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
stays within the monthly budget. How do you add an
existing account to the Account watchlist on the
dashboard?
a. Edit the account in the Business performance
dashboard.
b. Add a new entertainment account in the chart of
accounts.
c. Go to the chart of accounts to edit the account
details.
d. Edit the dashboard panels to add the new
account.
2. Turn on two-step authentication to secure your
account. USER MENU
Set up and add inventory items.
PRODUCTS AND SERVICES
Manage details for customers and suppliers.
CONTRACTS MENU
Access reports to see the store’s financials.
ACCOUNTING MENU
3. A while ago you switched off notifications. You want
to turn them back on to get status updates for the
organization’s bank feeds. How do you do this?
 CLICK THE BELL ICON
 CLICK SETTING
 SELECT SHOW NOTIFICATION POPUPS
 CLICK SAVE
4. Your online store has customers and suppliers in
several countries. Your base currency is USD. You also
need to set up AUD, EUR, GBP and NZD. What do you
do next?
 FROM ORGANISATION SETTINGS,
SELECT CURRENCIES
 CLICK ADD CURRENCY
 SELECT AUD AS THE CURRENCY
 REPEAT FOR THE OTHER CURRENCIES
5. Upload files into Xero.
BROWSE FOR, AND ATTACH FILES DIRECTLY
Drag files into transaction.
PULL FILES ACROSS FROM ANOTHER WINDOW
Attach and send file attachments.
ADDRESS
Upload files from a mobile device.
USE THE XERO BUSINESS APP
6. You uploaded a photo of a custom table you made
for a customer, into Xero. Now you want to create
an invoice and attach the file to it.
 GO TO THE FILE LIBRARY INBOX
 SELECT THE PHOTO OF THE TABLE
 CLICK ADD NEW
 SELECT SALES INVOICE
7. You haven’t submitted any activity statements for
the last financial year, yet you 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 want to
approve the last-minute invoices.
 GO TO FINANCIAL SETTING
 REMOVE THE LOCK DATE AND SAVE
 APPROVE THE INVOICES
 REINSTATE THE LOCK DATE
8. Your organization wants to add a custom GST
rate as the default for certain accounts in the chart
of accounts.
 CLICK ACCOUNTING AND ADVANCED
 SELECT TAX RATES
 CLICK NEW TAX RATES
 ADD A DISPLAY NAME, TAX TYPE
AND COMPONENTS
 CLICK SAVE
9. You want to see how different parts of the
business are performing. You have five regions with
three divisions in each. How would you set this up
with Xero’s tracking feature?
a. Add 5 categories for the regions with the 3
divisions as options under these.
b. Add 2 options, 1 for region and 1 for
division, with the categories under these.
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
divisional options under it.

10. You noticed that an expense account you added
a while ago now has a lock icon next to it. What's
the reason for this?
a. There’s an error in the account.
b. The account is used in a bank rule.
c. The account has been archived.
d. Xero changed it to a system account.
11. You’re editing the chart of accounts for an
organization in Xero. Which account field must be
unique?
a. Account type
b. Description
c. Tax rate
d. Account code
12. You’re entering information into the chart of
accounts import template and considering what
information needs adding. Can you identify some
mandatory and non-mandatory fields?
Mandatory field. TYPE CODE
Non-mandatory field. BALANCE DESCRIPTION
13. 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?
a. Bank
b. PayPal
c. Current Asset
d. Asset
14. You have an invoice with multiple line items.
How do you import the invoice?
a. Add a separate manual invoice for each line.
b. Add a manual invoice with multiple lines.
c. Add multiple lines with different invoice
numbers.
d. Add multiple lines with the same invoice
number.
15. You completed the import template with unpaid
invoices and want to import it into Xero. What do
you do next?
 CLICK IMPORT ON THE INVOICES
SCREEN
 BROWSE FOR THE CVS FILE AND
CLICK IMPORT
 REVIEW THE INFORMATION AND
FINISH THE IMPORT
 APPROVE THE INVOICES ON THE
DRAFT TAB
16. It’s time to add a conversion date for the
organization, to move from your previous
accounting software to Xero. Which of the
following is a conversion date we would
recommend?
a. The middle of any month
b. The start of the financial year
c. The end of the calendar year
d. The start of the calendar year
17. There are a number of uncleared cheques at the
time of conversion, and you want to enter
conversion balances for the accounts.
 DETERMINE THE TOTAL OF
UNCLEARED ITEMS
 ADD AN UNCLEARED ITEMS
ACCOUNT
 ENTER THE UNCLEARED ITEMS
CONVERSION BALANCE
 SAVE THE CONVERSION BALANCES
18. You want to enter prior years closing balances
without having to enter the full historical data, what
feature could you use in Xero to achieve this?
a. Comparative balances
b. Pre-coded bank statements
c. Conversion balances
d. Chart of accounts
19. When comparing the account transactions report
with your conversion balances, you notice the
conversion journals don’t match the conversion
balance values. What could be the reason for this?
a. Xero creates an adjustment journal to
account for any pre-conversion transactions.
b. You should run the account transactions
report a day after your conversion date.
c. Xero creates an adjustment journal to
account for any post-conversion
transactions.
d. You saved your conversion balances with
zero values.
20. You’ve noticed that the starting balance of an
account doesn’t match the balance in your previous
accounting system. What's the best way to check
that you successfully saved your conversion
balances in Xero?
a. Run the Account Transactions report from
the start of the financial year, then compare
it with your conversion balances.
a. Run the Trial Balance report for the day
before your conversion date, then compare it
with your conversion balances.
b. Run the Trial Balance report for the day
before your conversion date, then compare it
with the Profit and Loss/Income Statement
c. Run the Account Transactions report for the
day before your conversion date, then
compare it with the Balance Sheet
21. Xero lets you automatically import bank
statements to quickly reconcile transactions. What’s
the first thing you need to do in Xero to begin doing
this?
a. Prepare a CSV file.
b. Set up a bank feed.
c. Add an account code.
d. Add a bank account.
22. Xero helps you check the new information you
import into bank accounts. What information can
you search through if you need to fix a problem.
a. Reconciled statements and statement lines
only
b. Only statements imported with a daily bank
feed.
c. Unreconciled statements and statement lines
only
d. All statements, statement lines and
transactions
23. You paid money from a business bank account
to a credit card and it's time to reconcile the
transfer.
 CLICK TRANSFER FOR THE BANK
STATEMENT LINE IN THE BUSINESS
BANK ACCOUNT
 SELECT THE CREDIT CARD ACCOUNT
ON THE TRANSFER TAB
 CLICK OK TO RECONCILE THE
TRANSFER IN THE BUSINESS BANK
ACOUNT
 RECONCILE THE SUGGESTED MATCH
IN THE CREDIT CARD ACCOUNT
24. When reconciling, you noticed the bank rule
didn’t match the relevant statement lines. You set
the bank rule to match all of several conditions, but
only one of these matches the information displayed
on the statement line. How can you resolve this?
a. Edit the rule so that it works if any of the
conditions are met.
b. Edit the rule and set the reference to be
taken from the description.
c. Edit the rule and allocate the remainder to
go to a revenue type account.
d. Edit the rule and set the contact to be taken
from the payee details.
25. You have many outstanding transactions to
reconcile. A bank rule picked up 25 of them that are
from the same payee. What’s the most efficient way
to reconcile these?
 a. On the Reconcile tab, click OK to reconcile
each statement line.
b. On the Cash coding tab, select the statement
lines and click Apply rule.
c. On the Cash coding tab, click Save &
Reconcile All
d. On the Reconcile tab, click Save &
Reconcile All
26. Your online balance for the business bank
account doesn’t match the statement balance in
Xero. How do you fix the difference?
 CHECK THECONVERSION BALANCE
IS RIGHT FOR THE BANK ACCOUNT
 OPEN THE BANK RECONCILIATION
SUMMARY REPORT
 CHANGE THE REPORT DATES TO FIND
WHEN THE BALANCES DON’T MATCH
 CHECK THE BANK STATEMENTS AND
LINES TO FIND THE DIFFERENCE IN
XERO
 IMPORT ANY MISSING STATEMENT
LINES AND DELETE ANYONES THAT
ARE WRONG
27. After reconciling your bank statements in Xero,
you notice the statement balance in Xero doesn’t
match your online banking balance. How do you
find out what’s causing this?
 COMPARE THE VERSION BALANCE
VALUE FOR YOUR BANK ACCOUNT,
WITH YOUR ONLINE BALANCE
BANKING
 UPDATE THE BANK BALANCE IN
XERO, SO IT MATCHES YOUR ONLINE
BANKING BALANCE
 RUN THE BANK RECONCILIATION
REPORT AND FIND THE DATE THE
STATEMENT BALANCE GOES OUT
 COMPARE BANK STATEMENTS IN
XERO TO YOUR ONLINE BANKING, TO
FIND WHAT’S DIFFERENT
28. After creating a bank rule for a new payee, you
notice that the rule doesn’t show enough
transactions. How can you fix this?
a. Change the condition from All to Any
b. Move the rule to the bottom of the list.
c. Change the condition from Any to All
d. Remove any hyphens in the bank rule.
29. You’ve exported contacts from another software
package and want to set them up in Xero. Can you
put the steps in the right order?
a. DOWNLOAD THE TEMPLATE FILE
b. ENTER THE CONTRACT
INFORMATION
c. SAVE AS CVS OR TXT FILE
d. IMPORT THE TEMPLATE INTO XERO
30. You want to see what a business has paid you
during the last 12 months. Where can you find this
in the contact details?
a. Money in and out graph
b. Contact activity.
c. Invoices awaiting payment.
31. Your business offers services that you want to
add as inventory items. You decided that you don't
want Xero to calculate the quantity or the value for
the items. What's the best approach to take?
a. Add them as untracked inventory items.
b. Use a combination of tracked and untracked
inventory.
c. Use tracking categories to manage services.
d. Add them as tracked inventory items.
32. You're adding your first tracked inventory item
in Xero and you can’t select an inventory asset
account. How can you resolve this issue?
a. Create a new account with Inventory as the
account type and use this as the inventory
asset account.
 b. Create a new account with Current Asset as
the account type and use this as the
inventory asset account.
c. Change the account type of the existing
account to inventory and use it as the
inventory asset account.
d. Create a new account with non-current
assets as the account type and call it
inventory.
33. You want to import a combination of tracked
and untracked inventory items using the items
template. How can you do this in Xero?
a. Add inventory assets and cost of goods sold
accounts for tracked items.
b. Import items in two separate batches and
import tracked items first.
c. Add inventory assets and cost of goods sold
accounts for all items.
d. Import items in two separate batches and
import untracked items first.
34. You 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 template?
a. The current asset account.
b. The cost of goods sold account.
c. The purchases account.
d. The inventory asset account
35. 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. You've used the account in conversion
balances.
c. You've used the account on a repeating
template.
d. The inventory item has an opening balance
value.
36. Xero gives you an error message when you try
to delete an untracked inventory item. How can you
resolve this issue?
a. Remove the inventory asset account then
delete the inventory item.
b. Remove the inventory item from repeating
templates.
c. Create a new item, as you can't delete items
with an opening balance.
d. Archive the item as you can’t delete
untracked inventory items.
37. You’re trying to import tracked inventory items
into Xero, but you get an invalid inventory asset
account error message. How can you resolve this?
 GO TO THE CHART OF ACCOUNTS
SCREEN
 MAKE A NOTE OF THE INVENTORY
ASSET ACCOUNT CODE
 EDIT YOUR IMPORT FILE TO REPLACE
THE EXISTING INVETORY ASSET
ACCOUNT WITH THE CORRECT ONE
 REIMPORT THE FILE
38. You notice that the opening balances for you
tracked inventory items were higher than they
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
entered based on incorrect opening balances.
b. Enter positive signs next to the values in the
quantity on hand column.
c. Enter positive signs next to the balances in
the total value column.
d. Increase the quantity on hand value for the
item in the import template.

39. You want to customize how invoices look in
Xero. What steps do you follow to create a standard
branding theme?
 FROM THE ORGANIZATION MENU,
SELECT SETTINGS AND CLICK
INVOICE SETTINGS.
 CLICK NEW BRANDING THEME
 NAME THE TEMPLATES, AND ADJUST
THE OPTION AS YOU NEED
 ADD PAYMENT SERVICES AND TERMS
 CLICK SAVE
 ADD LOGO TO THE TEMPLATE
40. You’re looking for an invoice that you sent in
the last 3 months but can’t remember the contact’s
name or invoice amount. What’s the best way to use
the sales overview to find it?
a. Check the list of customers who owe the
most money.
b. Open the Awaiting Payment tab and go
through the list.
c. Click through each section in the Money
coming in graph.
d. Use Search to check the timeframe by
transaction or due date.
41. You want to invoice a customer for a product
that’s saved in Xero and include warranty
information in an attachment. What steps do you
follow to send the invoice?
 FROM THE INVOICES SCREEN, CLICK
NEW INVOICE
 ADD A CONTACT NAME AND CHECK
THE DUE DATE
 CHOOSE THE PRODUCT FROM THE
LIST
 ATTACH THE WARRANTY
INFORMATION AND CLICK APPROVE
 CLICK EMAIL, THEN CLICK SEND
42. You’re creating a repeating invoice where the
invoice amount changes each time. What status
should you get Xero to save it as?
a. Awaiting payment
b. Approved
c. Draft
d. Approve for sending.
43. You email an online quote to a customer, and
you want to check if they’ve viewed it. Which tab
can you do this from?
a. Invoiced
b. Sent
c. All
d. Accepted
44. When you create a quote, Xero needs certain
information to save or send it. Which three fields do
you 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
d. Customer, date and description
45. A supplier contacts you to say they haven’t
received a purchase order for a part ordered over the
phone. How do you check that this purchase order
was sent?
a. Find the purchase order and check the date
raised
b. Find the purchase order and check the
expected arrival
c. Find the purchase order and check the
delivery date
d. Find the purchase order and check the Sent
column
46. You approved your first purchase order in Xero,
and now it's time to send it to your supplier. What
process do you follow to send the purchase order?
 GO TO THE PURCHASE ORDERS
DASHBOARD
 SELECT THE APPROVED TAB
 SELECT YOUR PURCHASE ORDER
 CLICK SEND
  CHECK THE MAIL TEXT AND CLICK
SEND
47. Your supplier has emailed you some bills that
you’d like to enter in Xero. What’s the most
efficient way to do this?
a. Print the bills and then enter them manually
in Xero.
b. Print the bills and then create a repeating
bills template in Xero.
c. Email the bills to the email address you use
to login to Xero.
d. Email the bills directly to the unique Xero
bills email address.
48. Save time by setting default information for a
supplier under Contacts. What default information
can you set for a supplier?
a. Tax rate, quantity and tax setting.
b. Tax setting, account and tax rate.
c. Tracking, unit price and tax rate.
d. Account, item and tax setting.
49. You’ve purchased some items that you want to
recover the cost of from a customer. Do you know
how to assign a billable expense to a customer?
 WITHIN A BILL, CLICK ASSIGN
EXPENSES TO A CUSTOMER
 SELECT THE LINE ITEMS YOU WANT
TO ASSIGN
 ENTER THE CUSTOMER YOU WANT
TO ASSIGN THE EXPENSE TO
 CLICK OK AND APPROVE THE BILL
50. You’re looking at the Purchases overview to see
the status of the bills for the organization. What
does the bar graph show you?
a. Select the correct answer and click Submit.
b. Draft bills, approved bills, paid bills
c. Awaiting payment bills, paid bills, scheduled
to be paid bills.
d. Draft bills, awaiting payment bills and
overdue bills.
e. Approved bills, awaiting approval bills,
draft bills.
51. You’ve got multiple bills to pay at once and
decide to create a batch payment to save time. What
process do you follow to pay the bills in bulk?
 FROM THE AWAITING PAYMENT TAB,
CLICK MAKE PAYMENT
 SELECT THE BANK ACCOUNT, A
PAYMENT METHOD AND DATE
 CLICK CREATE PAYMENT
 CLICK FINISH AND VIEW BATCH
 EPORT THE BATCH FILE AND UPLOAD
TO YOUR BANK
52. You notice that a current asset account with a
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?
a. Add a budget column.
b. Add a switch rule.
c. Add a formula.
d. Add a tracking category column.
53. You’re running the Profit and Loss/Income
Statement (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 the date.
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
column for the overall budget.
54. You archived a published report by accident,
how can you fix this?
a. Move the report to the Published tab from
the Custom tab.
b. Move the report to the Published tab from
the Drafts tab.
 c. Move the report to the Published tab from
the Summary tab.
d. Move the report to the Published tab from
the Archived tab.
55. 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. Add a new, separate budget for each store
location.
b. Add a new overall budget for the tracking
category.
c. Add the tracking options to the existing
overall budget.
d. Export the overall budget to add the tracking
options.
56. 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 this information?
a. Click the graph title and hover over the
equation for a breakdown.
b. Click the graph title and then click the
figures below the graph.
c. Click the graph title and change the date
range to get a breakdown.
d. Click the star next to the graph for a detailed
breakdown.
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?
a. You must have the adviser role and access to
the billing account.
b. You must have the adviser user role with
access to Projects.
c. You must be the subscriber and have
Projects admin permissions.
d. You must be the subscriber or have access to
the billing account.
58. It’s important to understand what each user role
lets you see and do in Xero Projects. That way you
can be certain that the right people have the right
level of access. Can you match each user role to
their corresponding permissions?
Adjust staff cost rates and time for others.
ADMIN USER
View all data in a project report, except project cost.
STANDARD USER
View projects and add time only for themselves.
LIMITED USER
59. There are clear benefits when using staff cost
rates in Xero Projects. Now that these are set up,
what will you be able to do in Xero?
a. See cost in reports to calculate profitability.
b. Create Projects invoices using staff cost
rates.
c. Manage staff capacity in the organization.
d. Monitor and manage staff efficiencies.
60. You’ve negotiated a price with your customer,
and you want to create invoices based on this
amount. What information must you enter when you
create the project, so you can do this?
a. Project expenses
b. Project tasks
c. Project deadline
d. Project estimate
61. You’ve created a set of inventory items to use as
tasks in your projects. But when you create a
project, the inventory items are not showing in the
task dropdown. Why is that?
a. You forgot to add an account code to the
item.
b. You forgot to select “I sell this item”.
c. You only have Standard user permissions.
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.