QBO Cert. Objective Domain 2: Sales & Money In Practice Exam

Which of the following is NOT a reason that you would use products and services in QuickBooks Online?

• To generate a Sales by Product/Service Summary report to see your top selling items.

• Products and services save time by auto-filling descriptions and prices on forms.

• Products and services allow you to choose the account to point the dollars to on the financial statements.

• Products allow you to set a reorder point to automatically order from your supplier.

Select the statement(s) regarding products and services that are TRUE

• You must use products and services

• For each product and service, you enter an income account that is used for recording a sale.

• QuickBooks Online Plus allows you to set up a maximum of 250 products and services.

• Products and services allow you to use standardized descriptions across all customer sales forms.

Match the types of items (Service, Inventory, Non-inventory and Bundle) to the descriptions.

• Non-Inventory

• Item type used to track the work you perform for your customers.

• Bundle

• Items you buy and sell, but you do not track the quantity on hand.

• Service

• Use this item type to track items you often sell together

• Inventory

• Item type that allows you to track the quantity you buy, sell and have on hand.

Which of the following are TRUE regarding inventory? (Choose 3)

• The initial quantity on hand field is required when setting up an inventory item.

• You can adjust the quantity on hand.

• Use the Open Purchase Order Detail report to see the inventory items that have been ordered and are waiting to be received.

• You can use inventory in any version of QuickBooks Online.

You own a craft supply store and use QuickBooks Online to track your finances. You are setting up products and services. For each item you buy or sell, indicate whether it is Inventory or Non-Inventory:

Bags you use at the checkout counter for your customers' purchases.

• Inventory

• Non-Inventory

You own a craft supply store and use QuickBooks Online to track your finances. You are setting up products and services. For each item you buy or sell, indicate whether it is Inventory or Non-Inventory:

Craft supplies you stock regularly.

• Inventory

• Non-Inventory

You own a craft supply store and use QuickBooks Online to track your finances. You are setting up products and services. For each item you buy or sell, indicate whether it is Inventory or Non-Inventory:

A custom frame your customer orders, but that you don't usually sell.

• Inventory

• Non-Inventory

When you enter a customer ​ (a)   it reduces the current open balance and is applied to the invoice with a ​ (b)   transaction.

• credit memo
• Payment
• Invoice
• Deposit

To see the unpaid balances for each customer, grouped by days past due, you should generate which of the following reports?

• Accounts Receivable Aging Summary

• Customer Balances Due

• Customer Balance Summary

• Open Invoices

Which of the following best describes 2% 10 Net 30 terms for a customer?

• Customer must pay 2% of the bill within 10 days and the remaining balance within 30 days.

• Customer must pay within 10 days or will have to pay an additional 2% if they don't pay until 30 days.

• Custom may take a 2% discount if they pay within 10 days, or the total amount is due within 30 days.

• Customer may take a 2% discount if they pay it between 10 and 30 days.

Answer explanation

The terms list identifies the length of time you allow your customers to pay. The terms 2% 10 Net 30 is an early payment discount. Using those terms indicates to your customer that they can take a 2% discount if they pay within 10 days, otherwise the whole amount is due in 30 days.