ProAdvisor Certification Exam Questions & Answers Part 4

Question (158):- A user wants to download an itemized invoice for the QuickBooks Online subscriptions on her wholesale billing account for last month. The statement can be downloaded in which 2 file formats? XLS or XLSX ● ● ● ● CSV JPEG PDF DOC Answer: CSV, PDF Question (159):- Depending on the way your practice works, you may need to give team members different access levels based on their roles. What are the 3 levels of access that can be granted to Team users of QuickBooks Online Accountant? ● ● ● ● ● Full access VIP access Basic access Custom access Standard access Answer: Full access, Basic access, Custom access Question (160):- What types of user permissions can you set up when adding a new team member in QuickBooks Online Accountant? ● ● ● ● Regular or custom user, Company administrator, Reports only, and Time Tracking only Basic, Custom, and Full access Regular or custom user, Company administrator, and Reports only Regular or custom user and Company administrator Answer: Basic, Custom, and Full access Question (161):- QuickBooks Online has some great features. Clients can use Online Invoicing, which will track when they’ve been viewed and paid. Online Invoicing even allows for customer queries via online messages directly linked to the invoice. You now need to enable this feature in the new client company you’re setting up. Take a look at the steps below 1. Select the Gear icon, and select Account and Settings, under the Your company column) 2. _____________ and scroll down to the Online delivery section 3. _____________ to ensure that Attach invoice as pdf is unchecked Can you identify the missing steps? Answer: Step 2: Select the Sales tab, Step 3: From the drop-down list, click on the Online invoice. Question (162):- Your client has asked you to turn on warnings for duplicate check and bill numbers in their QuickBooks Online company. Take a look at the steps below. 1. ______________ 2. Under Your Company, select Account and Settings 3. Select Advanced tab 4. In the Other preferences section, select the option to warn if duplicate check number is used and warn if a duplicate bill number is used 5. ______________ 6. Starting at the QuickBooks Online Dashboard, which option would complete the following steps? Answer: Step 1: Select the Gear icon, Step 5: Select Save Question (163):- Your client doesn’t want to pay a monthly fee for their QuickBooksPayments merchant account. What another option is available to them, and wherein QuickBooks Online can they sign up for QuickBooksPayments? Answer: There is another plan which means the customer pays the transaction charge; In the Billing and Subscription tab of Account and Settings. Question (164):- Your client has moved and needs you to modify the business address of the company in QuickBooks Online. Take a look at the steps below. 1. Sign in to your QuickBooks Online Accountant account 2. _________________ 3. You’ll see the client company dashboard 4. _________________ 5. Select Account and Settings6. Select the Pencil icon in the Address section of the Company tab 6. What are the missing steps to get you to the screen to edit the address for your client? Answer: Step 2: Select the client company from the Client Switcher drop-down in the green header bar. Step 4: Select the Gear icon. Question (165):- A great feature of QuickBooks Online is that there are other lists you can utilize to make it easier to fill in forms. Where would you go to find these lists? Answer: Go to the Gear icon and select All Lists Question (166):- Where can you go to QuickBooks Online to import a list of products and services? Answer: Select the Gear icon and under the Tools column, select Import Data, then Products and services. Question (167):- What is the difference between the “Profit and Loss Report” and the “Balance Sheet Report”? Answer: ● ● ● P&L shows activities: income and expenses to arrive at Net Income (Profit) for a specific time period. The Balance Sheet shows values: Assets and Liabilities to arrive at Equity (Net Worth) as of a specific date. The Net income from the Profit & Loss pass through the equity section in the balance sheet Question (168):- The Chart of Accounts lies at the heart of a QuickBooks Online company. Which 5 of the following statements are true about the Chart of Accounts, how to make changes to the Chart of Accounts, and how products and services are linked to the Chart of Accounts? Answer: ● ● ● ● To add a new account, you open the Chart of Accounts by selecting Accounting from the left navigation, then select New to open the Account window The Sales of Product Income account is a default account when inventory is turned on Uncategorized Income and Uncategorized Expense are default accounts for online banking activity If you add a new account, the category type determines on which financial statement this account will show Delete an account from the Chart of Accounts if it is not relevant to your business Question (169):- If you want to give one or more of your employee’s access to Your Practice, what types of user permissions can be set up? Answer: Regular or custom user, Company administrator, Reports only and Time Tracking only. Question (170):- Look at the following 2 statements: 1. Statement 1 -“QuickBooks Online _____________ is the do-it-for-me option; a complete payroll service with a team of US-based payroll experts to take care of payroll for your client.” 2. Statement 2 -“You can also link up ____________ with QuickBooks to simplify workflow and save yourself a significant amount of time. You’ll benefit from a seamless, end-to-end experience that translates a client’s QuickBooks Online books into a tax return.” Identify the products that fit in the spaces to correctly complete the statements. Answer: Statement 1: Full-Service Payroll; Statement 2: ProConnect Tax Online Question (171):- Your client wants to transfer $500 from their checking account into a savings account to cover tax liabilities for sales made last month. Where should they start the process? Answer: Navigate to the Quick Create icon, then find the Transfer link. Question (172):- Look at these two sentences about Undeposited Funds. 1. By posting to Undeposited Funds, you can create a single bank deposit for multiple payments, making it easy ___________. 2. When receiving a payment, make sure _________________. Which of the options below correctly fills in the blanks? Answer: To match your bank register with your bank statement; 2. the Deposit to account is Undeposited Funds Question (173):- You have a client business who uses invoicing, the Accounts Receivable workflow and they use the Banking screen to record a customer payment received. They select an income account and then select Add. What 2 problems will this cause? Answer: ● ● Their Accounts Receivable balance will not be accurate The income account will show duplicate income Question (174):- When would you use the Add other funds to this deposit grid in a Deposit Transaction? Identify the 3 correct options below. Answer: ● ● ● When an employee reimburses the company You receive a tax refund from the IRS When a company doesn’t record income using sales transactions (invoices or sales receipts), and wants to record deposits directly to income accounts Question (175):- Which 2 of the transactions and tools in the list are Posting transactions? Answer: ● ● Credit memos Vendor credits Question (176):- Which option has the correct information about how a delayed charge is used, and how it is created and linked to an invoice? Answer: Use a delayed charge to record a fee that you want to invoice in the future. The first step is to select a Delayed charge from the Quick Create menu, and then add to an invoice later by selecting Add when the customer invoice is created. Question (177):- What 3 types of customer statements can be generated by QuickBooks Online? Answer: ● ● ● Statements that show a balance forward and then all activity between two specified dates Statements that show invoices created between two specified dates and their related payments Statements that show just open transactions Question (178):- Clients can take payments from their customers’ credit cards via Online Invoicing if they have QuickBooks Payments set up. How does the customer interact with the invoice to access credit card payment features? Answer: They select the Pay Now button. Question (179):- Look at the following process for matching and adding deposit transactions from a bank feed: 1. 2. 3. 4. Select the line for that entry and you’ll see more information in the row that expands Select the Deposit link among suggested match(es) to view the deposit transaction Hit Cancel in the bottom left and you’ll go back to the banking area Now that we’re satisfied that this is the right banking activity matched to the right QuickBooks Online Transaction, we can ______________. Which option correctly completes the final step? Answer: Hit Match on the right of the entry. Question (180):- The ____________ lists each customer with an open balance. It lists the open invoices in different columns based on whether they are current or how long it’s been overdue, 30, 60 and 90+ days. What kind of report is being described here? Answer: A/R Aging Summary report Question (181):- Your client wants to understand the difference between cash-based and accrual-based reporting. Which is the best definition of cash-based reporting? Answer: Cash-based reports display income as of the date the customer payment is received/recorded and expenses as of the date a vendor bill is paid. Question (182):- Read the following statement about recurring transactions in QuickBooks Online and the suggested steps to create one. Statement: “Recurring transactions in QuickBooks Online can be set up to manage any of the first transactions in any workflow, like sales receipts, invoices, bills, journals, checks, deposits, or expenses”. Suggested steps: ● ● ● ● ● ● Select the Quick Create icon Select Recurring transactions Select New Now choose Expense as the new Transaction Type from the drop-down list and hit OK On the new screen, enter Sult Advertising monthly fees as the template name. The best practice is to list the “Name” (Vendor/Customer/Employee) in the Template name. This makes it easier to identify what Names have recurring templates As the type, make it Scheduled. Which is true? Answer: Only the statement is correct Question (183):- Look at these steps for creating a project and a task in QuickBooks Online Accountant: 1. _________________ 2. Select Create a project in the top right 3. Name the project Year-End 4. Select the Client and enter four weeks from now as the due date 5. Select Save 6. Select your newly added Year-End project 7. _________________ 8. Type in the Task name – Bank reconciliation and close books 9. Due date – two weeks from now10. Select Save Which option identifies the right steps for 1 and 7? Which option identifies the right steps for 1 and 7? Answer: 1. Select Work from the left menu; 7. Select Add a Task Question (184):- Your client, Client A, has a problem. He has a number of invoices that have not been paid by the customer after the customer became insolvent. ● ● Another client, Client B, needs to adjust invoices because of small overpayments by the customer on a series of invoices dating back six months. Which client or clients would need to use the Write off invoices feature of QuickBooks Online to get their books corrected, and can they perform the task themselves? Select the option that has the correct answer for both parts of the question. Answer: Only Client A would benefit from the Write off Invoices tool; No, the feature is only available to Accountant users via the Accountant Toolbox Question (185):- You have a client who needs a QuickBooks Online solution that includes tracking for sales and sales tax. Which subscription level in QuickBooks Online would you recommend? Answer: Simple Start, Essentials, or Plus Question (186):- Taking care of pay reports for employees and subcontractors is a key task when preparing for the year-end. Which of the 2 forms below would need to be sent? Answer: ● ● W-2s are submitted for employees 1099s for subcontractors Question (187):- Which subscription option, if any, includes online banking, access from any device at any time, and integration with a wide range of apps? Answer: All QuickBooks Online Subscription levels. Question (189):- Managing inventory and avoiding out-of-stock situations is critical to the success of this type of client. What type of client does this best describe? Answer: Retail and eCommerce Question (190):- When would you need to reclassify transactions and how would you do it in QuickBooks Online? Select the option that answers both parts of the question correctly. Answer: To clean up large uncategorized expense accounts; go to Reclassify transactions in the Accountant Toolbox Question (191):- You can find the link to the Voided/Deleted Transactions tool by selecting the ___________________. Which option correctly completes the sentence? Answer: Accountant Toolbox Question (192):- What are the steps to import a list of products and services in QuickBooks Online? 1. 2. 3. 4. Select + New icon > Tools column > Import Data > Products and Services Select Accountant Tools > Tools column > Import Data > Products and Services Select Gear icon > Tools column > Import Data > Products and Services Select Gear icon > Account and Settings > Advanced > Import Answer: 3. Select Gear icon > Tools column > Import Data > Products and Services Question (193):- Which statement is true regarding the Preferred Vendor field in Product and Services items? 1. 2. 3. 4. You can add more than one preferred vendor to each product/service item You can create a new vendor from the product/service information screen Preferred vendors must be assigned to utilize the Price rules feature You can reorder your list of preferred vendors Answer: 2. You can create a new vendor from the product/service information screen Question (194):- What are 2 ways to add a customer to QuickBooks Online? 1. 2. 3. 4. 5. Sales > Customers > Add New + New > Add Customer Sales > All Sales Gear icon > Add Customer Gear icon > Import Data Answer: 1. Sales > Customers > Add New 4. Gear icon > Add Customer Question (195):- Which of the following buttons could you use to add a new vendor or find the link to import a vendor list into QuickBooks Online? 1. 2. 3. 4. The New Vendor button in the Vendors tab of the Sales screen The New Vendor button in the Vendors tab of the Expenses screen The New Vendor button in the Expenses tab of the Expenses screen The Enter Vendor Details button in the Expenses tab of the Sales screen Answer: 2. The New Vendor button in the Vendors tab of the Expenses screen Question (196):- Where should you go to set up a new bank feed or link to a bank account in a client's QuickBooks Online company? 1. 2. 3. 4. Expenses Center Accounting Center Sales Center Banking Center Answer: 4. Banking Center Question (197):- In QuickBooks Online, what 4 data points do you need to set up sales tax for a client who only does business in their home state? 1. 2. 3. 4. 5. 6. Their company address Whether they have any criminal convictions Whether they travel to other countries When their last sales tax period started How often do they have to file a sales tax return When they started collecting sales tax for the agency Answer: 1. Their company address 4. When their last sales tax period started 5. How often they have to file a sales tax return 6. When they started collecting sales tax for the agency Question (198):- Which 4 methods allow clients to process digital payments from customers using QuickBooks Online Payments? ● ● ● ● ● ● ● Running a card through a card reader attached to a mobile device Entering payments manually as a Receive Payment Taking client payment via cryptocurrency Entering payments manually as a Sales Receipt Entering payments manually as a Credit Memo Sending a Sales Receipt to a customer via email Taking client payment via the Pay Now button on an emailed Invoice Answer: ● ● ● ● Running a card through a card reader attached to a mobile device Entering payments manually as a Receive Payment Sending a Sales Receipt to a customer via email Taking client payment via the Pay Now button on an emailed Invoice Question (199):- Your client wants to open a new QuickBooks Payments merchant account. From inside QuickBooks Online, where can they go to sign up? 1. 2. 3. 4. In the Usage tab of Account and Settings In the Advanced tab of Account and Settings In the Payment tab of the Account and Settings In the Billing and Subscription tab of Account and Settings Answer: 3. In the Payment tab of the Account and Settings Question (200):- Which 2 team user roles have permission to view and search for apps using the Apps tab in QuickBooks Online Accountant? 1. 2. 3. 4. Firm Master Admin Full Access Team User Custom Team User Basic Team User Answer: 1. Firm Master Admin 2. Full Access Team User Question (201):- Where can a Master Admin Accountant User view the apps connected to a client's QuickBooks Online account from within QuickBooks Online Accountant? 1. Select the client from the Client List to open the Client Detail Page > Bookkeeping > View Connected Apps 2. Left Navigation Bar > Apps > Client Apps 3. In the Connected Apps column on the Client List dashboard 4. Gear icon > Apps > Client Apps Answer: 4. Gear icon > Apps > Client Apps