ProAdvisor Certification Exam Questions & Answers Part 1

200+ QuickBooks ProAdvisor Certification Exam Questions & Answers PDF Exam Duration: 2 to 3 hours Total Sections: 5 Total number of Questions: 75 Minimum Passing Score: 80% in each Section Certification Validity: 365 Days Question (1):- When you send a QuickBooks report to Excel, which features allow you to choose what sections of the report to collapse? Answer: Auto outline. Question (2):- What is the purpose of an Audit Trail report? Answer: Track any changes and deletions to transactions and track which user makes the change or the deletion. Question (3):- What can you do in the report center? Answer: Run most reports in QuickBooks Question (4):- The company file you are working on is a mess. You decided to start a new file. At the same time, you want to keep all the lists and preferences and just delete the transactions. How do you do this? Answer: Click the File menu, choose Utilities, clean up company data, then choose the default transaction option. Question (5):- Your company sells unique items to every customer. They never sell the same service or product twice. What item should you set up in QuickBooks? Answer: Set up a generic item and edit the description and price each time. Question (6):- You hired a subcontractor to work 40 hours per week. Which list should you add this person to? Answer: Vendors. Question (7):- When should you enter a customer credit memo? Answer: When the customer returns a product that is damaged. Question (8):- How do you make a column on a report wider? Answer: Click the diamond to the right of the column and drag it to the right. Question (9):- When you run a profit and loss on an accrual basis what does QuickBooks include as income? Answer: All sales Question (10):- What is the quickest way to find an invoice from 6 months ago? Answer: Open an invoice and click the find button. Open an invoice and click the find button. Question (11):- How do items affect the financial statement? Answer: When you purchase or sell an item the value of the on-sale purchase flows to the account Question (12):- You accidentally entered the same customer twice in the customer center with a slightly different spelling. How do you merge these entries? Answer: Edit the unwanted list entry, change the name you want to merge, and click ok, then yes when prompted to merge. Question (13):- How do you record debit card transactions in QuickBooks? Answer: Use the write checks window, enter the check and write debit the check number field. Question (14):- Which is a reason to NOT enter a general journal entry? Answer: To enter transactions in another way instead of using forms Question (15):- The bank notifies you that a customer’s check you deposited has bounced. The customer does not have sufficient funds to cover the check. What should you NOT do? Answer: Delete the customer payment from the deposit. Question (16):- How do you display a group of reports? Answer: Click the reports menu then select process multiple reports. Question (17):- Which payroll service allows you to print state tax forms? Answer: Basic payroll Question (18):- How do you customize a report, i.e. change the information QuickBooks displays, change the title, etc? Answer: Click the modify report button on the report. Question (19):- A list entry may be deleted only when… Answer: It has no balance; it has not been used and is not linked to anything that has been used. Question (20):- Your company provides its employees with sick/vacation hours. You need to track how many hours each employee currently has available, how many they add or accrue and you need to reduce their accrued hours when you pay them for sick or vacations time. How would you do this in QuickBooks? Answer: Click the vacation button on the employee set up to define how to accrue time and tell QuickBooks how many hours the employee is available. When you pay an employee for sick/vacations time, click the sick/vacation button and reduce those available hours Question (21):- Your company had to return some goods to a vendor. How do you record the vendor credit in QuickBooks? Answer: Enter bill then click credit on top of the bill. Question (22):- What do you use to narrow the data QuickBooks displays on a report? Answer: Filter Question (23):- Once the Easy Step interview is complete, how do you change the company information for the business name, address, or phone number? Answer: Select File, Easy step interview Question (24):- What is the Undeposited Funds account in QuickBooks? Answer: An account used to record payments before you make a deposit Question (25):- What is the end result of a payroll setup interview? Answer: QuickBooks has an accurate record of employees, earing deductions, and payroll history and you are ready to create the first paycheck. Question (26):- You finished entering all the transactions for last year, and just send the file to the tax preparer. How do you assure that no one accidentally deletes or edits a transaction last year? Answer: Set the closing date and password in the accounting preferences in the company menu Question (27):- How do you identify the version and release of QuickBooks you have? Answer: Press the F2 button. Question (28):- When you set up a new employee, how do you add a payroll deduction such as medical insurance? Answer: In the new employee window, click the change tab drop-down list and select payroll and compensation info, and then add the medical insurance payroll item below the additions deductions and company contributions. Question (29):- When should you VOID instead of deleting a check? Answer: You used the check number but it will never be cashed. Question (30):- How do you pay payroll liabilities in QuickBooks? Answer: Select payments you want to make from the pay schedule liabilities in the payroll center then click view pay. Question (31):- When can you delete a check from QuickBooks without voiding it? Answer: You entered a check-in QuickBooks but haven't printed it yet. You realize the purchase was actually made using a credit card. The check was never really used. Question (32):- What tool do you use to move your logo to a form? Answer: Layout Designer Question (33):- What is the reason for not being able to delete a list entry? Answer: The entry has been used in a transaction Question (34):- How do you move list entries to a different location on the list? For example, customers. Answer: Click on the diamond to the left of the name and then drag the name up or down the list Question (35):- Assume that QuickBooks is now in Single User Mode. What does this mean? Answer: Only one user can access the data file Question (36):- How can you ensure that the invoice details are on a customer statement? Answer: Turn on invoice detail in customer statement window Question (37):- How can you open a QuickBooks report in Microsoft Excel? Answer: Click the Export button on the top of any QuickBooks report Question (38):- What is the Accounts' copy? Answer: A copy of a company file that allows the accountant to review and make adjustments while you can continue to work in QuickBooks Question (39):- What 2 steps do you follow to track accounts payable in QuickBooks? Answer: Enter bills, pay bills Question (40):- How do you hide subaccounts on a report? Answer: Click the collapse button. Question (41):- Which accounts are affected when you enter time in QuickBooks? Answer: Accounts Receivable Question (42):- If you have a customized report that you use each month, which feature lets you run their ports with updated data each month? Answer: Memorize Report Question (43):- What is the primary reason for setting a closing date in QuickBooks? Answer: To restrict users from deleting, editing, or adding transactions to last year Question (44):- Your new employee earned an annual salary of $40,000. How do you enter this into QuickBooks? Answer: Enter 40,000 in the payroll info window. Question (45):- What steps must you complete to use the payroll center to pay payroll liabilities? Answer: Set deposit frequencies Question (46):- Name the section of the Balance Sheet Answer: Assets, Liabilities & Equity Question (47):- When you create a new company file, QuickBooks asks for your start date. What is the best definition of start date in QuickBooks? Answer: The day you choose to start recording the financial records in QuickBooks Question (48):- How do you use a different forms template when creating a new transaction? (i.e. Invoice) Answer: Open the form, click the templates dropdown list and select the appropriate form. Question (49):- How do you change the report basis, accrual vs. cash for just one report? Answer: Click the modify report button on the report and then choose accrual or cash on the display pad Question (50):- How would you track customer birth dates in QuickBooks? Answer: Add a custom field to the customer list Question (51):- Your company sells unique items to every customer. Then never sell the same product or service twice. What item should you setup in QuickBooks? Answer: Setup a generic item and edit the description and price and the time Question (52):- Which of the following form templates cannot be customized in QuickBooks? Answer: Check Question (53):- Which is not a good reason to enter a general journal entry? Answer: To avoid using the built-in forms Question (54):- The bank notifies you that a customer's check you have deposited has bounced. The customer did not have sufficient funds to cover the check. What should you not do? Answer: Delete the customer's payment from the deposit Question (55):- How do you change the text in the header/footer report? Answer: Click the customize button on the report and then click the header/footer tab. Question (56):- Why would you hide or collapse subaccounts on a report? Answer: To temporarily hide unnecessary detail and hide parent accounts Question (57):- What should you do after you click save and close on a customer credit memo? Answer: Choose between retained as available credit, give a refund or apply to an invoice Question (58):- The bank notified you that a customer’s check you deposited had bounced. The customer did not have sufficient funds to cover the check. What should you do? Answer: Record a transaction to show the customer owes you the money and that the checking balance has decreased by the same amount Question (59):- Suppose you always want all reports to show a specific size and color, how do you set the standard or preference in QuickBooks so you don't have to customize each report? Answer: Click the Edit menu and select preferences to click the reports and graphs group to set your report preferences Question (60):- Suppose you want to restrict which users can access customer credit card numbers. How do you do this? Answer: Give the user access to sales and accounts receivable but do not check the complete credit card numbers Question (61):- How do you change the text in the header/footer of a report? Answer: Click the modify report button on the report and then change the header/footer tab. Question (62):- Where can you see a thumbnail sample of each report in QuickBooks along with a description of what the report tells you? Answer: Report center Question (63):- What transaction in QuickBooks should you use if your customer pays you when you provide the goods or services? Answer: Sales Receipt Question (64):- How can you ensure that invoice detail does appear on a customer statement? Answer: Uncheck the show invoice item detail on the statement's box in the create statements window Question (65):- What is the purpose of backing up in QuickBooks? Answer: To protect against data loss from file corruption or a hard file crash Question (66):- How do you add or delete columns on a report? Answer: Click the modify report button and on the display tab check or add or uncheck remove columns Question (67):- When should you use the items tab on a bill or check? Answer: When you purchase inventory parts Question (68):- When you are setting up a service item, what happens if you select the box next to this "service is performed by a subcontractor or partner"? Answer: QuickBooks provides fields so you can track purchase and sales information for that item Question (69):- The Product Information window shows you the version and release of QuickBooks you have along with other information about the company file. How do you access the Product Information window? Answer: Press the F2 key Question (70):- When making your payroll tax deposit, how can you add IRS interest and/or penalties? Answer: Click the Expense tab and enter the appropriate account and amount of interest and penalties Question (71):- When you setup a new employee, how do you add a payroll deduction such as medical insurance? Answer: In the new edit employee window, click the change tab drop-down window, select payroll and compensation information, then add the medical insurance payroll into the addition/deletion and company compensation section Question (72):- What is the end result of the payroll setup interview? Answer: QuickBooks has an accurate record of employee's earnings and deductions and payroll history and you are ready to create your first paycheck. Question (73):- There are two primary financial statements that summarize the chart of accounts. Answer: Balance sheet Question (74):- Once you have completed the sign of the new company file, how do you change company information such as business name, address, or phone number? Answer: Select company information from the menu Question (75):- Suppose you work for a pet store and have to track the name of each customer's pet. How would you do this in QuickBooks? Answer: Add a customer field to the customer list Question (76):- The company file you are working on is a mess. You decided to start a new file. To save time, you want to keep all the lists and preferences and just delete the transactions. How do you do this? Answer: Click the file menu. Select utilities, condense data from the menu then chose the all transaction option Question (77):- Which is an example of when to use a non-inventory part? Answer: When you buy and sell an item but do not need to track quantity on hand information.