The following practice questions are from our Level 3 QuickBooks Training Course in South Florida.  We use these questions as samples to the topics we cover in our live class.  If these are the types of questions or topics you are interested in elarning please check out our Level 3 – Advanced QuickBooks Class.

 

How many types of Custom Reports can be created from scratch in QuickBooks?

  1. Only one Custom Report called “Detail Custom Report”
  2. There are 2 reports, one is called the Profit & Loss and the other The Balance Sheet
  3. There are 2 custom reports: “Summary” and “Detail”
  4. There are no Custom Reports in QuickBooks
  5. There are hundreds of custom reports built-in to quickbooks

 

How many different standard reports are there in QuickBooks?

  1. 17 Standard Reports
  2. There are 2 reports, one is called the Profit & Loss and the other The Balance Sheet
  3. There are only 2 reports: “Summary” and “Detail”
  4. There are over 100 of standard reports built-in to QuickBooks
  5. None of the Above

 

What are “Filters”  when customizing a report?

  1. To remove all erroneous transactions
  2. To remove any profanity from the reports
  3. To show only the transactions that match within the filtered options
  4. Is used to choose which columns will display and which will not
  5. To choose which user can see the report being customized

 

Which is an example of what can be searched in the Advanced Find feature?

  1. Can only find advanced transactions such as journal entries and accounting adjustments
  2. Can search any transactions that match the filters you enter
  3. Can search checks and bills for a specific vendor
  4. Can search invoices that are over $1000
  5. Answers B, C, and D are correct.

 

What are the difference between the search features in Simple Find vs. Advanced Find?

  1. No feature difference… just the Simple Find is easier to use
  2. Simple Find is limited to a specific transaction type and Advanced Find can search all transactions types if desired.
  3. Are different, because Simple can only find 10 transactions at the time vs. advanced is unlimited
  4. You can access both these features by hitting F3 on the keyboard
  5. All the above are correct

 

Why use the “Search” feature in QuickBooks (by hitting F3) vs. the Find feature?

  1. Search is faster, because no filters need to be entered
  2. Search has many more filtering capabilities that Find
  3. Search will only search in the MEMO field
  4. Search allows you search classification types in Google
  5. All the above are correct

 

How can you build a custom report?

  1. Go to Reports, Custom Report (Choose Summary or Detail)
  2. Open a Standard Report and customize it by using filters and add/remove columns
  3. Go to Advanced Find, work with the filters, click on FIND… and then click on Report to display the found transactions as a report
  4. All the above are correct
  5. None of the Above

 

Which feature allows the user to add a custom text box to an invoice that is not built-in QuickBooks… and also the contents of that box can be searched via the Advanced Find?

  1. In the List Menu, User Boxes
  2. Use Custom Fields
  3. When customizing a form, click on Add New Text Box
  4. QuickBooks does not let you do this
  5. None of the above

 

What are “Classes” in QuickBooks?

  1. In the Classes Menu, these are videos that teach you how to use QuickBooks
  2. There are Departments or Cost Centers that allow the user to track income and expenses in multiple classes within one QuickBooks file
  3. These are the expense categories you need to choose when writing a check
  4. These are Inventory Categories
  5. All the above are correct

What are the challenges when using classes?

  1. Balance Sheet by Class tends to look messy, specially the bank accounts
  2. Creates more work for the user as they have to choose a class on EVERY transaction
  3. It’s tricky for single transactions that must be allocated to multiple classes. Specially overhead-type of transactions like Rent.
  4. All the above are correct
  5. None of the Above

 

What are the advantages of using classes?

  1. You get to see a Profit & Loss by class and determine with department or cost-center in the company is most profitable
  2. Allows you to filter those categories when doing custom reports
  3. It decreases the amount of data-entry work
  4. A and B only are Correct
  5. All of the Above

 

What is a Sales Order?

  1. Is a form to confirm an inventory purchase with your vendor
  2. Is a sales form for your customers to confirm an order, but the invoice will be created later when the inventory is shipped
  3. Is another name for an Invoice
  4. Is a way to create “backorders” for selling products that are not in stock
  5. B and D are Correct

 

Which versions of QuickBooks do NOT have the Sales Order Feature?

  1. QuickBooks Online
  2. QuickBooks Mac
  3. QuickBooks Pro
  4. QuickBooks Premier/Enterprise
  5. Answer A, B, and C

 

Generally, which reports does the CPA or Tax Preparer need at year-end?

  1. Profit & Loss, Balance Sheet, and General Ledger
  2. A/R Aging and A/P Aging
  3. Inventory Valuation Report
  4. Last month’s Bank Reconciliation Report
  5. All of the above

 

Assuming is a cash basis tax-payer, does not sell inventory, no invoices, no bills are ever created in QuickBooks… What report(s) does the CPA or Tax Preparer need at year-end?

  1. Profit & Loss, Balance Sheet, General Ledger, and Last month’s Bank Reconciliation Report.
  2. A/R Aging and A/P Aging
  3. Inventory Valuation Report
  4. Cash-Basis Tax Report
  5. All of the above

 

Which of these accounting principles help the QuickBooks user understand better the work inside QuickBooks  they do and how it relates to Financial Statements?

  1. Revenue Recognition: Invoice dates match the date of the completed service and/or delivered product
  2. Expense Matching: the date of the expenses match the dates of the income in which the expenses most closely relate to income.
  3. Consistency: similar transactions are treated the same every time they appear
  4. Understanding difference between cash basis and accrual basis reports
  5. All of the Above

 

What is Negative Inventory?

  1. Is when you inventory looses value
  2. Is inventory you have in stock, but not available for sale
  3. Is an accounting error when invoices where created with sale inventory items, but the receipt of this items where never done in QuickBooks
  4. Answers A, B and C are correct
  5. Answers A and C are correct

What type of actions can cause a “Reconciliation Discrepancy” even after the account was reconciled correctly?

  1. Creating new bank accounts without the CPA’s permission
  2. Deleting or Changing the value of a previously reconciled transaction
  3. Deleting a transaction that was not previously reconciled
  4. Manually “unchecking” or “unclearing” a previously reconciled transaction
  5. Answers B and D are correct

 

 

What type of beginning balances should NOT be entered via journal entries?

  1. Inventory, because every item with its qty/cost should be entered separately
  2. Accounts Receivable, because every customer with its balance should be entered separately
  3. Accounts Payable, because every vendor with its balance should be entered separately
  4. All of the above are correct
  5. None of the above are correct, because EVERY balance should always be entered with a journal entry

 

Why use QuickBooks Desktop over QuickBooks Online?

  1. Online is simpler and has less features
  2. Desktop allows you to run unlimited company files without additional cost
  3. Desktop is better for inventory
  4. Desktop is faster because does not require an internet connection
  5. All of the Above

 

When using QuickBooks Desktop, why choose Premier over Pro?

  1. Premier has some industry specific functions and reports
  2. Premier can do Sales Orders, Pro cannot
  3. Premier has the Inventory Center, and Pro does not
  4. Premier allows you to create a Purchase order from an Estimate or Sales Order
  5. All of the Above

 

When using QuickBooks Desktop, why choose Enterprise Edition over Pro/Premier?

  1. Enterprise can handle up to 30 users
  2. Enterprise has better user-level permissions and restrictions
  3. Enterprise works better over a network environment with multiple users
  4. Enterprise does not have an item limitation
  5. All of the Above

 

If you notice that a customer deposit is posting to a sales account, and the invoice that was supposed to be paid by that particular deposit.  How can you fix it?

  1. Delete the deposit, receive the payment (applying the payment to the open invoice), and finally go to Make Deposits to put the deposit back into the bank account register
  2. Change the account from income/sale to “Accounts Receivable” – Then go to the Invoice and apply the credit to close the invoice
  3. Go to the Invoice and click on “Mark as Paid”
  4. Answers A and B are Correct
  5. Answers A and C are correct

 

If you notice that a payment to a vendor made via Write Checks is posting to an expense or COGS account, and the Bill that was supposed to be paid by that particular check is still open.  How can you fix it?

  1. Delete the Check, and go to Pay Bills to make the Bill paid.
  2. Go to the Bill and click on “Mark as Paid”
  3. Change the account from expense/cogs to “Accounts Payable” – Then go to Pay bills to apply the credit and close the bill
  4. Answers A, B, and C are Correct
  5. Answers A and C are correct

 

How does QuickBooks handle recurring transactions?

  1. Go to the Transactions Menu, and click Create Recurring Transaction
  2. You must first create the first transaction that you would like to make recurring and save it
  3. Go to the Edit Menu and Click on “Memorize…..”  You can also right click inside the transaction to see the “Memorize” option
  4. Answers A, B and C are Correct
  5. Answers B and C are correct

 

How does a negative balance in Accounts Receivable mean?

  1. I means a customer owes you and is past due
  2. I means that you wrote off the customer balance because of their inability to pay
  3. I means that the customer as a credit in their favor and the customer probably paid more than the invoices created
  4. Answers A and C are correct
  5. Answers A, B, and C are correct

 

How do you handle prepayments to a Purchase Order?

  1. Go to write check, post the payment to a current asset called “Prepayments to Vendors” or “Prepaid expenses” – Put PO number in the memo for reference
  2. Before receiving the P.O., Go to Pay Purchase Orders in the Home page, and pay the Open P.O.
  3. Go to write check, post the payment to Accounts Payable, select the Vendor again in the “Customer:Job” dropdown – Put PO number in the memo for reference
  4. All of the above are correct
  5. Answers A and C are correct

 

How does QuickBooks and Excel work together?

  1. You can easily import excel lists such as customers, vendors, and items into QuickBooks
  2. You can easily export QuickBooks reports into Excel
  3. You can easily import/import transaction data from excel into QuickBooks and vice versa
  4. All of the above are correct
  5. Answers A and B are correct

 

We will not be posting the answers to these questions.  We have designed these questions to be a sample of the topics we cover in our 3-day Certificate QuickBooks course

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