, TESTBANK FOR QuickBooks Online for Canada Basics, Academic Year
2025-2026 Watkin
Important Notes
The file includes the complete test bank, organized chapter by chapter.
A sample of selected pages has been provided for preview.
All available appendices and Excel files (if included in the original resources) are
provided.
We continuously update our files to ensure you receive the latest and most accurate
editions.
New editions are added regularly – stay connected for updates!
⚠️Note on Answer Keys: If the answer key is not included within the chapter
questions, you will find the complete answers and solutions at the end of each
chapter.
✅ Why Buy From Us?
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📅 Always up to date – we track new editions so you always get the latest version.
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🛡️Our Guarantees
💰 Money-Back Guarantee: Not satisfied? We offer a full refund – no questions asked.
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correct version, free of charge.
⏰ 24/7 Support: We are always here – reach out anytime and expect a fast response.
,Chapter 1
Getting Started with QuickBooks Online
Name:
Class:
Date:
1. The QuickBooks Online environment is best described as _____.
A. a social network
B. cloud based
C. a test drive
D. behind the scenes
2. Where do you back up your QuickBooks Online data files?
A. a local hard drive
B. an external drive or server
C. Accounts and Settings
D. in the cloud
3. Dolly uses QuickBooks Online and is upgrading to a new computer. What do you
tell her?
A. You’ll have to reinstall the software and rebuild your company file.
B. Since QBO is cloud software, all you have to do is sign in to your account from
the new computer.
C. It’s best to upgrade your system at the end of a fiscal period to ensure the
financial reports remain accurate.
D. Downloading your data will take time, so do it over a long weekend.
4. What is an app in QuickBooks Online?
A. a consolidated area of similar transaction types and related contact information
B. an area where interested users can test the software by recording sample
transactions
C. a high-level summary of the company’s current financial condition
D. the place to check for and download updates to the user interface
QuickBooks Online for Canada Page 1 of 6
,Test Bank
5. Why use the main Gear icon?
A. to open the apps
B. to switch between cash basis and accrual basis accounting
C. to quickly access the Your Company, Lists, Tools and Profile menus
D. to access the sample company
6. What icon do you use to access Account and Settings so you can customize your QBO
account?
A.
B.
C.
D.
7. Mr. Smooth is starting a business. He will be the only user to access the accounting
records and wants to be able to do so from different devices via the cloud. He will use
the accrual accounting method. His preferred software can organize and manage
projects associated with a customer and track all costs, time and revenue related to the
corresponding job. Which QuickBooks product do you recommend?
A. QuickBooks Desktop
B. QuickBooks Online Easy Start
C. QuickBooks Online Essentials
D. QuickBooks Online Plus
E. QuickBooks Online Advanced
8. Which icon allows you to instantly view the last transaction posted to the file?
A.
B.
C.
D.
9. The access point to all transaction forms for a company file is the _____.
A. Navigation bar
B. + Create menu
C. main Gear icon
D. Home page
QuickBooks Online for Canada Page 2 of 6
,Test Bank
10. What is the accounting equation?
A. Equity = Net Income/Loss + Capital
B. Profit = Assets – Accounts Payable
C. Assets = Liabilities + Equity
D. Revenue = Equity * Assets
11. Match each QBO subscription type to the business function it’s best suited for.
A. Easy Start 1. operates with Euros and Pesos and supports
B. Essentials multiple users
C. Plus 2. tracks project profitability and inventory
D. Advanced 3. uses cash basis reporting and supports one
user only
4. allows up to 25 users
12. Why are GAAP rules and standards important?
A. They are the foundation of QuickBooks.
B. They keep the accounting equation balanced.
C. They ensure organizations follow consistent financial reporting.
D. They prevent a company from going bankrupt.
13. The _____ accounting method records income when it’s received and records an
expense when it’s paid.
A. assets
B. cash
C. expenses
D. accrual
14. The _____ accounting method records income when sales are made and records
expenses when the obligation is incurred.
A. assets
B. cash
C. expenses
D. accrual
15. Match each QBO user interface element with what you access from it.
A. + Create menu 1. QBO apps
B. Navigation bar 2. the Your Company, Lists, Tools and Profile
C. Gear icon menus
3. transaction forms
QuickBooks Online for Canada Page 3 of 6
,Test Bank
16. What is the sample company?
A. the feature on the Advanced tab that allows you to try out customizations before
applying them
B. a free version of the software that allows you to try features without the risk of
negatively impacting your true company file
C. the base subscription level, which offers limited features
D. where you access the mobile version
17. Which statement about using QuickBooks Online on a mobile device is false?
A. The functionality includes the ability to create, view and email estimates,
invoices and sales receipts.
B. You can use the device’s camera, phone and GPS with QuickBooks Online.
C. QuickBooks Online is compatible with Android and iOS devices.
D. You can easily reconcile accounts on the go.
18. What can you access from the Navigation bar?
A. the Your Company, Lists, Tools and Profile menus
B. the Home page and various apps
C. customization options, such as adding a company logo
D. a list of recently posted transactions
19. Located at the top of the Navigation bar, what does the + Create button do?
A. It opens the bank reconciliation window.
B. It sets up recurring transactions.
C. It adds something, such as an invoice, to your company file.
D. It creates a new sample company file in the test drive.
20. Match each app to one of its functions.
A. Accounting 1. manage employees
B. Expenses & Bills 2. upload receipts and bills for approval
C. Sales & Get Paid 3. generate a reminder for overdue
D. Projects invoices
E. Payroll 4. details of a supplier transaction history
F. Customer Hub 5. monitor profitability of a job
6. work on marketing with Intuit Mailchimp
QuickBooks Online for Canada Page 4 of 6
,Test Bank
21. Which statement best describes the key benefit of QuickBooks Online?
A. It gives you the ability to collaborate with external accountants and team
members who have a backup file and updated software installed on their
devices.
B. It gives you the ability to create a portable file to access and update from any
device that has the updated software installed.
C. It gives you the ability to access and update accounting records through an
Internet browser using a PC, Mac or mobile device.
D. It gives you the ability to maintain a local backup to protect against lost data due
to an inoperable hard drive.
22. You recently helped a client set up the Easy Start subscription for her new business.
Now she wants to add another user, who will manage the finances. What do you
advise?
A. Wait until the Easy Start subscription expires before upgrading, so you’re not
stuck paying for two subscriptions.
B. Just keep using Easy Start; it supports multiple users.
C. You have to use the desktop version of the software.
D. Upgrade to the Essentials tier and then add the new user.
23. Identify each feature as available in QuickBooks Online, QuickBooks Desktop or both.
Put “X” in the appropriate
column for each row.
Online Desktop Both
A. built using lists, transaction forms and functions
B. requires software installation
C. requires Internet access
D. financial management solution for businesses
supports advanced raw materials inventory
E.
tracking
F. no data files to transfer or store
G. continually enhanced with new features
24. What type of security does QBO use to secure client data?
A. device-level username and password
B. encryption technology
C. locally installed virus software on device
D. backup files stored on client hard drive
QuickBooks Online for Canada Page 5 of 6
,Test Bank
25. If you get an unexpected error message while working in QBO, what should you do first?
A. Duplicate your browser window.
B. Clear the browsing history of cache and cookies.
C. Set up a new company file.
D. Upgrade to a higher subscription tier.
QuickBooks Online for Canada Page 6 of 6
,Chapter 2
Setting Up a New Company File
Name:
Class:
Date:
1. What is the migration utility?
A. a tool that creates a backup of company data to share with your accountant
B. a tool that assists with importing all data from a QBDt company file to QBO
C. a tool that automatically closes out the company books for year end
D. a tool that converts cash basis accounting records to accrual basis
2. What is the main benefit of setting up the Products and Services list?
A. It’s required for a double-entry accounting system.
B. A properly set up Products and Services list can automate the invoice process.
C. QuickBooks can auto-categorize the entries for your business.
D. Without one, an income statement cannot be generated.
3. What is the Chart of Accounts?
A. the list of accounts that makes up the general ledger and is the foundation of the
company file
B. the menu of products and services that the company offers its customers
C. a full list of accounts the company has with its frequently used suppliers and
vendors
D. the list of customers who purchase a company’s products and services on
account
4. If you try to make the _____ account inactive, you will receive an error message.
A. Accounting Fees
B. Rent Income
C. Cost of Goods Sold
D. Undeposited Funds
QuickBooks Online for Canada Page 1 of 4
, Test Bank
5. Soar, Inc., is an ongoing business with many historical transactions. What do you advise
regarding recording these transactions in the company’s newly converted QBO company
file?
A. All historical transactions will migrate to QBO regardless of the prior accounting
software used.
B. Prepare a journal entry for all historical transactions impacting income
statement accounts.
C. You can create a new transaction form for each opening balance.
D. It’s best to keep those old transactions in a separate file, such as an Excel
workbook.
6. Why can’t you merge Product Sales with Cost of Goods Sold in the Chart of Accounts?
A. Cost of Goods Sold is not included on the Chart of Accounts.
B. You can only merge accounts that are of the same type.
C. The income account would delete the expense account.
D. Only default accounts can be merged.
7. Paul’s Pets has been using Excel to manage the company’s invoices. Paul provided you
with several workbooks, including one with a list of unpaid customer invoices. Properly
order the steps to import the invoices into his new QBO company file.
A. Download the sample CSV file.
B. Create and format the client’s CSV file to mirror the sample.
C. Map the columns and tax codes.
D. Upload the client’s CSV file.
E. Click Start Import.
8. What is a Product or Service item linked to?
A. a general journal entry
B. the associated uncategorized asset account
C. at least one account in the Chart of Accounts
D. the historical transaction
9. The _____ user type does NOT count toward your user limit.
A. time-tracking
B. standard
C. company admin
D. Accountant
QuickBooks Online for Canada Page 2 of 5
2025-2026 Watkin
Important Notes
The file includes the complete test bank, organized chapter by chapter.
A sample of selected pages has been provided for preview.
All available appendices and Excel files (if included in the original resources) are
provided.
We continuously update our files to ensure you receive the latest and most accurate
editions.
New editions are added regularly – stay connected for updates!
⚠️Note on Answer Keys: If the answer key is not included within the chapter
questions, you will find the complete answers and solutions at the end of each
chapter.
✅ Why Buy From Us?
📚 Complete & organized chapter-by-chapter – no missing content, no guessing.
⚡ Instant digital delivery – get your file the moment you pay, no waiting.
📅 Always up to date – we track new editions so you always get the latest version.
💬 Friendly support – real humans ready to help, anytime you need us.
🔒 Safe & secure – thousands of satisfied students trust us every semester.
🛡️Our Guarantees
💰 Money-Back Guarantee: Not satisfied? We offer a full refund – no questions asked.
🔄 Wrong File? No Problem: Contact us and we will replace it immediately with the
correct version, free of charge.
⏰ 24/7 Support: We are always here – reach out anytime and expect a fast response.
,Chapter 1
Getting Started with QuickBooks Online
Name:
Class:
Date:
1. The QuickBooks Online environment is best described as _____.
A. a social network
B. cloud based
C. a test drive
D. behind the scenes
2. Where do you back up your QuickBooks Online data files?
A. a local hard drive
B. an external drive or server
C. Accounts and Settings
D. in the cloud
3. Dolly uses QuickBooks Online and is upgrading to a new computer. What do you
tell her?
A. You’ll have to reinstall the software and rebuild your company file.
B. Since QBO is cloud software, all you have to do is sign in to your account from
the new computer.
C. It’s best to upgrade your system at the end of a fiscal period to ensure the
financial reports remain accurate.
D. Downloading your data will take time, so do it over a long weekend.
4. What is an app in QuickBooks Online?
A. a consolidated area of similar transaction types and related contact information
B. an area where interested users can test the software by recording sample
transactions
C. a high-level summary of the company’s current financial condition
D. the place to check for and download updates to the user interface
QuickBooks Online for Canada Page 1 of 6
,Test Bank
5. Why use the main Gear icon?
A. to open the apps
B. to switch between cash basis and accrual basis accounting
C. to quickly access the Your Company, Lists, Tools and Profile menus
D. to access the sample company
6. What icon do you use to access Account and Settings so you can customize your QBO
account?
A.
B.
C.
D.
7. Mr. Smooth is starting a business. He will be the only user to access the accounting
records and wants to be able to do so from different devices via the cloud. He will use
the accrual accounting method. His preferred software can organize and manage
projects associated with a customer and track all costs, time and revenue related to the
corresponding job. Which QuickBooks product do you recommend?
A. QuickBooks Desktop
B. QuickBooks Online Easy Start
C. QuickBooks Online Essentials
D. QuickBooks Online Plus
E. QuickBooks Online Advanced
8. Which icon allows you to instantly view the last transaction posted to the file?
A.
B.
C.
D.
9. The access point to all transaction forms for a company file is the _____.
A. Navigation bar
B. + Create menu
C. main Gear icon
D. Home page
QuickBooks Online for Canada Page 2 of 6
,Test Bank
10. What is the accounting equation?
A. Equity = Net Income/Loss + Capital
B. Profit = Assets – Accounts Payable
C. Assets = Liabilities + Equity
D. Revenue = Equity * Assets
11. Match each QBO subscription type to the business function it’s best suited for.
A. Easy Start 1. operates with Euros and Pesos and supports
B. Essentials multiple users
C. Plus 2. tracks project profitability and inventory
D. Advanced 3. uses cash basis reporting and supports one
user only
4. allows up to 25 users
12. Why are GAAP rules and standards important?
A. They are the foundation of QuickBooks.
B. They keep the accounting equation balanced.
C. They ensure organizations follow consistent financial reporting.
D. They prevent a company from going bankrupt.
13. The _____ accounting method records income when it’s received and records an
expense when it’s paid.
A. assets
B. cash
C. expenses
D. accrual
14. The _____ accounting method records income when sales are made and records
expenses when the obligation is incurred.
A. assets
B. cash
C. expenses
D. accrual
15. Match each QBO user interface element with what you access from it.
A. + Create menu 1. QBO apps
B. Navigation bar 2. the Your Company, Lists, Tools and Profile
C. Gear icon menus
3. transaction forms
QuickBooks Online for Canada Page 3 of 6
,Test Bank
16. What is the sample company?
A. the feature on the Advanced tab that allows you to try out customizations before
applying them
B. a free version of the software that allows you to try features without the risk of
negatively impacting your true company file
C. the base subscription level, which offers limited features
D. where you access the mobile version
17. Which statement about using QuickBooks Online on a mobile device is false?
A. The functionality includes the ability to create, view and email estimates,
invoices and sales receipts.
B. You can use the device’s camera, phone and GPS with QuickBooks Online.
C. QuickBooks Online is compatible with Android and iOS devices.
D. You can easily reconcile accounts on the go.
18. What can you access from the Navigation bar?
A. the Your Company, Lists, Tools and Profile menus
B. the Home page and various apps
C. customization options, such as adding a company logo
D. a list of recently posted transactions
19. Located at the top of the Navigation bar, what does the + Create button do?
A. It opens the bank reconciliation window.
B. It sets up recurring transactions.
C. It adds something, such as an invoice, to your company file.
D. It creates a new sample company file in the test drive.
20. Match each app to one of its functions.
A. Accounting 1. manage employees
B. Expenses & Bills 2. upload receipts and bills for approval
C. Sales & Get Paid 3. generate a reminder for overdue
D. Projects invoices
E. Payroll 4. details of a supplier transaction history
F. Customer Hub 5. monitor profitability of a job
6. work on marketing with Intuit Mailchimp
QuickBooks Online for Canada Page 4 of 6
,Test Bank
21. Which statement best describes the key benefit of QuickBooks Online?
A. It gives you the ability to collaborate with external accountants and team
members who have a backup file and updated software installed on their
devices.
B. It gives you the ability to create a portable file to access and update from any
device that has the updated software installed.
C. It gives you the ability to access and update accounting records through an
Internet browser using a PC, Mac or mobile device.
D. It gives you the ability to maintain a local backup to protect against lost data due
to an inoperable hard drive.
22. You recently helped a client set up the Easy Start subscription for her new business.
Now she wants to add another user, who will manage the finances. What do you
advise?
A. Wait until the Easy Start subscription expires before upgrading, so you’re not
stuck paying for two subscriptions.
B. Just keep using Easy Start; it supports multiple users.
C. You have to use the desktop version of the software.
D. Upgrade to the Essentials tier and then add the new user.
23. Identify each feature as available in QuickBooks Online, QuickBooks Desktop or both.
Put “X” in the appropriate
column for each row.
Online Desktop Both
A. built using lists, transaction forms and functions
B. requires software installation
C. requires Internet access
D. financial management solution for businesses
supports advanced raw materials inventory
E.
tracking
F. no data files to transfer or store
G. continually enhanced with new features
24. What type of security does QBO use to secure client data?
A. device-level username and password
B. encryption technology
C. locally installed virus software on device
D. backup files stored on client hard drive
QuickBooks Online for Canada Page 5 of 6
,Test Bank
25. If you get an unexpected error message while working in QBO, what should you do first?
A. Duplicate your browser window.
B. Clear the browsing history of cache and cookies.
C. Set up a new company file.
D. Upgrade to a higher subscription tier.
QuickBooks Online for Canada Page 6 of 6
,Chapter 2
Setting Up a New Company File
Name:
Class:
Date:
1. What is the migration utility?
A. a tool that creates a backup of company data to share with your accountant
B. a tool that assists with importing all data from a QBDt company file to QBO
C. a tool that automatically closes out the company books for year end
D. a tool that converts cash basis accounting records to accrual basis
2. What is the main benefit of setting up the Products and Services list?
A. It’s required for a double-entry accounting system.
B. A properly set up Products and Services list can automate the invoice process.
C. QuickBooks can auto-categorize the entries for your business.
D. Without one, an income statement cannot be generated.
3. What is the Chart of Accounts?
A. the list of accounts that makes up the general ledger and is the foundation of the
company file
B. the menu of products and services that the company offers its customers
C. a full list of accounts the company has with its frequently used suppliers and
vendors
D. the list of customers who purchase a company’s products and services on
account
4. If you try to make the _____ account inactive, you will receive an error message.
A. Accounting Fees
B. Rent Income
C. Cost of Goods Sold
D. Undeposited Funds
QuickBooks Online for Canada Page 1 of 4
, Test Bank
5. Soar, Inc., is an ongoing business with many historical transactions. What do you advise
regarding recording these transactions in the company’s newly converted QBO company
file?
A. All historical transactions will migrate to QBO regardless of the prior accounting
software used.
B. Prepare a journal entry for all historical transactions impacting income
statement accounts.
C. You can create a new transaction form for each opening balance.
D. It’s best to keep those old transactions in a separate file, such as an Excel
workbook.
6. Why can’t you merge Product Sales with Cost of Goods Sold in the Chart of Accounts?
A. Cost of Goods Sold is not included on the Chart of Accounts.
B. You can only merge accounts that are of the same type.
C. The income account would delete the expense account.
D. Only default accounts can be merged.
7. Paul’s Pets has been using Excel to manage the company’s invoices. Paul provided you
with several workbooks, including one with a list of unpaid customer invoices. Properly
order the steps to import the invoices into his new QBO company file.
A. Download the sample CSV file.
B. Create and format the client’s CSV file to mirror the sample.
C. Map the columns and tax codes.
D. Upload the client’s CSV file.
E. Click Start Import.
8. What is a Product or Service item linked to?
A. a general journal entry
B. the associated uncategorized asset account
C. at least one account in the Chart of Accounts
D. the historical transaction
9. The _____ user type does NOT count toward your user limit.
A. time-tracking
B. standard
C. company admin
D. Accountant
QuickBooks Online for Canada Page 2 of 5
