number so the Profit and Loss is easier to read.
    4. Move the sub-accounts to Classes so they drop off the Profit and Loss but stay available in the file for reporting.

    Answer: A) Keep Job Materials and Labor as income accounts; make each thing sold a product or service pointed at them, and report by item.. Materials versus Labor is a useful distinction on the P&L; the individual things sold are better tracked as Products and Services, which still carry the detail into sales reports while the Chart of Accounts stays tight. One Sales account throws the detail away; numbers and classes don't shrink the list. (Chapter 2 · Removing Accounts from the Chart of Accounts)

13. Marisol's print shop has run on QuickBooks Desktop for eleven years. Her accountant confirms the Desktop reports tie to the last three tax returns, the customer and product lists are current, and the file is not unusually large. She wants to move to QuickBooks Online. What do you recommend?

    1. Create the QuickBooks Online subscription, import the Desktop file, then review the settings and Chart of Accounts and fine-tune.
    2. Start over from scratch, because importing carries eleven years of Desktop history into a file where it can no longer be corrected.
    3. Import the Desktop file first and buy the QuickBooks Online subscription afterward, so the import decides which plan she needs.
    4. Run both systems side by side for a year, entering every transaction twice so the Desktop reports can verify QuickBooks Online.

    Answer: A) Create the QuickBooks Online subscription, import the Desktop file, then review the settings and Chart of Accounts and fine-tune.. Importing suits a file whose reports are accurate, whose lists are current and that is not overly large — exactly Marisol's. Create the subscription first, import, then confirm the settings and Chart of Accounts and fine-tune. Starting fresh is the better call when the reports are wrong or the lists are full of names nobody uses. (Chapter 2 · Starting a New QuickBooks Online Company)

14. A staffing agency bills clients on net-30 terms and wants revenue on the Profit and Loss in the month the work was performed. Which Accounting Method fits, and where is it set?

    1. Cash, in Account and Settings > Advanced, since QuickBooks Online recommends it for service companies.
    2. Accrual, in the Accounting section of Account and Settings > Advanced.
    3. Accrual, but only by choosing it on each report. The file has no method to set.
    4. Cash, in Account and Settings > Sales, so revenue lands when payment arrives.

    Answer: B) Accrual, in the Accounting section of Account and Settings > Advanced.. Accrual records revenue when the work is invoiced. The file's default sits in Advanced > Accounting, beside First Month of Fiscal Year and Close the Books. Cash basis counts revenue when the money arrives. Any report can be run on either basis. (Chapter 2 · Advanced Settings)

15. A dental practice bills patients, not customers, and the office manager asks whether QuickBooks Online can use that word throughout the file instead. What do you tell her?

    1. QuickBooks Online terminology is fixed, but a custom field named Patient can be added to the sales forms instead.
    2. Rename the Customers list from the Sales screen; the rest of the file follows whatever that list is called.
    3. Change the Customer Label in Account and Settings > Advanced, which switches the term across the whole file.
    4. Only the invoice template can be relabeled, so patients see the word but the file still says Customers inside.

    Answer: C) Change the Customer Label in Account and Settings > Advanced, which switches the term across the whole file.. The Customer Label in Advanced settings offers Clients, Donors, Members, Patients and Tenants, and the choice changes the terminology across the entire QuickBooks Online file, not just what prints on a form. The list itself has no rename, and a custom field would add a data-entry box rather than relabel anything. (Chapter 2 · Advanced Settings)

16. Three weeks after last year's tax return was filed, you find that a staff member edited a vendor bill dated in the prior year, quietly changing the expenses the return was built on. Which Advanced setting is meant to prevent that?

    1. Automatically Apply Bill Payments, which locks a bill's amount once a payment has been applied against it.
    2. Close the Books, which prevents changes to historic data once a fiscal period has been finalized.
    3. Sign Me Out If Inactive For, which ends idle sessions so an unattended file cannot be edited by someone else.
    4. Pre-Fill Forms With Previously Entered Content, which reuses prior entries so staff never retype an old one.

    Answer: B) Close the Books, which prevents changes to historic data once a fiscal period has been finalized.. Closing the books prevents changes to historic data, which is why the slider is normally set at the end of a fiscal period rather than when the file is built. The sign-out timer is a session convenience, pre-fill copies line items onto new forms, and the bill-payment automation applies payments to the oldest bills. (Chapter 2 · Advanced Settings)

17. A construction company wants each line of a vendor bill split between its two lines of business, Residential and Commercial, and separately wants every transaction tagged to one of its three branch offices. How should the Categories section of Advanced settings be configured?

    1. Turn on Track Locations only; several locations can ride on one transaction, so the lines of business fit there too.
    2. Turn on Track Classes only, putting the line of business in the class field and the branch in a second class on the row.
    3. Leave both off and build sub-accounts under every expense account for Residential, Commercial and the three offices.
    4. Turn on Track Classes with classes assigned one to each row, and turn on Track Locations for the branch offices.

    Answer: D) Turn on Track Classes with classes assigned one to each row, and turn on Track Locations for the branch offices.. Classes can be assigned one to each row, which is what splitting a bill line by line between two lines of business requires; only one location can be assigned per transaction, which fits a branch office exactly. A transaction cannot carry two locations, nor two classes on one row, and per-office sub-accounts would bloat the Chart of Accounts. (Chapter 2 · Advanced Settings)

18. Six weeks after class tracking was turned on, the Profit and Loss by Class report shows a large Not Specified column, and staff admit they keep skipping the field. Which change addresses it going forward?

    1. Turn Track Classes off and on again so QuickBooks Online re-applies classes to the transactions already entered.
    2. Check Warn Me When A Transaction Isn't Assigned A Class in the Categories section of Advanced settings.
    3. Switch Assign Classes to one to each row, which makes the class field mandatory on every line of every form.
    4. Add a class called Not Specified to the list so the transactions missing a class have somewhere to land.

    Answer: B) Check Warn Me When A Transaction Isn't Assigned A Class in the Categories section of Advanced settings.. The warning checkbox sits beside Track Classes and prompts whenever a class is missing — classes are only useful when they are used consistently. Toggling the feature classifies nothing retroactively, the row-versus-transaction choice controls where the field appears rather than whether it is enforced, and a catch-all class just renames the gap. (Chapter 2 · Advanced Settings)

19. A design studio bills a different scope on every job, yet as soon as staff choose a repeat customer on a new invoice, the form fills with the line items from that customer's last invoice, which they delete every time. What is happening, and what should you do?

    1. Automatically Invoice Unbilled Activity is on; turn it off so billable time and costs stop flowing onto new invoices.
    2. The customer has a recurring invoice template scheduled; remove it from the recurring transactions list.
    3. Pre-Fill Forms With Previously Entered Content is on; turn the slider off so a new form for a payee opens empty.
    4. Automatically Apply Credits is on; turn it off so QuickBooks Online stops copying prior transactions onto new ones.

    Answer: C) Pre-Fill Forms With Previously Entered Content is on; turn the slider off so a new form for a payee opens empty.. Pre-fill copies the most recent transaction's line items onto a new invoice or bill as soon as you name the payee. It saves time where the work repeats and costs time where it does not, so the slider comes off here. Unbilled activity automation pulls billable time and costs, a recurring template creates whole transactions on a schedule, and credit automation applies credit memos. (Chapter 2 · Advanced Settings, Automation)

20. A bookkeeper works with QuickBooks Online open in three browser tabs. One tab times out and asks her to sign in, even though she was active in another tab the whole time. What is the practical response?

    1. Sign out of every tab and back in once, then set the Customer Label so the session follows her user profile.
    2. Close all but one tab — QuickBooks Online supports a single tab per sign-in and the timer cannot be adjusted.
    3. Set Close the Books to Off in Advanced settings, which is what locks a tab that has been left alone too long.
    4. Refresh the timed-out tab, which usually restores it, and raise Sign Me Out If Inactive For to 3 Hours.

    Answer: D) Refresh the timed-out tab, which usually restores it, and raise Sign Me Out If Inactive For to 3 Hours.. A tab left untouched can time out on its own even while another is in use; refreshing it normally returns that tab to where it was without a fresh sign-in. Sign Me Out If Inactive For lives in Other Preferences under Advanced settings and goes up to 3 hours. Closing the books and the Customer Label are unrelated. (Chapter 2 · Advanced Settings)

21. A client on QuickBooks Online Plus wants separate income and expense accounts for 90 rental units. What do you flag before building the Chart of Accounts?

    1. Plus allows 250 categories, and 180 unit accounts crowd that. Only Advanced has no cap.
    2. Plus allows 250 categories, but inactivating accounts always frees a slot.
    3. No plan limits accounts. Sub-accounts can only nest five levels deep.
    4. Unit accounts can be sub-accounts, which do not count toward the category total.

    Answer: A) Plus allows 250 categories, and 180 unit accounts crowd that. Only Advanced has no cap.. Simple Start through Plus cap the Chart of Accounts at 250 categories, and only Advanced is unlimited. Sub-accounts count too, and inactivating an account does not always free a slot. (Chapter 2 · Setting Up the Chart of Accounts)

22. A staff accountant clicked the Name header on the Chart of Accounts to find an account quickly, and now the whole list reads A to Z with bank accounts scattered among the expenses. Account numbers are not in use. How does she get the list back?

    1. Click the Name header a second time; reversing the sort from Z to A restores the account type grouping.
    2. Nothing is wrong — with account numbers off, alphabetical by name is the only order the list can display.
    3. Click the Account Type header, which returns the list to its original order, grouped by type then by name.
    4. Turn on Enable Account Numbers in Advanced settings, the only way to make the list group itself by account type.

    Answer: C) Click the Account Type header, which returns the list to its original order, grouped by type then by name.. The Chart of Accounts can be sorted by any column header. With numbers off, clicking Name sorts alphabetically and clicking it again reverses to Z–A; clicking the Account Type header restores the default order, type first and then name within each type. Account numbers switch the sort to numeric — they are not needed to group by type. (Chapter 2 · Sorting the Account List)

23. A café owner finds the expense account Supplies too vague — everything from napkins to printer paper lands in it. She wants it renamed Office Supplies with the Detail Type Office/General Administrative Expenses. What do you do?

    1. Create a new Office Supplies account and inactivate Supplies, since an account's name cannot be edited once it is used.
    2. Edit the Supplies account, change the Account Name and Detail Type, and save — the history follows the account.
    3. Merge Supplies into Office Expenses first, then rename the surviving account so the two histories stay together.
    4. Leave Supplies alone and add Office Supplies as a sub-account beneath it, so the old name still totals both.

    Answer: B) Edit the Supplies account, change the Account Name and Detail Type, and save — the history follows the account.. Accounts can be renamed and re-typed in place with Edit, and the transactions already posted stay attached, so no history is split. Renaming a category to match the words the business uses is encouraged; what you avoid is altering the original purpose of the account. A merge or a sub-account changes a structure she never asked you to change. (Chapter 2 · Modifying Accounts)

24. A bookkeeper wants a Mileage sub-account underneath the Fixed Asset account Vehicles, so that the fuel the trucks burn sits next to the trucks themselves in the Chart of Accounts. What should you tell her?

    1. Create it — Mileage inherits Fixed Asset from Vehicles, and fuel posted there still lands on the Profit and Loss.
    2. Create it, but set the sub-account's own Account Type to Expenses so the fuel is reported as an operating cost.
    3. Create it and then lock the Vehicles parent, which keeps the two account types from conflicting on reports.
    4. Do not — a sub-account has to share its parent's Account Type, so Mileage belongs under an expense parent.

    Answer: D) Do not — a sub-account has to share its parent's Account Type, so Mileage belongs under an expense parent.. The Account Type of a sub-account and its main account must be the same, and a new sub-account inherits the parent's type and detail type as it is created. Fuel is an operating expense, so its parent belongs in Expenses; a Fixed Asset sub-account would sit on the Balance Sheet. Locking a header account is good practice, but it does not reconcile a mismatched type. (Chapter 2 · Adding Sub-accounts)

25. A client asks you to inactivate three expense accounts he says nobody has ever used. Before touching them, what is the quickest way to confirm from the Chart of Accounts that each one really is unused?

    1. Read the QuickBooks Balance column on the Chart of Accounts; an expense account showing nothing there was never used.
    2. Run the Account List report from the Run Report button; it shows how many transactions have been posted to each account.
    3. Click Run Report on each account's row and set the report period to All Dates to see everything ever posted to it.
    4. Inactivate all three and watch for the (deleted) tag, which appears only on accounts that carry transaction history.

    Answer: C) Click Run Report on each account's row and set the report period to All Dates to see everything ever posted to it.. The Run Report action link on the account's row opens a QuickReport; widening the period to All Dates shows whether anything was ever posted. The Account List describes the accounts themselves, not their transaction counts, expense accounts carry no balance column to read, and inactivating first skips the very due diligence you were trying to do. (Chapter 2 · Inactivating Accounts)

26. A file has an Other Current Liability account called Customer Deposits and an Income account called Deposits Received, and the owner asks you to combine them. You edit the income account and type the liability account's name into Account Name, but no merge prompt ever appears. Why not?

    1. Accounts merge only when their Account Type and Detail Type match; these two differ, so the amounts must be recategorized.
    2. The merge prompt appears only for expense accounts; balance sheet accounts are combined with a journal entry instead.
    3. One of the two still carries a balance, and the merge is offered once both sides of the pair have been brought to zero.
    4. The names must match on the Chart of Accounts and on every transaction, so each entry has to be edited first.

    Answer: A) Accounts merge only when their Account Type and Detail Type match; these two differ, so the amounts must be recategorized.. You can only merge accounts that share an Account Type and a Detail Type, so a liability and an income account can never be combined — which is why the prompt never appears. Deposits held for a customer are a liability until the work is earned, so the fix is to recategorize the misposted transactions rather than to merge. (Chapter 2 · Merging Accounts)

27. A client insists the Chart of Accounts once had a Land account, but you scroll the list and cannot see it. The list is showing 50 rows at a time and the file has well over a hundred accounts. What is the fastest way to settle whether Land is still in the file?

    1. Click the Grid gear above the list, select Include Inactive, and set Page Size to 300 so every account is on one screen.
    2. Run the Account List report, which is the only view in QuickBooks Online that includes accounts someone has inactivated.
    3. Search the list by name — inactivating removes an account from the file, so an empty result confirms Land is gone for good.
    4. Sort the list by the Account Type header; inactive accounts are grouped at the end of the list under a heading of their own.

    Answer: A) Click the Grid gear above the list, select Include Inactive, and set Page Size to 300 so every account is on one screen.. The Grid gear above the Chart of Accounts holds the list's own settings: Include Inactive reveals the accounts tagged (deleted), Page Size raises the rows shown to 300, and columns can be shown or hidden there too. Inactivating hides an account rather than deleting it, so Land is still in the file — and the Make Active link on its row restores it. (Chapter 2 · Seeing Inactive Accounts)

28. You are setting up a brand-new file and want to bring in the client's Chart of Accounts from a spreadsheet before any transactions are entered. Where do you start, and what else can that same tool bring in?

    1. Settings gear > Import Data, which also imports Customers, Vendors, Products and Services, and historic Invoices.
    2. The New Account button on the Chart of Accounts, which accepts a pasted list of accounts while the file is empty.
    3. Left Navigation Bar > Accounting > Chart of Accounts > Run Report, then upload the spreadsheet from the report screen.
    4. Settings gear > Account and Settings > Advanced, where Enable Account Numbers must be switched on before any import.

    Answer: A) Settings gear > Import Data, which also imports Customers, Vendors, Products and Services, and historic Invoices.. Import Data under the Settings gear handles Customers, Vendors, a Chart of Accounts, Products and Services and historic Invoices, alongside a separate bank transactions feed. The Chart of Accounts screen prints and reports on the list rather than importing it, and account numbers are a display preference, not a prerequisite for importing. (Chapter 2 · Importing Lists)

29. You import 400 customers from a spreadsheet. Two columns, a legacy account code and a sales-rep initial, have no place in QuickBooks. What do you do on the mapping screen?

    1. Map them to unused fields so nothing is lost. Every column must be mapped.
    2. Delete both columns first, since an unmapped column stops the import.
    3. Leave No Match for both. Name is the only required field.
    4. Import as is and fix the misplaced values later, one record at a time.

    Answer: C) Leave No Match for both. Name is the only required field.. On the mapping screen you match your headings to the customer fields QuickBooks Online stores. Name is the only required field, and a column you don't use is left as No Match. Nothing has to be removed from the spreadsheet. (Chapter 2 · Importing Lists)

30. On the import preview screen every phone number reads "Phone: 925-555-1111" and the Street field also contains the city. The import has not run yet. What is the right move?

    1. Import anyway; QuickBooks Online strips label text and splits the city out of the street line as it writes the records.
    2. Correct the values in the preview grid, which is editable, then click Import so the clean data is what gets written.
    3. Import anyway and run a second import of the corrected file over the top so the newer records replace the earlier ones.
    4. Click Back, fix the phone and street columns in the original spreadsheet, and start the import over from that file.

    Answer: D) Click Back, fix the phone and street columns in the original spreadsheet, and start the import over from that file.. The preview exists to catch exactly this. Errors get fixed in the source spreadsheet: click Back, repair the file, browse to it again and re-run the import from scratch. QuickBooks Online will not strip label text or parse a street field for you, the preview is not an editing grid, and a second pass over the top only adds duplicate records to clean up. (Chapter 2 · Importing Lists)