Quickbooks proadvisor certification
section 1 ACTUAL EXAM 2025 TEST
COMPREHENSIVE QUESTIONS AND
VERIFIED ANSWERS (DETAILED &
ELABORATED) 100% SOLVED 2025!!
QuickBooks ProAdvisor Certification: Section 1 Practice Exam
Banking & Transactions
1. A client has several downloaded credit card transactions that are personal expenses. What
is the BEST way to handle these?
A. Delete them
B. Categorize them to a "Owner's Draw" or "Personal Expense" account
C. Leave them uncategorized
D. Merge them with a business expense
2. What is the primary purpose of the "Bank Feed" in QuickBooks Online?
A. To pay bills electronically
B. To import and match bank and credit card transactions
C. To generate financial reports
D. To reconcile payroll accounts
3. When you "Match" a transaction in the bank feed to an existing transaction in QuickBooks,
what happens?
A. The bank transaction is deleted.
B. The bank transaction is linked to the existing transaction, marking both as cleared.
C. A new bill is created.
D. The chart of accounts is updated.
4. A transaction in the bank feed is for a bill you already entered and paid via check in
QuickBooks. What should you do?
A. Add it and categorize it as an expense.
,B. Exclude it.
C. Match it to the existing check transaction.
D. Create a bill payment.
5. The "Transfer" function in the bank feed should be used for which of the following?
A. Paying a vendor
B. Recording an owner's investment
C. Moving money between two connected balance sheet accounts (e.g., checking to savings)
D. Recording a sales receipt
Chart of Accounts & Lists
6. Which type of account is "Accounts Receivable"?
A. Income Account
B. Expense Account
C. Asset Account
D. Liability Account
7. What is the default category for a new product or service in QuickBooks Online?
A. Non-inventory
B. Inventory
C. Service
D. Discount
8. A client needs to track the value of their inventory. Which product/service type MUST they
use for items they hold in stock and sell?
A. Service
B. Non-inventory
C. Inventory
D. Bundle
9. The "Uncategorized Expense" account appears on which financial report?
A. Balance Sheet
B. Profit and Loss Statement
C. Statement of Cash Flows
D. Accounts Receivable Aging Detail
10. Which list contains all the customers or clients you do business with?
A. Products and Services List
B. Vendor List
, C. Customer List
D. Sales Receipts List
Customer & Sales Activities
11. What is the correct workflow to record a sale where you receive immediate payment?
A. Create an Invoice > Receive Payment
B. Create a Sales Receipt
C. Create an Estimate > Create Invoice
D. Enter a Deposit
12. When should you use an "Invoice" instead of a "Sales Receipt"?
A. When you receive cash at the time of sale.
B. When you want to track payments against what is owed.
C. When the sale is for a fixed asset.
D. When the customer is tax-exempt.
13. The "Receive Payment" function is used to:
A. Record a new sale.
B. Apply a customer's payment to an outstanding invoice.
C. Deposit money into the bank.
D. Write off a bad debt.
14. What feature allows you to set up recurring transactions, like a monthly retainer invoice?
A. Memorized Transactions
B. Scheduled Transactions
C. Recurring Transactions Template
D. Batch Transactions
15. An "Estimate" is a:
A. Binding contract
B. Non-posting transaction used for quoting a job
C. Final bill
D. Type of sales receipt
16. How do you turn an approved Estimate into an Invoice?
A. You must manually re-enter the data.
B. Use the "Copy" function on the Estimate.
C. Use the "Create Invoice" button directly from the Estimate.
D. Create a Sales Receipt from the Estimate.
section 1 ACTUAL EXAM 2025 TEST
COMPREHENSIVE QUESTIONS AND
VERIFIED ANSWERS (DETAILED &
ELABORATED) 100% SOLVED 2025!!
QuickBooks ProAdvisor Certification: Section 1 Practice Exam
Banking & Transactions
1. A client has several downloaded credit card transactions that are personal expenses. What
is the BEST way to handle these?
A. Delete them
B. Categorize them to a "Owner's Draw" or "Personal Expense" account
C. Leave them uncategorized
D. Merge them with a business expense
2. What is the primary purpose of the "Bank Feed" in QuickBooks Online?
A. To pay bills electronically
B. To import and match bank and credit card transactions
C. To generate financial reports
D. To reconcile payroll accounts
3. When you "Match" a transaction in the bank feed to an existing transaction in QuickBooks,
what happens?
A. The bank transaction is deleted.
B. The bank transaction is linked to the existing transaction, marking both as cleared.
C. A new bill is created.
D. The chart of accounts is updated.
4. A transaction in the bank feed is for a bill you already entered and paid via check in
QuickBooks. What should you do?
A. Add it and categorize it as an expense.
,B. Exclude it.
C. Match it to the existing check transaction.
D. Create a bill payment.
5. The "Transfer" function in the bank feed should be used for which of the following?
A. Paying a vendor
B. Recording an owner's investment
C. Moving money between two connected balance sheet accounts (e.g., checking to savings)
D. Recording a sales receipt
Chart of Accounts & Lists
6. Which type of account is "Accounts Receivable"?
A. Income Account
B. Expense Account
C. Asset Account
D. Liability Account
7. What is the default category for a new product or service in QuickBooks Online?
A. Non-inventory
B. Inventory
C. Service
D. Discount
8. A client needs to track the value of their inventory. Which product/service type MUST they
use for items they hold in stock and sell?
A. Service
B. Non-inventory
C. Inventory
D. Bundle
9. The "Uncategorized Expense" account appears on which financial report?
A. Balance Sheet
B. Profit and Loss Statement
C. Statement of Cash Flows
D. Accounts Receivable Aging Detail
10. Which list contains all the customers or clients you do business with?
A. Products and Services List
B. Vendor List
, C. Customer List
D. Sales Receipts List
Customer & Sales Activities
11. What is the correct workflow to record a sale where you receive immediate payment?
A. Create an Invoice > Receive Payment
B. Create a Sales Receipt
C. Create an Estimate > Create Invoice
D. Enter a Deposit
12. When should you use an "Invoice" instead of a "Sales Receipt"?
A. When you receive cash at the time of sale.
B. When you want to track payments against what is owed.
C. When the sale is for a fixed asset.
D. When the customer is tax-exempt.
13. The "Receive Payment" function is used to:
A. Record a new sale.
B. Apply a customer's payment to an outstanding invoice.
C. Deposit money into the bank.
D. Write off a bad debt.
14. What feature allows you to set up recurring transactions, like a monthly retainer invoice?
A. Memorized Transactions
B. Scheduled Transactions
C. Recurring Transactions Template
D. Batch Transactions
15. An "Estimate" is a:
A. Binding contract
B. Non-posting transaction used for quoting a job
C. Final bill
D. Type of sales receipt
16. How do you turn an approved Estimate into an Invoice?
A. You must manually re-enter the data.
B. Use the "Copy" function on the Estimate.
C. Use the "Create Invoice" button directly from the Estimate.
D. Create a Sales Receipt from the Estimate.
