TEST BANK for Computer Accounting with QuickBooks 2014 16th Edition. Donna Kay by digitaldownload87

Computer Accounting with QuickBooks 2014 16e Donna Kay (Test Bank All Chapters, 100% Original Verified, A+ Grade) Answers At The End Of Each Chapter Chapter 01 1.

Which screen provides a summary of important company information? A. Company Information B. Company Snapshot C. Home Page D. Company Center

In QuickBooks, how do you can enter transaction information? A. Onscreen forms and scanned images of transaction forms B. Onscreen forms and QuickBooks reports C. Onscreen Journal and scanned images of transaction forms D. Onscreen Journal and Onscreen Forms

All of the following are one of the four main categories of transactions in QuickBooks except? A. Chart of Accounts B. Customers C. Vendors D. Employees

Which of the following tasks is completed from the Banking section of the Home page? A. Enter credit card charges B. Pay employees C. Record bills paid D. Record payments received from customers.

Which of the following tasks can be completed in the Vendor section of the Home page? A. Create Invoices B. Create Estimates C. Receive Inventory D. Receive Payments

The Chart of Accounts can be accessed from which section of the Home page? A. Customer B. Banking C. Vendor D. Company

To change a company name in QuickBooks, select the following from the Menu Bar: A. Company > Preferences B. Home > Edit > Preferences C. Company > My Company > Edit D. None of these

Which of the following file types identifies a QuickBooks Portable file? A. .QBM B. .QBB C. .QBX D. .QBW

Which one of the following activities is associated with the Customer section of the Home page? A. Pay sales tax B. Enter bills C. Record refunds and credits D. Record inventory received

10. The Home page in QuickBooks consists of all of the following sections except: A. Employee B. Lists C. Customer D. Vendor 11. The objective of an accounting information system, like QuickBooks, is to: A. Save company resources, like time and paper B. Use the computer for keeping accounting records C. Collect, summarize, and analyze data D. None of these 12. Accounting information is used to do all of the following except: A. Prepare financial statements for investors B. Prepare tax returns for the IRS C. Prepare reports for management D. Prepare meeting minutes for the board of directors 13. Your QuickBooks data can be stored in all of the following ways except: A. Online B. Backup C. Portable File D. All of these store QuickBooks data 14. A business transaction is an exchange between: A. Vendor B. Employee C. Customer D. All of these 15. Double-entry account records what is exchanged in a transaction (debits and credits). Which of the following is recorded when a company purchases (receives) a computer and pays (gives) cash? A. The computer is recorded as a credit and the cash is recorded as a credit B. The computer is recorded as a debit and the cash is recorded as a debit C. The computer is recorded as a credit and the cash is recorded as a debit D. The computer is recorded as a debit and the cash is recorded as a credit 16. The onscreen form for ordering items from a vendor looks like the paper version of a: A. Purchase Order B. Invoice C. Check D. None of these 17. Which type of QuickBooks data file allows you to enter data and transactions? A. .QBM B. .QBB C. .QBX D. .QBW 18. The QuickBooks file extension .QBM indicates the file is a: A. QuickBooks working file B. QuickBooks movable file C. QuickBooks Accountant's transfer file D. QuickBooks Accountant's working file

19. The QuickBooks file extension .QBA indicates the file is a: A. QuickBooks working file B. QuickBooks movable file C. QuickBooks Accountant's transfer file D. QuickBooks Accountant's working file 20. Which QuickBooks window allows you to add your name to the checking account? A. Chart of Accounts B. Company Information C. Company Center D. Check Register 21. The Banking section of the Home Page includes which flow chart? A. Payroll flowchart B. Bank Reconciliation flowchart C. Bill Pay flow chart D. None of these 22. Which financial statement below summarizes the financial position of a company? A. Statement of Cash Flows B. Profit & Loss Statement C. Balance Sheet D. Income Statement 23. Which financial statement below summarizes a company's earnings? A. Statement of Cash Flows B. Profit & Loss Statement C. Balance Sheet D. Income Statement 24. Which financial statement below summarizes a company's cash inflow and outflow? A. Statement of Cash Flows B. Profit & Loss Statement C. Balance Sheet D. Income Statement 25. Management reports help identify: A. Overdue customer accounts B. Least profitable product C. Most profitable product D. All of these. 26. Which icon is used to add a document on your computer into QuickBooks? A. Docs icon B. Customer icon C. Vendor icon D. All of these 27. List the 3 (three) different type of QuickBooks files. What is the purpose of each file type?

28. Name 2 (two) of the 5 centers on the QuickBooks home screen and briefly describe what kind of activity flows through those centers:

Chapter 01 Key 1.

Which screen provides a summary of important company information? A. Company Information B. Company Snapshot C. Home Page D. Company Center Accessibility: Keyboard Navigation Kay - Chapter 01 #1

All of the following are one of the four main categories of transactions in QuickBooks except? A. Chart of Accounts B. Customers C. Vendors D. Employees Accessibility: Keyboard Navigation Kay - Chapter 01 #3

Which of the following tasks is completed from the Banking section of the Home page? A. Enter credit card charges B. Pay employees C. Record bills paid D. Record payments received from customers. Accessibility: Keyboard Navigation Kay - Chapter 01 #4

Which of the following tasks can be completed in the Vendor section of the Home page? A. Create Invoices B. Create Estimates C. Receive Inventory D. Receive Payments Accessibility: Keyboard Navigation Kay - Chapter 01 #5

The Chart of Accounts can be accessed from which section of the Home page? A. Customer B. Banking C. Vendor D. Company Accessibility: Keyboard Navigation Kay - Chapter 01 #6

To change a company name in QuickBooks, select the following from the Menu Bar: A. Company > Preferences B. Home > Edit > Preferences C. Company > My Company > Edit D. None of these Accessibility: Keyboard Navigation Kay - Chapter 01 #7

Which of the following file types identifies a QuickBooks Portable file? A. .QBM B. .QBB C. .QBX D. .QBW Accessibility: Keyboard Navigation Kay - Chapter 01 #8

Which one of the following activities is associated with the Customer section of the Home page? A. Pay sales tax B. Enter bills C. Record refunds and credits D. Record inventory received Accessibility: Keyboard Navigation Kay - Chapter 01 #9

10.

The Home page in QuickBooks consists of all of the following sections except: A. Employee B. Lists C. Customer D. Vendor Accessibility: Keyboard Navigation Kay - Chapter 01 #10

11.

The objective of an accounting information system, like QuickBooks, is to: A. Save company resources, like time and paper B. Use the computer for keeping accounting records C. Collect, summarize, and analyze data D. None of these Accessibility: Keyboard Navigation Kay - Chapter 01 #11

12.

Accounting information is used to do all of the following except: A. Prepare financial statements for investors B. Prepare tax returns for the IRS C. Prepare reports for management D. Prepare meeting minutes for the board of directors Accessibility: Keyboard Navigation Kay - Chapter 01 #12

13.

Your QuickBooks data can be stored in all of the following ways except: A. Online B. Backup C. Portable File D. All of these store QuickBooks data Accessibility: Keyboard Navigation Kay - Chapter 01 #13

14.

A business transaction is an exchange between: A. Vendor B. Employee C. Customer D. All of these Accessibility: Keyboard Navigation Kay - Chapter 01 #14

15.

Double-entry account records what is exchanged in a transaction (debits and credits). Which of the following is recorded when a company purchases (receives) a computer and pays (gives) cash? A. The computer is recorded as a credit and the cash is recorded as a credit B. The computer is recorded as a debit and the cash is recorded as a debit C. The computer is recorded as a credit and the cash is recorded as a debit D. The computer is recorded as a debit and the cash is recorded as a credit Accessibility: Keyboard Navigation Kay - Chapter 01 #15

16.

The onscreen form for ordering items from a vendor looks like the paper version of a: A. Purchase Order B. Invoice C. Check D. None of these Accessibility: Keyboard Navigation Kay - Chapter 01 #16

17.

Which type of QuickBooks data file allows you to enter data and transactions? A. .QBM B. .QBB C. .QBX D. .QBW Accessibility: Keyboard Navigation Kay - Chapter 01 #17

18.

The QuickBooks file extension .QBM indicates the file is a: A. QuickBooks working file B. QuickBooks movable file C. QuickBooks Accountant's transfer file D. QuickBooks Accountant's working file Accessibility: Keyboard Navigation Kay - Chapter 01 #18

19.

The QuickBooks file extension .QBA indicates the file is a: A. QuickBooks working file B. QuickBooks movable file C. QuickBooks Accountant's transfer file D. QuickBooks Accountant's working file Accessibility: Keyboard Navigation Kay - Chapter 01 #19

20.

Which QuickBooks window allows you to add your name to the checking account? A. Chart of Accounts B. Company Information C. Company Center D. Check Register Accessibility: Keyboard Navigation Kay - Chapter 01 #20

21.

The Banking section of the Home Page includes which flow chart? A. Payroll flowchart B. Bank Reconciliation flowchart C. Bill Pay flow chart D. None of these Accessibility: Keyboard Navigation Kay - Chapter 01 #21

22.

Which financial statement below summarizes the financial position of a company? A. Statement of Cash Flows B. Profit & Loss Statement C. Balance Sheet D. Income Statement Accessibility: Keyboard Navigation Kay - Chapter 01 #22

23.

Which financial statement below summarizes a company's earnings? A. Statement of Cash Flows B. Profit & Loss Statement C. Balance Sheet D. Income Statement Accessibility: Keyboard Navigation Kay - Chapter 01 #23

24.

Which financial statement below summarizes a company's cash inflow and outflow? A. Statement of Cash Flows B. Profit & Loss Statement C. Balance Sheet D. Income Statement Accessibility: Keyboard Navigation Kay - Chapter 01 #24

25.

Management reports help identify: A. Overdue customer accounts B. Least profitable product C. Most profitable product D. All of these. Accessibility: Keyboard Navigation Kay - Chapter 01 #25

26.

Which icon is used to add a document on your computer into QuickBooks? A. Docs icon B. Customer icon C. Vendor icon D. All of these Accessibility: Keyboard Navigation Kay - Chapter 01 #26

27.

List the 3 (three) different type of QuickBooks files. What is the purpose of each file type? The three QuickBooks file types are: • .QBW file - This is the regular company file that has a .QBW extension. It is a QuickBooks working file that is usually saved to the hard drive (C:) of your computer. • .QBB file - This is a QuickBooks backup file. You can save a backup file to the hard drive or to other media such as USB drive or memory stick, a CD drive or a network drive. Backup files are compressed files and used only if the working file (.QBW) file fails. • .QBM file - This is a QuickBooks movable file, also called a portable file. These files are compressed and are used to email or move a company file to another computer. • .QBX and .QBA - These are files used by accountants. Kay - Chapter 01 #27

28.

Name 2 (two) of the 5 centers on the QuickBooks home screen and briefly describe what kind of activity flows through those centers: The five centers are: • Vendors - pay bills, enter bills, create purchase orders, receive inventory, etc. • Customers - create estimates, create invoices, record refunds and credits, record payments, etc. • Employees - time entry, payroll, pay liabilities, etc. • Banking - record deposits, check register, write checks, print checks, etc. • Company - items and services, chart of accounts, etc. Kay - Chapter 01 #28

Chapter 01 Summary Category Accessibility: Keyboard Navigation Kay - Chapter 01

# of Questions 26 28

Chapter 02 Student: ___________________________________________________________________________

How do you access the screen to add a user and password? A. Company menu > Set Up Users and Passwords > Set Up Users B. Employees > Employee Center C. Edit menu > Preferences > Employees D. Company menu > Company Information

What does the Chart of Accounts list? A. Assets, liabilities and owner's equity accounts B. Income and expense accounts C. Owner's contributions D. All of these

Which account below is not an Expense account? A. Utilities B. Rent C. Accounts Payable D. Advertising

What are assets? A. Resources that a company owns with future benefit B. Net worth of a company C. Amounts paid to owners D. Amounts owed to others and are future obligations

The Income Statement: A. lists the accounts and account numbers B. lists a company's assets C. summarizes what a company owns and what it owes D. reports the results of a company's operations, listing income and expenses for a period of time

Which of the following is a temporary account? A. Sales B. Inventory C. Accounts Payable D. Accounts Receivable

An example of a non-posting account is ________. A. Employee Expense B. Inventory C. Purchase Orders Account D. Accounts Payable

To add a new account to the Chart of Accounts: A. Display the Chart of Accounts, select Account, New B. From the Company menu, select New Account C. From the Home page, select New Account D. From the Lists menu, select New Account

What is the purpose of a non-posting account? A. To calculate income. B. To track information necessary to the accounting information system. C. To calculate expenses. D. To identify owner's equity.

10. Which of the following is considered a permanent account? A. Income Statement accounts B. Balance Sheet accounts C. Both income statement accounts and balance sheet accounts D. None of these 11. How may you customize QuickBooks to fit your specific needs? A. Make changes to the Chart of Accounts. B. Purchase one of the various QuickBooks editions. C. Enable security access to QuickBooks files. D. All of these 12. Which of the following is not an income account? A. Revenue B. Interest Revenue C. Rent Expense D. Gain on sale 13. To Re-sort the Chart of Accounts, first display the Chart of Accounts window, then: A. Click on the Company heading bar B. Click Account > Re-sort List C. Click File > Sort D. Right click Sort by Name 14. Which QuickBooks version is designed for small businesses without industry specific needs? A. QuickBooks Pro B. QuickBooks Premier C. QuickBooks Accountant D. QuickBooks Enterprise Solutions 15. Which QuickBooks version is designed for small businesses that have industry specific needs? A. QuickBooks Pro B. QuickBooks Premier C. QuickBooks Accountant D. QuickBooks Enterprise Solutions 16. Which QuickBooks version is designed for mid-sized businesses? A. QuickBooks Pro B. QuickBooks Premier C. QuickBooks Accountant D. QuickBooks Enterprise Solutions 17. Balance Sheet accounts are also called: A. equity accounts B. temporary accounts C. permanent accounts D. None of these 18. Income Statement accounts are also called: A. equity accounts B. temporary accounts C. permanent accounts D. None of these 19. Non-posting accounts: A. Track information required for the accounting system B. Do not appear on the Balance Sheet C. Do not appear on the Income Statement D. All of these

20. A Mortgage Payable account: A. Has real estate as collateral B. Is identical to a Loan Payable account C. Is a type of Owner's Equity account D. None of these 21. How do you access the Statement of Cash Flows report? A. Report Center icon > Banking B. Report Center icon > Company & Financial C. Report Center icon > Accountant & Taxes D. Company menu > Company Information 22. What is an asset? A. Mortgage payable B. An amount a company owes C. A resource a company owns D. None of these 23. What is a liability? A. Inventory B. An amount a company owes C. A resource a company owns D. None of these 24. Which of the following increases owner's equity? A. Dividends B. Business losses C. Business expenses D. Business profits 25. The different types of business ownership are: A. Sole proprietorship B. Partnership C. Corporation D. All of these 26. The Favorites menu allows you to: A. Add websites that are useful to your business B. Customize up to 30 of your favorite QuickBooks menu items C. Add one favorite QuickBooks menu item D. None of these 27. What feature helps you to track tasks and due dates? A. Control B. Calendar C. Charting D. All of these 28. What does the QuickBooks Company Snapshot provide?

29. Briefly explain the purpose and benefits of using a password for QuickBooks access?

Chapter 02 Key 1.

What does the Chart of Accounts list? A. Assets, liabilities and owner's equity accounts B. Income and expense accounts C. Owner's contributions D. All of these Accessibility: Keyboard Navigation Kay - Chapter 02 #2

Which account below is not an Expense account? A. Utilities B. Rent C. Accounts Payable D. Advertising Accessibility: Keyboard Navigation Kay - Chapter 02 #3

What are assets? A. Resources that a company owns with future benefit B. Net worth of a company C. Amounts paid to owners D. Amounts owed to others and are future obligations Accessibility: Keyboard Navigation Kay - Chapter 02 #4

Which of the following is a temporary account? A. Sales B. Inventory C. Accounts Payable D. Accounts Receivable Accessibility: Keyboard Navigation Kay - Chapter 02 #6

An example of a non-posting account is ________. A. Employee Expense B. Inventory C. Purchase Orders Account D. Accounts Payable Accessibility: Keyboard Navigation Kay - Chapter 02 #7

What is the purpose of a non-posting account? A. To calculate income. B. To track information necessary to the accounting information system. C. To calculate expenses. D. To identify owner's equity. Accessibility: Keyboard Navigation Kay - Chapter 02 #9

10.

Which of the following is considered a permanent account? A. Income Statement accounts B. Balance Sheet accounts C. Both income statement accounts and balance sheet accounts D. None of these Accessibility: Keyboard Navigation Kay - Chapter 02 #10

11.

How may you customize QuickBooks to fit your specific needs? A. Make changes to the Chart of Accounts. B. Purchase one of the various QuickBooks editions. C. Enable security access to QuickBooks files. D. All of these Accessibility: Keyboard Navigation Kay - Chapter 02 #11

12.

Which of the following is not an income account? A. Revenue B. Interest Revenue C. Rent Expense D. Gain on sale Accessibility: Keyboard Navigation Kay - Chapter 02 #12

13.

To Re-sort the Chart of Accounts, first display the Chart of Accounts window, then: A. Click on the Company heading bar B. Click Account > Re-sort List C. Click File > Sort D. Right click Sort by Name Accessibility: Keyboard Navigation Kay - Chapter 02 #13

14.

Which QuickBooks version is designed for small businesses without industry specific needs? A. QuickBooks Pro B. QuickBooks Premier C. QuickBooks Accountant D. QuickBooks Enterprise Solutions Accessibility: Keyboard Navigation Kay - Chapter 02 #14

15.

Which QuickBooks version is designed for small businesses that have industry specific needs? A. QuickBooks Pro B. QuickBooks Premier C. QuickBooks Accountant D. QuickBooks Enterprise Solutions Accessibility: Keyboard Navigation Kay - Chapter 02 #15

16.

Which QuickBooks version is designed for mid-sized businesses? A. QuickBooks Pro B. QuickBooks Premier C. QuickBooks Accountant D. QuickBooks Enterprise Solutions Accessibility: Keyboard Navigation Kay - Chapter 02 #16

17.

Balance Sheet accounts are also called: A. equity accounts B. temporary accounts C. permanent accounts D. None of these Accessibility: Keyboard Navigation Kay - Chapter 02 #17

18.

Income Statement accounts are also called: A. equity accounts B. temporary accounts C. permanent accounts D. None of these Accessibility: Keyboard Navigation Kay - Chapter 02 #18

19.

Non-posting accounts: A. Track information required for the accounting system B. Do not appear on the Balance Sheet C. Do not appear on the Income Statement D. All of these Accessibility: Keyboard Navigation Kay - Chapter 02 #19

20.

A Mortgage Payable account: A. Has real estate as collateral B. Is identical to a Loan Payable account C. Is a type of Owner's Equity account D. None of these Accessibility: Keyboard Navigation Kay - Chapter 02 #20

21.

How do you access the Statement of Cash Flows report? A. Report Center icon > Banking B. Report Center icon > Company & Financial C. Report Center icon > Accountant & Taxes D. Company menu > Company Information Accessibility: Keyboard Navigation Kay - Chapter 02 #21

22.

What is an asset? A. Mortgage payable B. An amount a company owes C. A resource a company owns D. None of these Accessibility: Keyboard Navigation Kay - Chapter 02 #22

23.

What is a liability? A. Inventory B. An amount a company owes C. A resource a company owns D. None of these Accessibility: Keyboard Navigation Kay - Chapter 02 #23

24.

Which of the following increases owner's equity? A. Dividends B. Business losses C. Business expenses D. Business profits Accessibility: Keyboard Navigation Kay - Chapter 02 #24

25.

The different types of business ownership are: A. Sole proprietorship B. Partnership C. Corporation D. All of these Accessibility: Keyboard Navigation Kay - Chapter 02 #25

26.

The Favorites menu allows you to: A. Add websites that are useful to your business B. Customize up to 30 of your favorite QuickBooks menu items C. Add one favorite QuickBooks menu item D. None of these Accessibility: Keyboard Navigation Kay - Chapter 02 #26

27.

What feature helps you to track tasks and due dates? A. Control B. Calendar C. Charting D. All of these Accessibility: Keyboard Navigation Kay - Chapter 02 #27

28.

What does the QuickBooks Company Snapshot provide? The QuickBooks Company Snapshot provides a digital dashboard for your company. The Company Snapshot gives you an overview of key information for your company and allows you perform key tasks. Kay - Chapter 02 #28

29.

Briefly explain the purpose and benefits of using a password for QuickBooks access? Passwords are important to help restrict access to accounting information stored in QuickBooks. Passwords can help keep people out of the system completely or only out of certain areas. Companies can protect themselves from unnecessary risk with passwords by protecting sensitive information and using them as an internal control. Kay - Chapter 02 #29

Chapter 02 Summary Category Accessibility: Keyboard Navigation Kay - Chapter 02

# of Questions 27 29

Chapter 03 Student: ___________________________________________________________________________

The Check Register: A. Lists all accounts and their account numbers B. Records payments and deposits to the Checking account C. Is located directly on the Company section of the Home page D. Keeps track of company deposits only

All of the following tasks can be completed in the Banking section of the Home page except: A. Pay Employees B. Reconcile Accounts C. Print Checks D. Record Deposits

The two-step approach for writing checks must be used to pay which of the following? A. Rent Payments B. Legal Services C. Sales Taxes D. None of these

Examples of undeposited funds are: A. Interest earned on the Checking account B. Customer payments recorded as received but not yet deposited C. Bank service charges D. Owner's investment

Which of the following steps will record a deposit? A. Use the Make Deposits window. B. Enter the information directly into the check register. C. None of these D. Both use the Make Deposits window and enter the information directly into the check register.

The one-step approach (Write Checks window) can be used to pay which of the following: A. Sales taxes B. Bills entered in the Enter Bills window C. Payroll checks D. None of these

Which of the following statements is true? A. To conserve resources, it is best if the owner uses one Checking account for both personal and business purposes BTo maintain separation between the personal and business accounting records, the owner's personal . Checking account should not be used to pay bills for the business and should not be listed in the business' Chart of Accounts CTo maintain more consistent records, it is best if the owner maintains a separate personal Checking . account, but both the owner's personal Checking and business Checking accounts are listed in the Chart of Accounts D. None of these

When deleting a check all of the following is true except: A. It is better to delete the check than void the check in order to erase all records of the transaction B. The deleted check no longer appears in the check register C. QuickBooks changes the amount deducted in the check register to zero D. All of these are true

When reconciling a bank account, which one of the following is considered a timing difference (difference between the bank balance and the book balance)? A. Checks that have cleared the bank B. Deposits recorded by the bank C. Outstanding checks D. Errors

10. When reconciling the bank statement using QuickBooks: A. Service charges are subtracted B. Interest earned is added C. All deposits listed on the bank statement are selected as cleared in the Reconcile window D. All of these 11. When the balance of an asset account, like Checking, increases, it means that the account has been: A. Debited B. Credited C. Deposited D. None of these 12. When the balance of an equity account, like Capital Stock, increases, it means that the account has been: A. Debited B. Credited C. Deposited D. None of these 13. Timing differences discovered when reconciling the bank statement that the bank has not recorded yet, include: A. Deposits in transit B. Interest earned C. Outstanding Checks D. Both A and C 14. A business checking account may be used for which of the following purchases? A. Furniture for the office B. Furniture for the owner's home C. Utility bills for the owner D. Owner's car payment 15. Which of the following icons appear in the Banking section of the Home page? A. Receive Payments B. Enter Bills C. Write Checks D. Pay Bills 16. Which one of the following activities is associated with the Banking section of the Home page? A. Enter credit card charges B. Select bills received to pay later C. Record finance charges D. Create invoices to bill customers 17. All of the following are nonsales type of deposits except: A. Money received from a loan B. Payment from a customer C. Cash from investors D. Interest earned

18. How can I create a filter on a Report? A. Click Customize Report, then click Filters Tab B. Click Customize Report, then click Company Tab C. Click Customize Report, then click Edit D. None of these 19. Documents that prove a transaction occurred are: A. Source documents B. Receipts C. Paid invoices D. All of these 20. The one-step approach to bill paying: A. Pays the bill and then records the bill later B. Records a bill when receives and pays the bill later C. Records and pays a bill at the same time D. Is not supported by QuickBooks 21. When recording a bill, QuickBooks automatically: A. Records an expense (credit) and the obligation to pay later (debit) B. Records an expense (debit) and the obligation to pay later (credit) C. Reduces the liability (debit) and the checking account (credit) D. Reduces the liability (credit) and the checking account (debit) 22. When paying a bill, QuickBooks automatically: A. Records an expense (credit) and the obligation to pay later (debit) B. Records an expense (debit) and the obligation to pay later (credit) C. Reduces the liability (debit) and the checking account (credit) D. Reduces the liability (credit) and the checking account (debit) 23. One of the objectives of the bank reconciliation is: A. Pay bills B. Detect errors C. Insure the debits equal credits D. None of these 24. A Check Register is a record of all transactions affecting the __________. A. Payroll account B. Petty cash account C. Checking account D. Taxes payable account 25. To print multiple checks at one time: A. Report Center > Banking > Checks B. Company menu > Banking > Checks C. Banking menu > Forms > Checks D. File menu > Print Forms > Checks 26. How would you indicate that a payment is split between 2 or more accounts? A. Use the notation "split" in your checking account B. Skip it; it will be done automatically in QuickBooks C. Note on your invoices only D. None of these 27. According to your text, the best approach to keep track of petty cash is: A. Don't use it, use credit only B. Deposit the full amount of petty cash, then write a check for Petty Cash C. Keep cash on hand off the books D. None of these

28. Briefly describe the QuickBooks "drill-down" feature and how helps companies.

29. What are the 4 (four) types of bills that should not be paid using the one-step approach?

Chapter 03 Key 1.

All of the following tasks can be completed in the Banking section of the Home page except: A. Pay Employees B. Reconcile Accounts C. Print Checks D. Record Deposits Accessibility: Keyboard Navigation Kay - Chapter 03 #2

The two-step approach for writing checks must be used to pay which of the following? A. Rent Payments B. Legal Services C. Sales Taxes D. None of these Accessibility: Keyboard Navigation Kay - Chapter 03 #3

Examples of undeposited funds are: A. Interest earned on the Checking account B. Customer payments recorded as received but not yet deposited C. Bank service charges D. Owner's investment Accessibility: Keyboard Navigation Kay - Chapter 03 #4

The one-step approach (Write Checks window) can be used to pay which of the following: A. Sales taxes B. Bills entered in the Enter Bills window C. Payroll checks D. None of these Accessibility: Keyboard Navigation Kay - Chapter 03 #6

10.

When reconciling the bank statement using QuickBooks: A. Service charges are subtracted B. Interest earned is added C. All deposits listed on the bank statement are selected as cleared in the Reconcile window D. All of these Accessibility: Keyboard Navigation Kay - Chapter 03 #10

11.

When the balance of an asset account, like Checking, increases, it means that the account has been: A. Debited B. Credited C. Deposited D. None of these Accessibility: Keyboard Navigation Kay - Chapter 03 #11

12.

When the balance of an equity account, like Capital Stock, increases, it means that the account has been: A. Debited B. Credited C. Deposited D. None of these Accessibility: Keyboard Navigation Kay - Chapter 03 #12

13.

Timing differences discovered when reconciling the bank statement that the bank has not recorded yet, include: A. Deposits in transit B. Interest earned C. Outstanding Checks D. Both A and C Accessibility: Keyboard Navigation Kay - Chapter 03 #13

14.

A business checking account may be used for which of the following purchases? A. Furniture for the office B. Furniture for the owner's home C. Utility bills for the owner D. Owner's car payment Accessibility: Keyboard Navigation Kay - Chapter 03 #14

15.

Which of the following icons appear in the Banking section of the Home page? A. Receive Payments B. Enter Bills C. Write Checks D. Pay Bills Accessibility: Keyboard Navigation Kay - Chapter 03 #15

16.

Which one of the following activities is associated with the Banking section of the Home page? A. Enter credit card charges B. Select bills received to pay later C. Record finance charges D. Create invoices to bill customers Accessibility: Keyboard Navigation Kay - Chapter 03 #16

17.

All of the following are nonsales type of deposits except: A. Money received from a loan B. Payment from a customer C. Cash from investors D. Interest earned Accessibility: Keyboard Navigation Kay - Chapter 03 #17

18.

How can I create a filter on a Report? A. Click Customize Report, then click Filters Tab B. Click Customize Report, then click Company Tab C. Click Customize Report, then click Edit D. None of these Accessibility: Keyboard Navigation Kay - Chapter 03 #18

19.

Documents that prove a transaction occurred are: A. Source documents B. Receipts C. Paid invoices D. All of these Accessibility: Keyboard Navigation Kay - Chapter 03 #19

20.

The one-step approach to bill paying: A. Pays the bill and then records the bill later B. Records a bill when receives and pays the bill later C. Records and pays a bill at the same time D. Is not supported by QuickBooks Accessibility: Keyboard Navigation Kay - Chapter 03 #20

21.

When recording a bill, QuickBooks automatically: A. Records an expense (credit) and the obligation to pay later (debit) B. Records an expense (debit) and the obligation to pay later (credit) C. Reduces the liability (debit) and the checking account (credit) D. Reduces the liability (credit) and the checking account (debit) Accessibility: Keyboard Navigation Kay - Chapter 03 #21

22.

When paying a bill, QuickBooks automatically: A. Records an expense (credit) and the obligation to pay later (debit) B. Records an expense (debit) and the obligation to pay later (credit) C. Reduces the liability (debit) and the checking account (credit) D. Reduces the liability (credit) and the checking account (debit) Accessibility: Keyboard Navigation Kay - Chapter 03 #22

23.

One of the objectives of the bank reconciliation is: A. Pay bills B. Detect errors C. Insure the debits equal credits D. None of these Accessibility: Keyboard Navigation Kay - Chapter 03 #23

24.

A Check Register is a record of all transactions affecting the __________. A. Payroll account B. Petty cash account C. Checking account D. Taxes payable account Accessibility: Keyboard Navigation Kay - Chapter 03 #24

25.

To print multiple checks at one time: A. Report Center > Banking > Checks B. Company menu > Banking > Checks C. Banking menu > Forms > Checks D. File menu > Print Forms > Checks Accessibility: Keyboard Navigation Kay - Chapter 03 #25

26.

How would you indicate that a payment is split between 2 or more accounts? A. Use the notation "split" in your checking account B. Skip it; it will be done automatically in QuickBooks C. Note on your invoices only D. None of these Accessibility: Keyboard Navigation Kay - Chapter 03 #26

27.

According to your text, the best approach to keep track of petty cash is: A. Don't use it, use credit only B. Deposit the full amount of petty cash, then write a check for Petty Cash C. Keep cash on hand off the books D. None of these Accessibility: Keyboard Navigation Kay - Chapter 03 #27

28.

Briefly describe the QuickBooks "drill-down" feature and how helps companies. The drill down feature in QuickBooks is the ability to click on an item and be taken to the supporting detail. This can help a company understand what transactions make up a number or entry in their accounting records. Kay - Chapter 03 #28

29.

What are the 4 (four) types of bills that should not be paid using the one-step approach? Paychecks to employees for wages and salaries; payroll taxes and liabilities; sales taxes; bills already entered in the Enter Bills window. Kay - Chapter 03 #29

Chapter 03 Summary Category Accessibility: Keyboard Navigation Kay - Chapter 03

# of Questions 27 29

Chapter 04 Student: ___________________________________________________________________________

When recording a customer payment from a credit sale, select: A. Create Invoice > Customer Payment > Customer & Job Name B. Make Deposit C. Create Sales Receipt > Record Deposits D. Receive Payment > Customer & Job Name

When recording a customer payment from a cash sale, select: A. Create Invoice > Customer Payment > Customer Name Only B. Make Deposit C. Create Sales Receipt > Record Deposits D. Receive Payment > Customer & Job Name

The Customer List in QuickBooks can be accessed from all of the following except: A. Banking section of the Home page B. Customer section of the Home page C. Customer Menu D. Customer Center

To record a credit sale, select: A. Create Purchase Order B. Sales Receipts C. Create Estimates D. None of these

A Reminder Statement provides the following information, except: A. Purchase Order details B. Customer's previous account balance C. Payments received from the customer D. Customer's ending balance

Credit sales are: A. Recorded using a Create Invoices window B. Recorded in a Credit Card Sales window C. Recorded using the Create Sales Receipts window D. None of these

Online billing allows you to: A. Sell goods over the internet B. Email invoices to customers C. Receive online payments from customers D. QuickBooks does not support online billing

When a credit sale is recorded on an invoice, QuickBooks records: A. An increase to Sales and a decrease to Accounts Receivable B. An increase to Sales and an increase to Accounts Payable C. An increase to Sales and an increase to Accounts Receivable D. A decrease to Sales and a decrease to Accounts Payable

All of the reports below provide information about customer and job profitability, except: A. Customer Detail List B. Income by Customer Summary C. Income by Customer Detail D. Job Profitability Detail

10. Which report provides information to help in tracking accounts receivable? A. Customers with Open Invoices B. Accounts Receivable Aging Summary C. Collections Reports D. All of these 11. Sales in QuickBooks can be recorded with all of the following means of payment, except: A. Cash B. Check C. Credit Card D. Purchase Order 12. To increase collections of payments, you can use all of the following QuickBooks features, except: A. E-mail Invoices B. Customers with New Invoices Report C. Customers with Overdue Balances Report D. Reminder Statements 13. To print the Income by Customer Summary report: A. Select Report Center, Customer & Sales B. Select Customer Center, Income by Customer C. Select Report Center, Company & Financials D. Select Company Center, Customer & Sales 14. Which one of the following activities is not shown in the Customer section of the Home page? A. Make Deposit B. Receive Payments C. Create Estimates D. All of these 15. To add a new job to the Customer List: A. Select Customer menu, Click Add Job B. Select Customer Center Window, Click New Customer & Job C. Select the Customer List icon from the Customer section of the Home page D. Select Report Center, add Customer 16. The Job Profitability Summary Report is accessed from the: A. Report Center B. Vendor Center C. Employee Center D. Company Center 17. To print the Aging of Accounts Receivable report: A. Select Customer Center, Customer & Receivables B. Select Company Center, Customer & Receivables C. Select Report Center, Company & Financials D. Select Report Center, Customer & Receivables 18. From the Customers Section, "Assess Finance Charges" allows you to: A. Re-calculate the correct payment when a discount is applied to a customer bill B. Re-calculate the correct payment when a bill is not paid to a vendor on time C. Add finance charges to customer bills when bills are not paid by the due date D. All of these 19. From the Customers Section, "Create Credit Memos/Refunds" allows you to: A. Record a refund or credit to a vendor account for returned or damaged merchandise B. Record a refund or credit to a customer account for returned or damaged merchandise C. Prepare a billing statement for a customer D. All of these

20. The Customer List stores all of the information listed below except: A. Sales tax rates B. Notes about a project/job C. Project/job estimate information D. Customer transaction information 21. When a customer is billed when the project/job reaches specified milestones, what type of billing does the company use? A. Purchase Order billing B. Estimates C. Progress billing D. Normal (end-of-job) billing 22. Online bill pay allows you to: A. Sell goods over the internet B. Email invoices to customers C. Receive online payments from customers D. QuickBooks does not support online bill pay 23. When recording a payment from a customer, if the customer does not send the full amount: A Record the full amount as paid and make a note in the To Do List to follow up with the customer . regarding the remainder of the payment B. You can record the partial payment but must leave the funds in the Undeposited Funds account until receiving the full payment C. You must wait until the customer pays the full amount to record the payment D. Enter the amount received in the Amount field in the Customer Payment window 24. The Undeposited Funds account: A. Partial payments received from customers B. Holds funds received but not deposited in the bank C. Funds the company owes vendors D. Petty Cash funds 25. Which report provides information on customers who have overdue accounts? A. Accounts Receivable Aging Summary B. Accounts Receivable Aging Detail C. Customers with Open Invoices D. Collections Report 26. Briefly explain the difference between creating a sales receipt and creating an invoice.

27. Name 3 (three) reasons why a job for a customer might be "pending".

Chapter 04 Key 1.

The Customer List in QuickBooks can be accessed from all of the following except: A. Banking section of the Home page B. Customer section of the Home page C. Customer Menu D. Customer Center Accessibility: Keyboard Navigation Kay - Chapter 04 #3

To record a credit sale, select: A. Create Purchase Order B. Sales Receipts C. Create Estimates D. None of these Accessibility: Keyboard Navigation Kay - Chapter 04 #4

A Reminder Statement provides the following information, except: A. Purchase Order details B. Customer's previous account balance C. Payments received from the customer D. Customer's ending balance Accessibility: Keyboard Navigation Kay - Chapter 04 #5

Credit sales are: A. Recorded using a Create Invoices window B. Recorded in a Credit Card Sales window C. Recorded using the Create Sales Receipts window D. None of these Accessibility: Keyboard Navigation Kay - Chapter 04 #6

Online billing allows you to: A. Sell goods over the internet B. Email invoices to customers C. Receive online payments from customers D. QuickBooks does not support online billing Accessibility: Keyboard Navigation Kay - Chapter 04 #7

10.

Which report provides information to help in tracking accounts receivable? A. Customers with Open Invoices B. Accounts Receivable Aging Summary C. Collections Reports D. All of these Accessibility: Keyboard Navigation Kay - Chapter 04 #10

11.

Sales in QuickBooks can be recorded with all of the following means of payment, except: A. Cash B. Check C. Credit Card D. Purchase Order Accessibility: Keyboard Navigation Kay - Chapter 04 #11

12.

To increase collections of payments, you can use all of the following QuickBooks features, except: A. E-mail Invoices B. Customers with New Invoices Report C. Customers with Overdue Balances Report D. Reminder Statements Accessibility: Keyboard Navigation Kay - Chapter 04 #12

13.

To print the Income by Customer Summary report: A. Select Report Center, Customer & Sales B. Select Customer Center, Income by Customer C. Select Report Center, Company & Financials D. Select Company Center, Customer & Sales Accessibility: Keyboard Navigation Kay - Chapter 04 #13

14.

Which one of the following activities is not shown in the Customer section of the Home page? A. Make Deposit B. Receive Payments C. Create Estimates D. All of these Accessibility: Keyboard Navigation Kay - Chapter 04 #14

15.

To add a new job to the Customer List: A. Select Customer menu, Click Add Job B. Select Customer Center Window, Click New Customer & Job C. Select the Customer List icon from the Customer section of the Home page D. Select Report Center, add Customer Accessibility: Keyboard Navigation Kay - Chapter 04 #15

16.

The Job Profitability Summary Report is accessed from the: A. Report Center B. Vendor Center C. Employee Center D. Company Center Accessibility: Keyboard Navigation Kay - Chapter 04 #16

17.

To print the Aging of Accounts Receivable report: A. Select Customer Center, Customer & Receivables B. Select Company Center, Customer & Receivables C. Select Report Center, Company & Financials D. Select Report Center, Customer & Receivables Accessibility: Keyboard Navigation Kay - Chapter 04 #17

18.

From the Customers Section, "Assess Finance Charges" allows you to: A. Re-calculate the correct payment when a discount is applied to a customer bill B. Re-calculate the correct payment when a bill is not paid to a vendor on time C. Add finance charges to customer bills when bills are not paid by the due date D. All of these Accessibility: Keyboard Navigation Kay - Chapter 04 #18

19.

From the Customers Section, "Create Credit Memos/Refunds" allows you to: A. Record a refund or credit to a vendor account for returned or damaged merchandise B. Record a refund or credit to a customer account for returned or damaged merchandise C. Prepare a billing statement for a customer D. All of these Accessibility: Keyboard Navigation Kay - Chapter 04 #19

20.

The Customer List stores all of the information listed below except: A. Sales tax rates B. Notes about a project/job C. Project/job estimate information D. Customer transaction information Accessibility: Keyboard Navigation Kay - Chapter 04 #20

21.

When a customer is billed when the project/job reaches specified milestones, what type of billing does the company use? A. Purchase Order billing B. Estimates C. Progress billing D. Normal (end-of-job) billing Accessibility: Keyboard Navigation Kay - Chapter 04 #21

22.

Online bill pay allows you to: A. Sell goods over the internet B. Email invoices to customers C. Receive online payments from customers D. QuickBooks does not support online bill pay Accessibility: Keyboard Navigation Kay - Chapter 04 #22

23.

When recording a payment from a customer, if the customer does not send the full amount: A Record the full amount as paid and make a note in the To Do List to follow up with the customer . regarding the remainder of the payment B. You can record the partial payment but must leave the funds in the Undeposited Funds account until receiving the full payment C. You must wait until the customer pays the full amount to record the payment D. Enter the amount received in the Amount field in the Customer Payment window Accessibility: Keyboard Navigation Kay - Chapter 04 #23

24.

The Undeposited Funds account: A. Partial payments received from customers B. Holds funds received but not deposited in the bank C. Funds the company owes vendors D. Petty Cash funds Accessibility: Keyboard Navigation Kay - Chapter 04 #24

25.

Which report provides information on customers who have overdue accounts? A. Accounts Receivable Aging Summary B. Accounts Receivable Aging Detail C. Customers with Open Invoices D. Collections Report Accessibility: Keyboard Navigation Kay - Chapter 04 #25

26.

Briefly explain the difference between creating a sales receipt and creating an invoice. Creating a sales receipt is used when a customer pays for their goods or services at the time goods or services are provided. This is typically called a cash sale. Creating an invoice is used when the customer will pay at a later date after the goods or services are provided and will be recorded in the Receive Payment window. This is typically called a credit sale. Kay - Chapter 04 #26

27.

Name 3 (three) reasons why a job for a customer might be "pending". A job might be pending because it is waiting on another condition to be met such as delivery of required parts, the contract is created but not signed, or to record customer charges as work is being performed but before final billing. Kay - Chapter 04 #27

Chapter 04 Summary Category Accessibility: Keyboard Navigation Kay - Chapter 04

# of Questions 25 27

Chapter 05 Student: ___________________________________________________________________________

QuickBooks considers all of the following to be vendors except: A. Financial institutions such as banks B. Tax agencies such as the IRS C. Utility companies D. All of these

Which one of the following is a vendor transaction? A. Make Deposits B. Receive Customer Payments C. Enter Bills D. Sell Goods to Customers

How does QuickBooks categorize items? A. Non-inventory items B. Inventory items C. Service items D. All of these

Which of the following activities and QuickBooks window used to record it is incorrect? A. Sell goods and bill customers; Invoice B. Record inventory information; Inventory List C. Record vendor information; Vendor List D. Order goods; Purchase Order

Which one of the following activities is not shown in the Vendor section of the Home page? A. Write Checks B. Pay Sales Taxes C. Pay Bills D. Purchase Orders

Which one of the following is usually classified as an inventory item? A. Goods purchased for resale to customers B. Items purchased and the quantity on hand does not need to be tracked C. Items purchased and used by the company such as office supplies D. Items purchased for a specific customer job

Which of the following reports is typically used when counting inventory on hand? A. Inventory Valuation Summary B. Inventory Valuation Detail C. Inventory Stock Status by Item D. Physical Inventory Worksheet

Which QuickBooks window is used to record services received? A. Create Invoice B. Purchase Order C. Enter Bills D. Estimates

The Inventory Stock Status by Item report is used when: A. Vendors offer a purchase discount on inventory items B. A list is needed of the quantity of inventory on hand and on order C. The computers go down D. Inventory items are physically placed in the warehouse

10. Vendor reports can be accessed in QuickBooks in all of the following ways except: A. Report Center B. Vendor Center C. Report Menu D. All of these 11. What QuickBooks activity comes next in the this string of business activities: Purchase Order > Receive Items > Enter Bills > ______. A. Receive Payments B. Pay Bills C. Deposit D. Vendor List 12. What QuickBooks activity comes next in the this string of business activities: Invoice > Receive Payments > ______. A. Deposit B. Receive Payments C. Pay Bills D. Vendor List 13. If you received inventory without a bill, once the bill has arrived you could do all of the following, except: A. Enter the bill against the inventory already recorded B. Enter the inventory and then enter the bill separately C. Enter the bill and wait for the inventory to arrive D. Enter the inventory and bill at the same time 14. The Purchase Orders window is used to record which one of the following transactions? A. A customer order to purchase goods B. An order to purchase goods from a vendor C. Services received but not yet paid D. Cash purchases of supplies 15. Which order of tasks is used when purchasing inventory? A. Enter Bills; Pay Bills B. Enter Invoice; Write Check C. Purchase Order; Receive Bill; Pay Bills D. Purchase Requisition; Receive Inventory; Pay Bills 16. Which one of the following is a customer transaction? A. Record Customer Information B. Receive Customer Payments C. Sell Goods to Customers D. All of these 17. Sales taxes are: A. Charged on sales to other retailers B. Charged on retail sales to customers C. Paid by the retailer on sales to customers D. Paid by the vendor 18. The Open Purchase Orders Report gives information about: A. Purchase Orders for items ordered but not yet received. B. All Purchase Orders. C. Purchase Orders from domestic companies only. D. Purchase Orders from foreign companies only.

19. Which inventory costing method does QuickBooks use to track inventory? A. First-in First-out B. First-in Last-out C. Weighted Average D. All of these 20. A non-inventory item is: A. Goods purchased for resale to customers B. An item purchased for a specific customer job C. A service purchased from a vendor D. A service sold to a vendor 21. All the times below are when you can receive a bill except: A. When receiving a service B. When submitting a purchase order C. When receiving inventory D. After receiving inventory 22. Which window is used to pay sales taxes? A. Create Invoice B. Write Checks C. Manage Sales Tax D. Enter Bills 23. Which report summarizes accounts payable balances by the age of the account? A. Accounts Payable Aging Detail B. Accounts Payable Aging Summary C. Purchases by Vendor Summary D. Purchases by Item Summary 24. Which report provides information on items ordered but not received? A. Accounts Payable Aging Detail B. Accounts Payable Aging Summary C. Open Purchase Orders Report D. Physical Inventory Worksheet 25. The Purchase Orders window is used to record which one of the following transactions? A. Cash purchases of supplies B. Services received but not yet paid C. An order to purchase goods from a vendor D. A customer order to purchase goods 26. Briefly describe how sales tax payments flow from customers to government entities.

27. What are Inventory Items, Non-inventory items, and Services? Provide examples.

Chapter 05 Key 1.

QuickBooks considers all of the following to be vendors except: A. Financial institutions such as banks B. Tax agencies such as the IRS C. Utility companies D. All of these Accessibility: Keyboard Navigation Kay - Chapter 05 #1

Which one of the following is a vendor transaction? A. Make Deposits B. Receive Customer Payments C. Enter Bills D. Sell Goods to Customers Accessibility: Keyboard Navigation Kay - Chapter 05 #2

How does QuickBooks categorize items? A. Non-inventory items B. Inventory items C. Service items D. All of these Accessibility: Keyboard Navigation Kay - Chapter 05 #3

Which one of the following activities is not shown in the Vendor section of the Home page? A. Write Checks B. Pay Sales Taxes C. Pay Bills D. Purchase Orders Accessibility: Keyboard Navigation Kay - Chapter 05 #5

Which QuickBooks window is used to record services received? A. Create Invoice B. Purchase Order C. Enter Bills D. Estimates Accessibility: Keyboard Navigation Kay - Chapter 05 #8

10.

Vendor reports can be accessed in QuickBooks in all of the following ways except: A. Report Center B. Vendor Center C. Report Menu D. All of these Accessibility: Keyboard Navigation Kay - Chapter 05 #10

11.

What QuickBooks activity comes next in the this string of business activities: Purchase Order > Receive Items > Enter Bills > ______. A. Receive Payments B. Pay Bills C. Deposit D. Vendor List Accessibility: Keyboard Navigation Kay - Chapter 05 #11

12.

What QuickBooks activity comes next in the this string of business activities: Invoice > Receive Payments > ______. A. Deposit B. Receive Payments C. Pay Bills D. Vendor List Accessibility: Keyboard Navigation Kay - Chapter 05 #12

13.

If you received inventory without a bill, once the bill has arrived you could do all of the following, except: A. Enter the bill against the inventory already recorded B. Enter the inventory and then enter the bill separately C. Enter the bill and wait for the inventory to arrive D. Enter the inventory and bill at the same time Accessibility: Keyboard Navigation Kay - Chapter 05 #13

14.

The Purchase Orders window is used to record which one of the following transactions? A. A customer order to purchase goods B. An order to purchase goods from a vendor C. Services received but not yet paid D. Cash purchases of supplies Accessibility: Keyboard Navigation Kay - Chapter 05 #14

15.

Which order of tasks is used when purchasing inventory? A. Enter Bills; Pay Bills B. Enter Invoice; Write Check C. Purchase Order; Receive Bill; Pay Bills D. Purchase Requisition; Receive Inventory; Pay Bills Accessibility: Keyboard Navigation Kay - Chapter 05 #15

16.

Which one of the following is a customer transaction? A. Record Customer Information B. Receive Customer Payments C. Sell Goods to Customers D. All of these Accessibility: Keyboard Navigation Kay - Chapter 05 #16

17.

Sales taxes are: A. Charged on sales to other retailers B. Charged on retail sales to customers C. Paid by the retailer on sales to customers D. Paid by the vendor Accessibility: Keyboard Navigation Kay - Chapter 05 #17

18.

The Open Purchase Orders Report gives information about: A. Purchase Orders for items ordered but not yet received. B. All Purchase Orders. C. Purchase Orders from domestic companies only. D. Purchase Orders from foreign companies only. Accessibility: Keyboard Navigation Kay - Chapter 05 #18

19.

Which inventory costing method does QuickBooks use to track inventory? A. First-in First-out B. First-in Last-out C. Weighted Average D. All of these Accessibility: Keyboard Navigation Kay - Chapter 05 #19

20.

A non-inventory item is: A. Goods purchased for resale to customers B. An item purchased for a specific customer job C. A service purchased from a vendor D. A service sold to a vendor Accessibility: Keyboard Navigation Kay - Chapter 05 #20

21.

All the times below are when you can receive a bill except: A. When receiving a service B. When submitting a purchase order C. When receiving inventory D. After receiving inventory Accessibility: Keyboard Navigation Kay - Chapter 05 #21

22.

Which window is used to pay sales taxes? A. Create Invoice B. Write Checks C. Manage Sales Tax D. Enter Bills Accessibility: Keyboard Navigation Kay - Chapter 05 #22

23.

Which report summarizes accounts payable balances by the age of the account? A. Accounts Payable Aging Detail B. Accounts Payable Aging Summary C. Purchases by Vendor Summary D. Purchases by Item Summary Accessibility: Keyboard Navigation Kay - Chapter 05 #23

24.

Which report provides information on items ordered but not received? A. Accounts Payable Aging Detail B. Accounts Payable Aging Summary C. Open Purchase Orders Report D. Physical Inventory Worksheet Accessibility: Keyboard Navigation Kay - Chapter 05 #24

25.

The Purchase Orders window is used to record which one of the following transactions? A. Cash purchases of supplies B. Services received but not yet paid C. An order to purchase goods from a vendor D. A customer order to purchase goods Accessibility: Keyboard Navigation Kay - Chapter 05 #25

26.

Briefly describe how sales tax payments flow from customers to government entities. Customers pay sales tax to companies based on the amount and type of items sold. The amounts are tracked by companies and then paid to governmental entities. Kay - Chapter 05 #26

27.

What are Inventory Items, Non-inventory items, and Services? Provide examples. Inventory items are goods that a business purchases, holds as inventory, and then resells to customers. For example, Rock Castle would hold these types of items in its inventory: doors, door knobs, plywood, etc. Non-inventory items are purchases for a specific job, for example a custom countertop; items purchases and used by the company instead of resold to customers, for example, copy paper, pens, and coffee; and items purchased and resold to customer but the quantity does not need to be tracked, for example, Rock Castle might include roofing nails in this category. Service items can be services that are purchased or sold. For example, service items include: services you buy from vendors, such as cleaning services and services you sell to customers, such as installation labor. Kay - Chapter 05 #27

Chapter 05 Summary Category Accessibility: Keyboard Navigation Kay - Chapter 05

# of Questions 25 27

Chapter 06 Student: ___________________________________________________________________________

A company is required to withhold payroll taxes for: A. Employees B. Vendors C. Subcontractors D. All of these

All of the following automatically calculate payroll tax withholdings in QuickBooks except: A. Basic Payroll B. Assisted Payroll C. Enhanced Payroll D. All of these automatically calculate payroll tax withholdings

To turn on QuickBooks time tracking feature, the following steps must be completed: A. Click QuickBooks Menu > Time Tracking B. Click Edit > Preferences > Time and Expenses > Time Tracking C. Click Employees > Payroll > Time Tracking D. Click Employees > Payroll and Employees > Time Tracking

Each year employees are sent Form ______ to summarize tax withholdings for the year. A. 1099 B. W-2 C. W-3 D. W-4

The order of steps to process payroll is: A. Enter Time > Pay Employees > Pay Payroll Liabilities > Process Payroll Forms B. Enter Time > Pay Employees > Process Payroll Forms > Print Payroll Report C. Pay Employees > Process Payroll Forms > Pay Payroll Liabilities D. Enter Time > Pay Payroll Liabilities > Process Payroll Forms > Print Liabilities Report

In QuickBooks, time data is listed on customer invoices using the: A. Timesheet icon B. Pay Sales Taxes icon C. Pay Employees button D. Time/Costs button

Which one of the following is paid by both the employee and company? A. Federal income taxes B. State income taxes C. FICA D. All of these

Which of the following is not a payroll report: A. Form W-2 B. Form 1065 C. Form 940 D. Form 941

The following are payroll liabilities except: A. Federal income taxes B. Unemployment taxes C. Sales taxes D. FICA

10. Which of the following is typically used to track time for a single activity? A. Employee Tracker B. Stopwatch C. Timesheet D. QuickTime 11. What QuickBooks activity comes next in this string of payroll activities: Enter Time > Pay Employees > ______ > Process Payroll Forms. A. Reconcile Payroll B. Print Payroll Report C. Pay Payroll Liabilities D. None of these 12. When setting up a new employee where do you get their filing status and allowances information? A. Form W-5 B. Form W-4 C. Form W-3 D. Form W-2 13. All of the following are QuickBooks Payroll Services, except: A. Basic B. Assisted C. Advanced D. Enhanced 14. When tracking time for subcontractors, which QuickBooks window is used to enter subcontractor information? A. Vendor List B. Item List C. Payroll Setup D. Employee List 15. Which form summarizes payments made to subcontractors? A. Form 940 B. Form 1065 C. Form 1099 D. W-4 16. The payment to a stockholder who is not an employee of the company is a: A. Dividend B. Paycheck C. Vendor payment D. None of these 17. Which of the following activities and QuickBooks window used to record it is incorrect? A. Enter time worked; Weekly Timesheet B. Pay payroll liabilities; Write Check C. Enter employee information; Employee List D. Pay payroll taxes; Pay Liabilities 18. An individual's status determines how to record payment to that individual. Which of the following status and payment method is incorrect? A. Vendor; Bill B. Employee; Payroll C. Stockholder; Dividend D. None of these

19. To include a charge for labor on an invoice, labor as a service item must be recorded in the: A. Item List B. Vendor List C. Inventory List D. Employee List 20. The Payroll Center: A. Contains the employee list B. Manages payroll and tax information C. Is where employees enter time worked D. Is located in the Banking Center 21. Which of the following ways to track time is not supported by QuickBooks Pro and QuickBooks Premier? A. Time Single Activity B. Weekly Timesheet C. Time clock D. Online Timesheets 22. Which of the following may be billed to a specific customer job? A. Mileage B. Hours C. Expenses D. All of these 23. The Payroll Center has the following sections except: A. Pay Employees B. Write Checks C. Pay Scheduled Liabilities D. File Tax Forms 24. What is purpose of Federal Form 940? A. Summarize the amount of unemployment tax paid and due by the company B. Summarize the amount of federal income tax, Social Security, and Medicare withheld from employee paychecks for the quarter C. Summarize the amount of federal income tax, Social Security, and Medicare withheld from employee paychecks for the year D. Summarize of all your W-2 forms 25. What is the purpose of Federal Form 941? A. Summarize the amount of unemployment tax paid and due by the company B. Summarize the amount of federal income tax, Social Security, and Medicare withheld from employee paychecks for the quarter C. Summarize the amount of federal income tax, Social Security, and Medicare withheld from employee paychecks for the year D. Summarize of all your W-2 forms 26. Name 3 (three) types of payroll liabilities and indicate who funds each one.

27. Briefly describe what the "Time by Job" project reports tell management.

Chapter 06 Key 1.

A company is required to withhold payroll taxes for: A. Employees B. Vendors C. Subcontractors D. All of these Accessibility: Keyboard Navigation Kay - Chapter 06 #1

Each year employees are sent Form ______ to summarize tax withholdings for the year. A. 1099 B. W-2 C. W-3 D. W-4 Accessibility: Keyboard Navigation Kay - Chapter 06 #4

In QuickBooks, time data is listed on customer invoices using the: A. Timesheet icon B. Pay Sales Taxes icon C. Pay Employees button D. Time/Costs button Accessibility: Keyboard Navigation Kay - Chapter 06 #6

Which one of the following is paid by both the employee and company? A. Federal income taxes B. State income taxes C. FICA D. All of these Accessibility: Keyboard Navigation Kay - Chapter 06 #7

Which of the following is not a payroll report: A. Form W-2 B. Form 1065 C. Form 940 D. Form 941 Accessibility: Keyboard Navigation Kay - Chapter 06 #8

The following are payroll liabilities except: A. Federal income taxes B. Unemployment taxes C. Sales taxes D. FICA Accessibility: Keyboard Navigation Kay - Chapter 06 #9

10.

Which of the following is typically used to track time for a single activity? A. Employee Tracker B. Stopwatch C. Timesheet D. QuickTime Accessibility: Keyboard Navigation Kay - Chapter 06 #10

11.

What QuickBooks activity comes next in this string of payroll activities: Enter Time > Pay Employees > ______ > Process Payroll Forms. A. Reconcile Payroll B. Print Payroll Report C. Pay Payroll Liabilities D. None of these Accessibility: Keyboard Navigation Kay - Chapter 06 #11

12.

When setting up a new employee where do you get their filing status and allowances information? A. Form W-5 B. Form W-4 C. Form W-3 D. Form W-2 Accessibility: Keyboard Navigation Kay - Chapter 06 #12

13.

All of the following are QuickBooks Payroll Services, except: A. Basic B. Assisted C. Advanced D. Enhanced Accessibility: Keyboard Navigation Kay - Chapter 06 #13

14.

When tracking time for subcontractors, which QuickBooks window is used to enter subcontractor information? A. Vendor List B. Item List C. Payroll Setup D. Employee List Accessibility: Keyboard Navigation Kay - Chapter 06 #14

15.

Which form summarizes payments made to subcontractors? A. Form 940 B. Form 1065 C. Form 1099 D. W-4 Accessibility: Keyboard Navigation Kay - Chapter 06 #15

16.

The payment to a stockholder who is not an employee of the company is a: A. Dividend B. Paycheck C. Vendor payment D. None of these Accessibility: Keyboard Navigation Kay - Chapter 06 #16

17.

Which of the following activities and QuickBooks window used to record it is incorrect? A. Enter time worked; Weekly Timesheet B. Pay payroll liabilities; Write Check C. Enter employee information; Employee List D. Pay payroll taxes; Pay Liabilities Accessibility: Keyboard Navigation Kay - Chapter 06 #17

18.

An individual's status determines how to record payment to that individual. Which of the following status and payment method is incorrect? A. Vendor; Bill B. Employee; Payroll C. Stockholder; Dividend D. None of these Accessibility: Keyboard Navigation Kay - Chapter 06 #18

19.

To include a charge for labor on an invoice, labor as a service item must be recorded in the: A. Item List B. Vendor List C. Inventory List D. Employee List Accessibility: Keyboard Navigation Kay - Chapter 06 #19

20.

The Payroll Center: A. Contains the employee list B. Manages payroll and tax information C. Is where employees enter time worked D. Is located in the Banking Center Accessibility: Keyboard Navigation Kay - Chapter 06 #20

21.

Which of the following ways to track time is not supported by QuickBooks Pro and QuickBooks Premier? A. Time Single Activity B. Weekly Timesheet C. Time clock D. Online Timesheets Accessibility: Keyboard Navigation Kay - Chapter 06 #21

22.

Which of the following may be billed to a specific customer job? A. Mileage B. Hours C. Expenses D. All of these Accessibility: Keyboard Navigation Kay - Chapter 06 #22

23.

The Payroll Center has the following sections except: A. Pay Employees B. Write Checks C. Pay Scheduled Liabilities D. File Tax Forms Accessibility: Keyboard Navigation Kay - Chapter 06 #23

24.

What is purpose of Federal Form 940? A. Summarize the amount of unemployment tax paid and due by the company B. Summarize the amount of federal income tax, Social Security, and Medicare withheld from employee paychecks for the quarter C. Summarize the amount of federal income tax, Social Security, and Medicare withheld from employee paychecks for the year D. Summarize of all your W-2 forms Accessibility: Keyboard Navigation Kay - Chapter 06 #24

25.

What is the purpose of Federal Form 941? A. Summarize the amount of unemployment tax paid and due by the company B. Summarize the amount of federal income tax, Social Security, and Medicare withheld from employee paychecks for the quarter C. Summarize the amount of federal income tax, Social Security, and Medicare withheld from employee paychecks for the year D. Summarize of all your W-2 forms Accessibility: Keyboard Navigation Kay - Chapter 06 #25

26.

Name 3 (three) types of payroll liabilities and indicate who funds each one. Federal Income Tax - funded by the employee, State Income Tax - funded by employee, FICA funded by both the employee and employer, and Unemployment Taxes - funded by the employer. Kay - Chapter 06 #26

27.

Briefly describe what the "Time by Job" project reports tell management. These reports can help management by telling them how much time was worked on each job. Detail can also be given by category, by employee, or by service offered. Kay - Chapter 06 #27

Chapter 06 Summary Category Accessibility: Keyboard Navigation Kay - Chapter 06

# of Questions 25 27

Chapter 07 Student: ___________________________________________________________________________

What is an asset? A. What is left after the liabilities are satisfied B. What a company owns C. What a company owes D. None of these

To record adjusting journal entries in QuickBooks, select: A. Company Center, Journal Entry icon B. Accountant menu, Make General Journal Entries C. Banking section of the Home page, Journal Entry icon D. Company section of the Home page, Journal Entry icon

The order of the steps in the accounting cycle includes: A. Adjusted trial balance, financial reports, adjusting entries, trial balance B. Adjusted trial balance, adjusting entries, financial reports, trial balance C. Trial balance, adjusting entries, adjusted trial balance, financial reports D. Trial balance, financial reports, adjusting entries, adjusted trial balance

Examples of management reports for internal decision making include all of the following except: A. 1120S Report B. Cash Budget C. Cash Forecast D. Accounts Receivable Aging Summary

Income tax reports in QuickBooks include all of the following except: A. Income Tax Preparation report B. Income Tax Detail report C. Income Tax Summary report D. Income Tax Mapping report

Sales are recorded under cash basis accounting when: A. The goods or services are provided regardless of whether the cash is collected from the customers B. The bookkeeper has time to record the transactions C. The cash is collected from the customers D. The costs are incurred to earn the revenue

The Income Statement lists: A. Net Income and Owner's Equity B. Income and Expenses C. Assets and Liabilities D. Assets and Expenses

Which one of the following classifications is found on the Statement of Cash Flows? A. Cash Flows from Financing Activities B. Cash Flows from Purchasing Activities C. Cash Flows from Owner's Activities D. Cash Flows from Selling Activities

What is owner's equity? A. What a company owes B. What is left after the liabilities are satisfied C. What a company owns D. None of these

10. To print the General Ledger: A. Select Chart of Accounts icon > Print Report B. From the Company section of the Home page > select Trial Balance icon C. Select Report Center > Accountant & Taxes, General Ledger D. Select Company Center > Print General Ledger 11. The Profit & Loss Statement lists: A. Assets and Expenses B. Assets and Liabilities C. Net Income and Owner's Equity D. Income and Expenses 12. What information does the Balance Sheet provide? A. A summary of cash inflows and outflows over a specific time period B. A company's financial position on a specific date C. Sales and expenses for a specific time period D. None of these 13. The Statement of Cash Flows lists: A. Operating, Investing, and Financing Activity B. Assets, Liabilities, and Owner's Equity C. Income, Expenses, and Liabilities D. Gains, Losses, and Net Income 14. To export reports to Excel: A. With the Report window open, click the Excel button B. With the Report window open, click the Export button C. With the Report window open, click the Print button D. All of these 15. The Balance Sheet lists: A. Assets, Liabilities, and Owner's Equity B. Gains, Losses, and Net Income C. Operating, Investing, and Financing Activity D. Income, Expenses, and Liabilities 16. Which of the following determines if the account appears classified properly on the balance sheet? A. Tax-Mapping Line B. Account Number C. Item Number D. None of these 17. An account period may be: A. One quarter B. One month C. One year D. All of these 18. Providing information to external users' decision making is the purpose of which of the following? A. Management Reports B. Tax forms C. Financial statements D. Inventory reports 19. Providing information to internal users' decision making is the purpose of which of the following? A. Management Reports B. Tax forms C. Financial statements D. Vendor list

20. The Trial Balance: A. Lists all the company's accounts and ending balances B. Is printed before and after making adjustments C. Verifies the accounting system balances D. All of these 21. The General Ledger: A. Is always provided to external users for decision making B. Provides the quickest way to communicate financial information C. Is a collection of all of the company's accounts and account activity D. None of these 22. Cash inflows and outflows related to the company's primary business are categorized as cash flows from: A. Investing activities B. Financing activities C. Sales activities D. Operating activities 23. Cash inflows and outflows related to acquisition and disposal of long-term assets are categorized as cash flows from: A. Investing activities B. Financing activities C. Sales activities D. Operating activities 24. Cash inflows and outflows to and from investors and creditors are categorized as cash flows from: A. Investing activities B. Financing activities C. Sales activities D. Operating activities 25. The Income Tax Preparation report: A. Summarizes income and expenses that should be listed on a business income tax return B. Lists the assigned tax line for each account C. Provides detailed information about the income and expenses D. All of these 26. Adjusting entries should be made ______________ preparing financial statements. A. Before B. During C. After D. Never 27. Unearned revenue occurs when: A. Customers pay after receiving a service B. Customers pay in advance of receiving a service C. Customers default and do not pay you what is owed D. All of these 28. Briefly explain 2 (two) differences between depreciation on a tax return and on a financial statement.

29. What is the difference between the cash basis and the accrual basis?

Chapter 07 Key 1.

What is an asset? A. What is left after the liabilities are satisfied B. What a company owns C. What a company owes D. None of these Accessibility: Keyboard Navigation Kay - Chapter 07 #1

Examples of management reports for internal decision making include all of the following except: A. 1120S Report B. Cash Budget C. Cash Forecast D. Accounts Receivable Aging Summary Accessibility: Keyboard Navigation Kay - Chapter 07 #4

Income tax reports in QuickBooks include all of the following except: A. Income Tax Preparation report B. Income Tax Detail report C. Income Tax Summary report D. Income Tax Mapping report Accessibility: Keyboard Navigation Kay - Chapter 07 #5

The Income Statement lists: A. Net Income and Owner's Equity B. Income and Expenses C. Assets and Liabilities D. Assets and Expenses Accessibility: Keyboard Navigation Kay - Chapter 07 #7

What is owner's equity? A. What a company owes B. What is left after the liabilities are satisfied C. What a company owns D. None of these Accessibility: Keyboard Navigation Kay - Chapter 07 #9

10.

To print the General Ledger: A. Select Chart of Accounts icon > Print Report B. From the Company section of the Home page > select Trial Balance icon C. Select Report Center > Accountant & Taxes, General Ledger D. Select Company Center > Print General Ledger Accessibility: Keyboard Navigation Kay - Chapter 07 #10

11.

The Profit & Loss Statement lists: A. Assets and Expenses B. Assets and Liabilities C. Net Income and Owner's Equity D. Income and Expenses Accessibility: Keyboard Navigation Kay - Chapter 07 #11

12.

What information does the Balance Sheet provide? A. A summary of cash inflows and outflows over a specific time period B. A company's financial position on a specific date C. Sales and expenses for a specific time period D. None of these Accessibility: Keyboard Navigation Kay - Chapter 07 #12

13.

The Statement of Cash Flows lists: A. Operating, Investing, and Financing Activity B. Assets, Liabilities, and Owner's Equity C. Income, Expenses, and Liabilities D. Gains, Losses, and Net Income Accessibility: Keyboard Navigation Kay - Chapter 07 #13

14.

To export reports to Excel: A. With the Report window open, click the Excel button B. With the Report window open, click the Export button C. With the Report window open, click the Print button D. All of these Accessibility: Keyboard Navigation Kay - Chapter 07 #14

15.

The Balance Sheet lists: A. Assets, Liabilities, and Owner's Equity B. Gains, Losses, and Net Income C. Operating, Investing, and Financing Activity D. Income, Expenses, and Liabilities Accessibility: Keyboard Navigation Kay - Chapter 07 #15

16.

Which of the following determines if the account appears classified properly on the balance sheet? A. Tax-Mapping Line B. Account Number C. Item Number D. None of these Accessibility: Keyboard Navigation Kay - Chapter 07 #16

17.

An account period may be: A. One quarter B. One month C. One year D. All of these Accessibility: Keyboard Navigation Kay - Chapter 07 #17

18.

Providing information to external users' decision making is the purpose of which of the following? A. Management Reports B. Tax forms C. Financial statements D. Inventory reports Accessibility: Keyboard Navigation Kay - Chapter 07 #18

19.

Providing information to internal users' decision making is the purpose of which of the following? A. Management Reports B. Tax forms C. Financial statements D. Vendor list Accessibility: Keyboard Navigation Kay - Chapter 07 #19

20.

The Trial Balance: A. Lists all the company's accounts and ending balances B. Is printed before and after making adjustments C. Verifies the accounting system balances D. All of these Accessibility: Keyboard Navigation Kay - Chapter 07 #20

21.

The General Ledger: A. Is always provided to external users for decision making B. Provides the quickest way to communicate financial information C. Is a collection of all of the company's accounts and account activity D. None of these Accessibility: Keyboard Navigation Kay - Chapter 07 #21

22.

Cash inflows and outflows related to the company's primary business are categorized as cash flows from: A. Investing activities B. Financing activities C. Sales activities D. Operating activities Accessibility: Keyboard Navigation Kay - Chapter 07 #22

23.

Cash inflows and outflows related to acquisition and disposal of long-term assets are categorized as cash flows from: A. Investing activities B. Financing activities C. Sales activities D. Operating activities Accessibility: Keyboard Navigation Kay - Chapter 07 #23

24.

Cash inflows and outflows to and from investors and creditors are categorized as cash flows from: A. Investing activities B. Financing activities C. Sales activities D. Operating activities Accessibility: Keyboard Navigation Kay - Chapter 07 #24

25.

The Income Tax Preparation report: A. Summarizes income and expenses that should be listed on a business income tax return B. Lists the assigned tax line for each account C. Provides detailed information about the income and expenses D. All of these Accessibility: Keyboard Navigation Kay - Chapter 07 #25

26.

Adjusting entries should be made ______________ preparing financial statements. A. Before B. During C. After D. Never Accessibility: Keyboard Navigation Kay - Chapter 07 #26

27.

Unearned revenue occurs when: A. Customers pay after receiving a service B. Customers pay in advance of receiving a service C. Customers default and do not pay you what is owed D. All of these Accessibility: Keyboard Navigation Kay - Chapter 07 #27

28.

Briefly explain 2 (two) differences between depreciation on a tax return and on a financial statement. On a tax return, depreciation is calculated using MACRS and follows the rules of the IRS. For financial statements, depreciation is calculated most often by the straight-line method and following the rules of GAAP. Kay - Chapter 07 #28

29.

What is the difference between the cash basis and the accrual basis? Cash basis - A sale is recorded when cash is collected from the customer. Expenses are recorded when cash is paid. Accrual basis - Sales are recorded when the good or service is provided regardless of when the cash is collected from the customer. Expenses are recorded when the cost is incurred or expires, even if the expense has not been paid. Kay - Chapter 07 #29

Chapter 07 Summary Category Accessibility: Keyboard Navigation Kay - Chapter 07

# of Questions 27 29

Chapter 08 Student: ___________________________________________________________________________

Which tax form would you select for a Subchapter S corporation? A. Form 1120 B. Form 1120S C. Form 1040 D. Form 1040S

To create a new company data file in QuickBooks, use the: A. Company menu > New Company B. Company section of the Home page > New Company C. File menu > Open or Copy Company D. File menu > New Company

In the Easy Step Interview, you must identify: A. Type of Industry B. Company name C. Company address D. All of these

When setting up a new company, QuickBooks automatically creates: A. Chart of Accounts B. Vendor List C. Customer List D. None of these

To edit an account in the Chart of Accounts: A. From the Company Center > Edit Chart of Accounts B. From the Chart of Accounts window > right-click > New C. From the Chart of Accounts window > Account > Edit Account D. From the Company menu > New Account

The Doing Business As name identifies a company for: A. Bank accounts B. Sales C. Patents D. None of these

The Legal Name identifies a company for: A. Advertising B. Sales C. Patents D. All of these

Which icon does not appear in the Vendors section for service companies that do not sell inventory? A. Receive Inventory B. Pay Bills C. Enter Bills D. All of these

The Vendor List contains information about: A. Addresses, contacts and phone numbers of customers B. Addresses, contacts and phone numbers for suppliers C. Quantities and prices of items on hand D. All of these

10. The Customer List contains information about: A. The quantity of non-inventory parts on hand B. The credit rating of the vendors C. Vendors from whom the company buys products and services D. Customer addresses, contacts and phone numbers 11. What options do you have when adding the "People You Do Business With" section of the QuickBooks Setup Window: A. Importing from Outlook B. Importing from Yahoo or Gmail C. Pasting from Excel or entering manually D. All of these 12. To display account numbers in the chart of accounts choose: A. Edit > Options B. Edit > Preferences C. Company > Financial D. Company > Accounts 13. A company's computer is classified as what account type: A. Expense B. Owner's Equity C. Fixed Asset D. Retained Earnings 14. The steps to set up a new service company in QuickBooks with no employees are: A. Easy Step Interview > Customer List > Vendor List > Item List B. Setup Chart of Accounts > Easy Step Interview > Customer List > Vendor List > Item List C. Easy Step Interview > Customize Chart of Accounts > Customer List > Vendor List > Item List D. Easy Step Interview > Customer List > Vendor List > Item List > Customize Chart of Accounts 15. To complete company setup you must complete all of the following except: A. Add customers B. Add payroll forms C. Add products and services as items D. Add vendors 16. Sole Proprietorships use __________ as its Federal Tax ID number. A. the owner's social security number B. an EIN number C. business operating license number D. none of these 17. A corporation uses __________ as its Federal Tax ID number. A. the owner's social security number B. an EIN number C. business operating license number D. none of these 18. The QuickBooks Setup window allows you to enter __________ information. A. Vendor B. Customer C. Banking D. All of these

19. Which tax form would you select for a Partnership? A. Form 1120 B. Form 1120S C. Form 1065 D. Form 1040S 20. Which tax form would you select for a Corporation? A. Form 1120 B. Form 1120S C. Form 1065 D. Form 1040S 21. An account's tax line determines where QuickBooks lists the account balance on the: A. Income Statement B. Income Tax Summary Report C. Balance Sheet D. Statement of Cash Flows 22. QuickBooks allows you to import vendor, customer, and employee information from (Add People You Do Business With section of the QuickBooks Setup window): A. Yahoo B. Outlook C. Gmail D. All of these 23. To customize QuickBooks after creating a company file you would: A. Enter additional company information B. Set QuickBooks preferences C. Customize the Chart of Accounts D. All of these 24. QuickBooks creates a Chart of Accounts for your company based on: A. Company address B. Industry type C. Your Federal ID Tax number D. None of these 25. Which of the following type of information is not entered during the Easy Step Interview? A. Company organization (for example, LLC, LLP, S Corporation) B. Industry type C. Products and services the company sells D. QuickBooks company file password 26. Why should you customize the Chart of Accounts? A. It's required B. To modify it for your specific business C. To make the system function D. None of these 27. Name 4 (four) accounts that would commonly be used for a service company and identify the account type for each.

28. List 3 (three) questions asked by the QuickBooks EasyStep Interview.

Chapter 08 Key 1.

Which tax form would you select for a Subchapter S corporation? A. Form 1120 B. Form 1120S C. Form 1040 D. Form 1040S Accessibility: Keyboard Navigation Kay - Chapter 08 #1

In the Easy Step Interview, you must identify: A. Type of Industry B. Company name C. Company address D. All of these Accessibility: Keyboard Navigation Kay - Chapter 08 #3

When setting up a new company, QuickBooks automatically creates: A. Chart of Accounts B. Vendor List C. Customer List D. None of these Accessibility: Keyboard Navigation Kay - Chapter 08 #4

The Doing Business As name identifies a company for: A. Bank accounts B. Sales C. Patents D. None of these Accessibility: Keyboard Navigation Kay - Chapter 08 #6

The Legal Name identifies a company for: A. Advertising B. Sales C. Patents D. All of these Accessibility: Keyboard Navigation Kay - Chapter 08 #7

Which icon does not appear in the Vendors section for service companies that do not sell inventory? A. Receive Inventory B. Pay Bills C. Enter Bills D. All of these Accessibility: Keyboard Navigation Kay - Chapter 08 #8

10.

The Customer List contains information about: A. The quantity of non-inventory parts on hand B. The credit rating of the vendors C. Vendors from whom the company buys products and services D. Customer addresses, contacts and phone numbers Accessibility: Keyboard Navigation Kay - Chapter 08 #10

11.

What options do you have when adding the "People You Do Business With" section of the QuickBooks Setup Window: A. Importing from Outlook B. Importing from Yahoo or Gmail C. Pasting from Excel or entering manually D. All of these Accessibility: Keyboard Navigation Kay - Chapter 08 #11

12.

To display account numbers in the chart of accounts choose: A. Edit > Options B. Edit > Preferences C. Company > Financial D. Company > Accounts Accessibility: Keyboard Navigation Kay - Chapter 08 #12

13.

A company's computer is classified as what account type: A. Expense B. Owner's Equity C. Fixed Asset D. Retained Earnings Accessibility: Keyboard Navigation Kay - Chapter 08 #13

14.

The steps to set up a new service company in QuickBooks with no employees are: A. Easy Step Interview > Customer List > Vendor List > Item List B. Setup Chart of Accounts > Easy Step Interview > Customer List > Vendor List > Item List C. Easy Step Interview > Customize Chart of Accounts > Customer List > Vendor List > Item List D. Easy Step Interview > Customer List > Vendor List > Item List > Customize Chart of Accounts Accessibility: Keyboard Navigation Kay - Chapter 08 #14

15.

To complete company setup you must complete all of the following except: A. Add customers B. Add payroll forms C. Add products and services as items D. Add vendors Accessibility: Keyboard Navigation Kay - Chapter 08 #15

16.

Sole Proprietorships use __________ as its Federal Tax ID number. A. the owner's social security number B. an EIN number C. business operating license number D. none of these Accessibility: Keyboard Navigation Kay - Chapter 08 #16

17.

A corporation uses __________ as its Federal Tax ID number. A. the owner's social security number B. an EIN number C. business operating license number D. none of these Accessibility: Keyboard Navigation Kay - Chapter 08 #17

18.

The QuickBooks Setup window allows you to enter __________ information. A. Vendor B. Customer C. Banking D. All of these Accessibility: Keyboard Navigation Kay - Chapter 08 #18

19.

Which tax form would you select for a Partnership? A. Form 1120 B. Form 1120S C. Form 1065 D. Form 1040S Accessibility: Keyboard Navigation Kay - Chapter 08 #19

20.

Which tax form would you select for a Corporation? A. Form 1120 B. Form 1120S C. Form 1065 D. Form 1040S Accessibility: Keyboard Navigation Kay - Chapter 08 #20

21.

An account's tax line determines where QuickBooks lists the account balance on the: A. Income Statement B. Income Tax Summary Report C. Balance Sheet D. Statement of Cash Flows Accessibility: Keyboard Navigation Kay - Chapter 08 #21

22.

QuickBooks allows you to import vendor, customer, and employee information from (Add People You Do Business With section of the QuickBooks Setup window): A. Yahoo B. Outlook C. Gmail D. All of these Accessibility: Keyboard Navigation Kay - Chapter 08 #22

23.

To customize QuickBooks after creating a company file you would: A. Enter additional company information B. Set QuickBooks preferences C. Customize the Chart of Accounts D. All of these Accessibility: Keyboard Navigation Kay - Chapter 08 #23

24.

QuickBooks creates a Chart of Accounts for your company based on: A. Company address B. Industry type C. Your Federal ID Tax number D. None of these Accessibility: Keyboard Navigation Kay - Chapter 08 #24

25.

Which of the following type of information is not entered during the Easy Step Interview? A. Company organization (for example, LLC, LLP, S Corporation) B. Industry type C. Products and services the company sells D. QuickBooks company file password Accessibility: Keyboard Navigation Kay - Chapter 08 #25

26.

Why should you customize the Chart of Accounts? A. It's required B. To modify it for your specific business C. To make the system function D. None of these Accessibility: Keyboard Navigation Kay - Chapter 08 #26

27.

Name 4 (four) accounts that would commonly be used for a service company and identify the account type for each. Advertising and Promotion - Expense, Owner's Equity - Equity, Rent Expense - Expense, and Furniture and Equipment - Fixed Asset. Kay - Chapter 08 #27

28.

List 3 (three) questions asked by the QuickBooks EasyStep Interview. "Do you accept credit cards?" "Do you charge sales tax?" and "Would you like to add an existing bank account?" Kay - Chapter 08 #28

Chapter 08 Summary Category Accessibility: Keyboard Navigation Kay - Chapter 08

# of Questions 26 28

Chapter 09 Student: ___________________________________________________________________________

To record the payment of bills received from vendors, use the: A. Pay Bills > Write Checks B. Write Checks > Pay Bills C. Enter Bills > Print Checks D. Enter Bills > Pay Bills > Print Checks

Credit sales are recorded using the _________ window. A. Make Deposits B. Sales Receipts C. Create Invoices D. Receive Items

To print the Trial Balance, select: A. Report Center > Accountant & Taxes B. Company Center > Company & Financials C. Report Center > Company & Financials D. Company Center > Accountant & Taxes

To print the Balance Sheet, select: A. Company Center > Company & Financials B. Report Center > Company & Financials C. Report Center > Accountant & Taxes D. Company Center > Accountant & Taxes

To record a credit purchase, use the: A. Purchase Order > Receive Payment > Deposit B. Invoice > Receive Payment > Deposit C. Enter Bills > Pay Bills D. Invoice > Enter Bills > Pay Bills

To record a cash purchase, use the: A. Pay Bills B. Write Check C. Purchase Order D. None of these

To email an invoice, click the Email icon on the top of the Create Invoices window. Then: A. Click the Vendor List B. Select Customer List and Select Email Choices C. Select Email Invoice if you use Yahoo only D. Select Email Invoice>Yes> Click Choose Your Email Method

To create a memorized transaction for a utility bill, first enter the transaction in QuickBooks, then click: A. Transactions menu > Memorize B. Enter Bills icon in the Vendors section of the Home Page > Memorize C. Vendors menu of Home Page > Memorize D. Lists menu > Vendors > Reminders

Adjusting entries are used to: A. Close temporary accounts at year end B. Close permanent accounts at year-end C. Bring account balances up to date at year end D. All of these

10. When closing the accounting period you: A. Close temporary accounts at year end B. Bring account balances up to date at year end C. Close permanent accounts at year-end D. All of these 11. All of the following are examples of recurring transactions, except: A. Depreciation B. Utilities C. Rent D. All of these 12. When you record the receipt of a customer payment QuickBooks reduces _______ and increases ________. A. Bank Account, Accounts Receivable B. Accounts Payable, Undeposited Funds C. Accounts Receivable, Undeposited Funds D. Accounts Receivable, Bank Account 13. Before making adjusting entries you must: A. Close permanent accounts B. Prepare the trial balance C. Close temporary accounts D. Print the balance sheet 14. Deposits may be recorded using the: A. Check Register window B. Write Checks window C. Reconcile window D. Print Checks window 15. To print multiple checks at one time, use: A. Banking menu > Write Checks > Print Checks B. Vendor menu > Print Forms > Print Checks C. File menu > Print Forms > Checks D. Banking menu > Print Forms > Checks 16. To record a sales transaction, use the: A. Create Purchase Order > Receive Payment > Make Deposit B. Create Invoices > Receive Payment > Make Deposits C. Create Invoices > Create Sales Receipts > Make Deposits D. Receive Payment > Create Sales Receipts > Make Deposits 17. When customer payments are recorded in the Receive Payments window, QuickBooks records: A. An increase in the Checking account B. An increase in Undeposited Funds account C. An increase in Accounts Receivable D. An increase in Sales

18. When customer payments are received and recorded, QuickBooks reduces the ________ balance. A. Accounts Payable B. Accounts Receivable C. Undeposited Funds D. Checking 19. To record adjusting entries, use: A. Report menu > General Journal Entries B. Accountant menu > Make General Journal Entries C. Banking menu > Make General Journal Entries D. Home > Journal Entries 20. To print the entire Journal, select: A. Report Center > Accountant & Taxes > Journal B. Company Center > Company & Financials > Journal C. Report Center > Company & Financials > Journal D. Company Center > Accountant & Taxes > Journal 21. To print the General Ledger, select: A. Report Center > Company & Financials > General Ledger B. Company Center > Company & Financials > General Ledger C. Report Center > Accountant & Taxes > General Ledger D. Company Center > Accountant & Taxes > General Ledger 22. QuickBooks automatically closes ________________ accounts to start each new year with a $0 balance in all _______________ accounts: A. temporary; permanent B. temporary; temporary C. permanent; permanent D. permanent; temporary 23. To print the Profit & Loss report, select: A. Report Center > Company & Financials B. Report Center > Accountant & Taxes C. Company Center > Company & Financials D. Company Center > Accountant & Taxes 24. To print the Statement of Cash Flows, select: A. Report Center > Company & Financials B. Report Center > Accountant & Taxes C. Company Center > Company & Financials D. Company Center > Accountant & Taxes 25. The following are examples of possible memorized transactions except: A. Rent payments B. Utility bills C. Special order for a customer D. None of these 26. Briefly explain the difference between a permanent and a temporary account.

27. Briefly explain how to record an owner's investment in their company.

Chapter 09 Key 1.

To record the payment of bills received from vendors, use the: A. Pay Bills > Write Checks B. Write Checks > Pay Bills C. Enter Bills > Print Checks D. Enter Bills > Pay Bills > Print Checks Accessibility: Keyboard Navigation Kay - Chapter 09 #1

Credit sales are recorded using the _________ window. A. Make Deposits B. Sales Receipts C. Create Invoices D. Receive Items Accessibility: Keyboard Navigation Kay - Chapter 09 #2

To print the Trial Balance, select: A. Report Center > Accountant & Taxes B. Company Center > Company & Financials C. Report Center > Company & Financials D. Company Center > Accountant & Taxes Accessibility: Keyboard Navigation Kay - Chapter 09 #3

To print the Balance Sheet, select: A. Company Center > Company & Financials B. Report Center > Company & Financials C. Report Center > Accountant & Taxes D. Company Center > Accountant & Taxes Accessibility: Keyboard Navigation Kay - Chapter 09 #4

To record a credit purchase, use the: A. Purchase Order > Receive Payment > Deposit B. Invoice > Receive Payment > Deposit C. Enter Bills > Pay Bills D. Invoice > Enter Bills > Pay Bills Accessibility: Keyboard Navigation Kay - Chapter 09 #5

To record a cash purchase, use the: A. Pay Bills B. Write Check C. Purchase Order D. None of these Accessibility: Keyboard Navigation Kay - Chapter 09 #6

Adjusting entries are used to: A. Close temporary accounts at year end B. Close permanent accounts at year-end C. Bring account balances up to date at year end D. All of these Accessibility: Keyboard Navigation Kay - Chapter 09 #9

10.

When closing the accounting period you: A. Close temporary accounts at year end B. Bring account balances up to date at year end C. Close permanent accounts at year-end D. All of these Accessibility: Keyboard Navigation Kay - Chapter 09 #10

11.

All of the following are examples of recurring transactions, except: A. Depreciation B. Utilities C. Rent D. All of these Accessibility: Keyboard Navigation Kay - Chapter 09 #11

12.

When you record the receipt of a customer payment QuickBooks reduces _______ and increases ________. A. Bank Account, Accounts Receivable B. Accounts Payable, Undeposited Funds C. Accounts Receivable, Undeposited Funds D. Accounts Receivable, Bank Account Accessibility: Keyboard Navigation Kay - Chapter 09 #12

13.

Before making adjusting entries you must: A. Close permanent accounts B. Prepare the trial balance C. Close temporary accounts D. Print the balance sheet Accessibility: Keyboard Navigation Kay - Chapter 09 #13

14.

Deposits may be recorded using the: A. Check Register window B. Write Checks window C. Reconcile window D. Print Checks window Accessibility: Keyboard Navigation Kay - Chapter 09 #14

15.

To print multiple checks at one time, use: A. Banking menu > Write Checks > Print Checks B. Vendor menu > Print Forms > Print Checks C. File menu > Print Forms > Checks D. Banking menu > Print Forms > Checks Accessibility: Keyboard Navigation Kay - Chapter 09 #15

16.

To record a sales transaction, use the: A. Create Purchase Order > Receive Payment > Make Deposit B. Create Invoices > Receive Payment > Make Deposits C. Create Invoices > Create Sales Receipts > Make Deposits D. Receive Payment > Create Sales Receipts > Make Deposits Accessibility: Keyboard Navigation Kay - Chapter 09 #16

17.

When customer payments are recorded in the Receive Payments window, QuickBooks records: A. An increase in the Checking account B. An increase in Undeposited Funds account C. An increase in Accounts Receivable D. An increase in Sales Accessibility: Keyboard Navigation Kay - Chapter 09 #17

18.

When customer payments are received and recorded, QuickBooks reduces the ________ balance. A. Accounts Payable B. Accounts Receivable C. Undeposited Funds D. Checking Accessibility: Keyboard Navigation Kay - Chapter 09 #18

19.

To record adjusting entries, use: A. Report menu > General Journal Entries B. Accountant menu > Make General Journal Entries C. Banking menu > Make General Journal Entries D. Home > Journal Entries Accessibility: Keyboard Navigation Kay - Chapter 09 #19

20.

To print the entire Journal, select: A. Report Center > Accountant & Taxes > Journal B. Company Center > Company & Financials > Journal C. Report Center > Company & Financials > Journal D. Company Center > Accountant & Taxes > Journal Accessibility: Keyboard Navigation Kay - Chapter 09 #20

21.

To print the General Ledger, select: A. Report Center > Company & Financials > General Ledger B. Company Center > Company & Financials > General Ledger C. Report Center > Accountant & Taxes > General Ledger D. Company Center > Accountant & Taxes > General Ledger Accessibility: Keyboard Navigation Kay - Chapter 09 #21

22.

QuickBooks automatically closes ________________ accounts to start each new year with a $0 balance in all _______________ accounts: A. temporary; permanent B. temporary; temporary C. permanent; permanent D. permanent; temporary Accessibility: Keyboard Navigation Kay - Chapter 09 #22

23.

To print the Profit & Loss report, select: A. Report Center > Company & Financials B. Report Center > Accountant & Taxes C. Company Center > Company & Financials D. Company Center > Accountant & Taxes Accessibility: Keyboard Navigation Kay - Chapter 09 #23

24.

To print the Statement of Cash Flows, select: A. Report Center > Company & Financials B. Report Center > Accountant & Taxes C. Company Center > Company & Financials D. Company Center > Accountant & Taxes Accessibility: Keyboard Navigation Kay - Chapter 09 #24

25.

The following are examples of possible memorized transactions except: A. Rent payments B. Utility bills C. Special order for a customer D. None of these Accessibility: Keyboard Navigation Kay - Chapter 09 #25

26.

Briefly explain the difference between a permanent and a temporary account. Temporary accounts (revenues, expenses, and withdrawals or dividends) hold information for a particular accounting period. They are closed to zero at the end of the period. Permanent accounts retain their balances throughout the operation of the company. Kay - Chapter 09 #26

27.

Briefly explain how to record an owner's investment in their company. To record an owner's investment record the deposit, add the owner as the "received from" entity. The amount is then added to the checking account and the owner's equity account or the owners' Capital Stock account. Kay - Chapter 09 #27

Chapter 09 Summary Category Accessibility: Keyboard Navigation Kay - Chapter 09

# of Questions 25 27

Chapter 10 Student: ___________________________________________________________________________

After creating a new QuickBooks data file for an existing company and entering all the existing balances, use an opening adjustment to move the balance in the _________ account to the Capital Stock account. A. Uncategorized Expenses B. Uncategorized Income C. Opening Balance Equity D. None of these

A law firm is an example of a _________ company. A. Service B. Retail Shop C. Manufacturing D. Product-based business

When you place an order for items from a vendor, which one of the following QuickBooks forms would you use? A. Create Invoice B. Purchase Order C. Receive Inventory D. None of these

When using QuickBooks, sales tax is: A. Calculated manually for each item sold B. Calculated for all items that are listed on an invoice C. Calculated automatically by QuickBooks for items flagged as taxable D. All of these

Retail customers: A. Pay no sales tax B. Pay sales tax C. Pay a manufacturing tax D. Pay sales tax on labor only

Inventory items received should be compared against: A. Purchase order B. Sales order C. Supplies inventory D. Sales receipt

When recording the sale of a product, which account is decreased? A. Inventory B. Accounts Receivable C. Notes Payable D. None of these

The purchasing cycle includes all of the following transactions except: A. Create a purchase order to order inventory B. Enter hours in the time sheet for stocking inventory C. Receive inventory items and record in the inventory account D. Enter bill in QuickBooks when bill is received

When setting up an existing company in QuickBooks, which of the following opening adjustments require journal entries? A. When accounts payable opening balances create Uncategorized Expenses B. When the Customer List is created C. When payroll entries are added D. None of these

10. The Chart of Accounts: A. Verifies the accounting system is in balance B. Helps detect errors C. Lists all accounts D. All of these 11. To see the account numbers in the Chart of Accounts, choose: A. Edit > Preferences > Accounting > Company Preferences B. Edit > Preferences > Desktop View > Company Preferences C. Edit > Preferences > General > My Preferences D. Edit > Preferences > General > Company Preferences 12. To add an existing opening balance to a new account, choose: A. New Account > Opening Balance B. Account Options > Enter Opening Balance C. Account > Opening Balance D. Edit Account > Enter Opening Balance 13. The cost of the inventory items sold is tracked in what account: A. Items Sold B. Cost of Goods Sold C. Cost of Materials D. Inventory Sold 14. When using QuickBooks, your accounting system includes which of the following steps: A. Enter vendor list B. Record transactions C. Prepare reports D. All of these 15. If the supplies on hand at the end of January totaled $200 and the Supplies on Hand account before adjustment is $900, what would be the adjustment at month-end? A. Reduce supplies on hand by $700; increase supplies expense by $700 B. Increase supplies on hand by $900; reduce supplies expense by $900 C. Reduce supplies on hand by $200; increase supplies expense by $200 D. Increase supplies on hand by $200; reduce supplies expense by $200 16. To customize your settings for preferences such as estimates, time tracking, sales orders, choose Desktop View > _______. A. Company Preferences B. My Preferences C. Color Preferences D. Scheme Options 17. A grocery store is an example of a _________ company. A. Service B. Retail C. Manufacturing D. Product-based business

18. When creating a new QuickBooks data file for an existing company, opening balances are added when you: A. Customize the Chart of Accounts B. Add vendors to the vendor list C. Add customers to the customer list D. Add inventory the item list 19. When creating a new QuickBooks data file for an existing company, QuickBooks automatically offsets accounts receivable balances with an entry to the: A. Uncategorized Expenses account B. Uncategorized Income account C. Opening Balance Equity account D. Capital Stock account 20. When creating a new QuickBooks data file for an existing company, QuickBooks automatically offsets accounts payable balances with an entry to the: A. Uncategorized Expenses account B. Uncategorized Income account C. Opening Balance Equity account D. Capital Stock account 21. When creating a new QuickBooks data file for an existing company, QuickBooks automatically offsets inventory item balances with an entry to the: A. Uncategorized Expenses account B. Uncategorized Income account C. Opening Balance Equity account D. Capital Stock account 22. The purchasing transaction cycle for a merchandising company is: A. Create Purchase Order > Receive Inventory > Record Bill > Pay Bill > Print Check B. Create Invoice > Receive Payment > Record Deposits C. Create Purchase Order > Receive Payment > Record Deposits D. Create Invoice > Receive Inventory > Pay Bill > Record Deposits 23. The sales transaction cycle for a merchandising company is: A. Create Purchase Order > Receive Inventory > Record Bill > Pay Bill > Print Check B. Create Invoice > Receive Payment > Record Deposits C. Create Purchase Order > Receive Payment > Record Deposits D. Create Invoice > Receive Inventory > Pay Bill > Record Deposits 24. QuickBooks classifies the sales tax rate as a(n): A. Customer List item B. Vendor List item C. Item not stored in the accounting system D. Inventory item (Item List) 25. Wholesale customers: A. Pay no sales tax B. Pay sales tax C. Pay a manufacturing tax D. Pay sales tax on labor only

26. Briefly explain how the supplies on hand account is adjusted at the end of the period.

27. Name 2 (two) differences between accounting for a service company and a retail shop.

Chapter 10 Key 1.

A law firm is an example of a _________ company. A. Service B. Retail Shop C. Manufacturing D. Product-based business Accessibility: Keyboard Navigation Kay - Chapter 10 #2

When you place an order for items from a vendor, which one of the following QuickBooks forms would you use? A. Create Invoice B. Purchase Order C. Receive Inventory D. None of these Accessibility: Keyboard Navigation Kay - Chapter 10 #3

Retail customers: A. Pay no sales tax B. Pay sales tax C. Pay a manufacturing tax D. Pay sales tax on labor only Accessibility: Keyboard Navigation Kay - Chapter 10 #5

Inventory items received should be compared against: A. Purchase order B. Sales order C. Supplies inventory D. Sales receipt Accessibility: Keyboard Navigation Kay - Chapter 10 #6

When recording the sale of a product, which account is decreased? A. Inventory B. Accounts Receivable C. Notes Payable D. None of these Accessibility: Keyboard Navigation Kay - Chapter 10 #7

10.

The Chart of Accounts: A. Verifies the accounting system is in balance B. Helps detect errors C. Lists all accounts D. All of these Accessibility: Keyboard Navigation Kay - Chapter 10 #10

11.

To see the account numbers in the Chart of Accounts, choose: A. Edit > Preferences > Accounting > Company Preferences B. Edit > Preferences > Desktop View > Company Preferences C. Edit > Preferences > General > My Preferences D. Edit > Preferences > General > Company Preferences Accessibility: Keyboard Navigation Kay - Chapter 10 #11

12.

To add an existing opening balance to a new account, choose: A. New Account > Opening Balance B. Account Options > Enter Opening Balance C. Account > Opening Balance D. Edit Account > Enter Opening Balance Accessibility: Keyboard Navigation Kay - Chapter 10 #12

13.

The cost of the inventory items sold is tracked in what account: A. Items Sold B. Cost of Goods Sold C. Cost of Materials D. Inventory Sold Accessibility: Keyboard Navigation Kay - Chapter 10 #13

14.

When using QuickBooks, your accounting system includes which of the following steps: A. Enter vendor list B. Record transactions C. Prepare reports D. All of these Accessibility: Keyboard Navigation Kay - Chapter 10 #14

15.

If the supplies on hand at the end of January totaled $200 and the Supplies on Hand account before adjustment is $900, what would be the adjustment at month-end? A. Reduce supplies on hand by $700; increase supplies expense by $700 B. Increase supplies on hand by $900; reduce supplies expense by $900 C. Reduce supplies on hand by $200; increase supplies expense by $200 D. Increase supplies on hand by $200; reduce supplies expense by $200 Accessibility: Keyboard Navigation Kay - Chapter 10 #15

16.

To customize your settings for preferences such as estimates, time tracking, sales orders, choose Desktop View > _______. A. Company Preferences B. My Preferences C. Color Preferences D. Scheme Options Accessibility: Keyboard Navigation Kay - Chapter 10 #16

17.

A grocery store is an example of a _________ company. A. Service B. Retail C. Manufacturing D. Product-based business Accessibility: Keyboard Navigation Kay - Chapter 10 #17

18.

When creating a new QuickBooks data file for an existing company, opening balances are added when you: A. Customize the Chart of Accounts B. Add vendors to the vendor list C. Add customers to the customer list D. Add inventory the item list Accessibility: Keyboard Navigation Kay - Chapter 10 #18

19.

When creating a new QuickBooks data file for an existing company, QuickBooks automatically offsets accounts receivable balances with an entry to the: A. Uncategorized Expenses account B. Uncategorized Income account C. Opening Balance Equity account D. Capital Stock account Accessibility: Keyboard Navigation Kay - Chapter 10 #19

20.

When creating a new QuickBooks data file for an existing company, QuickBooks automatically offsets accounts payable balances with an entry to the: A. Uncategorized Expenses account B. Uncategorized Income account C. Opening Balance Equity account D. Capital Stock account Accessibility: Keyboard Navigation Kay - Chapter 10 #20

21.

When creating a new QuickBooks data file for an existing company, QuickBooks automatically offsets inventory item balances with an entry to the: A. Uncategorized Expenses account B. Uncategorized Income account C. Opening Balance Equity account D. Capital Stock account Accessibility: Keyboard Navigation Kay - Chapter 10 #21

22.

The purchasing transaction cycle for a merchandising company is: A. Create Purchase Order > Receive Inventory > Record Bill > Pay Bill > Print Check B. Create Invoice > Receive Payment > Record Deposits C. Create Purchase Order > Receive Payment > Record Deposits D. Create Invoice > Receive Inventory > Pay Bill > Record Deposits Accessibility: Keyboard Navigation Kay - Chapter 10 #22

23.

The sales transaction cycle for a merchandising company is: A. Create Purchase Order > Receive Inventory > Record Bill > Pay Bill > Print Check B. Create Invoice > Receive Payment > Record Deposits C. Create Purchase Order > Receive Payment > Record Deposits D. Create Invoice > Receive Inventory > Pay Bill > Record Deposits Accessibility: Keyboard Navigation Kay - Chapter 10 #23

24.

QuickBooks classifies the sales tax rate as a(n): A. Customer List item B. Vendor List item C. Item not stored in the accounting system D. Inventory item (Item List) Accessibility: Keyboard Navigation Kay - Chapter 10 #24

25.

Wholesale customers: A. Pay no sales tax B. Pay sales tax C. Pay a manufacturing tax D. Pay sales tax on labor only Accessibility: Keyboard Navigation Kay - Chapter 10 #25

26.

Briefly explain how the supplies on hand account is adjusted at the end of the period. The supplies on hand account is an asset account because the supplies have future value. At the end of the period, a count is done to determine what supplies were used and what amount still remain. Then, an adjusting entry is created for the supplies used during the period as a supply expense. Kay - Chapter 10 #26

27.

Name 2 (two) differences between accounting for a service company and a retail shop. A merchandising company tracks inventory and cost of goods sold, where a service company tracks services and hours per project. Also, the accounts in the chart of accounts vary, for example a service company uses the unearned revenue account and a retail shop uses the merchandise sales account. Kay - Chapter 10 #27

Chapter 10 Summary Category Accessibility: Keyboard Navigation Kay - Chapter 10

# of Questions 25 27

Chapter 11 Student: ___________________________________________________________________________

To enable payroll: A. From the Company menu > Employees > Add Payroll B. From the Employee menu > Start Payroll C. From the Edit menu > Preferences > Payroll and Employees D. None of these

The steps in processing payroll include all of the following activities except: A. Write Checks B. Enter Time C. Print Checks D. Create Paychecks

The employer must match which of the following taxes paid by an employee: A. Medicare B. Federal Unemployment C. State Income Tax Withholding D. The employer must match all of these

When creating paychecks using QuickBooks, you deduct withholdings from employees' pay for all of the following except: A. State income taxes B. Medicare C. City income taxes D. None of these

When creating a new account to record a new loan, enter the loan amount as: A. an opening balance B. investment C. income D. a separate transaction

All of the following are payroll tax liabilities owed to outside agencies except: A. Federal Income Taxes B. Unemployment Taxes C. Net Pay D. State Income Taxes

Which order are payroll tasks are typically completed? A. Enter Time > Process Payroll Forms > Pay Employees > Pay Payroll Liabilities B. Enter Time > Pay Employees > Pay Payroll Liabilities > Process Payroll Forms C. Enter Time > Pay Payroll Liabilities > Process Payroll Forms > Pay Employees D. Enter Time > Pay Payroll Liabilities > Pay Employees > Process Payroll Forms

You can obtain a copy of Circular E to use for payroll preparation from: A. The Employee section of the Home page B. The Employee Center of the Home page C. The QuickBooks website D. The IRS website

The Payroll Summary report can be accessed from: A. The Employee section of the Home page B. The Reports Center > Employees & Payroll C. The Reports Center > Payroll Processing D. All of these

10. Taxes are withheld from paychecks for: A. Employees B. Independent Contractors C. Owner's withdrawals D. All of these 11. A short term loan to be repaid within one year is classified as a(n): A. Other Current Asset B. Other Current Liability C. Expense D. Owner's Due 12. The QuickBooks Tax Form Worksheets provide information to complete: A. Employee pay checks B. Sales tax forms C. Payroll tax forms D. The Income Statement 13. To view the payroll entry in the journal, go to Report Center > ________. A. Customers and Jobs B. Company and Financial C. Accountant and Taxes D. None of these 14. Which one of the following payroll services automatically calculates the tax deductions? A. QuickBooks Basic Payroll B. QuickBooks Assisted Payroll C. QuickBooks Enhanced Payroll D. All of these 15. Which form is used to manually calculate tax withholdings and payroll taxes? A. Form 940 B. Form 941 C. IRS Circular E D. None of these 16. Which icon is not in the Employees section of the Home page when a company file is set to use manual payroll calculations? A. Enter Time B. Pay Employees C. Pay Liabilities D. Payroll Forms 17. The QuickBooks Payroll Setup allows you to: A. Set employee defaults for information common to all employees B. Enter employee information C. Set the payment schedule for withholding payments D. All of these

18. The day the check is prepared is the: A. Check Date B. Pay Period End Date C. The last day the employee works in the pay period D. The last day of the pay period 19. When standard checks are used for pay checks, pay stubs are printed by selecting: A. Employee menu > Print Pay Stubs B. File menu > Print Forms > Pay Stubs C. Banking menu > Print Forms > Pay Stubs D. Company menu > Print Checks > Pay Stubs 20. Wages paid to an employee are recorded as: A. Payroll expense B. Payroll liabilities C. Payroll payable D. Payroll revenue 21. Withholdings from an employee paycheck are recorded as: A. Payroll expense B. Payroll liabilities C. Payroll asset D. Payroll revenue 22. Payroll taxes a company must pay are recorded as: A. Payroll expense B. Payroll liabilities C. Payroll payable D. Payroll revenue 23. Payroll liabilities are based on: A. Calendar months B. Pay period C. Check dates D. The company's fiscal year 24. The steps for manually processing payroll tax forms are: A. Click the Process Payroll Forms icon > Print the payroll tax forms B. Print management reports > Locate payroll tax forms > Transfer the amounts in the management reports to the tax forms C. Print financial statements > Locate payroll tax forms > Transfer the amounts in the financial statements to the tax forms D. Print payroll reports > Locate payroll tax forms > Transfer the amounts in the payroll reports to the tax forms 25. The Payroll Summary report: A. Summarizes the amounts paid to employees B. Summarizes the amounts paid in payroll taxes C. May be accessed using the Reports Center D. All of these 26. Briefly describe how you manually process payroll forms.

27. List 3 (three) types for payroll liabilities and who is responsible for funding them.

Chapter 11 Key 1.

To enable payroll: A. From the Company menu > Employees > Add Payroll B. From the Employee menu > Start Payroll C. From the Edit menu > Preferences > Payroll and Employees D. None of these Accessibility: Keyboard Navigation Kay - Chapter 11 #1

The steps in processing payroll include all of the following activities except: A. Write Checks B. Enter Time C. Print Checks D. Create Paychecks Accessibility: Keyboard Navigation Kay - Chapter 11 #2

The employer must match which of the following taxes paid by an employee: A. Medicare B. Federal Unemployment C. State Income Tax Withholding D. The employer must match all of these Accessibility: Keyboard Navigation Kay - Chapter 11 #3

When creating paychecks using QuickBooks, you deduct withholdings from employees' pay for all of the following except: A. State income taxes B. Medicare C. City income taxes D. None of these Accessibility: Keyboard Navigation Kay - Chapter 11 #4

When creating a new account to record a new loan, enter the loan amount as: A. an opening balance B. investment C. income D. a separate transaction Accessibility: Keyboard Navigation Kay - Chapter 11 #5

All of the following are payroll tax liabilities owed to outside agencies except: A. Federal Income Taxes B. Unemployment Taxes C. Net Pay D. State Income Taxes Accessibility: Keyboard Navigation Kay - Chapter 11 #6

You can obtain a copy of Circular E to use for payroll preparation from: A. The Employee section of the Home page B. The Employee Center of the Home page C. The QuickBooks website D. The IRS website Accessibility: Keyboard Navigation Kay - Chapter 11 #8

The Payroll Summary report can be accessed from: A. The Employee section of the Home page B. The Reports Center > Employees & Payroll C. The Reports Center > Payroll Processing D. All of these Accessibility: Keyboard Navigation Kay - Chapter 11 #9

10.

Taxes are withheld from paychecks for: A. Employees B. Independent Contractors C. Owner's withdrawals D. All of these Accessibility: Keyboard Navigation Kay - Chapter 11 #10

11.

A short term loan to be repaid within one year is classified as a(n): A. Other Current Asset B. Other Current Liability C. Expense D. Owner's Due Accessibility: Keyboard Navigation Kay - Chapter 11 #11

12.

The QuickBooks Tax Form Worksheets provide information to complete: A. Employee pay checks B. Sales tax forms C. Payroll tax forms D. The Income Statement Accessibility: Keyboard Navigation Kay - Chapter 11 #12

13.

To view the payroll entry in the journal, go to Report Center > ________. A. Customers and Jobs B. Company and Financial C. Accountant and Taxes D. None of these Accessibility: Keyboard Navigation Kay - Chapter 11 #13

14.

Which one of the following payroll services automatically calculates the tax deductions? A. QuickBooks Basic Payroll B. QuickBooks Assisted Payroll C. QuickBooks Enhanced Payroll D. All of these Accessibility: Keyboard Navigation Kay - Chapter 11 #14

15.

Which form is used to manually calculate tax withholdings and payroll taxes? A. Form 940 B. Form 941 C. IRS Circular E D. None of these Accessibility: Keyboard Navigation Kay - Chapter 11 #15

16.

Which icon is not in the Employees section of the Home page when a company file is set to use manual payroll calculations? A. Enter Time B. Pay Employees C. Pay Liabilities D. Payroll Forms Accessibility: Keyboard Navigation Kay - Chapter 11 #16

17.

The QuickBooks Payroll Setup allows you to: A. Set employee defaults for information common to all employees B. Enter employee information C. Set the payment schedule for withholding payments D. All of these Accessibility: Keyboard Navigation Kay - Chapter 11 #17

18.

The day the check is prepared is the: A. Check Date B. Pay Period End Date C. The last day the employee works in the pay period D. The last day of the pay period Accessibility: Keyboard Navigation Kay - Chapter 11 #18

19.

When standard checks are used for pay checks, pay stubs are printed by selecting: A. Employee menu > Print Pay Stubs B. File menu > Print Forms > Pay Stubs C. Banking menu > Print Forms > Pay Stubs D. Company menu > Print Checks > Pay Stubs Accessibility: Keyboard Navigation Kay - Chapter 11 #19

20.

Wages paid to an employee are recorded as: A. Payroll expense B. Payroll liabilities C. Payroll payable D. Payroll revenue Accessibility: Keyboard Navigation Kay - Chapter 11 #20

21.

Withholdings from an employee paycheck are recorded as: A. Payroll expense B. Payroll liabilities C. Payroll asset D. Payroll revenue Accessibility: Keyboard Navigation Kay - Chapter 11 #21

22.

Payroll taxes a company must pay are recorded as: A. Payroll expense B. Payroll liabilities C. Payroll payable D. Payroll revenue Accessibility: Keyboard Navigation Kay - Chapter 11 #22

23.

Payroll liabilities are based on: A. Calendar months B. Pay period C. Check dates D. The company's fiscal year Accessibility: Keyboard Navigation Kay - Chapter 11 #23

24.

The steps for manually processing payroll tax forms are: A. Click the Process Payroll Forms icon > Print the payroll tax forms B. Print management reports > Locate payroll tax forms > Transfer the amounts in the management reports to the tax forms C. Print financial statements > Locate payroll tax forms > Transfer the amounts in the financial statements to the tax forms D. Print payroll reports > Locate payroll tax forms > Transfer the amounts in the payroll reports to the tax forms Accessibility: Keyboard Navigation Kay - Chapter 11 #24

25.

The Payroll Summary report: A. Summarizes the amounts paid to employees B. Summarizes the amounts paid in payroll taxes C. May be accessed using the Reports Center D. All of these Accessibility: Keyboard Navigation Kay - Chapter 11 #25

26.

Briefly describe how you manually process payroll forms. To manually process payroll forms, print the appropriate payroll reports in QuickBooks, open the payroll tax forms form the IRS website, fill out the tax forms on screen using the information from the QuickBooks reports, print the completed payroll tax. Kay - Chapter 11 #26

27.

List 3 (three) types for payroll liabilities and who is responsible for funding them. Federal Income Taxes - employee, State Income Taxes - employee, FICA (Medicare and Social Security) - both employee and employer, Unemployment Taxes - employer. Kay - Chapter 11 #27

Chapter 11 Summary Category Accessibility: Keyboard Navigation Kay - Chapter 11

# of Questions 25 27

Chapter 12 Student: ___________________________________________________________________________

To create a budget: A. From the Company Center, select Company & Financials, Budgets B. From the Company menu, select Planning & Budgeting, Set Up Budgets C. From the Edit menu, select Preferences, Set Up Budgets D. From the Banking menu, select Planning & Budgets, Budgets

To print a budget: A. From the Report Center, select Budgets & Forecasts B. From the Company Center, select Company & Financials, Budgets C. From the Report Center, select Company & Financials, Budgets D. From the Report Center, select Accountant & Taxes, Budgets

When creating a budget in QuickBooks, you can: A. Create a budget that increases each monthly amount by a specific percentage B. Create a budget from previous year's actual data C. Create a budget from scratch D. All of these

You would use which QuickBooks feature to prepare a bid for a potential customer? A. Progress Billing B. Estimates C. Enter Bills D. Invoice

Customer payments received on progress invoices are: A. Recorded using the Check Register B. Recorded using the Statement icon in the Customer section of the Home page C. Recorded in the same manner as customer payments for standard invoices D. Recorded using the Progress Invoices icon in the Customer section of the Home page

A credit card payment received against/on an open invoice would be recorded as: A. Using the Statements icon in the Customers section of the Home page B. Using the Receive Payments icon in the Customers section of the Home page C. Using the Credit Card icon in the Banking section of the Home page D. None of these

The audit trail lists: A. All deleted transactions B. All changes to transactions C. User ID of person entering transactions D. All of these

To print an audit trail report: A. Select Report menu > Company & Financials > Audit Trail B. Select the Audit Trail icon in the Company Center C. Select Report Center > Accountant & Taxes > Audit Trail D. Select the Audit Trail report from the Company section of the Home page

Which of the following file extensions identifies an accountant's copy file? A. .QBX B. .QBW C. .QBB D. .QBM

10. When doing business in multiple currencies, QuickBooks allows you to: A. Apply currency conversions automatically B. Download the current currency exchange rates C. Specify your home currency D. All of these 11. For long-term projects that are to be billed, as each stage of the project is complete, the QuickBooks _________ feature should be used. A. Progressive Projects B. Long Term Projects C. Projects Billing D. Progress Billing 12. QuickBooks can export reports to all of the following types for files except: A. Numbers Document B. Excel Document C. Comma Delimited D. Adobe PDF 13. To write off a transaction that was charged a sales tax: A. use a journal entry to move the customer's balance (credit) to the Bad Debt Expense account (debit) B. use a journal entry to move the customer's balance (credit) to Allowance for Uncollectable Accounts (debit) C. use the Credit Memo window D. use the Receive Payments window (Discount Info button) 14. In QuickBooks, budget types include: A. Profit & Loss B. Balance Sheet C. Both profit & loss and balance sheet D. None of these 15. Progress Invoicing is turned on by going to Edit > Preferences > ____________. A. Jobs and Estimates B. Bills C. Sales and Customers D. Time and Expenses 16. Which of the following identifies a QuickBooks backup company file: A. .QBB B. .QBM C. .QBW D. .QBX 17. Which of the following identifies a QuickBooks portable company file: A. .QBB B. .QBM C. .QBW D. .QBX 18. If the Estimates icon does not appear on your screen in QuickBooks, select: A. Edit menu > Preferences > Jobs and Estimates > Company Preferences B. Customer menu > Jobs > Estimates C. Company menu > Estimates > Preferences D. Company menu > Preferences > Estimates

19. To enable progressive billing, select: A. Customer menu > Jobs > Progressive Billing B. Company menu > Preferences > Progressive Billing C. Edit menu > Preferences > Jobs and Estimates > Company Preferences D. Company menu > Estimates > Preferences 20. QuickBooks Go Payment: A. Is an Intuit app that connects you to your QuickBooks software. B. Allows you to collect customer payments on the go. C. To use: connects a credit card reader to your mobile device. D. All of these 21. When recording a credit card sale using QuickBooks, select: A. Create Invoice > Customer Payment > Customer & Job Name B. Make Deposit C. Create Sales Receipt > Record Deposits D. Receive Payment > Select Customer & Job Name > Select Payment Method and enter credit card information 22. The Allowance Method for bad debts: A Should be used if uncollectible accounts have a material effect on the company's financial statements . used by investors and creditors B. Complies with GAAP C. Estimates bad debt expense and establishes an allowance or reserve for uncollectible D. All of these 23. The Direct Write-off Method for bad debts: A Removes a customer's uncollectible account receivable and records a bad debt expense and is recorded . at the time a specific customer's account becomes uncollectible B. Complies with GAAP C. Estimates bad debt expense and establishes an allowance or reserve for uncollectible D. None of these 24. The Docs Center: A. Helps you to organize your accounting and business documents within QuickBooks software. B. Is accessed by clicking on the Docs icon in My Shortcuts. C. Offers you the ability to attach an electronic version of a document to a QuickBooks transaction. D. All of these. 25. QuickBooks Mobile App: A. Allows you to see who owes you money, permitting you to view and add invoices. B. Allows you to create and email sales receipts to customers. C. Allows you to add new customer information on the go and then synced to your QuickBooks software. D. All of these 26. Briefly explain the direct write off method for accounting for bad debts.

27. Briefly explain the allowance method for accounting for bad debts.

Chapter 12 Key 1.

You would use which QuickBooks feature to prepare a bid for a potential customer? A. Progress Billing B. Estimates C. Enter Bills D. Invoice Accessibility: Keyboard Navigation Kay - Chapter 12 #4

The audit trail lists: A. All deleted transactions B. All changes to transactions C. User ID of person entering transactions D. All of these Accessibility: Keyboard Navigation Kay - Chapter 12 #7

Which of the following file extensions identifies an accountant's copy file? A. .QBX B. .QBW C. .QBB D. .QBM Accessibility: Keyboard Navigation Kay - Chapter 12 #9

10.

When doing business in multiple currencies, QuickBooks allows you to: A. Apply currency conversions automatically B. Download the current currency exchange rates C. Specify your home currency D. All of these Accessibility: Keyboard Navigation Kay - Chapter 12 #10

11.

For long-term projects that are to be billed, as each stage of the project is complete, the QuickBooks _________ feature should be used. A. Progressive Projects B. Long Term Projects C. Projects Billing D. Progress Billing Accessibility: Keyboard Navigation Kay - Chapter 12 #11

12.

QuickBooks can export reports to all of the following types for files except: A. Numbers Document B. Excel Document C. Comma Delimited D. Adobe PDF Accessibility: Keyboard Navigation Kay - Chapter 12 #12

13.

To write off a transaction that was charged a sales tax: A. use a journal entry to move the customer's balance (credit) to the Bad Debt Expense account (debit) B. use a journal entry to move the customer's balance (credit) to Allowance for Uncollectable Accounts (debit) C. use the Credit Memo window D. use the Receive Payments window (Discount Info button) Accessibility: Keyboard Navigation Kay - Chapter 12 #13

14.

In QuickBooks, budget types include: A. Profit & Loss B. Balance Sheet C. Both profit & loss and balance sheet D. None of these Accessibility: Keyboard Navigation Kay - Chapter 12 #14

15.

Progress Invoicing is turned on by going to Edit > Preferences > ____________. A. Jobs and Estimates B. Bills C. Sales and Customers D. Time and Expenses Accessibility: Keyboard Navigation Kay - Chapter 12 #15

16.

Which of the following identifies a QuickBooks backup company file: A. .QBB B. .QBM C. .QBW D. .QBX Accessibility: Keyboard Navigation Kay - Chapter 12 #16

17.

Which of the following identifies a QuickBooks portable company file: A. .QBB B. .QBM C. .QBW D. .QBX Accessibility: Keyboard Navigation Kay - Chapter 12 #17

18.

If the Estimates icon does not appear on your screen in QuickBooks, select: A. Edit menu > Preferences > Jobs and Estimates > Company Preferences B. Customer menu > Jobs > Estimates C. Company menu > Estimates > Preferences D. Company menu > Preferences > Estimates Accessibility: Keyboard Navigation Kay - Chapter 12 #18

19.

To enable progressive billing, select: A. Customer menu > Jobs > Progressive Billing B. Company menu > Preferences > Progressive Billing C. Edit menu > Preferences > Jobs and Estimates > Company Preferences D. Company menu > Estimates > Preferences Accessibility: Keyboard Navigation Kay - Chapter 12 #19

20.

QuickBooks Go Payment: A. Is an Intuit app that connects you to your QuickBooks software. B. Allows you to collect customer payments on the go. C. To use: connects a credit card reader to your mobile device. D. All of these Accessibility: Keyboard Navigation Kay - Chapter 12 #20

21.

When recording a credit card sale using QuickBooks, select: A. Create Invoice > Customer Payment > Customer & Job Name B. Make Deposit C. Create Sales Receipt > Record Deposits D. Receive Payment > Select Customer & Job Name > Select Payment Method and enter credit card information Accessibility: Keyboard Navigation Kay - Chapter 12 #21

22.

The Allowance Method for bad debts: A.Should be used if uncollectible accounts have a material effect on the company's financial statements used by investors and creditors B. Complies with GAAP C. Estimates bad debt expense and establishes an allowance or reserve for uncollectible D. All of these Accessibility: Keyboard Navigation Kay - Chapter 12 #22

23.

The Direct Write-off Method for bad debts: A Removes a customer's uncollectible account receivable and records a bad debt expense and is . recorded at the time a specific customer's account becomes uncollectible B. Complies with GAAP C. Estimates bad debt expense and establishes an allowance or reserve for uncollectible D. None of these Accessibility: Keyboard Navigation Kay - Chapter 12 #23

24.

The Docs Center: A. Helps you to organize your accounting and business documents within QuickBooks software. B. Is accessed by clicking on the Docs icon in My Shortcuts. C. Offers you the ability to attach an electronic version of a document to a QuickBooks transaction. D. All of these. Accessibility: Keyboard Navigation Kay - Chapter 12 #24

25.

QuickBooks Mobile App: A. Allows you to see who owes you money, permitting you to view and add invoices. B. Allows you to create and email sales receipts to customers. C. Allows you to add new customer information on the go and then synced to your QuickBooks software. D. All of these Accessibility: Keyboard Navigation Kay - Chapter 12 #25

26.

Briefly explain the direct write off method for accounting for bad debts. The direct write of method of accounting for bad debts writes off bad debt once it is apparent the customer is not going to pay. The amount due is taken off the accounts receivable and expensed. Kay - Chapter 12 #26

27.

Briefly explain the allowance method for accounting for bad debts. The allowance method of account for bad debts estimates bad debt and establishes a reserve for possibly uncollectable accounts. Often, a percentage of sales is used. Kay - Chapter 12 #27

Chapter 12 Summary Category Accessibility: Keyboard Navigation Kay - Chapter 12

# of Questions 25 27