# QBO Skills: Vendor expenses: bills, checks, cards, billable costs & 1099s

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
## Vendor expenses: bills, checks, cards, billable costs & 1099s (chapter 5 of QuickBooks® Online Step-by-Step)

### Q1. A vendor's invoice arrives, and you won't pay it until next month. You enter it as:

- a) An Expense.
- b) A Check dated next month.
- c) A Purchase Order.
- **✓ d) A Bill.**

> Vendors send invoices, but in QuickBooks® Online you enter them as Bills. The Bill holds what you owe in Accounts Payable until you pay it in Pay Bills. (Chapter 5 · Entering Bills)

### Q2. If you write a Check instead of paying a vendor's open bill:

- a) The bill is marked paid.
- **✓ b) The bill stays open, and accrual reports show the expense twice.**
- c) Nothing posts until you match the check in the Bank Transactions feed.
- d) QuickBooks® applies the check to the bill on its own.

> The check posts as a second expense. Click Add in the drawer beside the check to turn it into a bill payment. (Chapter 5 · Applying a Check to an Unpaid Bill)

### Q3. Charges on the company credit card are entered as:

- a) A Bill to the store.
- b) A Transfer from Checking to the credit card account.
- **✓ c) An Expense, with the card as the Payment Account.**
- d) A Check from Checking.

> Record each card charge as an Expense with the credit card as the Payment Account. It raises the card balance and the expense together. (Chapter 5 · Entering Expenses)

### Q4. You paid the company Visa through the bank's website. To record the payment:

- a) Enter an Expense from Checking to Credit Card Expense.
- **✓ b) Use Pay Down Credit Card.**
- c) Re-enter each charge from the statement on one Expense.
- d) Make a Journal Entry to Interest Expense.

> The charges were expensed when you entered them. Paying the card only moves money from Checking to the Visa, and Pay Down Credit Card records just that. (Chapter 5 · Paying the Credit Card Balance)

### Q5. To pass a purchase on to a customer's next invoice, on the expense you:

- **✓ a) Pick the customer and check Billable.**
- b) Code it to Cost of Goods Sold.
- c) Pick the customer but leave Billable unchecked.
- d) Put the customer's name in the Payee field.

> The Customer column tracks the cost by job, and the Billable checkmark passes it on to the customer's next invoice, with or without markup. (Chapter 5 · Tracking Job Costs)

### Q6. If you enter a vendor's unpaid bills in the Opening Balance field and then enter them again as Bills:

- a) QuickBooks® matches the bills to the opening balance.
- b) The bills stay hidden in Pay Bills until the opening balance is paid.
- c) QuickBooks® won't let you save the bills.
- **✓ d) Accounts Payable shows the debt twice.**

> The Opening Balance field creates its own Bill, coded to Miscellaneous Expense. Leave it blank and enter each unpaid bill instead. (Chapter 5 · Adding New Vendors)

### Q7. To make a partial payment on a bill:

- **✓ a) Enter the amount in the Payment column of Pay Bills.**
- b) Edit the bill to the amount you're paying.
- c) Write a check coded to Accounts Payable and delete the bill.
- d) Enter a Vendor Credit for the rest, then pay the bill in full.

> Pay Bills accepts a partial payment. QuickBooks® Online keeps tracking the rest in Accounts Payable, and the bill shows its balance due next time you open Pay Bills. (Chapter 5 · Paying Bills)

### Q8. A 0.00 total for a vendor on the A/P Aging Summary means:

- a) The bills are dated in a closed period.
- b) The bills aren't due yet.
- c) The bills were Due on Receipt and aged off the report.
- **✓ d) A payment wasn't applied to the bill.**

> A zero total means the vendor has bills and payments or credits on file that were never applied to each other. Apply the payment to the bill to clear them. (Chapter 5 · The A/P Aging Summary Report)

### Q9. Which report lists checks written straight to a vendor, without a bill?

- a) Vendor Balance Detail.
- b) Accounts Payable Aging Detail.
- **✓ c) Transaction List by Vendor.**
- d) Bills and Applied Payments.

> Checks written straight to a vendor never go through Accounts Payable, so the A/P reports leave them out. Transaction List by Vendor shows them all. (Chapter 5 · Transaction List by Vendor)

### Q10. How do you record an ATM withdrawal for petty cash and the purchases paid from it?

- **✓ a) A Transfer, then an Expense from Petty Cash for each purchase.**
- b) Code the ATM withdrawal to an expense account.
- c) A Transfer, then a Bill to each store.
- d) One Expense from Checking, split across the categories on the receipts.

> Cash taken out of the bank is a Transfer, not an expense. Each purchase is then an Expense paid from Petty Cash, so the account matches the cash in the box. (Chapter 5 · Handling Petty Cash)