QuickBooks Online Certification Level 1 (2026 Beginner Training, Study Guide &
Practice Exam)
Journal Entry - correct answer ✔✔Which type of transaction cannot be referenced with a tag in
QuickBooks?
When a large expense is incurred & when the expense needs to appear in a company report
immediately - correct answer ✔✔When might a client want to manually record an expense,
rather than categorizing it when it comes in through the bank feed?
$600 - correct answer ✔✔You generally need to submit a 1099 to the IRS at year end when you
pay more than how much for services from a vendor who is an independent contractor or
freelancer?
Tags are customizable labels that you can add to transactions that affect the profit and loss
statement. - correct answer ✔✔Which of the following statements best describe tags in
QuickBooks?
- Tags are customizable labels that you can add to transactions that affect the profit and loss
statement.
- Tags are the best way to generate reports to analyze financial data based on location, to make
informed decisions about each location's performance.
- Tags are highly structured and typically used for high-level categorization, such as
departments, product lines, or business units.
- Tags are integrated into all standard reports, and offer advanced filtering and sorting
capabilities.
, It's a nonaccounting (also known as nonposting) transaction, which means it doesn't affect any
balances in your client's accounts. They are a good way to help clients keep track of their cash
flow by keeping an eye on intended future purchases. - correct answer ✔✔Using Purchase
Orders
*Makes orders easier to track*: Creating purchase orders streamlines order tracking, and when
the order arrives, it's easy to check whether the correct items and quantities have been sent.
*Ensures clear communication*: Since purchase orders are highly detailed, they ensure your
client and the vendor are in agreement about what's expected.
*Makes life easier for vendors*: A purchase order helps vendors generate your client's order
and successfully deliver it to them.
*Helps manage cash flow*: Purchase orders help provide control over spending and give insight
on future expenditures - correct answer ✔✔How do purchase orders help in QuickBooks
Online?
QuickBooks Online enables clients to upload them from a computer or mobile device, or email
them to a custom email address. - correct answer ✔✔Uploading receipts and bills
All of the Above - correct answer ✔✔What happens when your client receives a bill and records
it in QuickBooks?
Debits the expense account
Increases expenses on the profit and loss
Credits accounts payable
Practice Exam)
Journal Entry - correct answer ✔✔Which type of transaction cannot be referenced with a tag in
QuickBooks?
When a large expense is incurred & when the expense needs to appear in a company report
immediately - correct answer ✔✔When might a client want to manually record an expense,
rather than categorizing it when it comes in through the bank feed?
$600 - correct answer ✔✔You generally need to submit a 1099 to the IRS at year end when you
pay more than how much for services from a vendor who is an independent contractor or
freelancer?
Tags are customizable labels that you can add to transactions that affect the profit and loss
statement. - correct answer ✔✔Which of the following statements best describe tags in
QuickBooks?
- Tags are customizable labels that you can add to transactions that affect the profit and loss
statement.
- Tags are the best way to generate reports to analyze financial data based on location, to make
informed decisions about each location's performance.
- Tags are highly structured and typically used for high-level categorization, such as
departments, product lines, or business units.
- Tags are integrated into all standard reports, and offer advanced filtering and sorting
capabilities.
, It's a nonaccounting (also known as nonposting) transaction, which means it doesn't affect any
balances in your client's accounts. They are a good way to help clients keep track of their cash
flow by keeping an eye on intended future purchases. - correct answer ✔✔Using Purchase
Orders
*Makes orders easier to track*: Creating purchase orders streamlines order tracking, and when
the order arrives, it's easy to check whether the correct items and quantities have been sent.
*Ensures clear communication*: Since purchase orders are highly detailed, they ensure your
client and the vendor are in agreement about what's expected.
*Makes life easier for vendors*: A purchase order helps vendors generate your client's order
and successfully deliver it to them.
*Helps manage cash flow*: Purchase orders help provide control over spending and give insight
on future expenditures - correct answer ✔✔How do purchase orders help in QuickBooks
Online?
QuickBooks Online enables clients to upload them from a computer or mobile device, or email
them to a custom email address. - correct answer ✔✔Uploading receipts and bills
All of the Above - correct answer ✔✔What happens when your client receives a bill and records
it in QuickBooks?
Debits the expense account
Increases expenses on the profit and loss
Credits accounts payable
