AIS REVIEWER (MIDTERM)

1. You want to watch spending in the staff a. Bank

entertainment expense account, to make sure the b. PayPal
team stays within the monthly budget. How do you c. Current Asset
add an existing account to the Account watchlist on d. Asset
the dashboard?
a. Edit the account in the Business performance 6. You have an invoice with multiple line items. How
dashboard. do you import the invoice?
b. Add a new entertainment account in the chart of a. Add a separate manual invoice for each line.
accounts. b. Add a manual invoice with multiple lines.
c. Go to the chart of accounts to edit the c. Add multiple lines with different invoice
account details. numbers.
d. Edit the dashboard panels to add the new d. Add multiple lines with the same invoice
account. number.

2. You want to see how different parts of the business are 7. It’s time to add a conversion date for the
performing. You have five regions with three divisions in organization, to move from your previous accounting
each. How would you set this up with Xero’s tracking software to Xero. Which of the following is a
feature? conversion date we would recommend?
a. Add 5 categories for the regions with the 3 a. The middle of any month
divisions as options under these. b. The start of the financial year
b. Add 2 options, 1 for region and 1 for division, c. The end of the calendar year
with the categories under these. d. The start of the calendar year
c. Add 2 categories, 1 for region and 1 for
division, with options under these. 8. You want to enter prior years closing balances
d. Add 1 category with the 5 regional and 3 without having to enter the full historical data, what
divisional options under it. feature could you use in Xero to achieve this?
a. Comparative balances
3. You noticed that an expense account you added a b. Pre-coded bank statements
while ago now has a lock icon next to it. What's the c. Conversion balances
reason for this? d. Chart of accounts
a. There’s an error in the account.
b. The account is used in a bank rule. 9. When comparing the account transactions report with
c. The account has been archived. your conversion balances, you notice the conversion
d. Xero changed it to a system account. journals don’t match the conversion balance values.
What could be the reason for this?
4. You’re editing the chart of accounts for an a. Xero creates an adjustment journal to
organization in Xero. Which account field must be account for any pre-conversion transactions.
unique? b. You should run the account transactions report a
a. Account type day after your conversion date.
b. Description c. Xero creates an adjustment journal to account
c. Tax rate for any post-conversion transactions.
d. Account code d. You saved your conversion balances with zero
values.
5. You’ve imported a new chart of accounts and are
confirming the bank and credit card accounts. What
account type should you use so Xero automatically
creates a PayPal account and shows it on the Bank
accounts screen?
10. You’ve noticed that the starting balance of an d. Edit the rule and set the contact to be taken from
account doesn’t match the balance in your previous the payee details.
accounting system. What's the best way to check that
you successfully saved your conversion balances in 14. You have many outstanding transactions to reconcile.
Xero? A bank rule picked up 25 of them that are from the same
a. Run the Account Transactions report from the payee. What’s the most efficient way to reconcile these?
start of the financial year, then compare it with a. On the Reconcile tab, click OK to reconcile each
your conversion balances. statement line.
a. Run the Trial Balance report for the day b. On the Cash coding tab, select the statement
before your conversion date, then compare it lines and click Apply rule.
with your conversion balances. c. On the Cash coding tab, click Save &
b. Run the Trial Balance report for the day before Reconcile All
your conversion date, then compare it with the d. On the Reconcile tab, click Save & Reconcile
Profit and Loss/Income Statement All
c. Run the Account Transactions report for the day
before your conversion date, then compare it 15. After creating a bank rule for a new payee, you
with the Balance Sheet notice that the rule doesn’t show enough transactions.
How can you fix this?
11. Xero lets you automatically import bank a. Change the condition from All to Any
statements to quickly reconcile transactions. What’s b. Move the rule to the bottom of the list.
the first thing you need to do in Xero to begin doing c. Change the condition from Any to All
this? d. Remove any hyphens in the bank rule.
a. Prepare a CSV file.
b. Set up a bank feed. 16. You want to see what a business has paid you
c. Add an account code. during the last 12 months. Where can you find this in
d. Add a bank account. the contact details?
a. Money in and out graph
12. Xero helps you check the new information you b. Contact activity.
import into bank accounts. What information can you c. Invoices awaiting payment.
search through if you need to fix a problem.
a. Reconciled statements and statement lines only 17. Your business offers services that you want to add as
b. Only statements imported with a daily bank inventory items. You decided that you don't want Xero to
feed. calculate the quantity or the value for the items. What's
c. Unreconciled statements and statement lines the best approach to take?
only a. Add them as untracked inventory items.
d. All statements, statement lines and b. Use a combination of tracked and untracked
transactions inventory.
c. Use tracking categories to manage services.
13. When reconciling, you noticed the bank rule didn’t d. Add them as tracked inventory items.
match the relevant statement lines. You set the bank rule
to match all of several conditions, but only one of these 18. You're adding your first tracked inventory item in
matches the information displayed on the statement line. Xero and you can’t select an inventory asset account.
How can you resolve this? How can you resolve this issue?
a. Edit the rule so that it works if any of the a. Create a new account with Inventory as the
conditions are met. account type and use this as the inventory
b. Edit the rule and set the reference to be taken asset account.
from the description. b. Create a new account with Current Asset as the
c. Edit the rule and allocate the remainder to go to account type and use this as the inventory asset
a revenue type account. account.
 c. Change the account type of the existing account 23. You notice that the opening balances for you tracked
to inventory and use it as the inventory asset inventory items were higher than they should’ve been.
account. When you re-import your opening balances, Xero warns
d. Create a new account with non-current assets as you that the quantity for one of your items will fall
the account type and call it inventory. below zero. You haven’t yet sent the invoice over to your
customer. What’s the best way to resolve this?
19. You want to import a combination of tracked and a. Edit or delete any transactions that you’ve
untracked inventory items using the items template. How entered based on incorrect opening balances.
can you do this in Xero? b. Enter positive signs next to the values in the
a. Add inventory assets and cost of goods sold quantity on hand column.
accounts for tracked items. c. Enter positive signs next to the balances in the
b. Import items in two separate batches and import total value column.
tracked items first. d. Increase the quantity on hand value for the item
c. Add inventory assets and cost of goods sold in the import template.
accounts for all items.
d. Import items in two separate batches and import 24. You’re looking for an invoice that you sent in the last
untracked items first. 3 months but can’t remember the contact’s name or
20. You previously recorded the purchase of stock to invoice amount. What’s the best way to use the sales
a current asset type account. You want to start using overview to find it?
tracked inventory from today. What adjustment a. Check the list of customers who owe the most
account should you use while preparing the opening money.
balances template? b. Open the Awaiting Payment tab and go through
a. The current asset account. the list.
b. The cost of goods sold account. c. Click through each section in the Money coming
c. The purchases account. in graph.
d. The inventory asset account d. Use Search to check the timeframe by
transaction or due date.
21. You’re unable to edit the inventory asset account for
a tracked inventory item. What could be the reason for 25. You’re creating a repeating invoice where the invoice
this? amount changes each time. What status should you get
a. The inventory asset account is a system account. Xero to save it as?
b. You've used the account in conversion balances. a. Awaiting payment
c. You've used the account on a repeating template. b. Approved
d. The inventory item has an opening balance c. Draft
value. d. Approve for sending.

22. Xero gives you an error message when you try to 26. You email an online quote to a customer, and you
delete an untracked inventory item. How can you resolve want to check if they’ve viewed it. Which tab can you do
this issue? this from?
a. Remove the inventory asset account then delete a. Invoiced
the inventory item. b. Sent
b. Remove the inventory item from repeating c. All
templates. d. Accepted
c. Create a new item, as you can't delete items with
an opening balance. 27. When you create a quote, Xero needs certain
d. Archive the item as you can’t delete untracked information to save or send it. Which three fields do you
inventory items. need to fill in to complete a quote?
a. Date, reference and quote number.
b. Customer, quote number and description
 c. Reference, description and expiry date 32. You notice that a current asset account with a
d. Customer, date and description negative balance is shown in the Assets section. How
can you tell Xero to move the account to the liabilities
section of the report when it’s negative?
28. A supplier contacts you to say they haven’t
a. Add a budget column.
received a purchase order for a part ordered over the
b. Add a switch rule.
phone. How do you check that this purchase order
c. Add a formula.
was sent?
d. Add a tracking category column.
a. Find the purchase order and check the date
raised
33. You’re running the Profit and Loss/Income
b. Find the purchase order and check the expected
Statement (New) report and want to compare a tracking
arrival
option with its budget. How can you do this?
c. Find the purchase order and check the delivery
a. Add a column for the tracking option and a
date
column for its budget.
d. Find the purchase order and check the Sent
b. Add a column for the tracking option and a
column
column for the date.
c. Add a column for the tracking option and a
29. Your supplier has emailed you some bills that you’d
column for the tracking category.
like to enter in Xero. What’s the most efficient way to do
d. Add a column for the tracking option and a
this?
column for the overall budget.
a. Print the bills and then enter them manually in
Xero.
34. You archived a published report by accident, how
b. Print the bills and then create a repeating bills
can you fix this?
template in Xero.
a. Move the report to the Published tab from the
c. Email the bills to the email address you use to
Custom tab.
login to Xero.
b. Move the report to the Published tab from the
d. Email the bills directly to the unique Xero
Drafts tab.
bills email address.
c. Move the report to the Published tab from the
Summary tab.
30. Save time by setting default information for a
d. Move the report to the Published tab from the
supplier under Contacts. What default information
Archived tab.
can you set for a supplier?
a. Tax rate, quantity and tax setting.
35. You want to add budgeted figures for a tracking
b. Tax setting, account and tax rate.
category. The tracking category has three options, each
c. Tracking, unit price and tax rate.
one represents a store location and has a different
d. Account, item and tax setting.
budget. How can you do this in Xero?
a. Add a new, separate budget for each store
31. You’re looking at the Purchases overview to see
location.
the status of the bills for the organization. What does
b. Add a new overall budget for the tracking
the bar graph show you?
category.
a. Select the correct answer and click Submit.
c. Add the tracking options to the existing overall
b. Draft bills, approved bills, paid bills
budget.
c. Awaiting payment bills, paid bills, scheduled
d. Export the overall budget to add the tracking
to be paid bills.
options.
d. Draft bills, awaiting payment bills and overdue
bills.
e. Approved bills, awaiting approval bills, draft
bills.
36. You want to view a breakdown of the calculation for
a gross profit % graph in the business performance
dashboard for the past 12 months. How can you view 41. A team member has asked you to enter their time
this information? spent on projects for the week. You open a project and
a. Click the graph title and hover over the start adding time to a task. When you get to the staff list,
equation for a breakdown. your team member’s name is not showing in the
b. Click the graph title and then click the figures dropdown. Why is that?
below the graph. a. They’ve already entered time for the day.
c. Click the graph title and change the date range to b. They’re a Projects user with limited access.
get a breakdown. c. You’re a Projects user with limited access.
d. Click the star next to the graph for a detailed d. They don’t have a Xero Projects user role.
breakdown.

42. You’re entering your time for the week and realize
37. Your business has a standard Xero subscription
that a lot of your entries are similar to the time you
and you’re interested in using Xero Projects. What
posted last week. You decide to copy last week’s entries.
access do you need to add Projects to a subscription?
What’s the correct process to copy time on your iOS
a. You must have the adviser role and access to the
mobile device?
billing account.
a. Open the project and tap Copy time entry.
b. You must have the adviser user role with access
b. Open the project, go to Time, open a time
to Projects.
entry and tap Copy time entry.
c. You must be the subscriber and have Projects
c. Open the project, tap the + icon and select Add
admin permissions.
time, enter the details then tap Save.
d. You must be the subscriber or have access to
d. Go to Time entries, tap the + icon and enter the
the billing account.
details, then tap Save & add another.
38. There are clear benefits when using staff cost
43. You own a web design business and there are some
rates in Xero Projects. Now that these are set up,
expenses you’d like to pass on to your customers. For
what will you be able to do in Xero?
example, you buy stock images on their behalf. Which
a. See cost in reports to calculate profitability.
option should you select when you create a product and
b. Create Projects invoices using staff cost rates.
services item for stock images?
c. Manage staff capacity in the organization.
a. I sell this item.
d. Monitor and manage staff efficiencies.
b. I track this item.
c. I purchase this item.
39. You’ve negotiated a price with your customer, and
d. I sell and purchase this item.
you want to create invoices based on this amount.
What information must you enter when you create
44. You’ve received a bill from a supplier and follow the
the project, so you can do this?
steps to assign it to a project. Then you navigate to the
a. Project expenses
project, to mark up the unit price. You can see all the
b. Project tasks
expenses on the project, except the one you just
c. Project deadline
attached. What could be the reason?
d. Project estimate
a. You have to wait until the bill has been approved
and paid.
40. You’ve created a set of inventory items to use as
b. The expense has already been invoiced by
tasks in your projects. But when you create a project,
someone else.
the inventory items are not showing in the task
c. You assigned the line item to the customer
dropdown. Why is that?
and not the project.
a. You forgot to add an account code to the item.
d. You entered a line item manually instead of
b. You forgot to select “I sell this item”.
products and services.
c. You only have Standard user permissions.
d. You forgot to enable tracking for the item.
45. You’re in the planning stages of a new job and set up
a draft project. Next you send a quote to the customer
based on estimated expenses. What’s the best way to a. Project dashboard
track your expenses in this project? b. Profitability dashboard
a. Track a quote to estimated expenses to monitor c. Project summary report
projects costs. d. Project detail report
b. Track time entries against estimated expenses to
monitor project cost.
50. You took your own vehicle from the office to a client
c. Track actual expenses against estimates to
meeting and you’d like to get reimbursed for fuel. What
monitor them.
information is required to submit a mileage claim?
d. Track a project amount against an estimated
expense. a. Add a currency and enter a short description
about the claim.
46. You created a draft Tasks and expenses invoice b. Add a label and add a tracking category to the
for a project, but realize you weren’t ready to invoice expense.
as the project is still being worked on. How do you c. Add the mileage you’d like to claim, the rate,
make the tasks and expenses available for invoicing and account.
again? d. Assign the expense to a project or the client.
a. Delete the sales invoice in Xero.
b. Delete the invoice in the project. 51. Xero lets you itemise receipts, so you can charge line
c. Void the sales invoice in Xero items to different expense accounts. What else can you
d. Approve the invoice and add a credit note. add to line items to differentiate them from others on the
same receipt?
47. There are four people using Xero in an organisation a. Labels and foreign currency
that have enabled Xero Projects. Carol is a Xero adviser b. Tracking categories and projects
and a Projects admin user. Jim is a Xero standard user c. Date, spent at and client projects.
with access to reports, but has no access to Projects. Sam d. Spent at and tracking categories.
and Mandy don’t have access to Xero business and
accounting, but they both have access to Xero Projects.
Sam is a Projects admin user and Mandy is a Projects 52. You’ve approved a number of claims that your
limited user. Who’s able to view Projects reports in the employees have recently submitted. Now you want to
organisation? process the payments.
a. Carol and Sam How do you pay your staff?
b. Carol and Jim
c. All except Mandy a. Create a new invoice for each employee and add
d. All of them a payment.
b. Go to the invoices associated with each expense
claim and pay.
48. You’re viewing the Project Details report to analyse c. Under To pay, click Pay all to view and pay
the profitability of your projects. You have five active the relevant bills.
projects that you’re managing, but only four are showing d. Create a new bill for each employee, add their
in the report. Why is the fifth project not showing? expenses and pay.
a. There are no tasks in the project.
b. You don’t have the Admin user role.
c. The project has been closed.
d. There is no activity on the project.
53. You recently made a business trip to a sales
49. You want to see a graph that shows whether the conference and have a few receipts for food and travel.
project is making a profit or not. Where do you find this You’d like to submit these expenses for reimbursement.
information?
How can you organise these receipts inside Xero c. You entered a quantity of more than 9
Expenses? computers.
d. You entered the transaction as an expense claim.
a. Create an expenses report called Sales
Conference 58. You’ve followed the steps to import multiple fixed
b. Assign a label called Sales Conference to each assets in Xero, but the file won’t import. What could be
receipt. the reason for this?
c. Itemise your receipts and attach a label to each
a. You’re trying to import existing draft assets.
item.
b. You’ve removed the header row from the file.
d. Create one expense claim to upload all your
c. You’ve saved the file as a TXT file type.
receipts.
d. You’ve used the date format dd/mm/yyyy.
54. The financial year runs from 1 July to 30 June.
59. You've entered the opening fixed asset balances and
You first started using Xero in September 2018, and imported the assets in bulk to the fixed asset register.
it's now November 2018. Which of the following However, when you run the reconciliation report, you
dates can you set as the fixed asset start date? notice that the asset register balances are nil. Why is
this?
a. 1 July 2018
b. 1 September 2018 a. The imported assets are dated before the
c. 1 July 2017 conversion date.
d. 1 November 2018 b. You haven’t registered the imported draft
assets.
55. You’re adding a new asset pool. When would you c. You haven’t set a fixed asset start date.
add an opening balance? d. You haven’t entered any purchase transactions.
a. When the pool start date is after the tax 60. You want to run depreciation on the registered
reporting start date fixed assets, but Xero won’t let you proceed. Why
b. When the pool start date is before the tax might this be?
reporting start date
c. When the pool start date is the same as the tax a. You haven’t set the fixed asset start date yet.
reporting start date b. You entered asset dates that fall outside of the
d. You always need to add opening balances when depreciated period.
adding a new pool. c. You’ve set an ‘all users’ lock date.
d. You’ve set an ‘all users (except advisers)’ lock
56. You’re adding a new asset type, but notice that the date.
asset account and accumulated depreciation account
dropdowns show ‘No matching options’. What does this 61. You run the Depreciation Schedule and notice the
mean? figures don’t agree with the asset register. Why could
this be?
a. You haven’t filled in the Asset Type field.
b. You haven’t set up the fixed asset accounts. a. You’ve selected a date prior to the fixed asset
c. You don’t have the correct user role to do this. start date.
d. You’re trying to add an existing asset type. b. You’ve unticked the Opening Value column
from Report Settings
57. You’ve recorded the purchase of some new c. You’ve unticked the Closing Value column from
computers in Xero, but notice that there’s no entry in the Report Settings
asset register. Why would this be? d. You’ve selected a date after the fixed asset start
date.

a. You didn’t code it to a fixed asset type 62. You want to record the disposal of an asset, but Xero
account. won’t let you proceed. Why could this be?
b. You haven’t entered any conversion balances.
 a. You can’t dispose of registered assets, you can c. May - August 2019
only delete them. d. July - August 2019
b. You haven’t entered the sales transaction to
67. You run the Journal Report and want to view the
record the sale of the asset.
most recent journals first. How would you do this?
c. You haven’t run depreciation to the financial
year of the disposal. a. Order the results by Journal ID
d. You haven’t set up the default disposal accounts b. Use the option to show tracking.
in Fixed Asset Settings c. Order the results by Journal date.
d. Change the date range and update.
63. You realize that an asset has been registered by
mistake, so you need to delete it. However, you can’t 68. You want to run the History and notes report to
see the option to do this within the asset. What does check what a specific user has been doing in an
this mean? organisation, but can’t seem to find the report on the
Advanced accounting screen. Why would this be?
a. You haven’t got the adviser user role.
b. You can’t delete registered fixed assets. a. You don’t have the standard or adviser user role.
c. You haven’t set the fixed asset start date. b. You don’t have the standard + all reports user
d. You’ve fully depreciated the asset. role.
c. The report is found on the Reports screen.
64. You’re using find and recode to change the contact
d. You don’t have the adviser user role.
on a batch of paid invoices. You set the search to find
transaction lines that match any of the following 69. You want to import a general ledger export into
conditions, and select 'Contact Is' as the condition, but another accounting product. Before you export the file
the contact isn’t found. Why could this be? from Xero, what's the one thing you should check?

a. You need to add a condition for status to only a. All revenue accounts have an account code in
show paid invoices. the chart of accounts.
b. You’ve archived the contact which is why you b. All liability accounts have an account code in
can’t search for it. the chart of accounts.
c. You need to set the search to find all of the c. All expense accounts have an account code in
following conditions. the chart of accounts.
d. The invoices are in a foreign currency and you d. All bank accounts have an account code in
can’t recode them the chart of accounts.

65. You’ve posted a manual journal incorrectly and 70. Xero HQ is the central place for managing your
want to remove the entries from the general ledger on practice, and navigating to other Xero products you
the same date as the original entry. What should you have access to. How would you access Xero Practice
do? Manager from Xero HQ?

a. Copy the journal. a. From the Practice overview tab

b. Delete the journal. b. From the organization drop down
c. Archive the journal. c. From the Explorer tab
d. Void the journal. d. From your user profile

66. You’ve set up a repeating journal and inserted a 71. You’d like to add the new staff member to multiple
placeholder of [Month-2] - [Month] [Year] for the clients at the same time. You assign them access to the
narration. What narration does Xero display on the first client records in Xero HQ, and also give them access to
journal, dated 1st August 2019? the client’s organisations so they can complete
bookkeeping tasks. What level of access will they
initially have?
a. October - August 2019
a. Master administrator
b. June - August 2019
b. Advisor
 c. View only. you’re not sure which customer to assign to, what do
d. Administrator you do?

72. Keep track of the progress of queries with Xero Ask. a. Select Save & submit for approval.
What is the quickest way to check how many questions a b. Click Decide customer later.
client has answered? c. Select an inventory item from the drop down.
d. Click Bill options.
a. Contact the client.
b. Open the query. 78. You’re exporting bank statements from an online
c. Check the client list. banking platform, and the export options show a few
d. Hover over the progress icon. different file types. Which file type requires you to map
the columns of the file to the fields in Xero the first time
73. You notice that an expense account you added to the
you import it?
chart of accounts a while ago, now has a lock symbol
next to it. What’s the reason for this? a. CSV
b. TXT
a. Xero changed the expense account to a system
c. QIF
account.
d. OFX
b. You’ve used the account in a repeating
transaction. 79. When reconciling you’ve noticed that a bank
c. There’s an error in the expense account. rule hasn’t suggested transactions for the relevant
d. You’ve archived the expense account. statement lines. The bank rule is set to match All of
74. You’re creating a new email template for the several conditions, and only one of these matches
organisation. To help save time manually entering the information displayed on the statement line.
information in the future, what should you include in the How can you resolve this issue?
email template?
a. Edit the rule and allocate a remainder to go
a. Placeholders to a revenue type account.
b. A custom message b. Edit the rule and set the contact to be taken
c. The template type. from the payee details.
d. Quick links
c. Edit the rule so that it works if any of the
75. You want to add a credit note for an item conditions are met.
returned by a customer. What’s the most efficient d. Edit the rule and set the reference to be
way to do this in Xero? taken from the description.
a. From the Sales overview 80. You have many outstanding transactions to reconcile.
b. From the + Create new menu A bank rule picked up 25 of them that are from the same
c. From the awaiting payment tab payee. What’s the most efficient way to reconcile these?
d. From the related sales invoice
a. In the Reconcile tab, click Save and Reconcile
76. You can save time by setting default information for All.
a supplier under Contacts. What default purchase b. In the Cash coding tab, click Save &
settings can you enter for a supplier? Reconcile All.
a. Tax, account and tracking c. In the Reconcile tab, click OK next to each bank
b. Account, item code and tax rule suggestion.
c. Tracking, unit price and tax d. In the Cash coding tab, select the statement lines
d. Tax, quantity and tracking and click Apply rule.

77. You’re processing bills and assigning any billable

expenses to customers. There’s a billable expense that
81. You’ve posted a manual journal incorrectly and want
to remove the entries from the general ledger on the
same date as the original entry. What should you do?

a. Archive the journal.

b. Delete the journal.
c. Void the journal.
d. Copy the journal.

82. You’ve noticed that a current asset account with a

negative balance is appearing under the Assets heading.
How can you set the account to move to the liabilities
section of the report when it’s negative?

a. Add a switch rule.

b. Add a tracking category column.
c. Add a budget column.
d. Add a formula.

83. You’re running the Profit and Loss (New) report and
want to compare a tracking option with its budget. How
can you do this?

a. Add a column for the tracking option and a

column for its budget.
b. Add a column for the tracking option and a
column for a formula.
c. Add a column for the tracking option and a
column for the overall budget.
d. Add a column for the tracking option and a
column for the date.

84. You want to add budgeted figures for a tracking

category. The tracking category has three options, each
one represents a store location and has a different
budget. How can you do this in Xero?

a. Export the overall budget to add the tracking

options.
b. Add a new, separate budget for each store
location.
c. Add a new overall budget for the tracking
category.
d. Add the tracking options to the existing overall
budget.