QuickBooks Online Test 1 (2026 Updated) – Practice Exam Questions & Answer Guide for
Certification Prep
You need to set up a new user so they can see reports but can do nothing else in QuickBooks.
Put the steps for setting up a user who can only see reports in the correct order. - correct
answer ✔✔1. Click the Company menu and choose Manage Users.
2. In the Manage Users screen, click New.
3. For User Type, choose Reports Only and click Next.
4. Enter the user's email address and click Next.
5. Click the Reports tab.
You've just been hired as a bookkeeper, and the company's QuickBooks is a mess. There are
many list entries that are duplicates. You decide to merge list entries to clean up the lists. Which
of the following statements is true about merging? - correct answer ✔✔You can only merge
names from the same type.
You have two customers with the same name. How do you handle this in QuickBooks? - correct
answer ✔✔Use a middle initial or other letter in the display name to make one name different
from the other.
Your customer, Donna Comeback, has gone out of business and you will never sell to her again.
Put the steps for removing her from the customer list in the correct order. - correct answer
✔✔1. Click the Customer tab.
2. Edit the Customer you want to remove (Donna).
3. Click Make Inactive.
How do delayed charges affect a customer's balance? - correct answer ✔✔Delayed charges
have no effect on a customer's balance.
, Which of the following statements is true regarding Undeposited Funds in QuickBooks? - correct
answer ✔✔Undeposited Funds is an account used to record payments before you make a
deposit.
What is one reason to not use a bank deposit or journal entry screen to record sales? - correct
answer ✔✔If you record sales through the bank deposit or journal entry screen, the sale will
not appear on sales reports.
What transaction should you enter if a customer returns a damaged product or, in the case of a
service, complains so much you decide to offer a refund? - correct answer ✔✔Credit Memo
When you invoice for time and costs, where does QuickBooks get the billable time or costs? -
correct answer ✔✔QuickBooks gets the billable time or costs from billable time entered on
timesheets and/or billable costs entered on checks and bills.
You're setting up a new customer. How do you tell QuickBooks that this customer's invoices
should be due 30 days after they're issued? - correct answer ✔✔Set the customer's Terms to
Net30.
How would you enter a transaction that won't be downloaded in which you paid for a service
using a debit card? - correct answer ✔✔Click the Global Create button and select Expense. Fill
out the expense and use Debit Card as the payment method.
In QuickBooks Online, entering a purchase order for inventory affects which accounts? - correct
answer ✔✔No accounts are affected because purchase orders are non-posting transactions.
Which of the following statements is true regarding vendor credit memos? - correct answer
✔✔Vendor credit memos reduce what you owe the vendor.
Certification Prep
You need to set up a new user so they can see reports but can do nothing else in QuickBooks.
Put the steps for setting up a user who can only see reports in the correct order. - correct
answer ✔✔1. Click the Company menu and choose Manage Users.
2. In the Manage Users screen, click New.
3. For User Type, choose Reports Only and click Next.
4. Enter the user's email address and click Next.
5. Click the Reports tab.
You've just been hired as a bookkeeper, and the company's QuickBooks is a mess. There are
many list entries that are duplicates. You decide to merge list entries to clean up the lists. Which
of the following statements is true about merging? - correct answer ✔✔You can only merge
names from the same type.
You have two customers with the same name. How do you handle this in QuickBooks? - correct
answer ✔✔Use a middle initial or other letter in the display name to make one name different
from the other.
Your customer, Donna Comeback, has gone out of business and you will never sell to her again.
Put the steps for removing her from the customer list in the correct order. - correct answer
✔✔1. Click the Customer tab.
2. Edit the Customer you want to remove (Donna).
3. Click Make Inactive.
How do delayed charges affect a customer's balance? - correct answer ✔✔Delayed charges
have no effect on a customer's balance.
, Which of the following statements is true regarding Undeposited Funds in QuickBooks? - correct
answer ✔✔Undeposited Funds is an account used to record payments before you make a
deposit.
What is one reason to not use a bank deposit or journal entry screen to record sales? - correct
answer ✔✔If you record sales through the bank deposit or journal entry screen, the sale will
not appear on sales reports.
What transaction should you enter if a customer returns a damaged product or, in the case of a
service, complains so much you decide to offer a refund? - correct answer ✔✔Credit Memo
When you invoice for time and costs, where does QuickBooks get the billable time or costs? -
correct answer ✔✔QuickBooks gets the billable time or costs from billable time entered on
timesheets and/or billable costs entered on checks and bills.
You're setting up a new customer. How do you tell QuickBooks that this customer's invoices
should be due 30 days after they're issued? - correct answer ✔✔Set the customer's Terms to
Net30.
How would you enter a transaction that won't be downloaded in which you paid for a service
using a debit card? - correct answer ✔✔Click the Global Create button and select Expense. Fill
out the expense and use Debit Card as the payment method.
In QuickBooks Online, entering a purchase order for inventory affects which accounts? - correct
answer ✔✔No accounts are affected because purchase orders are non-posting transactions.
Which of the following statements is true regarding vendor credit memos? - correct answer
✔✔Vendor credit memos reduce what you owe the vendor.
