Intuit Certified User Quickbooks (25-26) Certiport

How many questions are on the QuickBooks Certified User exam?

50 questions.

What is the time limit for the QuickBooks Certified User exam?

50 minutes.

Which QuickBooks versions are covered by the current certification exam?

QuickBooks Accountant 2013, 2014, and 2015.

What is the primary purpose of the 'Easy Step Interview' in QuickBooks?

To start a new company data file.

What are the four main list management actions a user should know?

Adding, deleting, editing, and merging entries.

Why does QuickBooks use 'Items'?

To perform the necessary accounting entries for sales and services.

What is the difference between an Invoice and a Sales Receipt in QuickBooks?

An invoice is used for A/R (Accounts Receivable) when payment is received later, while a sales receipt is used when payment is received at the time of sale.

Which three accounts are central to the invoicing cycle in QuickBooks?

Undeposited Funds, Accounts Receivable, and Checking accounts.

What is the purpose of the Vendor Center?

To manage information and transactions related to the businesses or individuals from whom you purchase goods or services.

What are the common workflows for making purchases in QuickBooks?

Entering and paying bills (A/P), writing checks, using a credit card, and using a debit card.

How does a user handle a bounced (NSF) check in QuickBooks?

By recording the bounced check to reverse the original payment and potentially charging the customer a fee.

What is the difference between cash and accrual reports?

Cash reports show income when received and expenses when paid; accrual reports show income when earned and expenses when incurred.

Why would a user set a closing date in QuickBooks?

To prevent changes to transactions from a previous period, typically after an accountant has finalized the books.

What is the purpose of the Report Center?

To provide a centralized location to run, customize, and memorize various financial reports.

How can a user save time when entering repetitive transactions?

By memorizing the transaction so it can be automatically entered in the future.

What is the function of the Payroll Setup Wizard?

To guide the user through setting up employees, federal and state taxes, and basic payroll deductions.

How are sick or vacation hours tracked in QuickBooks?

By setting up earnings items and accruing hours based on company policy, then using 'banked' hours when employees take time off.

What is the purpose of a Vendor Credit?

To record a reduction in the amount owed to a vendor, typically due to returned goods or billing errors.

What is a Progress Invoice?

An invoice that allows a company to bill for a portion of an estimate or a project as work is completed.

How can a user customize the QuickBooks home page?

By adjusting preferences and selecting which icons or workflows appear for easier navigation.

What is the purpose of creating custom fields?

To track specific, additional information for customers, vendors, or employees that is not provided by default fields.

Why is it important to back up and restore data files?

To protect against data loss and ensure the ability to recover the company file in case of system failure.

What is the difference between single-user and multi-user mode?

Single-user mode restricts access to one person for administrative tasks, while multi-user mode allows multiple people to work in the file simultaneously.

How can a user export data from QuickBooks for further analysis?

By sending reports directly from QuickBooks to Excel.

What is the purpose of a Journal Entry?

To make manual adjustments to the general ledger, often as requested by an accountant.

What is defined as a payroll item in QuickBooks?

Any item that affects the amount of a paycheck, including salary and company expenses like matched taxes.

How do you begin adding a new payroll item in QuickBooks?

Click the Employees menu and select Manage Payroll Items > New Payroll Item.

What is the primary purpose of the Payroll Setup wizard?

To help create a company's initial payroll items when payroll is first set up.

What should you do if you are unsure if a health insurance deduction qualifies as pre-tax?

Consult with an accountant to verify if the plan qualifies under Section 125 or other applicable laws.

Why is it important to set the payment frequency for a payroll liability?

If the frequency is not set, the liability will not appear in the 'Pay Scheduled Liabilities' section of the Payroll Center, risking missed payments.

What is the purpose of entering an account number when setting up a payroll liability payee?

The account number appears as the Memo on the Payroll Liability check created by QuickBooks.

How do you access the list of existing payroll items to edit them?

Click the Employees menu and select Manage Payroll Items > View/Edit Payroll Item List.

Why is it recommended to edit a payroll item immediately after setting it up?

QuickBooks often does not enter specific rates (like a $50 weekly deduction) automatically during the initial setup.

Where should you point a payroll deduction if you want more detail on financial statements?

Create subaccounts for payroll liabilities and point individual payroll items to those specific subaccounts.

What does the 'Default Rate and Limit' window allow you to do?

It allows you to set a standard deduction amount that can still be modified later for individual employees if necessary.

Where is a payroll deduction assigned to a specific employee?

On the Payroll and compensation info tab, under Additions, Deductions, and Company Contributions.

What are the two types of customer statements available in QuickBooks?

Open Transaction Statements and Activity Based Statements.

What does an Open Transaction Statement show?

It shows only open transactions as of the statement date, allowing the customer to see exactly what they owe without viewing payment history.

What does an Activity Based Statement show?

It shows a customer's activity over a specific period, including invoices, payments, and credits.

How do you initiate the process of creating a customer statement?

From the Home page, click the Statements icon.

What information is displayed in the description column of an Open Transaction Statement?

The original invoice amount.

What information is displayed in the Amount column of an Open Transaction Statement?

The unpaid portion of the invoice.

When should you use an Open Transaction Statement?

When a customer only wants to see their outstanding balances without seeing the full detail of their payment history.

What is the main benefit of an Activity Based Statement?

It provides a comprehensive view of account activity over a date range, which is useful for resolving disputes about applied payments.

Can you change the default rate for a payroll deduction for a specific employee?

Yes, the default rate is a starting point, but it can be adjusted for individual employees (e.g., if they add dependents).

What happens if you leave the annual limit box blank when setting up a payroll deduction?

QuickBooks assumes there is no annual limit for that deduction.

What is the 'Tax tracking type' window used for?

It specifies how to classify the deduction on tax forms.

How does QuickBooks calculate a flat-amount deduction like Medical Insurance?

It is treated as a flat amount per paycheck rather than being calculated based on hours or quantity.

What is the default liability account for payroll deductions?

Payroll Liabilities.

How do you view a statement before printing or sending it?

Click the Preview button in the Statement window.

What information is displayed on an Activity-Based Statement in QuickBooks?

It shows all customer account transactions for a specific time period, including invoices, payments, statement charges, and credit memos.

Which transaction types are excluded from an Activity-Based Statement?

Sales Receipts and cash transactions are not included.

When should you prepare an Activity-Based Statement for a customer?

When the customer needs to see the specific transactions that make up their outstanding balance.

How can you show individual invoice line items on a customer statement?

Click the box labeled 'Show invoice item details on statements' before previewing the statement.

What is the primary purpose of a vendor credit memo?

To reduce the amount owed to a vendor, often due to over-billing, freight errors, or damaged inventory.

What are the three options for handling a vendor credit?

Keep the credit for future use, apply it to unpaid bills, or request a refund.

In the Enter Bills window, which tab should you use for a credit memo related to inventory or a job?

The Items tab.

In the Enter Bills window, which tab should you use for a credit memo related to freight or delivery charges?

The Expenses tab.

Where do you go to view the detailed list of unpaid bills and credit memos for a vendor?

The Vendor Center, specifically by clicking the 'Open Balance' link.

Where must you go to manually apply a vendor credit to a specific bill?

The Pay Bills window.

How can you change the QuickBooks preference for automatic credit application?

Go to Edit > Preferences > Bills > Company Preferences tab.

If you want to split a credit memo across multiple bills, what button do you click in the Pay Bills window?

The Set Credits button.

What happens to a bill and a credit memo on the Vendor Open Balance report after they are applied and paid?

They no longer appear on the report because they have been reconciled.

What is the purpose of merging entries in a QuickBooks list?

To combine duplicate entries (such as misspelled names) into a single, correct entry while preserving the transaction history.

What is the process for merging two vendor names in QuickBooks?

Double-click the incorrect name, rename it to match the correct name exactly, and click OK to confirm the merge.

What happens to the transaction history when two names are merged?

QuickBooks combines the history of both entries into the single remaining name.

What is a major restriction regarding merging entries in the Chart of Accounts?

You can only merge accounts of the same type (e.g., an expense account can only be merged with another expense account).

Can you merge entries on the Customer Message List?

No, QuickBooks does not allow merging on several specific lists, including the Customer Message List.

What is Progress Invoicing?

A process of invoicing a customer in increments based on an estimate rather than waiting until a long-term job is fully completed.

What does an Activity-Based Statement show regarding the aging of a balance?

It displays the aging periods for the outstanding balance.

If a vendor credit is not applied to a bill, where does it remain?

It remains as an open credit on the vendor's account balance.

What is the requirement for deleting a name from a list instead of merging it?

The name must have no associated transactions.

What does the 'Credits Used' column in the Pay Bills window indicate?

It shows the amount of credit that QuickBooks has applied to a specific bill.

Can you pay bills with a credit card in QuickBooks?

Yes, provided the credit card account has been set up in the Chart of Accounts.

Why might you use the 'Show invoice item details' feature on a statement?

To provide the customer with a detailed reminder of what was purchased on each invoice.

What are the initial steps to enable progress invoicing in QuickBooks?

Go to Edit > Preferences > Jobs & Estimates > Company Preferences, then select 'yes' for both 'Do you create estimates?' and 'Do you do progress invoicing?'

What is the purpose of progress invoicing?

It allows you to invoice against an estimate in increments until the job or contract is complete.

When creating a progress invoice, what are the three options for transferring estimate data?

1. Create an invoice for the entire estimate, 2. Invoice a percentage of the estimate, or 3. Specify the items and quantities to transfer.

How do you ensure an invoice is marked to be printed later?

Select the 'To be printed' checkbox on the invoice screen.

What is a limitation of QuickBooks reporting regarding calculations?

If a report does not total a column or row, you cannot add the calculation yourself within QuickBooks.

Can you rename column or row headings directly in a QuickBooks report?

No, you must export the report to Excel to perform such modifications.

What are the three export options when sending a QuickBooks report to Excel?

Create a new worksheet in a new workbook, create a new worksheet in an existing workbook, or update an existing worksheet.

What should you do if you need to export a report but do not have Microsoft Excel installed?

Send the report to a comma separated values (CSV) file.

Do changes made to a report after exporting it to Excel affect the original QuickBooks data?

No, changes made in Excel do not affect your QuickBooks data.

What happens to the totals in an Excel report if you modify the underlying values?

Because the totals are formulas, they automatically update to reflect the changes made to the values.

What is the 'Auto Outline' feature in Excel used for in the context of QuickBooks reports?

It helps manage reports by allowing you to collapse and expand specific sections or sub-accounts.

How do you activate the Auto Outline feature when exporting a report to Excel?

In the export window, click the 'Advanced' button and select the 'Auto Outline' checkbox.

What do the numbered buttons (1-6) in an Excel outline represent?

They are outline symbols that allow you to display different levels of detail in the report, from fully collapsed to fully expanded.

How can you use Excel filters on a QuickBooks report?

When exporting, click the 'Advanced' button and select the 'Auto Filtering' option.

How can you identify if a filter is available for a column in an exported Excel report?

A drop-down list will appear in the column header.

What is the primary benefit of using Excel filters over QuickBooks filters?

Excel filters are sometimes faster and easier to use for specific data analysis tasks.

How do you clear an existing filter in Excel?

Click the drop-down list for the column and uncheck the 'Select ALL' box, or select specific items to filter by.

What is the first step to export a report from QuickBooks?

Open the desired report, then click the 'Excel' button and choose 'Create New Worksheet'.

What happens if you click the 'Collapse' button in QuickBooks before exporting?

QuickBooks collapses all subaccounts on the report.

Can you collapse specific accounts in Excel without affecting the rest of the report?

Yes, if the Auto Outline feature is enabled, you can use the plus and minus buttons to expand or collapse individual sections.

What is the function of the 'Transaction List by Date' report?

It shows all transactions entered for a specific date range.

What should you do if you want to see all transactions in the Transaction List by Date report?

Change the 'Dates' drop-down list to 'All'.

What is the purpose of the 'Advanced' button in the Excel export dialog?

It allows you to toggle features like Auto Outline and Auto Filtering.

If you are in the 'Create Progress Invoice Based on Estimate' window, what do the first four columns represent?

They show information directly from the original estimate.

In the progress invoice window, what do the last six columns represent?

They show the items and quantities you want to charge the customer on the current invoice.