QuickBooks Online: Opening Balances Quiz

Why are opening balances important in QuickBooks?

• They help track employee performance.

• They ensure accounts match real-life bank and credit card accounts.

• They simplify tax filing.

• They automate invoice creation.

What should you use to determine the opening balance of an account?

• The most recent transaction.

• A random date's balance.

• The balance from the end of the previous year.

• Your bank statement for the chosen start date.

Where does QuickBooks track all opening balances?

• In the Profit and Loss account.

• In individual account registers.

• In the Opening Balance Equity account.

• In the Retained Earnings account.

How does QuickBooks enter an opening balance if you connect your bank account?

• Through a phone call verification.

• Automatically, by downloading and totaling historical transactions.

• By estimating based on past data.

• By asking for a manual entry.

What is the first step to manually enter an opening balance?

• Go to Settings and select Chart of accounts.

• Estimate the balance based on your records.

• Call your bank for the exact balance.

• Print out your bank statements.

What should you do if you need to edit an opening balance?

• Ignore it, QuickBooks will auto-correct.

• Go to Settings, select Chart of accounts, and find the opening balance entry.

• Manually adjust all transactions after the opening balance.

• Delete the account and start over.

What is a reason to edit the opening balance?

• To correct the account number.

• To update the account's name.

• To change the account's currency.

• To add transactions older than the opening balance.

How can you fix an opening balance to match a bank statement?

• By reconciling the account in QuickBooks Online.

• By ignoring discrepancies.

• By deleting and re-entering all transactions.

• By calling customer support.

What happens if you skip entering an opening balance?

• Your account will be flagged for review.

• It will automatically be set to $0.

• QuickBooks will not allow you to record new transactions.

• You can enter it later on.

What is the purpose of the Opening Balance Equity account?

• To track the profitability of the company.

• To record adjustments to income statements.

• To hold all opening balances for accounts.

• To manage payroll transactions.