Asked by flora Verdura on Jun 01, 2024
Verified
In QBO,what is the difference between the vendor transaction Bill and Expense?
A) Expense - records services received that will be paid for later thus creating an account payable.
Bill - record expenses paid for using cash,check or credit card at the time a product or service is received.
B) Expense - record expenses paid for in cash,check or credit card at the time the product or service is received.
Bill - tracks products ordered from vendors which will be billed when received.
C) Expense - records a vendor refund received which reduces what a company owes the vendor.
Bill - record services received that will be paid for later creating an account payable.
D) Expense - record expenses paid for using cash,check or credit card at the time a company receives the product or service.
Bill - record services received that will be paid for later creating an account payable.
Vendor Transaction
A business event that involves the purchase of goods or services from a supplier.
Expense
An outflow of money or other resources spent by a business or individual in the course of generating revenue.
Bill
An invoice or statement of charges for goods or services provided.
- Identify the differences between diverse vendor transactions (e.g., Bill vs. Expense) and acknowledge the proper contexts for each.
- Understand the functional differences between Bill, Expense, and Check forms and their application in QBO.
Verified Answer
ZK
Zybrea KnightJun 01, 2024
Final Answer :
D
Explanation :
Expense transactions in QuickBooks Online (QBO) are used to record immediate payments made via cash, check, or credit card for products or services at the time they are received. Bills, on the other hand, are used to record transactions for products or services received that will be paid for at a later date, thus creating an account payable. This distinction helps businesses manage their cash flow and accounts payable more effectively.
Learning Objectives
- Identify the differences between diverse vendor transactions (e.g., Bill vs. Expense) and acknowledge the proper contexts for each.
- Understand the functional differences between Bill, Expense, and Check forms and their application in QBO.