4.0 Chart of Accounts & Products/Services QuickBooks ProAdvisor Practice Quiz
20 exam-style questions covering 10% of the QuickBooks ProAdvisor exam. Instant feedback on every answer, progress tracking, no signup required.
This domain is part of the QuickBooks ProAdvisor (Online Certification) practice test. Each question is tagged by exam objective and difficulty so you can drill exactly the areas you need.
Sample Questions
A new bookkeeper needs to find the Chart of Accounts in QuickBooks Online. They are not sure where to access it. Which of the following is a valid navigation path to the Chart of Accounts in QBO?
- A. Gear icon > Your Company > Chart of Accounts
- B. +New > Other > Chart of Accounts
- C. Left navigation bar > Banking > Chart of Accounts
- D. Left navigation bar > Reports > Chart of Accounts
Correct, the Chart of Accounts can be accessed via the Gear icon > Your Company > Chart of Accounts, or via the left navigation bar Accounting tab.
When creating a new product or service in QuickBooks Online, a user must select one of four types. Choosing the correct type determines how the item behaves on transactions. Which set of options correctly lists all four product/service types in QBO?
- A. Inventory, Non-Inventory, Expense, Service
- B. Inventory, Non-Inventory, Service, Bundle
- C. Inventory, Stock, Service, Bundle
- D. Product, Non-Product, Service, Bundle
Correct, the four product/service types in QuickBooks Online are Inventory, Non-Inventory, Service, and Bundle.
A controller wants to assign account numbers to all general ledger accounts in QuickBooks Online to make financial statements easier to reference and organize. They need to know where to enable this feature. Where is the option to turn on account numbers for the Chart of Accounts located?
- A. Account and Settings > Advanced tab
- B. Account and Settings > Company tab
- C. Gear icon > Lists > Chart of Accounts settings
- D. Left navigation bar > Accounting > Account Numbers
Correct, the option to turn on account numbers for the Chart of Accounts is found in Account and Settings under the Advanced tab.
A bookkeeper needs to add a new income account in QuickBooks Online to track a new revenue stream. After navigating to the Chart of Accounts screen, what action do they take to begin creating the new account?
- A. Click New in the top right corner of the Chart of Accounts screen
- B. Click +New in the left navigation bar and select Chart of Accounts entry
- C. Click the small gear icon within the Chart of Accounts and select Add Account
- D. Go to Account and Settings > Advanced and use the Add Account option there
Correct, to add a new account in the Chart of Accounts, click the New button in the top right corner of the Chart of Accounts screen.
When creating a new product in QuickBooks Online, a manager wants to assign it to a named group so that similar products are totaled together on reports and appear grouped in the product list. Which field on the product creation screen serves this purpose?
- A. The SKU field, which assigns a stock keeping unit code used for product grouping
- B. The Category field, which places the product into a named Product Category
- C. The Expense Account field, which links the product to a chart of accounts category
- D. The Description field, which can include a grouping tag for report filtering
Correct, the Category field on the product/service creation screen assigns the item to a Product Category, which groups similar products for reporting and speeds up data entry.
A bookkeeper is creating a new inventory item in QuickBooks Online Plus and wants it to appear on customer invoices with a price field. Which checkbox on the product creation screen must be selected to ensure the item and its price fields appear on sales forms?
- A. I sell this product/service to my customers
- B. I purchase this product/service from a vendor
- C. Track inventory quantity on hand
- D. Enable this item for customer-facing sales forms
Correct, checking 'I sell this product/service to my customers' ensures that the various sales-related fields, including price and income account, appear on the product record and on sales forms.
A subcontractor's vendor record in QuickBooks Online includes a Billing rate field. A bookkeeper asks when this field is used. In what situation is the Billing rate field on a vendor record relevant?
- A. It sets the maximum invoice amount the vendor may submit per billing period
- B. It stores the rate that populates time tracking records when tracking billable time for the vendor
- C. It determines the default expense account applied when recording vendor bills
- D. It stores the vendor's preferred discount rate for calculating early payment terms
Correct, the Billing rate field on a vendor record is used when tracking billable time, so the rate can automatically populate time tracking records associated with that vendor.
A bookkeeper needs to activate inventory quantity tracking for a client on QuickBooks Online Plus. They know it is somewhere in Account and Settings but cannot find the exact location. What is the precise navigation path to enable inventory tracking?
- A. Gear icon > Account and Settings > Sales > Products and Services > Track inventory quantity on hand
- B. Gear icon > Account and Settings > Advanced > Inventory > Enable FIFO Inventory Tracking
- C. Left navigation bar > Accounting > Chart of Accounts > Inventory Settings
- D. Left navigation bar > Sales > Products and Services > Enable Inventory toggle
Correct, to enable inventory tracking, navigate to the Gear icon > Account and Settings > Sales tab > Products and Services section > and check Track inventory quantity on hand.
Key Terms in This Domain
- Chart of accounts setup: Use industry-default COA at setup or import from CSV; classify accounts by type (Bank, A/R, A/P, Income, Expense, Equity, etc.) and detail type
- COGS workflow: When inventory item sold, QBO debits COGS (FIFO cost layer) and credits Inventory Asset; income recognized on the sales side
- Reorder points: Set per item; flagged on the Products & Services list with a low-inventory warning
- Service item: Time/expertise sold; default income account; no cost tracking
- Customer & vendor lists: Import via CSV or batch entry; required fields: name, email; optional: payment terms, tax-exempt status, default income account
- Products and services list: Three types: Service (no inventory), Non-inventory (track but no qty), Inventory (Plus/Advanced only, FIFO valuation)
- Transfers between accounts: Use Transfer transaction (single entry) instead of two separate deposits/expenses to avoid duplication
- P&L (Profit & Loss): Income − Expenses for a date range; default is YTD; cash vs accrual toggle; group by Class/Location/Tag
- Inventory item creation (Plus/Advanced): Track quantity-on-hand, reorder point, sales price, cost; QBO uses FIFO valuation
- Non-inventory product: Tracked in P&L but no quantity; useful for items the business doesn't want to track on hand
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Other QuickBooks ProAdvisor Domains
- 1.0 QBO Setup & Subscriptions
- 2.0 Navigation & Settings
- 3.0 List Management
- 5.0 Customers & Sales Transactions
- 6.0 Vendors & Purchase Transactions
- 7.0 Banking, Feeds & Reconciliation
- 8.0 Reports
- 9.0 Payroll
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