AIS REVIEWER (MIDTERM)

1. You want to watch spending in the staff SEND FILES WITH THE UNIQUE XERO EMAIL
entertainment expense account, to make sure the team ADDRESS
stays within the monthly budget. How do you add an Upload files from a mobile device.
existing account to the Account watchlist on the USE THE XERO BUSINESS APP
dashboard?
a. Edit the account in the Business performance 6. You uploaded a photo of a custom table you made
dashboard. for a customer, into Xero. Now you want to create
b. Add a new entertainment account in the chart of an invoice and attach the file to it.
accounts.
 GO TO THE FILE LIBRARY INBOX
c. Go to the chart of accounts to edit the account
 SELECT THE PHOTO OF THE TABLE
details.
 CLICK ADD NEW
d. Edit the dashboard panels to add the new
 SELECT SALES INVOICE
account.

2. Turn on two-step authentication to secure your 7. You haven’t submitted any activity statements for
account. USER MENU the last financial year, yet you noticed there are
Set up and add inventory items. some draft invoices awaiting approval for that
PRODUCTS AND SERVICES period. There’s a lock date in place preventing all
Manage details for customers and suppliers. users from approving transactions. You want to
CONTRACTS MENU approve the last-minute invoices.
Access reports to see the store’s financials.  GO TO FINANCIAL SETTING
ACCOUNTING MENU
 REMOVE THE LOCK DATE AND SAVE
3. A while ago you switched off notifications. You want  APPROVE THE INVOICES
to turn them back on to get status updates for the  REINSTATE THE LOCK DATE
organization’s bank feeds. How do you do this? 8. Your organization wants to add a custom GST
 CLICK THE BELL ICON rate as the default for certain accounts in the chart
 CLICK SETTING of accounts.
 SELECT SHOW NOTIFICATION POPUPS
 CLICK ACCOUNTING AND ADVANCED
 CLICK SAVE
 SELECT TAX RATES
4. Your online store has customers and suppliers in  CLICK NEW TAX RATES
several countries. Your base currency is USD. You also  ADD A DISPLAY NAME, TAX TYPE
need to set up AUD, EUR, GBP and NZD. What do you AND COMPONENTS
do next?  CLICK SAVE
 FROM ORGANISATION SETTINGS, 9. You want to see how different parts of the
SELECT CURRENCIES business are performing. You have five regions with
 CLICK ADD CURRENCY three divisions in each. How would you set this up
 SELECT AUD AS THE CURRENCY with Xero’s tracking feature?
 REPEAT FOR THE OTHER CURRENCIES a. Add 5 categories for the regions with the 3
divisions as options under these.
5. Upload files into Xero.
b. Add 2 options, 1 for region and 1 for
BROWSE FOR, AND ATTACH FILES DIRECTLY
Drag files into transaction.
division, with the categories under these.
PULL FILES ACROSS FROM ANOTHER WINDOW c. Add 2 categories, 1 for region and 1 for
division, with options under these.
d. Add 1 category with the 5 regional and 3
Attach and send file attachments. divisional options under it.
 15. You completed the import template with unpaid
10. You noticed that an expense account you added invoices and want to import it into Xero. What do
a while ago now has a lock icon next to it. What's you do next?
the reason for this?  CLICK IMPORT ON THE INVOICES
a. There’s an error in the account. SCREEN
b. The account is used in a bank rule.  BROWSE FOR THE CVS FILE AND
c. The account has been archived. CLICK IMPORT
d. Xero changed it to a system account.  REVIEW THE INFORMATION AND
FINISH THE IMPORT
11. You’re editing the chart of accounts for an  APPROVE THE INVOICES ON THE
organization in Xero. Which account field must be DRAFT TAB
unique?
a. Account type 16. It’s time to add a conversion date for the
b. Description organization, to move from your previous
c. Tax rate accounting software to Xero. Which of the
d. Account code following is a conversion date we would
recommend?
12. You’re entering information into the chart of a. The middle of any month
accounts import template and considering what b. The start of the financial year
information needs adding. Can you identify some c. The end of the calendar year
mandatory and non-mandatory fields? d. The start of the calendar year
Mandatory field. TYPE CODE
Non-mandatory field. BALANCE DESCRIPTION 17. There are a number of uncleared cheques at the
time of conversion, and you want to enter
13. You’ve imported a new chart of accounts and conversion balances for the accounts.
are confirming the bank and credit card accounts.  DETERMINE THE TOTAL OF
What account type should you use so Xero UNCLEARED ITEMS
automatically creates a PayPal account and shows it  ADD AN UNCLEARED ITEMS
on the Bank accounts screen? ACCOUNT
a. Bank
 ENTER THE UNCLEARED ITEMS
b. PayPal
CONVERSION BALANCE
c. Current Asset
 SAVE THE CONVERSION BALANCES
d. Asset
18. You want to enter prior years closing balances
14. You have an invoice with multiple line items.
without having to enter the full historical data, what
How do you import the invoice?
feature could you use in Xero to achieve this?
a. Add a separate manual invoice for each line.
b. Add a manual invoice with multiple lines.
a. Comparative balances
c. Add multiple lines with different invoice
b. Pre-coded bank statements
numbers.
c. Conversion balances
d. Add multiple lines with the same invoice
d. Chart of accounts
number.

19. When comparing the account transactions report

with your conversion balances, you notice the
conversion journals don’t match the conversion a. Reconciled statements and statement lines
balance values. What could be the reason for this? only
a. Xero creates an adjustment journal to b. Only statements imported with a daily bank
account for any pre-conversion transactions. feed.
b. You should run the account transactions c. Unreconciled statements and statement lines
report a day after your conversion date. only
c. Xero creates an adjustment journal to d. All statements, statement lines and
account for any post-conversion transactions
transactions.
d. You saved your conversion balances with 23. You paid money from a business bank account
zero values. to a credit card and it's time to reconcile the
transfer.
20. You’ve noticed that the starting balance of an  CLICK TRANSFER FOR THE BANK
account doesn’t match the balance in your previous STATEMENT LINE IN THE BUSINESS
accounting system. What's the best way to check BANK ACCOUNT
that you successfully saved your conversion  SELECT THE CREDIT CARD ACCOUNT
balances in Xero? ON THE TRANSFER TAB
a. Run the Account Transactions report from  CLICK OK TO RECONCILE THE
the start of the financial year, then compare TRANSFER IN THE BUSINESS BANK
it with your conversion balances. ACOUNT
a. Run the Trial Balance report for the day  RECONCILE THE SUGGESTED MATCH
before your conversion date, then compare it IN THE CREDIT CARD ACCOUNT
with your conversion balances.
b. Run the Trial Balance report for the day 24. When reconciling, you noticed the bank rule
before your conversion date, then compare it didn’t match the relevant statement lines. You set
with the Profit and Loss/Income Statement the bank rule to match all of several conditions, but
c. Run the Account Transactions report for the only one of these matches the information displayed
day before your conversion date, then on the statement line. How can you resolve this?
compare it with the Balance Sheet
a. Edit the rule so that it works if any of the
21. Xero lets you automatically import bank conditions are met.
statements to quickly reconcile transactions. What’s b. Edit the rule and set the reference to be
the first thing you need to do in Xero to begin doing taken from the description.
this? c. Edit the rule and allocate the remainder to
a. Prepare a CSV file. go to a revenue type account.
b. Set up a bank feed. d. Edit the rule and set the contact to be taken
c. Add an account code. from the payee details.
d. Add a bank account.

25. You have many outstanding transactions to

22. Xero helps you check the new information you reconcile. A bank rule picked up 25 of them that are
import into bank accounts. What information can from the same payee. What’s the most efficient way
you search through if you need to fix a problem. to reconcile these?
 a. On the Reconcile tab, click OK to reconcile 28. After creating a bank rule for a new payee, you
each statement line. notice that the rule doesn’t show enough
b. On the Cash coding tab, select the statement transactions. How can you fix this?
lines and click Apply rule. a. Change the condition from All to Any
c. On the Cash coding tab, click Save & b. Move the rule to the bottom of the list.
Reconcile All c. Change the condition from Any to All
d. On the Reconcile tab, click Save & d. Remove any hyphens in the bank rule.
Reconcile All
29. You’ve exported contacts from another software
26. Your online balance for the business bank package and want to set them up in Xero. Can you
account doesn’t match the statement balance in put the steps in the right order?
Xero. How do you fix the difference? a. DOWNLOAD THE TEMPLATE FILE
 CHECK THECONVERSION BALANCE b. ENTER THE CONTRACT
IS RIGHT FOR THE BANK ACCOUNT INFORMATION
 OPEN THE BANK RECONCILIATION c. SAVE AS CVS OR TXT FILE
SUMMARY REPORT d. IMPORT THE TEMPLATE INTO XERO
 CHANGE THE REPORT DATES TO FIND
WHEN THE BALANCES DON’T MATCH 30. You want to see what a business has paid you
 CHECK THE BANK STATEMENTS AND during the last 12 months. Where can you find this
LINES TO FIND THE DIFFERENCE IN in the contact details?
XERO
 IMPORT ANY MISSING STATEMENT a. Money in and out graph
LINES AND DELETE ANYONES THAT b. Contact activity.
ARE WRONG c. Invoices awaiting payment.

27. After reconciling your bank statements in Xero, 31. Your business offers services that you want to
you notice the statement balance in Xero doesn’t add as inventory items. You decided that you don't
match your online banking balance. How do you want Xero to calculate the quantity or the value for
find out what’s causing this? the items. What's the best approach to take?
 COMPARE THE VERSION BALANCE
VALUE FOR YOUR BANK ACCOUNT, a. Add them as untracked inventory items.
WITH YOUR ONLINE BALANCE b. Use a combination of tracked and untracked
BANKING inventory.
c. Use tracking categories to manage services.
 UPDATE THE BANK BALANCE IN
d. Add them as tracked inventory items.
XERO, SO IT MATCHES YOUR ONLINE
BANKING BALANCE
 RUN THE BANK RECONCILIATION
REPORT AND FIND THE DATE THE
32. You're adding your first tracked inventory item
STATEMENT BALANCE GOES OUT
in Xero and you can’t select an inventory asset
 COMPARE BANK STATEMENTS IN
account. How can you resolve this issue?
XERO TO YOUR ONLINE BANKING, TO
a. Create a new account with Inventory as the
FIND WHAT’S DIFFERENT
account type and use this as the inventory
asset account.
 b. Create a new account with Current Asset as c. You've used the account on a repeating
the account type and use this as the template.
inventory asset account. d. The inventory item has an opening balance
c. Change the account type of the existing value.
account to inventory and use it as the
inventory asset account. 36. Xero gives you an error message when you try
d. Create a new account with non-current to delete an untracked inventory item. How can you
assets as the account type and call it resolve this issue?
inventory. a. Remove the inventory asset account then
delete the inventory item.
33. You want to import a combination of tracked b. Remove the inventory item from repeating
and untracked inventory items using the items templates.
template. How can you do this in Xero? c. Create a new item, as you can't delete items
with an opening balance.
a. Add inventory assets and cost of goods sold d. Archive the item as you can’t delete
accounts for tracked items. untracked inventory items.
b. Import items in two separate batches and
import tracked items first. 37. You’re trying to import tracked inventory items
c. Add inventory assets and cost of goods sold into Xero, but you get an invalid inventory asset
accounts for all items. account error message. How can you resolve this?
d. Import items in two separate batches and  GO TO THE CHART OF ACCOUNTS
import untracked items first. SCREEN
 MAKE A NOTE OF THE INVENTORY
34. You previously recorded the purchase of stock ASSET ACCOUNT CODE
to a current asset type account. You want to start  EDIT YOUR IMPORT FILE TO REPLACE
using tracked inventory from today. What THE EXISTING INVETORY ASSET
adjustment account should you use while preparing ACCOUNT WITH THE CORRECT ONE
the opening balances template?  REIMPORT THE FILE
a. The current asset account.
b. The cost of goods sold account. 38. You notice that the opening balances for you
c. The purchases account. tracked inventory items were higher than they
d. The inventory asset account should’ve been. When you re-import your opening
balances, Xero warns you that the quantity for one
of your items will fall below zero. You haven’t yet
sent the invoice over to your customer. What’s the
best way to resolve this?

a. Edit or delete any transactions that you’ve

35. You’re unable to edit the inventory asset account entered based on incorrect opening balances.
for a tracked inventory item. What could be the b. Enter positive signs next to the values in the
reason for this? quantity on hand column.
a. The inventory asset account is a system c. Enter positive signs next to the balances in
account. the total value column.
b. You've used the account in conversion d. Increase the quantity on hand value for the
balances. item in the import template.
 a. Awaiting payment
39. You want to customize how invoices look in b. Approved
Xero. What steps do you follow to create a standard c. Draft
branding theme? d. Approve for sending.
 FROM THE ORGANIZATION MENU,
SELECT SETTINGS AND CLICK 43. You email an online quote to a customer, and
INVOICE SETTINGS. you want to check if they’ve viewed it. Which tab
 CLICK NEW BRANDING THEME can you do this from?
 NAME THE TEMPLATES, AND ADJUST a. Invoiced
THE OPTION AS YOU NEED b. Sent
 ADD PAYMENT SERVICES AND TERMS c. All
 CLICK SAVE d. Accepted
 ADD LOGO TO THE TEMPLATE
44. When you create a quote, Xero needs certain
information to save or send it. Which three fields do
40. You’re looking for an invoice that you sent in
you need to fill in to complete a quote?
the last 3 months but can’t remember the contact’s
a. Date, reference and quote number.
name or invoice amount. What’s the best way to use
b. Customer, quote number and description
the sales overview to find it?
c. Reference, description and expiry date
a. Check the list of customers who owe the
d. Customer, date and description
most money.
b. Open the Awaiting Payment tab and go
through the list. 45. A supplier contacts you to say they haven’t
c. Click through each section in the Money received a purchase order for a part ordered over the
coming in graph. phone. How do you check that this purchase order
d. Use Search to check the timeframe by was sent?
transaction or due date. a. Find the purchase order and check the date
raised
41. You want to invoice a customer for a product b. Find the purchase order and check the
that’s saved in Xero and include warranty expected arrival
information in an attachment. What steps do you c. Find the purchase order and check the
follow to send the invoice? delivery date
 FROM THE INVOICES SCREEN, CLICK d. Find the purchase order and check the Sent
NEW INVOICE column
 ADD A CONTACT NAME AND CHECK
THE DUE DATE
 CHOOSE THE PRODUCT FROM THE 46. You approved your first purchase order in Xero,
LIST and now it's time to send it to your supplier. What
 ATTACH THE WARRANTY process do you follow to send the purchase order?
INFORMATION AND CLICK APPROVE
 GO TO THE PURCHASE ORDERS
 CLICK EMAIL, THEN CLICK SEND
DASHBOARD
 SELECT THE APPROVED TAB
42. You’re creating a repeating invoice where the
 SELECT YOUR PURCHASE ORDER
invoice amount changes each time. What status
 CLICK SEND
should you get Xero to save it as?
  CHECK THE MAIL TEXT AND CLICK e. Approved bills, awaiting approval bills,
SEND draft bills.

47. Your supplier has emailed you some bills that 51. You’ve got multiple bills to pay at once and
you’d like to enter in Xero. What’s the most decide to create a batch payment to save time. What
efficient way to do this? process do you follow to pay the bills in bulk?

 FROM THE AWAITING PAYMENT TAB,

a. Print the bills and then enter them manually
CLICK MAKE PAYMENT
in Xero.
 SELECT THE BANK ACCOUNT, A
b. Print the bills and then create a repeating
PAYMENT METHOD AND DATE
bills template in Xero.
 CLICK CREATE PAYMENT
c. Email the bills to the email address you use
to login to Xero.  CLICK FINISH AND VIEW BATCH
d. Email the bills directly to the unique Xero  EPORT THE BATCH FILE AND UPLOAD
bills email address. TO YOUR BANK

48. Save time by setting default information for a 52. You notice that a current asset account with a
supplier under Contacts. What default information negative balance is shown in the Assets section.
can you set for a supplier? How can you tell Xero to move the account to the
a. Tax rate, quantity and tax setting. liabilities section of the report when it’s negative?
b. Tax setting, account and tax rate. a. Add a budget column.
c. Tracking, unit price and tax rate. b. Add a switch rule.
d. Account, item and tax setting. c. Add a formula.
d. Add a tracking category column.
49. You’ve purchased some items that you want to
recover the cost of from a customer. Do you know 53. You’re running the Profit and Loss/Income
how to assign a billable expense to a customer? Statement (New) report and want to compare a
 WITHIN A BILL, CLICK ASSIGN tracking option with its budget. How can you do
EXPENSES TO A CUSTOMER this?
 SELECT THE LINE ITEMS YOU WANT a. Add a column for the tracking option and a
TO ASSIGN column for its budget.
 ENTER THE CUSTOMER YOU WANT b. Add a column for the tracking option and a
TO ASSIGN THE EXPENSE TO column for the date.
 CLICK OK AND APPROVE THE BILL c. Add a column for the tracking option and a
column for the tracking category.
d. Add a column for the tracking option and a
50. You’re looking at the Purchases overview to see column for the overall budget.
the status of the bills for the organization. What
does the bar graph show you? 54. You archived a published report by accident,
a. Select the correct answer and click Submit. how can you fix this?
b. Draft bills, approved bills, paid bills a. Move the report to the Published tab from
c. Awaiting payment bills, paid bills, scheduled the Custom tab.
to be paid bills. b. Move the report to the Published tab from
d. Draft bills, awaiting payment bills and the Drafts tab.
overdue bills.
 c. Move the report to the Published tab from 58. It’s important to understand what each user role
the Summary tab. lets you see and do in Xero Projects. That way you
d. Move the report to the Published tab from can be certain that the right people have the right
the Archived tab. level of access. Can you match each user role to
their corresponding permissions?
55. You want to add budgeted figures for a tracking
category. The tracking category has three options, Adjust staff cost rates and time for others.
each one represents a store location and has a ADMIN USER
different budget. How can you do this in Xero? View all data in a project report, except project cost.
a. Add a new, separate budget for each store STANDARD USER
location. View projects and add time only for themselves.
b. Add a new overall budget for the tracking LIMITED USER
category.
c. Add the tracking options to the existing 59. There are clear benefits when using staff cost
overall budget. rates in Xero Projects. Now that these are set up,
d. Export the overall budget to add the tracking what will you be able to do in Xero?
options. a. See cost in reports to calculate profitability.
b. Create Projects invoices using staff cost
56. You want to view a breakdown of the rates.
calculation for a gross profit % graph in the c. Manage staff capacity in the organization.
business performance dashboard for the past 12 d. Monitor and manage staff efficiencies.
months. How can you view this information?
a. Click the graph title and hover over the 60. You’ve negotiated a price with your customer,
equation for a breakdown. and you want to create invoices based on this
b. Click the graph title and then click the amount. What information must you enter when you
figures below the graph. create the project, so you can do this?
c. Click the graph title and change the date
range to get a breakdown. a. Project expenses
d. Click the star next to the graph for a detailed b. Project tasks
breakdown. c. Project deadline
d. Project estimate
57. Your business has a standard Xero subscription
and you’re interested in using Xero Projects. What
access do you need to add Projects to a
subscription?
61. You’ve created a set of inventory items to use as
a. You must have the adviser role and access to tasks in your projects. But when you create a
the billing account. project, the inventory items are not showing in the
b. You must have the adviser user role with task dropdown. Why is that?
access to Projects. a. You forgot to add an account code to the
c. You must be the subscriber and have item.
Projects admin permissions. b. You forgot to select “I sell this item”.
d. You must be the subscriber or have access to c. You only have Standard user permissions.
the billing account. d. You forgot to enable tracking for the item.
62. A team member has asked you to enter their c. You assigned the line item to the customer
time spent on projects for the week. You open a and not the project.
project and start adding time to a task. When you d. You entered a line item manually instead of
get to the staff list, your team member’s name is not products and services.
showing in the dropdown. Why is that?
a. They’ve already entered time for the day. 66. You’re in the planning stages of a new job and
b. They’re a Projects user with limited access. set up a draft project. Next you send a quote to the
c. You’re a Projects user with limited access. customer based on estimated expenses. What’s the
d. They don’t have a Xero Projects user role. best way to track your expenses in this project?
a. Track a quote to estimated expenses to
monitor projects costs.
63. You’re entering your time for the week and
b. Track time entries against estimated
realize that a lot of your entries are similar to the
expenses to monitor project cost.
time you posted last week. You decide to copy last
c. Track actual expenses against estimates to
week’s entries. What’s the correct process to copy
monitor them.
time on your iOS mobile device?
d. Track a project amount against an estimated
a. Open the project and tap Copy time entry.
expense.
b. Open the project, go to Time, open a time
entry and tap Copy time entry.
67.
c. Open the project, tap the + icon and select
Add time, enter the details then tap Save.
d. Go to Time entries, tap the + icon and enter
the details, then tap Save & add another.

64. You own a web design business and there are

some expenses you’d like to pass on to your
customers. For example, you buy stock images on
their behalf. Which option should you select when
you create a product and services item for stock
images?
a. I sell this item.
b. I track this item.
c. I purchase this item.
d. I sell and purchase this item.

65. You’ve received a bill from a supplier and

follow the steps to assign it to a project. Then you
navigate to the project, to mark up the unit price.
You can see all the expenses on the project, except
the one you just attached. What could be the
reason?
a. You have to wait until the bill has been
approved and paid.
b. The expense has already been invoiced by
someone else.