Name:__________________________ Date:___________

50-Question QuickBooks Online Test

1- What is "Undeposited funds"?

(A): These are checks that bounced and the bank did not accept after it was deposited
(B): These are all the open invoices that have not been paid by your clients
(C): These are all the payments received but were not marked as deposited in the bank via QuickBooks
(D): These are the funds you have deposited in the bank, but the bank as not cleared yet as available for
use
(E): These are all you outstanding checks written that your vendors have not deposited
(F): All of the Above
(G): None of the Above

2- What is a Sub-Account and what is it used for?

(A): It's an account of less value as non-subaccounts and it shows which accounts have the most value
(B): It's used for savings accounts and non-subaccounts are used for checking accounts
(C): It is an account within another account (or belonging to a parent account) used to represent higher
level of detail of a parent account. Sub-Accounts can be collapsed or expanded in reports.
(D): It is a non-posting account used to input all non-posting transactions
(E): It is the substitute account for another account that reached maximum balance
(F): Both A and B are Correct
(G): Both D and E are Correct
(H): All of the Above
(I): None of the Above

3- What are some of the different types of items ("Products and Services")?
(A): Income and Expense items
(B): Itemized deduction and Standard Deduction
(C): Items for sale and items not-for-sale
(D): Inventory, Non-Inventory, and Service Items
(E): Depreciable, Non-Depreciable, Taxable, and Non-Taxable

4- Where or how are items used in QuickBooks?

(A): They are used to reconcile bank accounts
(B): They are used to count how many transactions are in the system
(C): They are used in transactions such as invoices or bills to track type of product or service being sold
and/or purchased.
(D): They are used only to track inventory items being sold.
(E): They are not used in QuickBooks at all unless you turn on the items functionality
(F): All of the Above
(G): None of the Above
5- What would happen if you try to delete an item that was sold a couple of years ago, but has not been
used in a while?
(A): It will save a record of the past usage but delete it from the database so you cannot edit it.
(B): It cannot be deleted, edited or inactivated.
(C): It will not let you delete it, instead you can make it inactive, so it does not show as an option to use it.
The item shows "deleted" but is really inactive and can be reactivated in the future if you need to use it.
(D): You can delete it, but your past financial statements will be affected
(E): None of the Above

6- What does Accounts Receivable mean?

(A): It's a bank account that only receives deposits.
(B): These are accounts used to receive inventory.
(C): It means these are values customers owe us, typically from open invoices.
(D): These are the total amount of money owed to our vendors from open bills.
(E): These are the invoices that were pre-paid before the product was delivered.
(F): All of the above
(G): None of the Above

7- What is the best function to enter inventory being purchased?

(A): Use the Inventory Adjustment window to load new inventory
(B): Create a Purchase Order, select the inventory parts to be purchased from that vendor. Then when the
item is ready to be received, open the Purchase Order and click on "Copy to Bill"
(C): Create an Inventory Purchase Request using the Inventory Module
(D): Go to item list and create a new inventory item with a different name each time it is bought
(E): Click on the "Purchase Inventory" Icon inside the Inventory Item List
(F): QuickBooks Online does not handle Inventory purchases

8- Which Reports in QuickBooks shows the activities of the company such as sales and expenses?
(A): The Tax Return Worksheet
(B): The Sales and Expenses Report
(C): The Cashflow Analysis
(D): The Balance Report
(E): The Profit & Loss Report
(F): All of the Above

9- What does Bank Reconciliation mean?

(A): It means to reconcile with the banker after getting into a fight for bank errors
(B): It means to verify that all the accounting and account classification is correct
(C): Verifies which transactions have cleared or not to verify that the amounts in the QuickBooks register
(D): It matches the QuickBooks register balance with the available balance in the Bank's Website
(E): It automatically downloads the bank transactions, so you do not have enter any data manually
10- When viewing a summary style financial report, such as a Profit and Loss Standard, what happens
when you click on the amount shown next to any account?
(A): It will take you to one transaction where you can edit total amount
(B): It allows you to see the formula of the calculated amount
(C): It shows another report with multiple transactions that compose that number, this is "Detail" Report
(D): It takes you to the General Ledger spreadsheet where you can modify the amounts
(E): None of the Above

11- When viewing a detail level report, such as Open Invoices Report, what happens when you click on
the amount shown on any particular transaction?
(A): It will take you to one transaction where you can view or edit the individual transaction
(B): It allows you to see the formula of the calculated amount
(C): Lets you change the value from the report
(D): None of the Above

12- What is the difference between reconciling a Bank Account and a Credit Card Account?
(A): You can only reconcile bank accounts; QuickBooks will not let you reconcile Credit Card Accounts.
(B): Bank accounts are reconciled at detail level (transaction by transaction) and Credit Cards Reconcile only
in totalized amounts in a bill.
(C): They are essentially the same process, these are just two different types of accounts, but the
reconciliation process is very similar. Banks typically can have outstanding checks, but credit cards wouldn't.
(D): You must setup a different company file for every account being reconciled.
(E): None of the Above.

13- When analyzing Financial Reports such as Balance Sheet and Profit & Loss, what is the best way to
spot potential bookkeeping or classification errors?
(A): Double check first that all banks and credit cards are reconciled, and uncleared transactions are all
current transactions that are likely to clear in the near future
(B): Look for numbers that are expected to be more or less the same from month to month and spot
irregular months
(C): Analyze gross margin (Costs of Goods Sold divided by Total Sales/Income) to see if the gross margin
percentage is consistent with expected value.
(D): Look for unusual balances, such as negative expense
(E): A and B are Correct
(F): All of the above are correct
(G): None of the above are correct, you must click on "Identify Accounting Errors" to do this.
14- What does it mean when you have a balance in Undeposited Funds?
(A): It means that you have outstanding checks paid to vendors that they received but did not cash yet.
(B): It means that there are open invoices from clients that they have not yet paid.
(C): It means you deposited the money in the bank, but the funds are not cleared yet
(D): This is the amount of cash payments that were not deposited to avoid paying taxes
(E): There are some customer payments received, that have not yet been deposited to the bank inside
QuickBooks

15- What is the difference between a Customer:Sub-customer and a Project?

(A): A Customer is someone you sell to, and Project is when you get paid a fixed salary
(B): A project is similar to a sub-customer under a Customer, but it is used to track profitability separately
with different projects under the same customer; it can also track additional information regarding Project
costs that you cannot track using just customers or sub-customers
(C): A Customer is whom you invoice, a Project is who invoices you.
(D): Projects are the expenses you pay; Customers are who pays you.
(E): There is no difference between Customer and Project
(F): Customers are used for creating bills to be paid by customers and Projects are used for writing checks to
subcontractors

16- When should you not use the "Check" Function in QuickBooks Online?
(A): To pay an open Bill that was previously inputted in the Bills module (ignoring or bypassing the Pay Bills
window)
(B): To create checks that will be printed in the future
(C): To enter historical Checks written from your checking account
(D): All of the above situations are fine for the using the Check function

17- What is the best way to record a pre-payment for inventory to a vendor before the inventory has
been received or the Bill created?
(A): Create a Purchase order first, Go to Check or Expense and choose the source account being used to
make payment. For the Expense/Category/Account choose the account Accounts Payable, in the
"Customer" column put the vendor's name again, and finally put in the memo the PO number that is being
pre-paid
(B): Go to Create Vendor Pre-Payment on the Gear Menu, choose the open PO's to apply the payment to
(C): Go to Create New Vendor Deposit, choose the vendor you are paying the deposit to, put in the account:
Accounts Receivable, and put in the memo filed the PO to apply the payment to
(D): Go to Pay Bills, select Pre-Payment for PO's, and choose the open PO's to apply the payment to
(E): It is impossible to create a prepayment to accounts payable in QuickBooks Online even with
workarounds
18- Which forms can be customized, using the "Form Styles" function, in QuickBooks Online?
(A): Checks and Bill Payments
(B): Invoices only
(C): Estimates, Invoices, and Sales Receipts
(D): Deposit Slips
(E): Bank Reconciliation Report
(F): All of the Above
(G): None of the above

19- What does Recurring Transactions mean?

(A): This is when QuickBooks Online remembers the accounts that were last used with a particular vendor
and automatically inputs it when you are entering a check or transaction in the register.
(B): This is when you tell QuickBooks Online to save a particular transaction to be entered the same way
later on via the recurring transaction list, a Reminder and/or automatically entered/sent based on specific
date/schedule
(C): This is a report that shows all the transactions that QuickBooks Online needs to remember to
automatically reconcile when is downloaded from the Bank.
(D): All of the Above are correct.
(E): None of the above are correct.

20- How do you enter a Sales Order in QuickBooks Online?

(A): In the Customers section, click on NEW TRANSACTION and then on Sales Order
(B): Click on the Quick Create button and click on New Sales Order
(C): Go to Vendors, Create new Sales Order
(D): All of the Above
(E): There is no Sales Orders options in QuickBooks Online (you may use an estimate as a workaround, but
there is no inventory backorder support)
(F): You have to use the QuickBooks Online Advanced version to add the Sales Order Function

21- How do "Bill -> Pay Bill" feature differ from "check/expense" feature?
(A): Enter bills for expenses recognized on the bill's date and use the Pay bills option to pay in the future,
utilizing the Accounts Payable account. "Check/expense" is only used to create expenses that are
immediately paid, bypassing Accounts Payables.
(B): Bill is for expenses recognized only on the day they get paid using the Pay bill option. Check/Expense
recognizes the expenses when the check clears the bank
(C): Bill is to allow you to create all your accounts receivable from your customer and check/expense is to
pay all your vendor bills
(D): Bills are assets that are converted to liability with the Pay bills function. Check/Expense records
expenses paid by check only
(E): They all serve the same function and affect the accounting the same
22- Which transactions in QuickBooks are considered Non-posting?
(A): Timesheet
(B): Estimate
(C): Delayed Charges
(D): Purchase Order
(E): All of the Above

23- How do you record a payment from a client that is paying multiple invoices?
(A): You must click on receive payment for every open invoice individually
(B): You can click on receive payment and select the open invoices the payment is being applied to
(C): Go to record deposit and record the payment into Sales Income account, then make sure you put in the
memo all the invoice numbers so QuickBooks knows which invoices are marked paid
(D): Go into every invoice that the payment pays for and click on "Mark Invoice as Paid"
(E): QuickBooks does not support payments for multiple invoices

24- What is the relationship between an account and item?

(A): You can either enable accounts or items to be used in QuickBooks, but not both.
(B): Items are products and services used to track purchases and sales. They point/post to the assigned
account when used in transactions
(C): There is only one account that can be assigned per inventory item
(D): Accounts do not have any relationship with items
(E): None of the Above

25- How do you determine if a check has been reconciled in QuickBooks?

(A): An "R" is displayed in the bank account register
(B): The word "Reconciled" appears on the check in QuickBooks Online
(C): Print the "Reconciled Checks Report" in the Banking Menu
(D): Go to Reconcile and choose the bank account, in the reconciliation screen you should see all the checks
that have ever been reconciled
(E): All of the above

26- How do you export QuickBooks Online reports into excel?

(A): You must first open excel and open the QuickBooks file from excel directly
(B): You cannot export ANY data from QuickBooks to Excel
(C): You must pull the desired report, then click on the Export icon and click on Export to Excel
(D): You can always view QuickBooks data live in excel, but cannot manipulate the data because it is not in
spreadsheet format
(E): None of the, Above
27- What is the purpose of exporting reports to excel?
(A): Export them to excel and automatically remove them from QuickBooks
(B): For editing the reports and importing them back into QuickBooks Online with adjustments
(C): To modify the numbers for exercise purposes (cannot be imported back in) and or doing deeper analysis
that QuickBooks Online cannot do
(D): To have the entire QuickBooks Online database in excel for real-time analysis

28- If you want to modify the account or name filters within a specific report you have open, where do
you click?
(A): Click on Add Filters on the top right of the screen, then select the filters to add
(B): Click on Customize and then Filter... select the filters you want to use
(C): Go to Account and Settings screen... and then change the default report filters for all reports
(D): None of the above, it is not possible to change the filters in a report

29- What is the difference between Accrual Basis of accounting vs. Cash Basis?
(A): Accrual basis is used when customer paid you with credit cards and checks. Cash basis is only when they
pay in cash
(B): Cash basis pays the least amount of taxes when you receive all the payments in cash because they are
not reported as income.
(C): Accrual basis helps you recognize Income when is earned, using an Invoice and Accounts Receivable,
regardless of when it is paid. Cash basis recognizes the income only when the invoice is paid.
(D): Accrual is only for large companies that accrue liabilities, all small businesses are forced be using cash
basis by the IRS.
(E): They do not differ from the IRS's perspective.
(F): None of the Above

30- What is the keyboard shortcut for the date to jump to Today’s Date?
(A): Press CTRL+T
(B): Click on the date field, and press "T" on the keyboard
(C): Press CTRL+ALT+T
(D): Press Alt-D

31- Which way can we record a customer pre-payment before creating the invoice (that will be created in
the future when the sale is completed)?
(A): Create an Estimate first to know what the pre-payment is for, then go to Receive Payment, and put in
the memo field which Estimate is being prepaid. Then after the invoice is created in the future, you can
apply the same payment to it afterwards.
(B): Go to Create Customer Pre-Payment on the Home Screen, choose the open Sales Orders to apply the
payment to
(C): Create a Sales Order, Go to Make pre-payment Deposit, choose the Customer that prepaid you, put in
the account: Accounts Receivable, and put in the memo filed the SO to apply the payment to
(D): All of the Above are Correct
(E): None of the above work for managing pre-payments
32- What account(s) does an Inventory item post to?
(A): It just posts to the sale account when sold
(B): It just posts to the Inventory account when purchased and posting the sales account when invoice is
paid
(C): It posts the inventory asset account when purchased (via a bill, check, or expense), then posts both to
the income and cost of goods sold account when sold.
(D): It posts to the Inventory Account Report
(E): It will go to the Inventory Asset account when a purchase order is created, and it will post to Sales when
an estimate is created
(F): None of the Above

33- What are the most used reports in QuickBooks Online to understand the financial health of the
business?
(A): The Accounting Accuracy Reports
(B): The Daily Bank Reconciliation Report
(C): The Profit & Loss and Balance Sheet
(D): The Cashflow Projection Report
(E): The Owner's Distribution Report
(F): The Financial Summary Report
(G): Financial Health Dashboard
(H): None of the Above

34- What does "Billable" Time and Expenses mean?

(A): These are expenses for which you receive a paper bill for
(B): These are expenses to be paid later
(C): These are expenses you would like to get reimbursed for by your customers
(D): This is time spent by an employee that will be INVOICED to your client later on
(E): Both C and D are correct

35- What does Accounts Payable mean?

(A): It's a bank account that is only used to make payments
(B): These are accounts used to pay for inventory that has not been received
(C): It means these are values customers owe us, typically from open bills
(D): The total amount of money owed to our vendors from open bills
(E): A and B are Correct
(F): None of the above
36- What do you do with transactions left uncleared after completing the reconciliation?
(A): If they are transactions dated AFTER reconciliation date, then leave them there until the next month's
reconciliation
(B): If they are transactions dated BEFORE reconciliation date, then leave them only if they are outstanding
checks (or outstanding bank deposits) that are likely to clear in the following month in the near future
(C): If they are old outstanding checks (like from more than 6 months ago) we should consider deleting
them and/or making a reversing entry
(D): Just delete them regardless of what they are
(E): A and B are Correct
(F): B and C are correct
(G): A, B, and C are Correct
(H): None of the above

37- What is the Undeposited Funds account used for?

(A): It is used to store one or more customer payments to be grouped into deposits; to match the bank
statement that shows a total deposit amount (rather than all separate customer checks that were deposited
at the same time)
(B): It is used to store bank balances for uncleared checks
(C): It is used to store unpaid customer invoices
(D): All of the Above
(E): None of the Above

38- With QuickBooks Online Payroll enabled and paying payroll taxes, you must never:
(A): Use Checks or Expense transaction to record the payment
(B): Enter the payments in the check register
(C): Use Pay Bills
(D): Pay Online directly via the IRS website, QuickBooks will auto-reconcile
(E): All of the above (never use any of these options listed above to make a payroll tax payment)

39- What is a "Petty Cash" or "Cash on Hand"? (choose the best answer)

HINT: IT IS NOT AN EXPENSE ACCOUNT

(A): It's an expense account where all miscellaneous cash expenses should be recorded
(B): It's a "bank" account in QuickBooks Online where cash payments from clients can be deposited into if
they are not deposited directly in the bank
(C): It's a "bank" account in QuickBooks where you may transfer funds from checking/savings accounts to
utilize the cash to make purchases, and these purchases are logged in its own register
(D): Its the Default account that should be used for checks that you do not know how to categorize
(E): Both B and C are correct.
(F): Both A and D are correct.
(G): All of the above are correct
(H): None of the above are correct
40- What is the best way to record a single vendor payment to a vendor to pay multiple bills?
(A): This is not possible, you must pay each bill with a different check
(B): Click on the "Pay Multiple Bills" function in the Bills menu
(C): First, enter each bill separately using the Bills function, then go to Pay Bills and check all the open bills
to pay, after clicking on each bill, QuickBooks Online will calculate the total amount to pay (but you can
override to pay any of them as a lesser amount)
(D): Go to Check/Expense screen and create all the bills to be paid from this module
(E): All of the Above
(F): None of the Above

41- What is the reason to enter customers (and have a customer database) on the Customers Center?
(A): To track the profitability of items you sell
(B): To track Accounts Receivable for a customer
(C): Customers are required on sales receipt forms
(D): All of the Above
(E): None of the above

42- Which Reports in QuickBooks shows the value of the company such as assets and liabilities?
(A): The Tax Return Worksheet
(B): The Sales and Expenses Report
(C): The Cashflow Analysis
(D): The Balance Report
(E): The Profit and Loss Report
(F): All of the Above

43- How could you write-off an invoice that was partially paid, but still has a balance?

The books are on Accrual Basis

(A): Go to Customers, Adjust Receivable Balances
(B): Create a Journal Entry crediting accounts receivables using the customer's name and debiting sales (or
bad debt expense) using the outstanding invoice balance as the amount. Then go to receive payment, and
apply that journal entry to the outstanding invoice balance
(C): Create a Credit memo for the same amount of the outstanding invoice and apply the credit to an open
invoice when saving the transaction (it will prompt you)
(D): Select the invoice you want to write off and click on "Write off for bad debt"
(E): Delete the Invoice
(F): Void the invoice
(G): A and F are Correct
(H): B and C are correct.
(I): E and F are correct.
(J): All of the Above
44- What are the benefits of connecting your bank to directly download transactions (Bank Feeds) into
QuickBooks?
(A): You can put stop payments in checks
(B): You can get paid from customers via ACH via Banking Feeds
(C): You can "match" existing transactions to verify they were "cleared"
(D): You can create new transactions while looking at the bank name/memo info that was downloaded
(save time not having to enter the date and amount) - you still need to select the vendor and
account/category when the payee/name has been used before
(E): QuickBooks could auto-categorize some transactions based on bank rules
(F): Bank reconciliation will not be needed even for outstanding checks
(G): All of the Above are correct
(H): C, D, and E are correct
(I): A, B and F are correct

45- What is the Chart of Accounts?

(A): It is a graphical illustration of how all the accounts affect each other in the accounting
(B): Is a Chart of all the values and trends of each of your bank accounts
(C): Is a list of all "accounting" accounts such as income, expenses, assets, liabilities, and equity. Where you
can create new ones and edit existing ones
(D): It is the place where all the bank accounts are reconciled
(E): B, C, and D are Correct
(F): None of the Above

46- In the vendor center if you notice several names (with misspelled or variations of the name) related
to same vendor, How you do to clean up the Vendors list?
(A): Delete the wrong ones, even if they have transactions in them
(B): Click on "Batch Merge Similar Vendors"
(C): Rename the wrong/duplicate vendor to the same spelling as the correct one, then click on yes/merge
when the pop-up screen asks about merging
(D): Go to Banking (bank Feeds), click on Rules, and create a Rule that will clean up all the old vendors
(E): None of the above, it is impossible to merge vendors after they have been created

47- What is the difference between Classes and Locations?

(A): There are no differences
(B): Classes are for the types of classification accounts in the balance sheet and locations is for locating the
inventory on hand
(C): Classes can be used to track the entire transaction by class or every line item inside the transaction by
class. Locations can only be used for the entire transaction
(D): You can have unlimited Classes but locations are limited to 10
(E): All of the Above
(F): None of the Above
48- What is true about the QuickBooks Online Advanced version?
(A): It is the most expensive version of QuickBooks Online
(B): It allows you to have unlimited Accounts, Classes, and Locations (no usage limits)
(C): You can have up to 25 regular/custom Users accessing to it and unlimited timesheet/report-only users.
(D): It has more Inventory-related features than QuickBooks Enterprise and any other Accounting software
in the market
(E): It allows you to track inventory by multiple location, barcode support, and lot number tracking
(F): All of the Above are correct
(G): A,B, and C are correct

49- Why do most people choose QuickBooks Online over its "Desktop" counterpart?
(A): It is 100% cloud based using a browser to access it (so there is no software needed to be installed) and
can be accessed from anywhere
(B): It is easy for multiple people to access it at the same time and to collaborate with accountant. No need
to send a copy/backup via email to anyone
(C): It is very easy to automate sending recurring invoices to customers and recurring/customized reports to
anyone
(D): There is no need to change to "multi-user" mode
(E): All of the above

50- What lists could be imported from excel or CSV spreadsheets into QuickBooks Online
(A): Chart of Accounts
(B): Customers
(C): Vendors
(D): Products and Services
(E): Locations
(F): All of the above
(G): B and C are Correct
(H): A,B,C, and D are Correct