Question 1

Which of the following is not true regarding transactions in QBO?

Accepted Answer

A) Prior to entering a transaction,the QBO Chart of Accounts and Company Settings must be set up. 
B) Transactions increase and decrease accounts,therefore,we need the QBO Chart of Accounts set up first. 
C) Recurring transactions are not often used in QBO since transactions are specifically adjusted to suit every user's needs. 
D) Recurring transactions save time and minimizes errors. C

Question 2

The Chart of Accounts is:

Accepted Answer

A) a list of all the accounts the company uses when recording transactions. 
B) not one of the QBO Lists and is used to record transactions. 
C) not updated by the company; QBO support staff updates and initially sets up the Chart of Accounts with little input from the user. 
D) a financial statement prepared by the company at the end of an accounting year. A

Question 3

QBO groups transactions into the following different types?

Accepted Answer

A) Banking and Credit Card,Customers and Sales,Vendors and Expenses,and Employees and Payroll. 
B) Banking and Credit Card,Customers and Sales,Payables,Employees and Payroll,and Other. 
C) Banking and Credit Card,Customers and Sales,Vendors and Expenses,Employees and Payroll,and Other. 
D) Banking and Savings,Customers and Sales,Vendors and Expenses,Employees and Payroll,and Other. C

Question 4

What are QBO Lists?

Accepted Answer

A) QBO Lists are a time saving feature; Lists allow users to collect information that will be reused,therefore,it does not need to be re-entered. 
B) QBO Lists are entered at the initial set-up and updated once per year after. 
C) QBO sets up Lists for its users and little customizing is needed thereafter. 
D) QBO Lists can be viewed by selecting the Gear icon then Create (+)icon.

Question 5

Assets are:

Accepted Answer

A) Increased with debits and decreased with credits. 
B) Increased with credits and decreased with debits. 
C) Increased and decreased with credits. 
D) Increased and decreased with debits.

Question 6

Which of the following is correct regarding QBO COA (Chart of Accounts)?

Accepted Answer

A) By customizing the QBO COA to align with the business tax return,countless hours are saved in preparation time,and tax returns are more accurate. 
B) QBO does not encourage editing the COA since too many errors can be made by changing what was initially set up when the company was organized. 
C) QBO does allow editing of the accounts in the COA,however,it only allows authorized users to make changes.QBO codes accounts for tax return preparation tracking. 
D) QBO is not able to assist in tax return preparation and only requests legal entity status for COA account purposes.Changes to the COA are encouraged and should happen often.

Question 7

All of the following are true regarding Customers List in QBO except:

Accepted Answer

A) It is also called the Clients List. 
B) It collects information about customers,such as customer name,customer number,address,and contact information. 
C) It collects information about customers,such as future sales revenue potential. 
D) It is a list used when entering transaction information.

Question 8

Which of the following is correct regarding what a Customer Transaction includes?

Accepted Answer

A) Entering invoices,Receiving customer payments,Entering estimates,Entering credit memos for reductions to customer accounts,Entering sales receipts,and Entering refund receipts 
B) Entering receipts,Receiving customer payments,Entering payments,Entering debit memos for reductions to customer accounts,Entering payment vouchers,and Entering vendor statements 
C) Entering invoices,Receiving shipping documentation,Entering payments,Entering debit memos for reductions to customer accounts,Entering sales receipts,and Entering refund receipts 
D) Entering tax return information,Receiving discounts,Entering estimates,Entering credit memos for reductions to customer accounts,Entering sales receipts,and Entering refund receipts

Question 9

Which of the following is false regarding updating QBO Lists?

Accepted Answer

A) There are two basic ways to update QBO Lists: Before entering transactions and While entering transactions. 
B) QBO does not encourage updating While entering a transaction since it can lead to disorganization. 
C) If updating QBO Lists Before entering a transaction,use the Navigation Bar and select Accounting to update the Chart of Accounts. 
D) If updating While entering a transaction,then use the screen where you enter the transaction to update as well.

Question 10

Employee Lists in QBO online are used to:

Accepted Answer

A) Collect information regarding an employee's retirement accounts i.e.pension,and 401k. 
B) Collect information regarding an employee's future opportunities at the company and education level. 
C) Collect pertinent information regarding vacation days,and PTO days owed to the employee. 
D) Collect information about employees for payroll purposes including name,Social Security number,and address.

Question 11

What is the best definition of double entry accounting?

Accepted Answer

A) Double entry accounting is a newer method of recording exchanges in a transaction.It is invented to be used in a computerized accounting system. 
B) Double entry accounting is used to record what is exchanged in a transaction.Each journal entry should balance,however,in rare circumstances some transactions will not balance. 
C) Double entry accounting is used in conjunction with a journal to record what is exchanged in a transaction.Each journal entry must balance. 
D) Double entry accounting is used in conjunction with the financial statements to provide a record of what is exchanged in a transaction.

Question 12

Which one of the following statements best describes a transaction?

Accepted Answer

A) Transactions are exchanges between a business and other parties. 
B) Transactions are only completed at the end of the month and relate to adjusting accounts. 
C) Transactions are only completed annually and close out temporary accounts. 
D) Transactions are based on cash being received and paid.

Question 13

Which of the following is true regarding debits and credits?

Accepted Answer

A) Whether a debit or credit increases or decreases an account depends on the type of account. 
B) Debits increase an account and credits decrease an account. 
C) Credits increase an account and debits decrease an account. 
D) There are some circumstances that allow for debits and credits to not equal.

Question 14

Which of the following is false regarding recurring transactions in QBO?

Accepted Answer

A) Recurring transactions save time and reduce errors. 
B) Recurring transactions are frequently used transactions which are saved to use in future transactions. 
C) Recurring transactions are classified in QBO as three different types: Scheduled,Unscheduled and Reminder. 
D) Recurring transaction types are set up in QBO to be scheduled and do not represent unscheduled type of transactions.

Question 15

Which is not true regarding entering transactions into QBO?

Accepted Answer

A) There are two methods for entering transactions: Onscreen Journal and Onscreen Forms. 
B) Onscreen Journal is more accurate and preferred since QBO will show the user the Journal Entry immediately after entry. 
C) Onscreen Journal is often used to make adjusting entries at year end. 
D) When entering information into Onscreen Form,QBO automatically converts the information into a journal entry.

Question 16

Expense accounts are:

Accepted Answer

A) Increased and decreased with credits. 
B) Increased with debits and decreased with credits. 
C) Increased with credits and decreased with debits. 
D) Increased and decreased with debits.

Question 17

Equity accounts are:

Accepted Answer

A) Increased with debits and decreased with credits. 
B) Increased and decreased with credits. 
C) Increased with credits and decreased with debits. 
D) Increased and decreased with debits.

Question 18

Revenues are:

Accepted Answer

A) Increased with debits and decreased with credits. 
B) Increased and decreased with credits. 
C) Increased and decreased with debits. 
D) Increased with credits and decreased with debits.

Question 19

What is true regarding a transaction?

Accepted Answer

A) Transactions are exchanges between the business and other parties.The business gives and receives in the exchange. 
B) Transactions are exchanges between the business and other external parties.The business gives but does not receive in the exchange. 
C) Transactions are exchanges between the business and other internal parties.The business gives and receives in the exchange. 
D) Transactions are often exchanges between the business and other parties.The business does not always give and receive during the exchange.

Question 20

Which of the following is true regarding Vendor Lists in QBO?

Accepted Answer

A) It collects information about customers including name,number,discounts offered and contact information. 
B) It collects information about subcontractors including name,number,invoices owed,due dates of invoice,and contact information. 
C) It collects information about vendors including name,number,and contact information. 
D) It collects information about employees including name,number,credit score,rating,and contact information.

Exam 3: QBO Transactions