QuickBooks Practice Exam 1 (2026 Updated) – Certification Questions, Answers
& Study Guide
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 your record sales through the bank deposit or journal entry screen, the sale will
not appear on sales reports.
You're setting up a new customer. How do you tell QuickBooks that this customers invoices
should be due after 30 days they are issued? - correct answer ✔✔Set the customers terms to
Net30.
Your boss wants to know if there are any overdue bills. What report would your run to give him
this information? - correct answer ✔✔Accounts Payable Aging Report
What is the purpose of the audit log report? - correct answer ✔✔To track any changes and
deletions to transactions as well as track which user makes the change or deletion.
Which form cannot be customized in QuickBooks? - correct answer ✔✔Bill.
Which three statements are true about setting up a product or service in QuickBooks online? -
correct answer ✔✔1. You can use one product/service to represent different services or goods.
2. Products/services allow you to track your sales in more detail without cluttering your Chart of
Accounts or Profit & Loss.
3. To create an invoice, you can use either a product or service.
, You are setting up a new product you will need to purchase frequently for your company. You
want QuickBooks online to provide fields to track the product. How do you set up a new
product to be tracked by QuickBooks? - correct answer ✔✔Enable to box, "I purchase this
product/service from a supplier."
When should you not delete a check? - correct answer ✔✔You printed a check and the check
number has been used.
You have a customer who will now also be a vendor. How do you handle this in QuickBooks? -
correct answer ✔✔Use a "V" at the end of the display name on the vendor record to
differentiate the vendor record from the customer record.
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 write them a check for a refund? - correct answer
✔✔Refund receipt.
Which of the following statements are true regarding vendor credits? - correct answer ✔✔1. If
an inventory item is entered in the product/service field of the item details section of the
vendor credit, in inventory quantity on hand balance would decrease.
2. Vendor credit memos decrease what you owe to the vendor.
Select three statements that are true about journal entries. - correct answer ✔✔1. The
accounts used on a journal entry come from the chart of accounts.
2. A journal entry must have a date.
3. Total debits must equal total credits on a journal entry.
Which two statements below are correct as it relates to the Close the Books feature? - correct
answer ✔✔1. When setting a closing date you can choose to warn users or require a password
for any transcations that are attempted to be edited, deleted or added prior to the closing date.
2. If a warning is used instead of a password the user is not stopped from making the change.
& Study Guide
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 your record sales through the bank deposit or journal entry screen, the sale will
not appear on sales reports.
You're setting up a new customer. How do you tell QuickBooks that this customers invoices
should be due after 30 days they are issued? - correct answer ✔✔Set the customers terms to
Net30.
Your boss wants to know if there are any overdue bills. What report would your run to give him
this information? - correct answer ✔✔Accounts Payable Aging Report
What is the purpose of the audit log report? - correct answer ✔✔To track any changes and
deletions to transactions as well as track which user makes the change or deletion.
Which form cannot be customized in QuickBooks? - correct answer ✔✔Bill.
Which three statements are true about setting up a product or service in QuickBooks online? -
correct answer ✔✔1. You can use one product/service to represent different services or goods.
2. Products/services allow you to track your sales in more detail without cluttering your Chart of
Accounts or Profit & Loss.
3. To create an invoice, you can use either a product or service.
, You are setting up a new product you will need to purchase frequently for your company. You
want QuickBooks online to provide fields to track the product. How do you set up a new
product to be tracked by QuickBooks? - correct answer ✔✔Enable to box, "I purchase this
product/service from a supplier."
When should you not delete a check? - correct answer ✔✔You printed a check and the check
number has been used.
You have a customer who will now also be a vendor. How do you handle this in QuickBooks? -
correct answer ✔✔Use a "V" at the end of the display name on the vendor record to
differentiate the vendor record from the customer record.
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 write them a check for a refund? - correct answer
✔✔Refund receipt.
Which of the following statements are true regarding vendor credits? - correct answer ✔✔1. If
an inventory item is entered in the product/service field of the item details section of the
vendor credit, in inventory quantity on hand balance would decrease.
2. Vendor credit memos decrease what you owe to the vendor.
Select three statements that are true about journal entries. - correct answer ✔✔1. The
accounts used on a journal entry come from the chart of accounts.
2. A journal entry must have a date.
3. Total debits must equal total credits on a journal entry.
Which two statements below are correct as it relates to the Close the Books feature? - correct
answer ✔✔1. When setting a closing date you can choose to warn users or require a password
for any transcations that are attempted to be edited, deleted or added prior to the closing date.
2. If a warning is used instead of a password the user is not stopped from making the change.
