At the financial period end which steps should be taken to account for these credit balances within accounts receivable assuming they are operating on an accrual basis

• You can assign multiple classes to a transaction.

• Class labels can be changed to suit a particular client.

• Catering

• Architect

Question 2

Which 2 statements are true for Projects in QuickBooks Online?

Clients get one-click access to Project Profitability, which does not exist in the Report Center. yes

Projects are available in all 3 versions of QuickBooks Online. no

For how many hierarchical levels deep can you have sub-customers (excluding the parent)?

• 10

You can fave an unlimited number of subcustomers but you can only create sub customers nestled to 5 levels deep. A subcutomer can only have 1 parent.

Transactions in which category can be batch-reclassified by a tool in QuickBooks Online Accountant?

• Products and Services

Question 4

• Customers

Question 5

Which one method of monitoring income and expenditure would be most appropriate, especially if the client needs to re-charge expenses for costs incurred to maintain properties?

• Classes

Question 6

Location tracking is used to categorize a different location to each row in an invoice.

Which 3 statements regarding sub-accounts are true?(Select all that apply)

• There is no limit to the levels of sub-accounts that can be created.

• Best practice is to set up a sub-account for each subcontractor.

You want to customize a P&L report to track the profitability of products and services for a specific job or jobs.

What are 2 ways you can customize the P&L report to do this?(Select all that apply)

• Display columns by Customers.

What lets you set up a unique address, phone number, and email address for invoices that are different from the default in Account and Settings?

• Projects

• Identify when and how to purchase, sell, and adjust inventory

Question 5

• QuickBooks Online closes purchase orders, even when not fully received.

• You can add multiple purchase orders to one purchase transaction. yes

• The Products and Services list can be filtered by product category. yes

• An existing category or adding a new product category can be specified when adding a product/service item.

• Run a balance sheet, and select Inventory on hand to see the transaction history.

• Open the customer invoice, and select the transaction journal.

• March 15 current year: Linsay bought 80 bags of mulch for $640.00 =640/80

• April 20 current year: Linsay bought 75 bags of mulch for $618.75

What is the effect on the General Ledger when Linsay saves the new birdbath item?

• Debit Inventory Asset for $23.82, credit Inventory Shortage for $23.82

• Debit Opening Balance Equity for $595.50, credit Inventory for $595.50

Which 3 actions are required to track inventory in QuickBooks?(Select all that apply)

• Subscribe to QuickBooks Online Plus.

• Check the setting to Track inventory quantity on hand.

What is the effect on the General Ledger when this is recorded on a Sales Receipt?

• Debit COGS $30; credit inventory $30

• Debit COGS $30; credit inventory $30; debit bank account $50; credit income $50

Consider the following:

• March 15 current year: Linsay bought 80 bags of mulch for $640.00==

What is the debit entry to cost of goods sold when Lindsay records the sale to Woody’s Weeds-Be-Gone?

• $1,015.12

• $1,031.25

Question 5 ok

A client has a handful of inventory items that are close to the use-by date. They have decided that they will send these products to customers free of charge, so they can use them as samples.

Which method of adjusting the inventory should be used to ensure this is recorded against the customer?

Question 6 ok

Which 3 statements are true about revaluing inventory?(Select all that apply)

• An inventory valuation adjustment can be created.

NON STADARD TRANS

• Recognize when and how to utilize zero-dollar transactions

The business is required to report financial information to the lender quarterly. The annual depreciation equates to $24,000 each year.

In order for quarterly figures to show consistency, which 2 methods would work?(Select all that apply)

• Create a scheduled journal entry, selecting “monthly” from the interval options, and then every 3 months. $6,000 on each journal entry.

Question 4

• Delayed charge

• Receive payments

• Use a Delayed Charge and offsetting Delayed Credit.

• Put in a negative expense line without assigning a Customer.

• Group by Vendor/Supplier

• Sort by Account

• How long will the retainers be on the books?

• Does your customer give receipts?

Which steps need to be taken in order to send the invoices out to their customers?

• Go to “lists” and select “unsent invoices.” From the left-hand side, check boxes to select the invoices to be sent, and use “batch send.”

• Select “all sales” and filter by “send later.” Check boxes to select invoices to send using “batch actions.”

(Select all that apply)

Deposits

Question 3 ok

Review Paula’s Plants and Flowers case study and answer the following question.

When setting up the Retail Sales—Taxable Product/Service item’s “Income Account” field, which account should be selected?

• Cost of Goods Sold

Question 4

At the financial period end which steps should be taken to account for these credit balances within Accounts Receivable assuming they are operating on an accrual basis

• Create a journal entry to debit Accounts Receivable, and credit unearned income within the profit & loss. Once saved, the journal entry should be reversed at the beginning of the next period.

Question 5

What are 3 reasons to create a zero-dollar expense/check?(Select all that apply)

• To allocate the value of owners’ time to jobs.

Question 6

Based on the training, what is one of the first steps that needs to be taken?

• Create an invoice using a bounced check and bounced check fee item.

• Create a credit memo for the amount of the invoice and bounced check fee.

What is the first step that needs to be taken?

• Add a separate service item for each line item on the Z-out report.

• Set up Petty Cash.

What are 2 ways to record this change?(Select all that apply)

• Open the original estimate and add a line.

• Change the status of the original estimate to Amended.

Which 2 situations might cause this long report?(Select all that apply)

• The Customer Deposit account was changed to an asset account.

• The report has been run on a cash basis.

Upon review, what are the findings as of the date of the deposit? (Select two)(Select all that apply)

• COGS is overstated.

• Accounts Payable clearly reflects the prepayment.

How should this account be set up?

• Set up an Asset account called Prepayments.

• Set up an Expense account called Prepayments.

What are 2 possible causes?(Select all that apply)

• The sub-customers have been set up as “Bill this customer.”

• An incorrect date was entered on the expenses that were recorded.

Estimate

Sales Receipt

Which 4 statements are true about time tracking and billable time in QuickBooks Online?(Select all that apply)

• The starting day of the working week can be changed.

• A maximum of 24 hours per day can be tracked for an individual.

Question 4

Read the Sadie's Car Parts scenario and answer the following question.

What is the total amount of the billable charges for Mark's Mustang Supply Store?

Question 5

Which types of entries can be made in QuickBooks Online that are classed as non-posting?(Select all that apply)

• Delayed Charges

Question 6

QuickBooks Online is able to keep track of charges you wish to invoice at a later date.

Billable Time

Delayed Charges

Which step should be taken to fix this problem?

• Create a journal entry to debit the bank account and credit the Unrealized Loss and Gain account.

• Create a Vendor Bill, and offset a payment to bring the account to zero.

Which 3 transactions can lead to a gain or loss on foreign exchange when dealing with foreign currency transactions?(Select all that apply)

• Enter a bill.

• Enter an invoice.

Which 3 statements regarding multi-currency are correct?(Select all that apply)

• You can set up loans in a foreign currency.

• QuickBooks Online will set up Accounts Receivable when the first invoice is issued in that currency.

As part of the end-of-year process, your client wants to see the balance of their Accounts Payable euro account, using the exchange rate as of the last day of the financial year.

What is the best way to create this transaction?

• Create a journal entry, and update the Accounts Payable and Unrealized Currency Loss or Gain accounts.

Which 2 statements are true regarding the multicurrency function in QuickBooks Online?(Select all that apply)

• You can invent a currency belonging to an imaginary country for practice purposes.

• You can view a list of a foreign currency’s historical exchange rates used for review.

Which 2 statements are true about home currency adjustments?(Select all that apply)

• Home currency adjustments affect credit-card accounts as an unrealized gain or loss.

• Home currency adjustments always affect Accounts Receivable as an unrealized gain.

• Recognize best practice for troubleshooting problems with bank feeds

• Recognize when and why a reconciliation’s beginning balance may need troubleshooting

• Match transactions already entered.

• Match amounts to several invoices or bills.

What is the quickest way to work out why there is a difference?

• Uncheck all of the transactions marked as reconciled, and then manually re-check them, comparing against the bank statement.

Question 2

A non-profit organization needs to split utilities among various programs, based on an agreed-upon ratio. The utility payments are set up to be automatically paid out of the bank account.

How should the automatic allocation be created?

Question 1ok

Esther’s Bar and Grill wrote a check to their food supplier on March 17 of the current year. The check cleared on September 1. Bank feeds does not find a match.

Why might this happen?

Question 2 ok

Creating Bank Rules can make dealing with the bank feeds easier.

Which 3 transaction types are able to be automated using Bank Rules?(Select all that apply)

• Deposit

Question 3 ok

Where can you access the Reconciliation Discrepancy report?

Question 4 ok

Which 2 things happen when you manually match multiple invoices to one deposit in bank feeds?(Select all that apply)

• QuickBooks Online creates one deposit in the bank register.

Which statement is true about importing/exporting Bank Rules?

• The Bank Rules will export as an Excel file.

• The Quick Create icon is selected to import rules.

What should be done to resolve this issue?

• Open Check 123 transaction and unreconcile.

• Undo the previous month’s reconciliation and re-reconcile.

Which steps should be taken to correct this?

• Find the transaction within the audit log, reinstate the transaction, and mark it as cleared from within the bank register.

• Look at the history of the deleted transaction, enter a new transaction, and mark as reconciled within the bank register.

• Recall methods for customizing business reports in QuickBooks Online

• Identify the steps to create scheduled reports

• No one has made any changes since the closing date was set.

• You do not have permission to view the report.

What needs to be done to tidy up this report?

• Use the mouse to drag the columns until you no longer see the data. Use the gear icon to add the additional columns you need. Re-order the columns by entering a number against each, starting at 1 being furthest left. Modify the header and save the report.

• Select the report gear icon and remove checkmarks from the columns not required. Select “show more” to add any columns you would like to include. Select “reorder columns” and use the drag-and-drop option. Modify the header and save the report.

• An email schedule can be edited to auto-send management reports.

• Management reports can be exported into .PDF or Word documents.

• A budget can be used as an estimate to get projected revenues as well as costs.

• A budget can be used to estimate income and expenses to help with cash flow.

If you set up an email schedule for a report, which frequency options are available?

• Daily, Weekly, Monthly, Annually

When creating budgets in QuickBooks Online, which 2 are possible?(Select all that apply)

• Budgets can be imported from Excel or .CSV

Question 1 ok

A client wants to see a current Profit & Loss report compared to the prior year, showing the percentage difference, as part of their Management Report package.

How can this be set up?

Question 2 ok

A client has created a budget based on their customer, Ash’s Ashtrays. They want a report that shows actuals versus budget for this customer by quarter for the whole year.

Show grid Accounts vs. Quarters

Filter for Ash’s Ashtrays customers

Which three Customizations apply? (Select three)(Select all that apply)

• Sorted by number

• Group by customer

Which 2 statements are correct regarding Budgets in QuickBooks Online?(Select all that apply)

• Budgets are available in all versions of QuickBooks Online. no

• Budgets can be created in Excel and imported into QuickBooks Online.

A client asked for a report showing all of the customers owing them money at the end of a financial quarter, which was two months ago. Since then, some of the customers have paid.

Which customization method needs to be utilized in order to obtain all open receivables as of the last day of the quarter?

Question 5 ok

Which 2 statements are correct when creating scheduled reports?(Select all that apply)

• Transactions in bank feeds will automatically update before sending the scheduled report.

QuickBooks Online contains four key reporting types. What are they?

Balance Sheet, Profit and Loss, Customer, Supplier

Which 2 statements about management reports are true?(Select all that apply)

• A management report can be created from scratch.

• Reports can be reordered by dragging the nine grid.

How can a product or service be determined as profitable?

• Run an Item Profitability report.

• Run Transaction Detail by Account and filter for Product/Service = Specified.

Which 2 statements are true about preparing 1099s?

(Select all that apply)

• Change the URL to add “managebillableexpense” after ...app/.

• Open the Unbilled Charges report, select each transaction, and take off billable status.

• Go back to the original invoice and delete it.

• Go back to the original invoice, and enter a bad-debt item as a negative for the balance due.

What might be causing the profits to be overstated?

• Deposits have been coded directly to income accounts instead of Sales Receipts.

• Sales Receipts have been entered instead of using “Receive Payments.”

• Select total of Inventory Asset account from the Balance Sheet.

• Open up the Troubleshoot Inventory tool from the Accountant Toolbox.

Which 3 steps are part of filling out the 1099 Wizard?(Select all that apply)

• Identify which accounts should be used when preparing 1099s.

• Make sure all 1099 transactions have been paid by credit card.

• Customers might be overcharged, making them unhappy.

• Billable time will not post to payroll correctly, leading to payroll being overstated.

What is the likely cause?

• This reflects a bad-debt expense.

1099s are available in QuickBooks Online with a payroll subscription added.

Check “Track payments for 1099” on a Vendor’s Details if you want to issue them 1099s.

What are 2 methods of remedying this without undoing the bank reconciliation?(Select all that apply)

• Create a Receive Payment, go back to the incorrectly recorded deposit and add the payment received, delete the line posting to income.

• Create a Credit Memo against a product/service item that posts to the bank account; apply it against the outstanding invoice(s).

What 2 steps should be taken to investigate a discrepancy between the inventory asset balance on the balance sheet and the inventory valuation summary as of the same date?(Select all that apply)

• Select total of inventory asset account from the balance sheet.

• Review the Inventory Valuation Detail report for transactions not using products/services.

What is considered the best-practice method for fixing this type of error?

• Make a journal entry to debit sales and credit undeposited funds for each month.

• Edit each deposit and check the appropriate payment(s), then delete the sales entry. Make sure the total deposit amount does not change. Repeat until all payments have been assigned to the appropriate deposit.

When using the Direct method of writing off bad debt for an accrual-based client, which 3 steps are part of the process?(Select all that apply)

• Create a liability account for bad debt.

• Create a service or non-inventory item for bad debt.

What is best practice to remedy this with a minimum amount of work?

• Create a journal entry for each vendor.

• Create vendor credits for each open bill.

What can be reclassified using the Reclassify Transactions Tool?

• Expense accounts

• Payroll transactions

When reviewing a client’s company at period end, what does the Manage Billable Expense tool allow?

• Deletes any delayed charges that are to be included on the next customer invoice.

• Removes the billable nature from any outstanding unbilled expenses created up to a specified date.

What is the most efficient way to get all of the transactions for both company records to appear under the correct name?

• Use the Accountant Tools to “Reclassify.” Select Customers as an option, select all records to be changed.

• From the customer list, select the check box on the left. Select “Batch Actions” and use the option to “Merge Records.” no

From which 2 access points can an Accountant user close the books?(Select all that apply)

• Left Navigation Bar > Accounting > Advanced

• Gear > Account and Settings > Company > Accounting

• The balance sheet will report incorrect figures.

• The profit & loss will report incorrect figures.

Which customization should be done to the vendor contact list to help identification?

• Group by phone; add column for zip; sort by zip.

Question 1

A client is based in Tennessee (an “origin-based state”). Their office is in Knoxville, and they are shipping to a customer in Pigeon Forge.

Which sales tax rate should be applied?

Question 2

A client calls in a panic. They realize that they did not file July’s sales tax return and it is now October.

How should they be advised to adjust for penalties and interest, and post to their respective accounts, using Automated Sales Tax?

Question 3

Which 2 statements are correct regarding adjusting sales tax on a return?(Select all that apply)

• Rounding up should post to an income account.

Question 4

Dan’s Digital Services provides computer services to which special sales tax rules apply. The company set up a taxable product/service item for sale, but they neglected to fill in the Sales Tax Category and What You Sell fields.

How will Automated Sales Tax calculate sales tax on invoices for this product?

Question 5

Kaydee’s Kites sold a big order of kites to a taxable customer, Circus Town. They should have charged sales tax, but did not do so. Circus Town already paid that invoice in full.

Which steps should you recommend to charge Circus Town only the sales tax on a follow-up invoice?

Question 1

Which type of transactions should be created to enter opening balances?

• Sales receipts for Credit balances, and Expense transactions for Debit balances.

With regards to importing data using the tools from within QuickBooks Online, which statement is correct?

• Records can be in TXT format.

• Records can be in an Excel or CSV format.

Select to view their specifications.

Which 4 accounts would be included in the journal entry for recording beginning balances?(Select all that apply)

• Checking

• Accounts Receivable

• Cost of goods sold

Which 3 steps are considered best practice prior to using the QuickBooks Desktop Pro/Premier Conversion tool?(Select all that apply)

• Use the Verify Data tool in QuickBooks Desktop.

• Verify total transaction count is less than 350,000.

When using the QuickBooks Desktop Conversion tool, which 3 items will be excluded from converting?(Select all that apply)

• P&L budgets

• User permissions

Which 2 statements are true about purging data?(Select all that apply)

• You can purge data within the first 60 days of the QuickBooks Online subscription.

• Purging deletes transactions, but leaves the lists.