Question

If you select Finish Now on a reconciliation before the difference is zero what will happen to the difference?

Select one:

a. Nothing. Its stays there until the next month’s reconciliation is performed.

b. QBO automatically makes an adjustment to the account being reconciled for the amount of the difference.

c. QBO automatically makes an adjustment to an account called Reconciliation Discrepancies for the amount of the difference.

d. QBO saves the difference for you to find later

You have been asked to prepare the Profit & Loss (Income Statement) report for the month of January 2021. You generate the report and provide it to the Controller. The Controller tells you that the report looks wrong. You review the following selections you made when running the report.  

What is the reason the report is not correct?

Select one:

a. In the Compare another period selection you should have compared the report to the Year to Date numbers.

b. In the Display columns by selection you should selected Months not Total Only.

c. The custom date range should have included the whole month, not just the last day of the month.

d. In the Show non-zero or active only field you should have selected All instead of Active rows/active columns.

Which of the following accounts would not be automatically closed by QBO at the start of a new fiscal year? Note the account type is noted in () next to the account name.

Select one:

A. Interest expense (Other expense)

B. Dividends (Equity)

C. Service revenue (Income)

D. Salaries expense (Expense)

Answer 1

If you select Finish Now on a reconciliation before the difference is zero what will happen to the difference?

Select one:

a. QBO automatically makes an adjustment to the account being reconciled for the amount of the difference.

b. QBO automatically makes an adjustment to an account called Reconciliation Discrepancies for the amount of the difference. 

c. Nothing.  Its stays there until the next month’s reconciliation is performed.

d. QBO saves the difference for you to find later.

Answer 2

1. Answer- C

QBO automatically makes an adjustment to an account called Reconciliation Discrepancies for the amount of the difference.

2. Answer- C

The custom date range should have included the whole month, not just the last day of the month.

(The Profit and Loss is a dynamic report and it will change according to the period selected)

3. Answer- B

Dividends (Equity)

(Only the real account and personal account balance carry forward to next fiscal year and do not carry forward nominal account balance)