Test Bank for Computer Accounting with QuickBooks® 2021, 20th Edition Donna Kay. by welldoneassistant

CHAPTER 1 1) In which section of the Home Page would you look for the icon to access the Chart of Accounts? A) Vendor section B) Banking section C) Company section D) Customer section

2) Which of the following tasks cannot be completed in the Vendors section of the Home Page? A) Receive Payments B) Create Purchase Order C) Receive Inventory D) Enter Bill

3) All of the following are one of the four main categories of transactions in QuickBooks except: A) Customers and sales B) Vendors and expenses C) Reports and Graphs D) Banking

Ways to navigate QuickBooks include:

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A) Menus B) Icon Bar C) Home Page D) All the choices are correct

Which of the following tasks can be completed in the Vendors section of the Home page? A) Create Invoices B) Create Estimates C) Write Checks D) Receive Payments

The Chart of Accounts can be accessed in which of the following ways? A) Company section of the Home Page B) Company menu C) Report Center D) All the choices are correct

7) To change a company name in QuickBooks, select the following from My Shortcuts on the Navigation (Icon) Bar: A) Company > Preferences B) My Company > Edit C) Home > Edit > Preferences D) None of the choices are correct

Which of the following file types identifies a QuickBooks Backup file?

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A) QBM B) QBB C) QBW D) QBX

9) Which one of the following activities is associated with the Customers section of the Home Page? A) Pay sales tax B) Enter bills C) Create invoice D) Create purchase order

10)

The Home Page in QuickBooks consists of all the following sections except: A) Employee B) Preferences C) Customer D) Vendor

11)

Which of the following tasks is completed from the Banking section of the Home Page? A) Pay employees B) Write checks C) Enter bills D) Pay bills

12)

Accounting information is used to do all of the following except:

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A) Prepare financial statements for investors B) Prepare tax returns for the IRS C) Prepare reports for management D) Accounting information is used for all of the choices

13)

Most accounting systems consist of which of the following components: A) Input B) Processing C) Output D) All the choices are correct

14)

A QuickBooks QBB file: A) Can be opened and used by simply clicking on the QBB file B) Is a compressed file that must be restored as a QBW file before transactions can be

entered C) Is a compressed file that can be unzipped using any unzip software application D) All the choices are correct

15)

Which type of QuickBooks data file allows you to enter data and transactions? A) QBM B) QBB C) QBW D) QBX

16)

Which financial statement below summarizes the financial position of a company?

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A) Statement of Cash Flows B) Profit & Loss Statement C) Income Statement D) Balance Sheet

17)

Which financial statement below summarizes a company’s earnings? A) Statement of Cash Flows B) Cash Flow Forecast C) Balance Sheet D) Profit & Loss Statement

18)

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) Cash Flow Forecast

19)

Reports for managers can help to identify: A) Overdue customer accounts B) Least profitable product C) Most profitable product D) All the choices are correct

20) Which one of the following activities is not associated with the Employees section of the Home Page? Version 1

A) Make Deposits B) Pay Payroll Liabilities C) Process Payroll Forms D) Enter Time

21)

Required:

List the 2 (two) main different types of QuickBooks files. What is the purpose of each file type?

22)

Required:

Name 2 (two) of the 5 sections on the QuickBooks Home Page and briefly describe what activities can be performed from those sections.

23)

Required:

Briefly explain the differences between a QuickBooks QBB file and a QBW file.

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Answer Key Test name: Chap 01_2021 1) C 2) A 3) C 4) D 5) C 6) D 7) B 8) B 9) C 10) B 11) B 12) D 13) D 14) B 15) C 16) D 17) D 18) A 19) D 20) A

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CHAPTER 2 1)

How do you access the screen to add a user and password? A) Company Menu > Set Up Users and Passwords > Set Up Users B) Edit Menu > Preferences > Employees C) Employees > Employee Center 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 the choices are correct

Which account below is not an Expense account? A) Utilities B) Insurance C) Accounts Receivable D) Advertising

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

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The Income Statement: A) Lists the accounts and account numbers B) Lists a company’s assets C) Summarizes the results of a company’s operations, listing income and expenses D) Summarizes what a company owns and what it owes

Which of the following is a temporary account? A) Building B) Utilities Expense C) Accounts Payable D) Accounts Receivable

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

To add a new account to the Chart of Accounts: A) From the Chart of Accounts window, select Account > New B) From the Company menu, select New Account C) From the Home Page, select Account > New D) From the Lists Menu, select New > Account

What is the purpose of a non-posting account?

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A) To calculate income. B) To track information necessary for the accounting system. C) To calculate expenses. D) To identify owner’s equity.

10)

Which of the following is considered a permanent account? A) Income accounts B) Expense accounts C) Asset accounts D) None of the choices are correct

11)

A company’s office building is classified as what account type? A) Expense B) Owner’s Equity C) Fixed Asset D) Income

12)

Which of the following is not considered an asset account in QuickBooks? A) Inventory B) Rent Expense C) Accounts Receivable D) Office Furniture

13)

To re-sort the Chart of Accounts, first display the Chart of Accounts window, then:

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A) Click on the Company heading bar B) Click File > Sort C) Click Account > Re-sort List D) Right click > Sort by Name

14)

Balance Sheet accounts are also called: A) Permanent accounts B) Temporary accounts C) Equity accounts D) None of the choices are correct

15)

Income Statement accounts are also called: A) Equity accounts B) Permanent accounts C) Temporary accounts D) None of the choices are correct

16)

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 the choices are correct

17)

The different types of business ownership are:

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A) Sole proprietorship B) Partnership C) Corporation D) All the choices are correct

18)

Which of the following accounts is an asset? A) Mortgage Payable B) Accounts Payable C) Checking D) Unearned Revenue

19)

Which of the following is a liability? A) The amount an owner withdraws from a company B) An amount a company owes C) A resource a company owns D) An amount an owner invests in the company

20)

Which of the following increases owner’s equity? A) Dividends B) Business losses C) Business expenses D) Business profits

21)

Required:

Briefly explain the difference between a permanent and a temporary account. Version 1

22)

Required:

Briefly explain the purpose and benefits of limiting user access in QuickBooks, providing at least one example of the type of employee for which limiting user access might be appropriate.

23)

Required:

Briefly explain the purpose of account numbers as used in a Chart of Accounts. List three advantages of using account numbers.

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Answer Key Test name: Chap 02_2021 1) A 2) D 3) C 4) B 5) C 6) B 7) B 8) A 9) B 10) C 11) C 12) B 13) C 14) A 15) C 16) D 17) D 18) C 19) B 20) D

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CHAPTER 3 1)

QuickBooks lists include all of the following except: A) Customer List B) Item List C) Owner List D) Vendor List

In QuickBooks, information about transactions can be entered in onscreen forms, such as: A) Profit and Loss report B) Invoice C) Owner List D) None of the choices are correct

Which of the following transactions is considered a Customers and Sales transaction? A) Receive Payment B) Purchase Order C) Pay Bills D) Check

Which of the following transactions is considered a Vendors and Expenses transaction? A) Invoice B) Receive Payment C) Enter Bills D) Make Deposit

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QuickBooks lists include: A) Customer List B) Vendor List C) Item List D) All the choices are correct

6) All of the following are considered one of the four main categories of transactions in QuickBooks except? A) Customers B) Vendors C) Banking D) Owners

Which of the following is considered a QuickBooks Banking transaction? A) Write checks B) Receive payments C) Enter bills D) Pay bills

Which of the following is considered a Vendor transaction? A) Create invoices B) Create estimates C) Enter bills D) Receive payments

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Which of the following is considered a Customer transaction? A) Pay sales tax B) Enter bills C) Create invoice D) Write checks

10)

The Item List can be accessed from which section of the Home Page? A) Banking B) Customers C) Vendors D) Company

11) Which of the following QuickBooks features can be used to save a transaction that will be re-used in the future? A) Saved reports B) Create icon C) Repeat transactions D) Memorized transactions

12)

To use a memorized transaction, select: A) Lists Menu > Memorized Transaction List B) Navigation Bar > Recurring Transaction List C) Company section of the Home Page > Saved Transactions D) All of the choices are correct

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13) Double-entry accounting records exchanges in a transaction with debits and credits. Which of the following is recorded when a company purchases a computer and pays cash? A) The computer is recorded with a credit and the cash is recorded with a credit B) The computer is recorded with a debit and the cash is recorded with a debit C) The computer is recorded with a credit and the cash is recorded with a debit D) The computer is recorded with a debit and the cash is recorded with a credit

14) The onscreen form for recording bills received is accessed from which section of the Home Page? A) Vendors B) Customers C) Employees D) Banking

15) The Banking section of the Home Page includes which of the following banking transactions? A) Write Checks B) Enter Bills C) Pay Bills D) Receive Payments

16)

Customer transactions include which of the following?

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A) Write Checks B) Enter Bills C) Pay Bills D) Receive payments

17)

Vendor transactions include which of the following? A) Enter Credit Card Charges B) Enter Bills C) Make Deposits D) Receive Payments

18) When a customer deposit is recorded using the Make Deposits window, behind the screen QuickBooks converts the transactions into a journal entry that: A) Debits Checking account, Credits Undeposited Funds B) Credits Checking account, Debits Undeposited Funds C) Debits Checking account, Credits Accounts Receivable D) Debits Accounts Receivable, Credits Checking account

19) that:

When a bill is entered using the Enter Bills window, QuickBooks records a journal entry

A) Debits Checking account, Credits Expense account B) Credits Expense account, Debits Checking account C) Debits Expense account, Credits Accounts Payable D) Debits Accounts Payable, Credits Checking account

20)

When a bill is paid using the Pay Bills window, QuickBooks records a journal entry that:

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A) Debits Checking account, Credits Undeposited Funds B) Credits Checking account, Debits Accounts Payable C) Debits Expense account, Credits Accounts Payable D) Debits Accounts Receivable, Credits Checking account

21)

In QuickBooks, how do you enter transaction information? A) Onscreen Journal and onscreen forms B) Onscreen Journal and QuickBooks reports C) Onscreen forms and QuickBooks reports D) None of the choices are correct

22) and:

A business transaction is an exchange that can occur between the QuickBooks company

A) Vendor B) Employee C) Customer D) All the choices are correct

23)

Required:

What are the three main parts or processes of QuickBooks SatNav?

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24)

Required:

List 4 main types of QuickBooks transactions.

25)

Required:

Discuss the two main ways of entering information into QuickBooks. Why are two different ways necessary for entering information? What are the advantages and disadvantages of each method?

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Answer Key Test name: Chap 03_2021 1) C 2) B 3) A 4) C 5) D 6) D 7) A 8) C 9) C 10) D 11) D 12) A 13) D 14) A 15) A 16) D 17) B 18) A 19) C 20) B 21) A 22) D

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CHAPTER 4 1)

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

2) All of the following tasks can be completed in the Banking section of the Home Page except: A) Pay Bills B) Reconcile Checking accounts C) Write Checks D) Record Deposits

3) The Enter Bills > Pay Bills (two-step) approach for paying bills can be used for which of the following? A) Sales receipts B) Deposit of customer payments C) Rent Payments D) All of the choices are correct

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

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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 B) To 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 C) To 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 D) None of the choices are correct

The 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 the choices are correct

7) In the Check Register, the term “split” indicates the payment is split between two or more: A) Purchase orders B) Invoices C) Checks D) Accounts

When deleting a check all of the following is true except:

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A) The deleted check no longer appears in the check register B) It is better to delete the check than void the check in order to erase all records of the transaction C) QuickBooks changes the amount deducted in the check register to zero D) It is better to void the check than delete the check in order to preserve a record of the transaction

9) 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) Outstanding checks C) Deposits recorded by the bank D) Errors

10)

When reconciling the bank statement using QuickBooks:

A) Service charges are added B) Interest earned is subtracted C) All deposits listed on the bank statement are selected as cleared in the Reconcile window D) All the choices are correct

11) When the balance of an asset account, such as Accounts Receivable, decreases, it means that the account has been: A) Credited B) Debited C) Reconciled D) None of the choices are correct

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12) When the balance of an equity account, such as Capital Stock, decreases, it means that the account has been: A) Debited B) Credited C) Deposited D) None of the choices are correct

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 Deposits in transit and Outstanding Checks

14)

A business Checking account may be used for which of the following purchases? A) Insurance for the owner’s home B) Insurance for the office 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) Make Deposits D) Pay Bills

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16)

The Write Checks approach to bill paying: A) Pays the bill and then records the bill later B) Records a bill when received and pays the bill later C) Records and pays a bill at the same time D) Is not supported by QuickBooks

17)

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)

18)

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)

19)

One of the objectives of the bank reconciliation is: A) Pay bills B) Detect errors C) Insure the debits equal credits D) None of the choices are correct

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20)

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

21)

Required:

Briefly describe the QuickBooks drill-down feature and its advantages.

22)

Required:

List 4 (four) types of bills that should not be paid using the Write Checks window.

23)

Required:

List 5 (five) different types of accounts, the normal balance of the type of account (debit or credit), and how the account is increased (debit or credit).

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Answer Key Test name: Chap 04_2021 1) D 2) A 3) C 4) C 5) C 6) D 7) D 8) B 9) B 10) C 11) A 12) A 13) D 14) B 15) C 16) C 17) B 18) C 19) B 20) C

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CHAPTER 5 1)

To record a customer sale on account, select: A) Create Purchase Order B) Make Deposit C) Create Estimates D) Create Invoices

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

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 Customers List in QuickBooks can be accessed from all of the following except: A) Company section of the Home Page B) Customers section of the Home Page C) Customers Menu D) Customers Center

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To record a sales transaction, use: 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

Credit sales to customers are: A) Recorded using the Enter Bills window B) Recorded in a Credit Card Sales window C) Recorded using the Create Sales Receipts window D) Recorded using a Create Invoices window

7) What QuickBooks activity comes next in the this series of business activities: Create Invoice > _______ > Make Deposits A) Receive Payments B) Create Sales Receipts C) Pay Bills D) Create Estimates

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 Receivable C) An increase to Sales and an increase to Accounts Payable D) A decrease to Sales and a decrease to Accounts Payable

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

10)

Which report provides information to help in tracking accounts receivable? A) Customers with Open Invoices B) Accounts Receivable Aging Detail C) Collections Reports D) All the choices are correct

11)

Sales in QuickBooks can be recorded with all 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 the following QuickBooks features, except: A) Accounts Receivable Aging Report B) Customers with Open Invoices Report C) Collections Report D) Accounts Payable Aging Report

13)

To create the Income by Customer Summary report:

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A) Select Reports Center > Customer & Sales B) Select Customers Center > Income by Customer C) Select Company Center > Customers & Sales D) Select Reports Center > Company & Financials

14) Which one of the following activities is not shown in the Customers section of the Home Page? A) Receive Payments B) Make Deposits C) Create Invoices D) Create Sales Receipts

15)

To add a new job to the Customers List: A) Select Customers Menu > Click Add Job B) Select Customers Center window > Click New Customer & Job C) Select the Customers List icon from the Customers section of the Home Page D) Select Reports Center > Add Customer

16)

The Job Profitability Summary Report is accessed from the: A) Reports Center B) Vendor Center C) Employee Center D) Company Center

17)

To create the Aging of Accounts Receivable report:

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A) Select Customers Center > Customers & Receivables B) Select Company Center > Customers & Receivables C) Select Reports Center > Customers & Receivables D) Select Reports Center > Company & Financials

18)

The Undeposited Funds account contains: A) Only partial payments received from customers B) Funds received from customers but not deposited in the bank C) Funds the company owes vendors D) Petty Cash funds

19) When an invoice is created in QuickBooks using the Create Invoices window, QuickBooks: A) Decreases a Sales account and decreases the Checking account B) Increases a Sales account and increases the Accounts Receivable account C) Increases the Accounts Receivable account and increases the Checking account D) Decreases the Accounts Payable account and increases the Checking account

20) The journal entry behind the screen that QuickBooks creates when a customer’s payment is received and recorded using the Receive Payment window includes: A) Debit Accounts Receivable; Credit Checking account B) Debit Checking account; Credit Accounts Receivable C) Debit Undeposited Funds account; Credit Accounts Receivable D) Debit Accounts Receivable; Credit Undeposited Funds account

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21)

Required:

Briefly explain the difference between creating a sales receipt and creating an invoice.

22)

Required:

Briefly explain why it is important for a company to track accounts receivable and how accounts receivable reports can assist with tracking accounts receivable.

23)

Required:

List and two different methods of accounting for bad debits (uncollectible accounts) and briefly explain how the two methods differ.

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Answer Key Test name: Chap 05_2021 1) D 2) B 3) C 4) A 5) B 6) D 7) A 8) B 9) D 10) D 11) D 12) D 13) D 14) B 15) B 16) A 17) C 18) B 19) B 20) C

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CHAPTER 6 1)

QuickBooks considers all of the following to be vendors except: A) Financial institutions such as banks B) Suppliers of inventory and supplies C) Tax agencies such as the IRS D) Employees

QuickBooks considers all of the following to be vendors except: A) Suppliers B) Financial institutions C) Utility companies D) Customers purchasing goods

Which one of the following is a vendor transaction? A) Make deposits B) Enter bills C) Receive customer payments D) Sell products to customers

Which one of the following is not a vendor transaction? A) Purchase legal services B) Purchase tax accounting services C) Create invoices to record sales D) Receive and enter bills for office supplies

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Which one of the following tasks is shown in the Vendors section of the Home Page? A) Write Checks B) Receive Payments C) Enter Bills D) Make Deposits

The Enter Bills window is used to record which one of the following transactions? A) Services received but not yet paid B) Owners’ investment C) Items sold to customers D) Customer invoices created

7) Which one of the following tasks is associated with the Vendors section of the Home Page? A) Items & Services B) Invoices C) Receive Inventory D) None of the choices are correct

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

Which report summarizes accounts payable balances by the age of the account?

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A) Accounts Receivable Aging Detail B) Accounts Payable Aging Summary C) Purchases by Vendor Summary D) Purchases by Item Summary

10) Which one of the following reports helps track past due bills and bills that are due shortly? A) Customer Aging Summary B) Accounts Payable Aging Detail C) Accounts Receivable Aging Summary D) Vendor Aging Report

11)

Vendor reports can be accessed in QuickBooks in all of the following ways except: A) Reports Center B) Vendors Center C) Reports Menu D) All the choices are correct

12)

Which order of tasks is used when purchasing services? A) Enter Bills > Pay Bills B) Enter Invoice > Write Check C) Create Purchase Order > Receive Bill > Enter Bill > Pay Bills D) Enter Invoice > Receive Payment > Make Deposit

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13)

What QuickBooks activity appears in this series of business activities:

_________ > Pay Bills A) Receive Payments B) Enter Bills C) Make Deposit D) Write Checks

14)

When a bill is entered into QuickBooks using the Enter Bills window, QuickBooks: A) Decreases an Expense account and increases the Accounts Payable account B) Increases an Expense account and increases the Accounts Payable account C) Increases the Accounts Receivable account and increases an the Income account D) Decreases the Accounts Receivable account and decreases Accounts Payable account

15)

When a bill is paid in QuickBooks using the Pay Bills window, QuickBooks: A) Decreases an Expense account and decreases the Checking account B) Increases an Expense account and increases the Accounts Payable account C) Increases the Accounts Payable account and increases the Checking account D) Decreases the Accounts Payable account and decreases the Checking account

16)

Form 1099 is used to: A) Report the amount paid to a vendor in compliance with IRS regulations B) Report the amount received from customers in compliance with IRS regulations C) Report the amount paid to employees in compliance with IRS regulations D) None of the choices are correct

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17)

All the times below are when you can receive a bill except: A) Before receiving a service B) At the time of receiving a service C) At the time of providing a service D) After receiving a service

18)

Which one of the following is a vendor transaction? A) Make deposits B) Receive payments C) Sell products D) Pay bills

19) To view journal entries that QuickBooks creates behind the screen when you are entering and paying bills, you would select: A) Reports Center > Accountant & Taxes > Journal B) Reports Center > Company & Financials > General Journal C) Company Menu > Company & Financials > General Journal D) Company Menu > Accountant & Taxes > Journal

20) The journal entry behind the screen that QuickBooks creates when a bill is recorded using the Enter Bills window includes: A) Debit Accounts Payable, Credit Checking account B) Debit Checking account, Credit Accounts Payable C) Debit Expense account, Credit Accounts Payable D) Debit Accounts Payable, Credit Expense account

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21)

Required:

Briefly explain why it is important for a company to track accounts payable and how accounts payable reports can assist with tracking accounts payable.

22)

Required:

Explain how recording the purchase of services versus the purchase of inventory items differs in QuickBooks.

23)

Required:

Name two different QuickBooks Vendor reports, what the reports summarize, and how the reports can be used by a business.

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Answer Key Test name: Chap 06_2021 1) D 2) D 3) B 4) C 5) C 6) A 7) C 8) D 9) B 10) B 11) D 12) A 13) B 14) B 15) D 16) A 17) C 18) D 19) A 20) C

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CHAPTER 7 1)

In the Item List, QuickBooks items include: A) Non-inventory items B) Inventory items C) Service items D) All the choices are correct

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; Vendors List D) Order goods; Purchase Order

3) Which one of the following activities is not shown in the Vendors section of the Home page? A) Write Checks B) Receive Inventory 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

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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

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

Vendor reports can be accessed in QuickBooks in all of the following ways except: A) Reports Center B) Vendors Center C) Reports Menu D) All the choices are correct

8) What QuickBooks activity comes next in this series of business activities: _________ > Receive Inventory > Enter Bills > Pay Bills A) Receive Payments B) Purchase Order C) Create Estimate D) Create Invoice

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9) What QuickBooks activity comes next in this series of business activities: Invoice > ___________ > Make Deposits A) Receive Payments B) Receive Inventory C) Pay Bills D) Create Sales Receipts

10) What QuickBooks activity comes next in this series of business activities: Purchase Order > ________ > Enter Bills > Pay Bills A) Receive Payments B) Create Invoice C) Receive Inventory D) Make Deposits

11)

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

12)

Which order of tasks is used when purchasing inventory? A) Enter Bills > Pay Bills B) Enter Invoice > Write Check C) Purchase Order > Receive Items > Receive Bill > Pay Bills D) Purchase Requisition > Receive Inventory > Pay Bills

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13)

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 vendors D) Paid by the vendor

14)

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

15)

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

16)

Which window is used to pay sales taxes? A) Create Invoice B) Write Checks C) Manage Sales Tax D) Enter Bills

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17)

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

18)

Which one of the following is not a vendor transaction? A) Receive inventory B) Create Invoice C) Create purchase order D) Enter bills

19) When using a 3-way match to improve internal control, all of the following are compared except: A) What was ordered B) What was received C) What was sold D) What was billed

20)

The Physical Inventory Worksheet is used when: A) inventory items are physically placed in the warehouse B) the computer system goes down C) taking a physical count of inventory on hand D) All the choices are correct

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21)

Required:

Briefly describe how sales tax payments flow from customers to government entities.

22)

Required:

Describe the three types of items: Inventory items, Non-inventory items, and Services. Provide examples of each.

23)

Required:

Briefly describe a 3-way match and how it can be used to improve internal control.

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Answer Key Test name: Chap 07_2021 1) D 2) B 3) A 4) A 5) D 6) B 7) D 8) B 9) A 10) C 11) B 12) C 13) B 14) A 15) B 16) C 17) C 18) B 19) C 20) C

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CHAPTER 8 1) Each year employees are sent Form ______ to summarize gross wages and tax withholdings for the year. A) 1099 B) W-2 C) W-3 D) W-4

A company is required to withhold payroll taxes for: A) Employees B) Vendors C) Customers D) All the choices are correct

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

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

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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 the choices are correct

Which of the following is not a payroll form? A) Form W-2 B) Form 1040 C) Form 944 D) Form 941

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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 series of payroll activities: Enter Time > Pay Employees > ______ > Process Payroll Forms A) Reconcile Payroll B) Print Payroll Report C) Pay Payroll Liabilities D) None of the choices are correct

12) When setting up a new employee where do you get their filing status and allowances information? A) Form W-1120 B) Form W-4 C) Form W-3 D) Form W-2

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13)

The Payroll Center has the following sections except: A) Pay Employees B) Write Checks C) Pay Scheduled Liabilities D) File Tax Forms

14) When tracking time for subcontractors, which QuickBooks window is used to enter subcontractor information? A) Vendors List B) Item List C) Payroll Setup D) Employee List

15)

Which tax form summarizes payments made to subcontractors? A) Form 940 B) Form 1022 C) Form 1099 D) W-2

16)

Which of the following ways to track time is not supported by QuickBooks? A) Time Single Activity B) Weekly Timesheet C) Time clock D) Online Timesheets

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17)

Which of the following may be billed to a specific customer job? A) Mileage B) Hours C) Expenses D) All the choices are correct

18) An individual’s status determines how to record payment to that individual. Which of the following status and payment methods is incorrect? A) Vendor; Bill B) Employee; Payroll C) Stockholder; Dividend D) Vendor; Payroll

19)

What is the 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

20)

What is the purpose of Federal Form 941?

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21)

Required:

Name 3 (three) types of payroll liabilities and indicate who funds each one.

22)

Required:

Briefly describe what the Time by Job report tells management.

23)

Required:

List two payroll tax forms and briefly explain their function.

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Answer Key Test name: Chap 08_2021 1) B 2) A 3) D 4) B 5) A 6) D 7) C 8) B 9) C 10) B 11) C 12) B 13) B 14) A 15) C 16) C 17) D 18) D 19) A 20) B

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CHAPTER 9 1)

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

What is an asset? A) What remains after the liabilities are satisfied B) What a company owes C) What a company owns D) The excess of revenues over expenses

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

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

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What is a liability? A) What remains as future benefit B) The excess of revenues over expenses C) What a company owns D) What a company owes

The Trial Balance:

A) Lists all the company’s accounts, all transactions affecting accounts, and ending account balances B) Is prepared before making adjustments C) Is prepared after financial statements are prepared D) Verifies there are no errors in the entire accounting system

Adjusting entries should be made: A) Before preparing an Adjusted Trial Balance B) After preparing financial statements C) After preparing an Adjusted Trial Balance D) Before preparing a Trial Balance

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 the choices are correct

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To record adjusting entries, use: A) Reports Menu > General Journal Entries B) Accountant Menu > Make General Journal Entries C) Banking Menu > Make General Journal Entries D) Home > Journal Entries

10)

Before making adjusting entries you should: A) Close permanent accounts B) Prepare a Trial Balance C) Close temporary accounts D) Prepare a balance sheet

11)

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 the choices are correct

12)

To prepare a Trial Balance, select: A) Reports Center > Accountant & Taxes B) Company Center > Company & Financials C) Reports Center > Company & Financials D) Company Center > Accountant & Taxes

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13)

To prepare an Adjusted Trial Balance, select: A) Reports Center > Accountant & Taxes B) Company Center > Company & Financials C) Reports Center > Company & Financials D) Company Center > Accountant & Taxes

14)

Types of adjusting entries include all of the following except: A) Prepaid Items B) Accrued Revenues C) Accrued Expenses D) Accrued Cash

15) Prepaid items for which adjusting entries may be necessary include all of the following except: A) Prepaid insurance B) Prepaid Rent C) Accrued Interest D) Office Supplies

16) If a count of office supplies on hand reveal $250 of supplies unused at year-end and the Office Supplies on Hand account has a balance of $350, the adjusting entry to bring the Office Supplies on Hand up to date at year-end should include: A) Debit Office Supplies on Hand $100, Credit Office Supplies Expense $100 B) Debit Office Supplies on Hand $150, Credit Office Supplies Expense $150 C) Debit Office Supplies Expense $100, Credit Office Supplies on Hand $100 D) Debit Office Supplies Expense $250, Credit Office Supplies on Hand $250

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17) Adjusting entries for unearned items typically include which of the following related types of accounts: A) Revenue and Liability accounts B) Revenue and Asset accounts C) Expense and Liability accounts D) Expense and Asset accounts

18) Adjusting entries for prepaid items typically include which of the following related types of accounts: A) Revenue and Liability accounts B) Revenue and Asset accounts C) Expense and Liability accounts D) Expense and Asset accounts

19) Adjusting entries for accrued expenses typically include which of the following related types of accounts: A) Revenue and Liability accounts B) Revenue and Asset accounts C) Expense and Liability accounts D) Expense and Asset accounts

20) Adjusting entries for accrued revenues typically include which of the following related types of accounts?

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A) Revenue and Liability accounts B) Revenue and Asset accounts C) Expense and Liability accounts D) Expense and Asset accounts

21)

Required:

Briefly explain 2 (two) differences between depreciation on a tax return and on a financial statement.

22)

Required:

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

23)

Required:

Briefly explain the difference between voiding and deleting an erroneous document in order to correct an error entered in QuickBooks.

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Answer Key Test name: Chap 09_2021 1) C 2) C 3) B 4) C 5) D 6) D 7) A 8) B 9) B 10) B 11) C 12) A 13) A 14) D 15) C 16) C 17) A 18) D 19) C 20) B

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CHAPTER 10 1)

To prepare the Balance Sheet, select: A) Company Center > Company & Financials B) Reports Center > Company & Financials C) Reports Center > Accountant & Taxes D) Company Center > Accountant & Taxes

To prepare the Profit & Loss report, select: A) Reports Center > Company & Financials B) Reports Center > Accountant & Taxes C) Company Center > Company & Financials D) Company Center > Accountant & Taxes

To prepare the Statement of Cash Flows, select: A) Reports Center > Company & Financials B) Reports Center > Accountant & Taxes C) Company Center > Company & Financials D) Company Center > Accountant & Taxes

4) Examples of management reports for internal decision making include all of the following except: A) Form W3 B) Cash Budget C) Cash Forecast D) Accounts Receivable Aging Summary

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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

To prepare the entire Journal, select: A) Reports Center > Accountant & Taxes > Journal B) Company Center > Company & Financials > Journal C) Reports Center > Company & Financials > Journal D) Company Center > Accountant & Taxes > Journal

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

All of the following classifications are found on the Statement of Cash Flows except: A) Cash Flows from Purchasing Activities B) Cash Flows from Operating Activities C) Cash Flows from Investing Activities D) Cash Flows from Financing Activities

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To prepare an Adjusted Trial Balance, select: A) Reports Center > Accountant & Company B) Reports Center > Accountant & Taxes C) Reports Center > Company & Financials D) Company Center > Accountant & Company

10) On the Statement of Cash Flows, cash inflows and outflows to and from investors are categorized as cash flows from: A) Investing activities B) Financing activities C) Owner activities D) Operating activities

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 the choices are correct

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13)

The Statement of Cash Flows lists: A) Operating, Investing, and Financing Activity B) Assets, Liabilities, and Owner's Equity C) Income, Expenses, Liabilities D) Gains, Losses, and Net Income

14)

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 income and expenses D) All the choices are correct

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, Liabilities

16) Which of the following determines if the account appears classified properly on the balance sheet?

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A) Tax-Mapping Line B) Account Type C) Item Number D) None of the choices are correct

17) Providing information to external users for decision making is the purpose of which of the following? A) Management reports B) Tax forms C) Financial statements D) Inventory reports

18) Providing information to internal users for decision making is the purpose of which of the following? A) Management reports B) Tax forms C) Financial statements D) Vendors list

19) Cash inflows and outflows related to the company's primary business are categorized as cash flows from: A) Investing activities B) Financing activities C) Taxing activities D) Operating activities

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20) 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) Taxing activities D) Operating activities

21)

Required:

List 3 (three) main types of financial reports and briefly explain the differences of each of the types of reports.

22)

Required:

What is the primary objective of providing reports to users?

23)

Required:

Briefly explain how internal users can use management reports to make decisions. Give at least two examples of management reports and how they can be used by internal decision makers.

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Answer Key Test name: Chap 10_2021 1) B 2) A 3) A 4) A 5) D 6) A 7) B 8) A 9) B 10) B 11) D 12) B 13) A 14) B 15) A 16) B 17) C 18) A 19) D 20) A

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CHAPTER 11 1)

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

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 > New Company D) File Menu > Open or Copy Company

When setting up a new company, QuickBooks automatically creates: A) Customers List B) Vendors List C) Chart of Accounts D) Employee List

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 > Account > Edit Account C) From the Chart of Accounts window > Account > New Account D) From the Company Menu > New Account

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5) Which icon does not appear in the Vendors section for service companies that do not sell inventory? A) Purchase Orders B) Pay Bills C) Enter Bills D) All the choices are correct

To display account numbers in the Chart of Accounts, select: A) Edit > Options B) Company > Preferences C) Edit > Preferences D) Company > Accounts

The Vendors 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 the choices are correct

The Customers 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

Which tax form would you select for a Partnership?

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A) Form 1120 B) Form 1120S C) Form 1065 D) Form 1040S

10)

Which tax form would you select for a Corporation? A) Form 1120 B) Form 1120S C) Form 1065 D) Form 1040S

11)

An account's tax line determines where QuickBooks lists the account balances on the: A) Income Statement B) Chart of Accounts C) Income Tax Summary Report D) Balance Sheet

12)

QuickBooks creates a Chart of Accounts for your company based on: A) Fiscal or calendar year B) Industry type C) Federal ID Tax number D) Zip code

13) When customer payments are recorded in the Receive Payments window, QuickBooks records:

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A) An decrease in the Checking account B) An increase in Sales C) An increase in Accounts Receivable D) An increase in Undeposited Funds account

14) When customer payments are received and recorded, QuickBooks reduces the ________ account balance. A) Accounts Receivable B) Accounts Payable C) Undeposited Funds D) Checking

15)

The following are examples of possible memorized transactions except: A) Rent payments B) Special order for a customer C) Insurance payments D) Utility bills

16)

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 the choices are correct

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17) QuickBooks automatically closes _________ accounts to start each new accounting year with a $0 balance in all _________ accounts. A) temporary; permanent B) temporary; temporary C) permanent; permanent D) permanent; temporary

18)

Sales on account are recorded using the _________ window. A) Make Deposits B) Sales Receipts C) Create Invoices D) Receive Items

19)

To record receiving a bill for services to be paid at a later time, use the following: A) Purchase Order > Receive Payment > Deposit B) Invoice > Receive Payment > Deposit C) Enter Bills > Pay Bills D) Invoice > Enter Bills > Pay Bills

20)

To record a sales transaction, use the following: 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

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21)

Required:

Name at least 4 (four) types of transactions that could be entered in QuickBooks for a service company.

22)

Required:

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

23)

Required:

Briefly discuss the objectives for QuickBooks closing prior accounting periods.

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Answer Key Test name: Chap 11_2021 1) B 2) C 3) C 4) B 5) A 6) C 7) B 8) D 9) C 10) A 11) C 12) B 13) D 14) A 15) B 16) A 17) B 18) C 19) C 20) B

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CHAPTER 13 1)

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

2) After creating a new QuickBooks data file for an existing company and entering all the existing balances, use an opening adjusting entry 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 the choices are correct

3) Identify which of the following opening adjusting entries should be used when setting up in QuickBooks an existing company with opening balances: A) Debit: Capital Stock, Credit: Opening Balance Equity B) Debit: Opening Balance Equity, Credit: Capital Stock C) Debit: Accounts Receivable, Credit: Capital Stock D) Debit: Accounts Payable, Credit: Opening Balance Equity

A consulting firm is an example of a _________ company. A) Service B) Retail Shop C) Manufacturing D) Merchandise

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

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

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 the choices are correct

The Sales Tax Rate appears on which of the QuickBooks lists? A) Customers List B) Vendors List C) Item List D) Account List

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

10)

When recording the sale of a product, which account is increased? A) Inventory B) Accounts Receivable C) Notes Payable D) None of the choices are correct

11)

The purchasing cycle includes all of the following transactions except: A) Create a purchase order to order inventory B) Receive inventory items and record in the inventory account C) Enter customer invoice to record sale of inventory D) Enter bill in QuickBooks when bill is received

12)

To view account numbers in the Chart of Accounts, select: A) Edit > Preferences > General > Company Preferences B) Edit > Preferences > Desktop View > Company Preferences C) Edit > Preferences > General > My Preferences D) Edit > Preferences > Accounting > Company Preferences

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13)

To add an existing opening balance to a new account, select: A) New Account > Opening Balance B) Account Options > Enter Opening Balance C) Account > Opening Balance D) Edit Account > Enter Opening Balance

14)

The cost of the inventory items sold is tracked in what account: A) Items Sold B) Materials Cost C) Cost of Goods Sold D) Inventory Sold

15) If the supplies on hand at the end of January totaled $500 and the Supplies on Hand account before adjustment is $900, what should be the adjustment at month-end? A) Increase supplies on hand by $900; reduce supplies expense by $900 B) Reduce supplies on hand by $400; increase supplies expense by $400 C) Reduce supplies on hand by $500; increase supplies expense by $500 D) Increase supplies on hand by $400; reduce supplies expense by $400

16)

A grocery store is an example of a _________ company. A) Service B) Merchandise C) Manufacturing D) None of the choices are correct

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17) 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

18) 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

19)

The purchasing cycle for a merchandising company consists of: A) Create Purchase Order > Receive Payment > Make Deposits B) Create Purchase Order > Receive Inventory > Enter Bill > Pay Bill C) Create Invoice > Receive Payment > Record Deposits D) Create Invoice > Receive Inventory > Pay Bill > Record Deposits

20)

The sales cycle for a merchandising company consists of: A) Create Purchase Order > Receive Inventory > Enter Bill > Pay Bill B) Create Purchase Order > Receive Payment > Make Deposits C) Create Invoice > Receive Payment > Make Deposits D) Create Sales Receipt > Receive Inventory > Pay Bill > Make Deposits

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21)

Required:

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

22)

Required:

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

23)

Required:

Briefly describe the main differences in using QuickBooks for a service company versus a merchandise company.

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Answer Key Test name: Chap 13_2021 1) B 2) C 3) B 4) A 5) A 6) C 7) C 8) C 9) B 10) B 11) C 12) D 13) D 14) C 15) B 16) B 17) B 18) A 19) B 20) C

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CHAPTER 15 1)

To create a budget in Quickbooks: A) From the Company Center, select Company & Financials > Budgets B) From the Edit Menu, select Preferences > Set Up Budgets C) From the Company Menu, select Planning & Budgeting > Set Up Budgets D) From the Banking Menu, select Planning & Budgets > Budgets

To export a budget created in QuickBooks to an Excel spreadsheet: A) From the Company Center, select Company & Financials > Budgets B) From the Reports Center, select Budgets & Forecasts > Budget Overview C) From the Vendors Center, select Company & Financials > Budgets D) From the Reports 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 the choices are correct

Which QuickBooks feature would you use to prepare a bid for a potential customer? A) Progress Billing B) Enter Bills C) Estimates D) Invoice

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Customer payments received on progress invoices are: A) Recorded using the Check Register B) Recorded using the Statement icon in the Customers 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 Customers section of the Home

Page

A credit card payment received against/on an open invoice would be recorded using the: A) Statements icon in the Customers section of the Home Page B) Invoices icon in the Vendors section of the Home Page C) Receive Payments icon in the Customers section of the Home Page D) Credit Card icon in the Banking section of the Home Page

The audit trail lists: A) All deleted transactions B) All changes to transactions C) User ID of person entering transactions D) All the choices are correct

To create an audit trail report: A) Select Reports Center > Accountant & Taxes > Audit Trail B) Select Reports Menu > Company & Financials > Audit Trail C) Select the Audit Trail icon in the Company Center D) Select the Audit Trail report from the Company section of the Home Page

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The audit trail can improve which of the following? A) Bad debt expense B) Progress invoicing C) Creating estimates D) Internal control

10) When exporting the Audit Trail report to Excel, which of the following can be used to perform further analysis? A) Excel Autofilter B) Word tables C) QuickBooks fast format D) All the choices are correct

11) After displaying the QuickBooks Audit Trail report, the report can be exported to Excel using the Autofilter by selecting: A) Excel button > Create new worksheet > Replace an existing worksheet > Advanced tab > Auto Filtering B) Excel button > Advanced > Auto Filter C) Export > Auto Filtering D) None of the choices are correct

12) For long-term projects that are to be billed as each stage of the project is complete, the QuickBooks _________ feature should be used.

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A) Progressive Projects B) Long Term Projects C) Progress Billing D) Projects Billing

13)

To write off a transaction that was charged a sales tax, use:

A) A journal entry to move the customer's balance (credit) to the Bad Debt Expense account (debit) B) A journal entry to move the customer's balance (credit) to Allowance for Uncollectible Accounts (debit) C) The Receive Payments window (Discount Info button) D) The Credit Memo window

14)

In QuickBooks, budget types include: A) Profit & Loss B) Accounts Receivable Aging C) Accounts Payable Agin D) All of the choices are correct

15)

Progress Invoicing is turned on by going to Edit > Preferences > ____________ A) Bills B) Jobs and Estimates C) Sales and Customers D) Time and Expenses

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16)

If the Estimates icon does not appear on your screen in QuickBooks, select: A) Edit Menu > Preferences > Jobs and Estimates > Company Preferences B) Customers Menu > Jobs > Estimates C) Company Menu > Estimates > Preferences D) Company Menu > Preferences > Estimates

17)

To enable progress billing, select: A) Customers Menu > Jobs > Progressive Billing B) Edit Menu > Preferences > Jobs and Estimates > Company Preferences C) Company Menu > Preferences > Progressive Billing D) Company Menu > Estimates > Preferences

18)

When recording a customer credit card payment on account using QuickBooks, select:

A) Create Invoice > Customer Payment > Customer & Job Name B) Create Sales Receipt > Record Deposits C) Receive Payment > Select Customer & Job Name > Select Payment Method and enter credit card information D) Make Deposit > Select Customer & Job Name > Select Payment Method and enter credit card information

19)

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 the choices are correct

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20)

The Direct Write-off Method for bad debts:

A) Complies with GAAP B) 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 C) Estimates bad debt expense and establishes an allowance or reserve for uncollectible D) None of the choices are correct

21)

Required:

Briefly explain the direct write off method for accounting for bad debts.

22)

Required:

Briefly explain the allowance method for accounting for bad debts.

23)

Required:

Compare and contrast the direct write off method versus the allowance method for account for bad debts.

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Answer Key Test name: Chap 15_2021 1) C 2) B 3) D 4) C 5) C 6) C 7) D 8) A 9) D 10) A 11) A 12) C 13) C 14) A 15) B 16) A 17) B 18) C 19) D 20) B

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CHAPTER 16 1) Accountants often provide financial services to multiple clients. Which two of the following are QuickBooks options for clients? A) QuickBooks Online Accountant B) QuickBooks Desktop Accountant C) QuickBooks Pro D) QuickBooks Enterprise

2) Accountants often provide financial services to multiple clients. Which two of the following are QuickBooks options for clients? A) QuickBooks Pro B) QuickBooks Premier C) QuickBooks Online Accountant D) QuickBooks Desktop Accountant

Which of the following accountant versions can be used with QuickBooks Online? A) QuickBooks Desktop Accountant B) QuickBooks Pro Accountant C) QuickBooks Online Accountant D) QuickBooks Enterprise Accountant

Which of the following accountant versions can be used with QuickBooks Desktop? A) QuickBooks Desktop Accountant B) QuickBooks Pro Accountant C) QuickBooks Online Accountant D) QuickBooks Enterprise Accountant

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5) Which one of the following QuickBooks versions changes on an ongoing basis with changes rolled out throughout the year? A) QuickBooks Desktop B) QuickBooks Pro C) QuickBooks Online D) QuickBooks Enterprise

6) Which one of the following Accountant versions changes on an ongoing basis with changes rolled out throughout the year? A) QuickBooks Desktop Accountant B) QuickBooks Pro Accountant C) QuickBooks Online Accountant D) QuickBooks Enterprise Accountant

Which one of the following QuickBooks versions are issued new once a year? A) QuickBooks Online B) QuickBooks Online Accountant C) QuickBooks Online Plus D) QuickBooks Desktop

8) Advantages of using QuickBooks Desktop versus QuickBooks Online include the following: A) Anytime, anywhere access through a browser B) Additional features, functionality, and versions for specific industries C) Ability for accountant to access client QuickBooks using a browser D) None of the choices are correct

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9) Advantages of using QuickBooks Online versus QuickBooks Desktop include the following: A) Anytime, anywhere access through a browser B) Additional features, functionality, and versions for specific industries C) User control over backups and access to backup data files D) None of the choices are correct

10)

Which of the following QuickBooks is designed for mid-size companies? A) QuickBooks Online B) QuickBooks Pro C) QuickBooks Premier D) QuickBooks Enterprise

11) When an accountant has multiple clients using QuickBooks Desktop, which is the more proactive approach to providing better customer care for managing client use of QuickBooks editions (such as QuickBooks Desktop 2020 versus QuickBooks Desktop 2021)? A) Permit clients to switch to new versions as soon as the software is issued B) Encourage clients to use whichever version of QuickBooks that they currently use so that they are comfortable with the software C) Work with clients to move to the same version of QuickBooks at the same time each year D) Permit accounting firm staff to determine which version of QuickBooks different clients should use based upon the client’s specific wishes

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12) A prospective new client contacts your consulting firm. Because the prospective client has multiple locations, large amounts of inventory, and numerous employees, you consider the prospective client to be a mid-size firm. Which of the following QuickBooks versions would you recommend for this prospective client? A) QuickBooks Desktop Pro B) QuickBooks Online C) QuickBooks Desktop Enterprise D) QuickBooks Online Accountant

13) A prospective new client contacts your consulting firm. The prospective client is a sole proprietor with 1 employee and 1 location. The sole proprietor handles all the accounting himself and travels extensively for the business, but wants to have an accountant on call who can log into his accounting system to assist him when needed. Which of the following QuickBooks versions would you recommend for this prospective client? A) QuickBooks Desktop Accountant B) QuickBooks Online C) QuickBooks Desktop Enterprise D) QuickBooks Online Accountant

14) Your consulting firm provides accounting services to multiple clients. All of your clients use QuickBooks Online. Which of the following QuickBooks versions should your consulting firm use? A) QuickBooks Desktop Pro B) QuickBooks Online C) QuickBooks Desktop Enterprise D) QuickBooks Online Accountant

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15) Your consulting firm provides accounting services to multiple clients. All of your clients use either QuickBooks Desktop Pro or QuickBooks Desktop Premier. Which of the following QuickBooks versions should your consulting firm use? A) QuickBooks Desktop Accountant B) QuickBooks Online C) QuickBooks Desktop Enterprise D) QuickBooks Online Accountant

16)

Required:

Briefly describe a process that accountants can use to assist clients in moving from one QuickBooks Desktop version to the new version with minimal disruption to accountant and client business processes.

17)

Required:

Briefly describe which version of QuickBooks an accountant must use based on the version of QuickBooks the client is using.

18)

Required:

Compare and contrast the difference between using a QuickBooks software download versus a QuickBooks subscription.

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Answer Key Test name: Chap 16_2021 1) [C, D] 2) [A, B] 3) C 4) A 5) C 6) C 7) D 8) B 9) A 10) D 11) C 12) C 13) B 14) D 15) A

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CHAPTER 17 1) You are setting up a new company using the Easy Step Interview. Which items of company information must you enter: A) Company address B) Company Tax ID number C) Employee information D) Company name

In completing the Easy Step Interview, which start date do you use? A) The current date B) The date the company formed C) The date you begin using QuickBooks to keep track of the company’s finances D) The first date in the current fiscal year

How can you backup data in QuickBooks? A) You should never backup data. B) Data can be backed up manually, automatically or scheduled. C) Only the administrator can back up data. D) All the choices are correct.

If you see diamonds on lists, what does this indicate? A) You can’t move the item on the list. B) There are secure transactions affecting this item. C) This item cannot be changed. D) The diamond can be clicked to move the item to a different place on the list.

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How many names can be placed on the Names List in QuickBooks Pro? A) unlimited B) 4,500 C) 14,500 D) 25,000

Once a company is set up, how can the name and address be edited? A) Go to Accountant Menu > Client Data Review B) Choose Edit company information C) Go to Company Menu > My Company > Edit D) Go to Edit Menu > Preferences > General

What type of inventory requires assembly from other items before sale? A) Inventory Assembly B) Inventory Group C) Inventory Parts and Supplies D) Non-inventory Assembly

When a customer pays cash at the time of sale, what do you record? A) A sales receipt B) An invoice C) A purchase order D) A thank you note

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9) When a customer purchases goods or services but does not pay at the point of sale, what do you record? A) An invoice B) A purchase order C) A reminder D) None of the choices are correct

10)

What are items used for? A) An item can be used to create an invoice. B) An item can help to track your sales in detail. C) An item can represent various goods or services. D) All the choices are correct.

11)

If you need to enter a vendor credit, where do you begin? A) Customers List B) Employees List C) Enter bill D) Banking center

12)

The Pay bills window can be used to: A) Keep track of accounts payable B) Keep track of inventory C) Keep track of non-inventory items D) Keep track of your outstanding checks

13)

Which type of paycheck style do employees typically prefer?

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A) Wallet B) Electronic C) Deluxe D) Voucher

14) If you open the Memorized Report List and then click Memorized Report > New Group, what are you creating? A) A list of memorized files B) A memorized group of reports that are useful to your business C) Information needed by the IRS on a quarterly basis D) Item Lists

15)

Subaccounts: A) Help to show various account groups in one separate section B) Help to keep track of finances by grouping and subtotaling categories C) Improves efficiency in your system D) Do not exist in QuickBooks

16)

Where do you find the Balance Sheet and Profit and Loss statements? A) Accounting reports B) Employee reports C) Company and Financial D) Other reports

17)

QuickBooks uses which basis of bookkeeping?

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A) Accrual B) Cash C) Both Accrual and Cash D) Neither Accrual nor Cash

18)

Where do you key in information about a new employee? A) Company preferences B) Must be keyed in each fiscal year in the employee preferences tab C) In the Home Page D) Payroll Info tab

19)

What does Edit > Memorize Check permit you to do?

A) Change your preferences B) Automate the same transaction each month C) Ensure you do not overdraw your account as it prevents you from paying bills if the balance does not cover the check D) None of the choices are correct

20)

The layout designer allows you to: A) Change the background of your home screen B) Change the design and location of items on your invoice C) Only change one item per fiscal period D) Change from cash to accrual basis of accounting

21) How do you handle the case when a customer's check is returned for non-sufficient funds? Version 1

A) Record it in purchases journal B) Make an entry to record the money owed and an equal decrease in cash C) Write it off as an uncollectible account D) All the choices are correct

22)

How much do you charge a delinquent customer who “bounces” a check payable to you? A) The amount of the invoice B) The amount of the NSF fee C) Additional fees (if any) D) All the choices are correct

23)

List management includes: A) Adding/deleting B) Merging C) Editing D) All the choices are correct

24)

The two types of statements in QuickBooks are: A) Open Transaction and Closed Transaction B) Open Transaction and Activity Based C) Open Transaction and Limited Transaction D) Customer Based and Confidential

25)

What two restrictions on merging occur in QuickBooks?

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A) Names or different types of accounts B) Accounts on different financial statements or negative balances C) Accounts with credits or Contra Accounts D) None of the choices are correct

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Answer Key Test name: Chap 17_2021 1) D 2) C 3) B 4) D 5) C 6) C 7) A 8) A 9) A 10) D 11) C 12) A 13) D 14) B 15) B 16) C 17) C 18) D 19) B 20) B 21) B 22) D 23) D 24) B 25) A

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