Multiple Choice

Accounts Payable $($A$/$P$)$ is credited in QBO when:

a$.$ inventory is ordered from the supplier

b$.$ a vendor bill for inventory is paid

c$.$ a bill for inventory is received from the supplier

d$.$ inventory purchases are made by check

Recorded vendor credits

a$.$ result in credits to the accounts payable account

b$.$ are automatically included in the CREDIT APPLIED field on the pay bills screen when a bill from the vendor is selected for payment

c$.$ must be applied when a payment is made to a vendor with outstanding credits

d$.$ can not be created for inventory items

If some of the items on a purchase order have been received, and the bill has been created,

a$.$ the purchase order is automatically marked as "closed" by QBO

b$.$ the purchase order must be manually updated by checking the CLOSED column for each item received.

c$.$ the purchase order remains open until the bill has been paid

d$.$ the purchase order remains open until all items have been received or the user manually closes the purchase order.

The reorder point for an inventory item represents:

a$.$ the minimum number of units that should be maintained in inventory.

b$.$ the minimum number of units that should included in a single order.

c$.$ the maximum number of units that should be maintained in inventory

d$.$ the average number of units that should included in a single order.

To take an early payment discount on a vendor bill,

a$.$ a vendor credit for the amount of the discount can be created and applied to the bill when paid.

b$.$ the potential discount can be included when the bill is initially entered

c$.$ a term, which includes the early payment discount rate can be created in QBO. The discount amount would then be automatically applied by QBO when the bill is paid.

d$.$ Both a and $b$ are possible in QBO, although a would be considered best practice in accounting.