# QBO Skills: Accounting foundations & the QBO interface

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
## Accounting foundations & the QBO interface (chapter 1 of QuickBooks® Online Step-by-Step)

### Q1. Which of these decreases the owner's equity?

- **✓ a) A net loss for the year.**
- b) Paying off a bank loan's principal.
- c) Buying a truck with cash.
- d) Collecting payments on open invoices.

> Income and expenses reach equity through Net Income. When expenses are more than revenue, the loss lowers the owner's equity. (Chapter 1 · Account Types and Financial Reports)

### Q2. A cash basis Profit and Loss counts an invoice as income:

- a) On the invoice date.
- **✓ b) When the customer pays it.**
- c) Never. Only sales receipts count on cash basis.
- d) When the deposit is reconciled.

> On cash basis, income isn't recognized until the customer pays. QBO can run either basis from the same invoice. (Chapter 1 · Accounting Basis: Cash or Accrual?)

### Q3. When an inventory item is sold on an invoice, QBO:

- a) Records the income. The cost is recorded when you pay the vendor's bill.
- b) Debits Inventory Asset and credits Cost of Goods Sold.
- c) Credits Inventory Asset for the sale price.
- **✓ d) Records the income and moves its cost to Cost of Goods Sold.**

> The sale price credits income. QBO also moves the item's original cost out of Inventory Asset and into Cost of Goods Sold. (Chapter 1 · Products and Services)

### Q4. To remove a check you just printed:

- **✓ a) Void it.**
- b) Delete it.
- c) Change the amount to a penny.
- d) Leave it, and enter a deposit to offset it.

> Void a printed check so you keep a record of it and the check numbers stay in order. It's fine to delete a check you never printed. (Chapter 1 · Voiding a Transaction)

### Q5. Entering transactions straight into the Checking register:

- a) Is the only way to enter a handwritten check.
- b) Doesn't work, because registers are read-only.
- c) Is faster than using forms and just as complete.
- **✓ d) Can be done, but you should use forms instead.**

> You can enter new transactions from a register, but it isn't a good idea because of the limited information available there. Use forms instead. (Chapter 1 · Registers)

### Q6. In QuickBooks® Online, two companies that file separate tax returns need:

- a) One file, with Locations turned on.
- **✓ b) Two subscriptions.**
- c) One subscription. Set the second company up as a sub-customer.
- d) A second Chart of Accounts in the same file.

> Each company in QuickBooks® Online is a separate subscription. Create both with the same email address so one login reaches them. (Chapter 1 · Creating New Company Files)

### Q7. A bank loan doesn't show on the Profit and Loss because:

- a) The report is set to cash basis instead of accrual.
- **✓ b) Liabilities go on the Balance Sheet.**
- c) Its Detail Type is wrong.
- d) No payments have been made on it yet.

> Asset, liability and equity accounts are on the Balance Sheet. The Profit and Loss shows income and expenses, and a loan isn't income. (Chapter 1 · Account Types and Financial Reports)

### Q8. QBO is acting up. How can you tell whether the problem is with your computer or with Intuit's website?

- a) Restart the computer and try again.
- **✓ b) Try it in an Incognito window.**
- c) Sign out of QBO and sign back in.
- d) Reinstall QuickBooks® Online.

> An Incognito window doesn't store cookies, a cache or your browsing history. If the problem happens there too, it's with QBO, and if it works, something on your computer is interfering. (Chapter 1 · Incognito Windows)

### Q9. Intuit releases new QuickBooks® Online features:

- a) Once a year, in a new version you install.
- b) When you accept the update from the Settings gear.
- **✓ c) In waves, to a few companies at a time.**
- d) To every company on the same day.

> New features go to a few companies at a time, so two files may not show the same options. Your screens won't always match the book either. (Chapter 1 · QuickBooks® Online Updates and New Features)