Shariz needs to record receipt of a vendor invoice. Which QuickBooks function would be most useful? New expense Process payment New invoice Add receipt Add bill
The correct answer and explanation is:
The correct answer is: “Add bill”
Explanation:
When Shariz needs to record the receipt of a vendor invoice in QuickBooks, the most appropriate function to use is “Add bill.” This feature allows businesses to track and manage accounts payable efficiently by entering bills received from vendors.
Why “Add Bill” is the Best Choice
- Tracks Accounts Payable
- A bill represents money owed to a vendor for goods or services received. By adding the bill, QuickBooks ensures it appears in the accounts payable ledger, helping with financial tracking.
- Allows Payment at a Later Date
- Unlike an “Expense” transaction, which records an immediate payment, a bill allows the business to defer payment to a later date, maintaining an accurate record of outstanding obligations.
- Improves Cash Flow Management
- Businesses can better plan their cash flow by seeing upcoming due payments and scheduling payments accordingly.
- Helps with Vendor Management
- Recording a bill keeps vendor balances updated, making it easier to track what’s owed and when payments are due.
Why Not the Other Options?
- New Expense: Used when a payment is made immediately, not when recording an invoice for future payment.
- Process Payment: Related to receiving money from customers, not recording a vendor invoice.
- New Invoice: Used for sales transactions, not vendor expenses.
- Add Receipt: Useful for recording expenses with receipts, not vendor invoices.
Thus, “Add Bill” is the most appropriate QuickBooks function for recording vendor invoices.
Now, I’ll generate an image representing the QuickBooks “Add Bill” feature.
Here’s an image representing the QuickBooks “Add Bill” feature. It illustrates a user entering a vendor bill, including fields like “Vendor Name,” “Bill Date,” “Due Date,” “Amount,” and “Category.” Let me know if you need any modifications!
