QuickBooks Interview Questions and Answers

Q1. Give a brief idea about QuickBooks?

Ans

Quickbooks is one of the software developed by Intuit, which is purely related to accounting. Quickbooks is flexible in providing online and desktop accounting applications, including cloud-based applications. This software suite helps in the management of the bills and the payments. It is a structured software that provides multiple tools to the clients, customers, finances, inventory etc. The report center is an add-on that provides the users to track the business aspects, sales, income, expenses etc. The software is designed with flexibility and compatibility to customize the options available based on the customer or user needs.

Q2. Explain the process of importing the files in QuickBooks?

Ans

QuickBooks allows two types of data which can be imported and uses IIF format, which could be either ASCII, CSV files etc. The following are the steps to be followed to import the files in QuickBooks.

1. Select the upload file option in the menu and upload the file.
2. Select the file along with the spreadsheet that has the expense you want to import.
3. Select the QBO quantity as an expense
4. Setup the mapping of the columns required by mapping the fields to the QuickBooks
5. Click import and the expenses will be automatically added to the QuickBooks.

Q3. What are the products available in QuickBooks?

Ans

QuickBooks provide following products

• QuickBooks Self-employee
• QuickBooks Online
• QuickBooks Pro
• QuickBooks Premiere
• QuickBook Enterprise
• Customer Reviews
• Upgrade your QuickBooks

Q4. Mention what are the new features available in QuickBooks 2015?

Ans

The QuickBooks 2015 provides following features

• Insight tab in the Home window: This tab highlights company’s financial status and activity by different colours. Green bar represents monthly income, blue bars indicate your monthly expenses and black graphs indicates your profit by month
• Income tracker upgrades: This coloured boxes helps to track the number of open invoices, overdue invoices, and a recent customer payment. It also displays a box for unbilled time and expenses
• Update reminders window: Reminder window displays to-dos and transaction that are due as of today
• Pinned notes: Note associated with a customer, vendor or employee can be pinned and every time you select the subject, it will also display the note associated with it
• New report formatting: The new reports view makes it much easier to read. The rows for top level categories are shaded grey, lower level category are shaded beige and totals are shaded light grey

Q5. What does Accountant Reports show in QuickBooks?

Ans

Accountant Reports in QuickBooks include

• Account Listing
• Trial Balance
• Profit and Loss statement
• Transactions detail by account
• Recent automatic transactions
• Cash flow statement
• Transaction list by date

Q6. Mention the main features of QuickBooks Documents?

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Features of QuickBooks Document include

• Attorney drafted template
• E-sign to legalize your documents
• Sync with QuickBooks online
• Secure file storage- Stored with SSL encryption

Q7. Mention what are the reconciliation reports include?

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• Journal: This reports break down every transaction during a period of time into debits and credits and display them chronologically
• Balance Sheet: It list out what you own (assets), what your debts (liabilities) and what you have invested in your company (equity)
• General Ledger: For each account the report shows all the transactions that occurred in that account over a period of time. ( beginning balance and total for each account)
• Transaction list with splits: This report list each transaction with its associated split lines
• Scorecard: It compares your sales growth, profitability, and cash flow to other companies in your industry
• Recent Transactions: It shows the transactions made recently within last 4 days

Q8. Give a brief idea about OPEX and CPEX in QuickBooks?

Ans

OPEX:OPEX, Operational EXpense in QuickBooks, also called as short-term operating expenses is one of the features that includes the expenditures for running the business daily. The expenses could be either the number of goods or products brought or sold, administrative expenses. This helps in developing and analyzing business needs and expenditures daily quickly.

CPEX:CPEX, Capital Expense in QuickBooks, is the expense that helps the future of the business. Unlike the OPEX, CPEX helps the firm to take a loan or use collateral for the future needs of business development. It helps in providing some additional facilities to the business for future purposes.

Q9. What is a Balance sheet, and how is it related to the company?

Ans

The balance sheet of an organization refers to the assets, liabilities, equities of the organization. The sheet is said to be balanced if the assets is equal to the sum of the equities and liabilities. Assets are items like computers, devices that are owned by the company. Equities refer to the profit gained by the company. Liabilities are the items that you owe to others.

Q10. Explain about the terms: Outstanding deposit and uncleared cheque?

Ans

OUTSTANDING DEPOSIT: Outstanding deposit, also referred to as deposit in transit includes the receipts of the company. It could be either cash or the checks from the customers etc. The company in their database records these, but the amount will be appearing the bank statement at a later stage.

UNCLEARED CHEQUE: Uncleared Cheque, also referred to as Outstanding Cheque is a cheque that is written and recorded in the payer’s database. It means that the cheque has not been paid by the bank on which it is drawn. 

Q11. Mention the new features that have come up in QuickBooks 2018 R3?

Ans

Q12. What is a sub-account, and why is it used?

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A sub-account in QuickBooks refers to the main account or the parent account. It allows the creation of the additional categories or details within the main category. For example, Airfare and lodging are the sub-accounts under travel expenses.

Q13. What are the two primary reports in QuickBooks?

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1. Profit and Loss (Also called an Income statement)
2. Balance Sheet

Q14. Explain the differences between items and accounts?

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ITEMS: Items refer to the products and services that you sell. All the items will be represented under one account. They are usually used on transactions such as invoices and purchase orders.

ACCOUNTS: Accounts are the categories in which the transactions are organized and reported into financial reports such as balance sheet, profit and loss. Some of the accounts include balances calling them as accounts receivables or account payables while some of them report information over a certain period such as expenses and income.

Q15. Explain how QuickBooks can be helpful in managing products and inventory?

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• Inventory valuation summary: It summarizes key information such as quantity on hand, value and average cost for each inventory item
• Purchases by product or service detail: Groups your purchases by the items in your product or service list
• Sales by product or service detail: List sales for each item on your service or product like date, transaction type, rate, quantity, total and amount
• Inventory valuation detail: Lists the transactions that each inventory item is linked to and shows how the transactions affected quantity on hand, value and cost
• Sales by product or service summary: It summarizes sales for each item on your service or product; it includes amount, quantity, percentage of sales and average price

Q16. Why do you think QuickBooks is the best choice?

Ans

QuickBooks is known as the best choice as it proves itself by providing the below aspects:

1. Easy entry
2. Scalability
3. Downloadable
4. Help and support available
5. Easy navigation
6. Intuitive process
7. Minimal accounting terminology