PRELIM QUIZ #1 ITAPPTOOLS

1. You’d like to keep an eye on spending in the staff entertainment expense account, to make sure
the team is staying within budget each month. How do you add an existing account to the Account
watchlist on the dashboard?
a. Add a new account in the chart of accounts for entertainment
b. Edit the account in the business performance dashboard
c. Go to the chart of accounts to edit the account details
d. Edit the dashboard panels to add the new account

2. You’ve started a new online store and are setting up features in the Xero organisation. You were
asked to turn on two-step authentication to secure your account. Which of the following menu
would you go?
a. Contacts Menu c. Products and Services
b. User Menu d. Accounting Menu

3. You’ve started a new online store and are setting up features in the Xero organisation. You were
asked to set up and add inventory items. Which of the following menu would you go?
a. Contacts Menu c. Products and Services
b. User Menu d. Accounting Menu

4. You’ve started a new online store and are setting up features in the Xero organisation. You were
asked to manage details for customers and suppliers. Which of the following menu would you go?
a. Contacts Menu c. Products and Services
b. User Menu d. Accounting Menu

5. You’ve started a new online store and are setting up features in the Xero organisation. You were
asked to access reports to see the store’s financials. Which of the following menu would you go?
a. Contacts Menu c. Products and Services
b. User Menu d. Accounting Menu

6. A while ago, you switched off notification popups. You’d like to turn them back on so you can be
updated on the status of the organisation's bank feeds. How do you switch notification popups
back on? Arrange the steps below into the correct order
1. Click the Settings link
2. Click Save
3. Click the bell icon
4. Select Show notification popups
a. 3, 2, 1, 4 c. 3, 1, 4, 2
b. 1, 3, 4, 2 d. 4, 1, 3, 2

7. It’s important that you enter the correct information in the organisation settings, and that you know
what Xero does with this information especially if you’ve selected to show specific items publicly
on online invoices. The ___________ is the name you’ll see in Xero.
a. Display Name c. Legal/Trading Name
b. Contact Name d. Practice Owners

8. It’s important that you enter the correct information in the organisation settings, and that you know
what Xero does with this information especially if you’ve selected to show specific items publicly
on online inchartvoices. Entering a ______________ is optional.
a. Postal Address c. Legal/Trading Name
b. Physical Address d. None of the above

9. It’s important that you enter the correct information in the organisation settings, and that you know
what Xero does with this information especially if you’ve selected to show specific items publicly
on online invoices. The _________ can show in the footer of your online invoices.
a. Display Name c. Organisation description
b. Logo d. Organisation address

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PRELIM QUIZ #1 ITAPPTOOLS

10. Now you’ve learned about inviting and editing user permissions, complete the following
statements. To invite or edit users in an organisation, you need to have _________ permission in
Xero.
a. Manage User c. Edit Settings
b. Adviser d. Standard

11. Now you’ve learned about inviting and editing user permissions, complete the following
statements. To give a user advanced accounting features, select the _____________ role.
a. Invoice Only c. Adviser
b. Standard d. Projects

12. Now you’ve learned about inviting and editing user permissions, complete the following
statements. To give someone access to view Xero, without the ability to add or make changes,
select the _______ role
a. Invoice Only c. Read Only
b. Standard d. Adviser

13. Your online store has customers and suppliers in several countries. Your base currency is USD
and you need to set up EUR, NZD, AUD and GBP currencies.
Sort the following items into the correct order to show the steps.
1. Go to Currencies in settings
2. Repeat for NZD, EUR, GBP
3. Click + Add Currency
4. Click the drop down list and select AUD
a. 3, 1, 4, 2 c. 1, 3, 2, 4
b. 1, 3, 4, 2 d. 3, 1, 2, 4

14. Which of the following statements is TRUE?

a. Xero was founded in 2006 in an Australian studio apartment when the founders felt that
traditional desktop accounting software had become outdated and decided to create a
modern cloud-based product.
b. Xero's products are based on the platform as a service (PaaS) model and sold by
subscription, based on the type and number of company entities managed by the
subscriber.
c. The headquarters of Xero Limited Global is located in its home country, Australia, where it
is also listed in the Australian Stock Exchange.
d. Xero has offices in the United Kingdom, Canada, United States of America, Singapore,
Hong Kong, South Africa, and other countries.

15. Who are the founders of XERO?

a. Rod Drury and Hamish Edwards c. Rob Drury and Hamish Edward
b. Rob Drury and Hamish Edwards d. Rod Drury and Hamich Edwards

16. Which of the following is NOT a cloud-based accounting software?

a. Fresh Books c. Xero
b. Clear Books d. Fast Books

17. This innovation enables users to avoid storing information, programs, or files, on their hard drive.
This means that the storage facility is outside the PC’s local or hard drive.
a. Cloud c. Cloud Computing
b. Stack d. Public Network

18. Which of the following statements on Cloud Computing is false?

a. It enables businesses to shift the burden of managing and maintaining computer hardware
from their own staff to providers whose business specialize on these fields.
b. It enables both casual internet user and the specialized programming developer to access
information from around the world almost instantaneously.

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PRELIM QUIZ #1 ITAPPTOOLS

c. It refers to the foundation of the cloud-based server upon which a computer developer can
construct a system to meet the particular need.
d. A technology that enables consumers, developers, and businesses to communicate and
collaborate by accessing software applications, data storage, and computing processing
capacity over the Internet.

19. What was the original name of XERO?

a. Accounting 2.0 c. Accounts 2.0
b. Accountant 2.0 d. Accountants 2.0

20. A service model where all are managed by others, specifically a service provider, and is
available for all users.
a. Platform as a Service c. Infrastructure as a Service
b. Software as a Service d. Network as a Service

21. The most secure type of cloud service delivery model

a. Private Cloud c. Public Cloud
b. Virtual Private Cloud d. Hybrid Cloud

22. Inventory adjustments are sometimes required to keep inventory numbers accurate. Choose the
right kind of adjustment to use for the situations listed below.
Situation: You’ve found an extra inventory item in your warehouse, create
a. A decrease quantity adjustment c. An increase quantity adjustment
b. A revaluation adjustment d. A removal of existing inventory item

23. You’re unable to edit the inventory asset account for a tracked inventory item. What could be the
reason for this?
a. The inventory asset account is a system account
b. The inventory item has an opening balance value
c. The account has been used on a repeating template
d. The account has been used in conversion balances

24. You’re editing the chart of accounts for the organisation. Which account field must be unique?
a. Account type c. Description
b. Tax rate d. Account code

25. You’d like to upload documents to Xero Files and attach them to client invoices. There are a few
Underlying foundation or basic framework of a system or an organization.
a. Infrastructure c. Cloud
b. Stack d. Platform

26. You’re setting up two organisations on Xero and need to select the tax basis. Finish the sentences
below. Heather’s Kiosk is a business that records revenue and expenses at the end of the day
when the till is closed. Select ____________.
a. Cash Basis c. Financial Settings
b. Accrual Basis d. None of these

27. You’re setting up two organisations on Xero and need to select the tax basis. Finish the sentences
below. Mike’s Consulting is a service based business that records revenue using the date on
approved invoices, bills and other transactions. Select ____________.
a. Cash Basis c. Financial Settings
b. Accrual Basis d. None of the above

28. Your organisation would like to add a custom tax rate to assign as the default tax rate to certain
accounts within the chart of accounts. Sort the steps into the correct order.
1. Click New Tax Rate
2. Click Accounting and Advanced

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PRELIM QUIZ #1 ITAPPTOOLS

3. Click Save
4. Add Display Name, Tax Type and Components
5. Select Tax Rates
a. 2, 5, 1, 4, 3 c. 1, 2, 4, 5, 3
b. 5, 4, 2, 1, 3 d. 2, 1, 5, 4, 3

29. You haven’t submitted any sales tax reports for the last financial year, yet you’ve noticed there are
some draft invoices awaiting approval for that period. There’s a lock date in place preventing all
users from approving transactions. You’d like to approve the last-minute invoices. Sort the steps
into the correct order.
1. Go to Financial Settings
2. Remove the lock date and save
3. Approve the invoice
4. Reinstate the Lock date
a. 1, 3, 2, 4 c. 1, 4, 3, 2
b. 1, 2, 3, 4 d. 1, 3, 4, 2

30. You’re populating the fields in the chart of accounts import template and are considering what
information must be added.
Which of the following statements is true
1. Account Code and Account Type are Mandatory fields
2. Account Balance and Account Description are Mandatory fields.
a. Both statements are true c. Only the first statement is true
b. Both statements are false d. Only the second statement is true

31. You’ve populated the import file with unpaid invoices and would now like to import this into Xero.
What happens next? Sort each step into the correct order.
1. Approve the invoices from the draft tab
2. Click import from the invoices screen
3. Browse for the CSV template and click import
4. Review and Complete the Import
a. 4, 3, 2, 1 c. 3, 2, 4, 1
b. 2, 3, 4, 1 d. 4, 2, 3, 1

32. It’s time to add a conversion date for the organisation in order to move from the previous accounting
software, to Xero. Which of the following is a conversion date we would recommend?
a. End of the calendar year c. The start of the financial year
b. The start of the calendar year d. The middle of any month

33. There are a number of uncleared cheques at the time of conversion and you’re about to enter
conversion balances for the accounts. Sort the steps into the right order.
1. Determine total of uncleared items
2. Save
3. conversion balances
4. Add an uncleared items account
5. Enter the uncleared items conversion balance
a. 1, 3, 4, 2 c. 1, 2, 3, 4
b. 1, 4, 3, 2 d. 1, 2, 4, 3

34. A layer of the stack that provides a common environment upon which a single developer or a team
of developers can build and basic features are preselected by the provider.
a. Hybrid Cloud c. Platform as a Service
b. Infrastructure as a Service d. Software as a Service

35. Xero does things differently. Identify some of the basic features that make Xero different from
traditional accounting software. Xero allows you to have __________ users
a. Up to 100 c. Unlimited
b. Limited d. None of the above

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PRELIM QUIZ #1 ITAPPTOOLS

36. There are key things to remember when using Xero’s branding themes to create a document.
Terms and payment advice for invoices and statements are set ____________.
a. Individual on each document
b. Inside the template
c. Manually in the email accompanying the document
d. None of the above
37. There are key things to remember when using Xero’s branding themes to create a document.
A new logo can be attached to a branding theme template ____________.
a. In the branding theme template
b. After the new branding theme template has been saved
c. Before the template has been edited
d. None of the above

38. You're adding your first tracked inventory item in Xero, and you've found that you're unable to
select an existing account as the inventory asset account. How can you resolve this issue?
a. Change the account type of the existing account to inventory and use it as the inventory
asset account.
b. Create a new account with inventory as the account type and use this as the inventory
asset account.
c. Create a new account with non-current asset as the account type and call it inventory.
d. Create a new account with current asset as the account type and use this as the inventory
asset account.

39. You want to import a combination of tracked and untracked inventory items using the items
template file. How can you do this in Xero?
a. Add inventory asset and cost of goods sold accounts for tracked items
b. Import items in two separate batches and import untracked items first
c. Import items in two separate batches and import tracked items first
d. Add inventory asset and cost of goods sold accounts for all of the items

40. You’ve previously recorded the purchase of stock to a current asset type account. You want to
start using tracked inventory from today. What adjustment account should you use while preparing
the opening balances file?
a. The cost of goods sold account c. The purchases account
b. The current asset account d. The inventory asset account

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