6.0 Vendors & Purchase Transactions QuickBooks ProAdvisor Practice Quiz

• A. Left navigation bar → Expenses → Vendors sub-tab → New Vendor button at the top right.
• B. +New → Vendor → New Vendor form.
• C. Gear icon → Lists → Vendors → Add Vendor.
• D. Left navigation bar → Sales → Customers → convert to Vendor.

The Student Guide states users navigate to the Vendor Center by clicking Expenses on the left navigation bar and selecting the Vendors sub-tab, then clicking the green New Vendor button at the top right.

• A. Invoice
• B. Vendor Credit
• C. Sales Receipt
• D. Receive Payment

Vendor Credit is one of the seven expense/purchase transaction types listed in the Student Guide, used to record refunds or credits received from vendors.

• A. They are prompted to Add New; after specifying the record as a Vendor, they can choose to add details now or save the name to add details later.
• B. QBO automatically creates a vendor record with the typed name and assigns it to an Uncategorized Vendor account.
• C. The transaction cannot be saved until the vendor is first created in the Vendor Center.
• D. The user must cancel the transaction, create the vendor, and then re-enter the transaction from the beginning.

The Student Guide states users will be prompted to Add New from the Payee/Vendor field drop-down; they specify it is a Vendor and can choose whether to add details now or save the name to add details later.

• A. Expense, since the payment left the checking account immediately and was not a credit card charge.
• B. Check, using the date written on the check and the check number as the reference number.
• C. Bill, to record the payable and then use Pay Bill when the check clears the bank.
• D. Vendor Credit, because a check payment reduces the company's liability to the vendor.

The Student Guide instructs users to use a Check transaction for handwritten checks, using the date written on the check and the check number as the reference number.

• A. The checking account is credited twice, overstating the cash balance.
• B. The bill remains open and revenue is understated on the Profit and Loss.
• C. Accounts Payable is overstated on the balance sheet and expenses are too high on the income statement.
• D. The payment is recorded twice, creating a debit balance in Accounts Payable.

The Student Guide states that if a Check or Expense transaction is used to pay a bill that was already entered, Accounts Payable is overstated on the balance sheet and expenses are too high on the income statement.

• A. Record a Pay Bill for the full $2,000 and create a Vendor Credit for the $1,200 not yet paid.
• B. Delete the original $2,000 bill and create a new bill for $800, then pay it in full.
• C. Create an Expense transaction for $800 and leave the original bill open for the remaining balance.
• D. In the Pay Bill screen, enter $800 in the payment amount field because it is less than the full amount outstanding.

The Student Guide states that if paying less than the full amount outstanding, the bookkeeper should enter the partial payment amount in the Pay Bill screen because it is less than the full amount due.

• A. Assign their own numbering sequence to purchase orders rather than relying on QBO's automatic numbering.
• B. Link purchase orders to specific bank accounts to track prepayment amounts.
• C. Create purchase orders with embedded payment terms that automatically generate a bill on the due date.
• D. Automatically match purchase order numbers to vendor invoice numbers during bill entry.

The Student Guide lists purchase order custom transaction numbers as a setting that allows the company to use its own PO numbering sequence rather than the system-assigned default.

• A. Create the bill for the full 10-unit quantity and generate a Vendor Credit for the 3 undelivered units.
• B. Delete the original PO and create two separate bills, one for the 7 received units and one for the 3 backordered units.
• C. Accept the full 10-unit quantity on the bill and create an inventory quantity adjustment to reduce the count by 3.
• D. Change the quantity on the bill to 7 (the number received); the remaining 3 units stay on the original purchase order as backordered.

The Student Guide states that if using Item details and fewer units were received than ordered, the quantity on the bill can be changed to the number actually received, with the remainder treated as backordered on the original purchase order.