Question $6$ Question $7$

How are Purchase Orders used in QuickBooks Online?

Purchase orders can only be used for inventory items

Only one purchase order can be added to a bill or expense

Individual lines or a purchase order can be closed even if not shipped

Purchase orders are turned on by default Question $8$

How can Purchase Orders help your client with a large number of

suppliers? Select all that apply.

Establish an agreed$-$upon purchase price

Keep track of obsolete items

Schedule assemblies

Track inventory items only

Keep track of expected deliveries from suppliers

Reduce duplication when entering supplier bills Question $9$

Inventory valuation adjustments in QuickBooks Online:

Can be done by Accountant users only

Can be done by combining two transactions

Can't be done

Can be found in the Inventory Quantity Adjustment screenQuestion $10$

A client's Inventory Valuation Detail shows the following transactions,

all on November $15$:

$3$ rows indicating the same Inventory Quantity Adjustment that resulted in a decrease of negative

$100$ Widgets in inventory

One Expense for $100$ Widgets

What does this tell you?

$100$ Widgets were given away as promotional items

There are three lines on the inventory adjustment because the Widgets were

purchased on three different dates

An inventory revaluation workflow was used to reflect a decrease in the value of

$100$ Widgets from $3$ different FIFO layers

$100$ Widgets were thrown out or donated

What issues can be caused by negative inventory in QuickBooks Online?

Select all that apply.

None. QuickBooks Online doesn't allow for negative inventory

COGS, inventory valuation and quantity will be incorrect

Sales will be negative

Books cannot be closed for a period that has negative inventory

None. QuickBooks Online can be set to disallow negative inventory