All Practice Exams
100+ Free QuickBooks ProAdvisor Practice Questions
QuickBooks Online Certified ProAdvisor practice questions are available now; exam metadata is being verified.
✓ No registration✓ No credit card✓ No hidden fees✓ Start practicing immediately
100+ Questions
100% Free
Loading practice questions...
Sample QuickBooks ProAdvisor Practice Questions
Try these sample questions to test your QuickBooks ProAdvisor exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.
1In QuickBooks Online, what does the Chart of Accounts represent?
A.A list of all customers who owe the business money
B.A summary of unpaid vendor bills
C.A list of products and services the company sells
D.A complete list of all accounts used to categorize the company's transactions
Explanation: The Chart of Accounts is the complete list of accounts QuickBooks Online uses to categorize every transaction and organize the books. Each account feeds either the Balance Sheet (assets, liabilities, equity) or the Profit & Loss (income, COGS, expenses). It is the backbone of the company's financial reporting.
2In QuickBooks Online, an account's Account Type primarily determines which of the following?
A.The color used to display the account in registers
B.The customer assigned to the account
C.Which financial statement (Balance Sheet or Profit & Loss) the account appears on
D.The tax rate applied to transactions in the account
Explanation: The Account Type controls how QuickBooks tracks the money and which financial report the account appears on. Asset, liability, and equity types appear on the Balance Sheet, while income, cost of goods sold, and expense types appear on the Profit & Loss. The Detail Type is only a sub-category for organization and does not change report placement.
3A client wants to track the quantity on hand for the widgets they buy and resell. Which Product/Service item type should you select?
A.Service
B.Non-inventory
C.Inventory
D.Bundle
Explanation: Inventory items let QuickBooks Online track quantity on hand and automatically calculate Cost of Goods Sold as units are sold. Inventory tracking is available in QuickBooks Online Plus and Advanced. Non-inventory and service items do not track quantities.
4Which inventory valuation method does QuickBooks Online use to calculate Cost of Goods Sold?
A.LIFO (Last In, First Out)
B.Weighted average cost
C.FIFO (First In, First Out)
D.Specific identification
Explanation: QuickBooks Online uses FIFO, assuming the first units purchased are the first units sold. As inventory items are sold, QuickBooks adjusts the inventory asset and Cost of Goods Sold based on the cost of the oldest units on hand. This is the only inventory costing method available in QuickBooks Online.
5What is the purpose of the Undeposited Funds account in QuickBooks Online?
A.To record bills you owe to vendors
B.To track sales tax collected on invoices
C.To hold received customer payments until they are combined into a single bank deposit
D.To record payroll liabilities before they are paid
Explanation: Undeposited Funds is a temporary holding account for customer payments received but not yet taken to the bank. When you record a bank deposit, you combine several held payments so that one deposit in QuickBooks matches the single lump-sum deposit your bank records. This makes reconciliation far easier.
6A customer pays an open invoice. You record a Receive Payment and select Undeposited Funds in the Deposit to field. What is the accounting effect of this single transaction?
A.Debit Accounts Receivable, credit Undeposited Funds
B.Debit Bank, credit Income
C.Debit Undeposited Funds, credit Accounts Receivable
D.Debit Income, credit Accounts Receivable
Explanation: Receiving payment against an invoice clears the customer's receivable, so Accounts Receivable is credited (reduced). The money lands in Undeposited Funds, which is debited (increased) until you record the actual bank deposit. Income was already recognized when the invoice was created, so it is not touched here.
7When you create an invoice in QuickBooks Online for a service already delivered, what is the underlying accounting entry?
A.Debit Income, credit Accounts Receivable
B.Debit Cash, credit Income
C.Debit Accounts Payable, credit Income
D.Debit Accounts Receivable, credit Income
Explanation: An invoice records a sale on credit, so QuickBooks debits Accounts Receivable (the customer now owes you) and credits an income account. No cash moves until the customer pays. This is the foundation of accrual-basis revenue recognition.
8What is the key difference between an Invoice and a Sales Receipt in QuickBooks Online?
A.An invoice can include sales tax but a sales receipt cannot
B.Only invoices can be emailed to customers
C.A sales receipt is used when payment is received at the time of sale, while an invoice is used when the customer will pay later
D.A sales receipt always posts to Accounts Receivable
Explanation: A sales receipt records a sale where the customer pays immediately, so no receivable is created. An invoice records a sale on credit and posts to Accounts Receivable until the customer pays. Choosing the right form keeps A/R accurate.
9In QuickBooks Online, an Estimate has which of the following effects on the financial statements when it is created?
A.It debits Accounts Receivable and credits Income
B.It records the sale as a sales receipt
C.It has no effect on the financial statements because it is a non-posting transaction
D.It increases Cost of Goods Sold
Explanation: An estimate is a non-posting transaction; it is a proposal or quote and does not affect the general ledger. Only when the estimate is converted to an invoice or sales receipt does it post to the books. This lets you track potential sales without overstating income.
10A bookkeeper connected a client's bank account so transactions flow in automatically. Where do these downloaded transactions first appear for the bookkeeper to categorize or match?
A.Directly in the bank register as cleared
B.On the Profit & Loss report immediately
C.In the For Review tab of the Banking (Transactions) center
D.In the Undeposited Funds account
Explanation: Downloaded bank feed transactions land in the For Review tab of the Banking/Transactions center. From there you categorize them to an account, match them to existing transactions, or exclude them. They only post to the books once you add or match them.
About the QuickBooks ProAdvisor Practice Questions
Verified exam format metadata for QuickBooks Online Certified ProAdvisor is pending. The practice questions above remain available while official exam length, timing, passing score, fee, and administrator details are reviewed.