# QBO Skills: Customizing QBO: terms, sales tax, classes, users

Questions with answers and explanations, from the Questiva Learning skills tests.
Version 2, authored 2026-08-23.
Take it interactively: https://www.questivalearning.com/qbcu-certification-prep#skills
## Customizing QBO: terms, sales tax, classes, users (chapter 3 of QuickBooks® Online Step-by-Step)

### Q1. On an invoice to a taxable customer, sales tax is charged on:

- **✓ a) The taxable items only.**
- b) Every line, since the customer is taxable.
- c) The services only.
- d) Nothing, until you check the Tax box on each line.

> Only taxable customers are charged sales tax, and only on taxable items. QuickBooks® Online multiplies the total of the taxable lines by the rate. (Chapter 3 · Applying Sales Tax on Forms)

### Q2. Setting up a new Inventory item with today's date and today's quantity:

- **✓ a) Posts to Opening Balance Equity and blocks older entries.**
- b) Is correct, and you can still enter the older bills afterward.
- c) Sets the Reorder Point to the same number.
- d) Saves it as a Non-inventory item.

> Use a 0 quantity and a date long before your first transaction. Today's date and quantity create an unnecessary Opening Balance Equity entry and block earlier transactions for the item. (Chapter 3 · Inventory Products)

### Q3. To get a Profit and Loss with a column for each revenue stream, set up:

- a) Separate income and expense accounts for each stream.
- b) Sub-customers for each stream under every customer.
- **✓ c) Classes.**
- d) Nothing. The report can already split columns by revenue stream.

> Classes separate income and expenses by revenue stream, and a Profit and Loss by Class gives each one a column. Add an Overhead class for costs that belong to the whole business. (Chapter 3 · Activating Class Tracking)

### Q4. Which user role can create invoices and receive payments, but can't pay bills or do banking?

- a) Standard All Access.
- b) Standard Limited Customers and Vendors.
- c) View Company Reports.
- **✓ d) Accounts Receivable Manager.**

> An Accounts Receivable Manager works with A/R transactions only. Standard Limited Customers and Vendors can also pay bills. (Chapter 3 · Setting Up Users in the Company File)

### Q5. To print each order's PO number on its invoice and report sales by rep, set up:

- a) Nothing. Type them in the Message on Invoice box.
- b) A class for each rep, and the PO number in the customer's name.
- c) A separate customer for each PO number.
- **✓ d) Custom Fields.**

> Custom Fields add your own fields to sales forms. Turn on Print on Form to show them on the invoice, and use them as report columns or filters. (Chapter 3 · Implementing Custom Fields)

### Q6. In a new company file, when do you set up sales tax?

- a) Any time. Turning it on updates your items and customers.
- **✓ b) Before you add Products and Services or Customers.**
- c) After the customers, so their addresses set the rates.
- d) When the first return is due, with a journal entry for the tax.

> Set up your Sales Tax Agencies first, because sales tax is calculated from what you sold, to whom and where. (Chapter 3 · Setting Up Sales Tax)

### Q7. To see your profit on a subcontracted service in item profitability reports, set it up as:

- a) Two items, one for invoices and one for the subcontractor's bills.
- b) A Service item, with the bills coded to Cost of Goods Sold.
- **✓ c) A two-sided Service item.**
- d) A Subcontractors class, then a Profit and Loss by Class.

> Check "I purchase this product/service from a vendor" on the Service item. The same item then goes on the invoice and the bill, so item profitability reports show the profit. (Chapter 3 · Subcontracted Services)

### Q8. The Audit Log can show who made each change only if:

- a) The Primary Admin made the change.
- **✓ b) Everyone has their own login.**
- c) The shared login has the Company Admin role.
- d) The login uses a complex password.

> Give every user a separate username and password. Then the Audit Log shows who made what changes. (Chapter 3 · Setting Up Users in the Company File)