ACC 240 Chapter 3

A bill is considered paid in QuickBooks when a. a check has been printed. b. payment has been recorded in the Pay Bills window. c. the vendor has received and cashed the check. d. it has been recorded in the Bill window.

b. payment has been recorded in the Pay Bills window.

Which one of the following accounts is a system default account for a vendor? a.Equity b.Accounts Payable c.Supplies Expense d.Accounts Receivable

b.Accounts Payable

Payments on accounts are recorded in the a.Chart of Accounts window. b.Pay Bills window. c.Journal window. d.Check window.

b.Pay Bills window.

The Journal Report can be found in QuickBooks in the Blank Space section at the Reports window. a. Sales and customers b. Payroll c. For my accountant d. Who owes you

c. For my accountant

In a manual accounting system, payments for open accounts payable and cash purchases are recorded in a Blank Space journal and the monthly total is then posted to the general ledger. a. purchases b. accounts receivable c. cash payments d. accounts payable

c. cash payments

In QuickBooks Online, prior to entering transactions for a vendor you need to: a. delete the previous transactions for the vendor. b. look up the vendor's tax identification number. c. establish a file for the vendor. d. manually enter the transaction.

c. establish a file for the vendor.

What are the step in QuickBooks Online to edit a vendor? (5)

To edit a vendor: 1. On the Navigation bar, click Expenses and then click the Vendors link. 2. At the Vendors window, click the name of the vendor you wish to edit. 3. Click the Edit button. 4. Change the appropriate information in the Vendor Information window. 5. Click the Save button.

Payment on account a.is payment of an outstanding account payable. b.must always be paid in full. c.does not include partial payments. d.is payment of a bill not previously recorded.

a.is payment of an outstanding account payable.

define vendor credit

A reduction of accounts payable as a result of a return or an allowance by a vendor.

While reviewing reports, it is often helpful to see the originating transaction or document; you can do this and make edits by Blank Space from a report to the original window. a. "rolling up" b. "zooming in" c. "following the trail" d. "drilling down"

d. "drilling down"

What are the two sections in the Bill window in QuickBooks? a. Write checks and Expenses b. Reports and Post Transactions c. Post transaction and Expenses d. Category details and Item details

d. Category details and Item details

define payment on account

Payment of an outstanding account payable.

define cash purchase

Payment of any bill or item other than accounts payable.

define vendor

Someone from whom a company buys goods or services, either on account or for cash.

What is Drilling Down?

While viewing reports, it is frequently helpful to see the originating transaction or document that gave rise to the report figures. Most of the reports provide a drill-down feature. When reviewing a report, QuickBooks Online, like many computerized accounting programs, allows you to "drill down" from a report to the original window where data has been entered. If the transaction is incorrect, you can edit or remove the transaction at that time. Any changes to the transactions are automatically reflected in subsequent reports.

when you enter a vendor invoice in the Bill window QuickBooks Online automatically __________ the ______________ account because the Bill window is used to record purchases on account.

increases/ credits Accounts Payable

define purchase journal

A journal used to record all purchases of goods on account; can be in a single-column or multi-column format.

define cash payment

A journal used to record all cash payment activities, including payment of accounts payable.

What are the step in QuickBooks Online to add a vendor? (4)

To add a vendor: 1. On the Navigation bar, click Expenses and then click the Vendors link. The Vendors window opens. 2. At the Vendors window, click the New vendor button. The Vendor Information window opens. 3. Enter the background data for the vendor. 4. Click the Save button.

What is the Unpaid Bills Report

The Unpaid Bills Report lists all unpaid bills for each vendor as of a specific date. The report lists each open bill (with date and invoice number) for a vendor, along with any vendor credits applied. The report may be customized to show all vendors or only those with outstanding bills.

What is the Vendor Balance Detail Report?

The Unpaid Bills Report lists all unpaid bills for each vendor as of a specific date. The report lists each open bill (with date and invoice number) for a vendor, along with any vendor credits applied. The report may be customized to show all vendors or only those with outstanding bills.

What is the Vendor Contact List Report?

The Vendor Contact List Report displays information for all vendors that has been entered in each vendor's file. This report displays the name of each vendor, along with the vendor's phone number(s), email address, mailing address, and account number.

How do you drill down from a report and correct an error? (4)

To drill down from a report and correct an error: 1. On the Navigation bar, click Reports and then click the All link, if necessary. 2. Scroll to the What you owe section and then click Unpaid Bills. 3. Confirm that All Dates displays in the Report period field. 4. Find the PG&E bill of 02/02/2023 and click Bill. The word becomes a link to the original bill entry. See Figure 3-T.

What are the step in QuickBooks Online to enter a bill? (9)

To enter a bill: 1.On the Navigation bar, click the +New button. The Create window appears. 2. In the VENDORS column, click Bill. This displays the Bill window. 3.At the Vendor drop-down list, click the name of the vendor sending the bill. 4. Confirm or change the Terms, if necessary. 5. In the Bill date field, choose the appropriate date. 6. Enter the bill number in the Bill no. field. 7. Select the account to be debited in the CATEGORY column. 8. Enter the bill amount in the AMOUNT column. 9. Click the Save and close button.

What are the step in QuickBooks Online to make a vendor inactive? (3)

To make a vendor inactive: 1. On the Navigation bar, click Expenses and then click the Vendors link. 2. At the Vendors window, click in the ACTION column drop-down list for the selected vendor and then click Make inactive. 3. At the warning message, click the Yes button.

What are the step in QuickBooks Online to pay a bill? (8)

To pay a bill: 1. On the Navigation bar, click the +New button. 2. In the VENDORS column, click Pay Bills. 3. In the Payment account field, click Checking. The starting check number should automatically fill. Confirm the Print later check box is unchecked if you do not want to print the check. 4. Click the Filter button. 5. At the pop-up window, select the payee name and then click the Apply button. 6. In the Payment date field, enter the date. 7. Click the check box to the left of the payee name to insert a check mark. The PAYMENT column fills for the full amount of the bill. To make a partial payment, enter the amount in the PAYMENT column. 8. Click the Save and close button.

What are the step in QuickBooks Online to process a vendor credit? (7)

To process a vendor credit: 1. On the Navigation bar, click the +New button. 2. In the VENDORS column, click Vendor Credit. 3. At the Vendor drop-down list, click the name of the vendor. The Vendor Credit window opens. 4. Enter the date in the Payment date field. 5. In the CATEGORY column, choose the posting account. 6. In the AMOUNT column, enter the amount of the credit. 7. Click the Save and close button.

What are the step in QuickBooks Online to update the Vendor List while in an Activity window? (6)

To update the Vendor List while in an Activity window: 1. On the Navigation bar, click the +New button. 2. In the VENDORS column, choose Bill. 3. At the Vendor drop-down list, click Add new. The New Vendor window appears. 4. In the Name field, type the vendor name and then click Details. 5. Complete the Vendor Information window. 6. Click the Save button.

How do you view and print a journal report? (7)

To view and print the Journal Report: 1. On the Navigation bar, click Reports. 2. Scroll to the For my accountant section and then click Journal. 3. In the Report period fields, choose from date (ex. 02/01/2023) and to date (ex. 02/28/2023). The Journal Report displays. 4. Click the Print icon. 5. At the Print, email, or save as PDF window, click the Orientation drop-down menu and select Landscape. 6. Click the Print button. 7. At the Print window, click the Print button. See Figure 3-V.

How do you view and print the Unpaid Bills Report? (4)

To view and print the Unpaid Bills Report: 1. On the Navigation bar, click Reports and then click the All link, if necessary. 2. Scroll to the What you owe section and then click Unpaid Bills. 3. Accept All Dates in the Report period field and Current in the Aging method field. Leave the Min. Days Past Due field blank. 4. Click the Run report button. The report displays. See Figure 3-Q.

How do you view and print the Vendor Balance Detail Report? (5)

To view and print the Vendor Balance Detail Report: 1. On the Navigation bar, click Reports. 2. Scroll to the What you owe section and then click Vendor Balance Detail. The Vendor Balance Detail Report appears. 3. Click the Print icon. 4. Choose Portrait from the Orientation drop-down list and then click the Print button. 5. At the Print window, click the Print button. See Figure 3-R.

What are the step in QuickBooks Online to view and print vendor reports? (6)

To view and print vendor reports: 1. On the Navigation bar, click Reports. 2. Scroll to either the What you owe or Expenses and Vendors section and then choose a report. 3. Indicate the appropriate dates and settings for the report, if necessary, and then click the Run report button. 4. Click the Print icon on the report bar. 5. Click the Print button at the Print, email, or save as PDF window. 6. Click the Print button at the Print window.

How do you view and print the Vendor Contact List report? (3)

To view the Vendor Contact List Report: 1. On the Navigation bar, click Reports and then scroll to the Expenses and Vendors section. 2. Click Vendor Contact List. 3. Compare the report with Figure 3-S.

What are the step in QuickBooks Online to write a check? (9)

To write a check: 1. On the Navigation bar, click the +New button. 2. Click Check in the VENDORS column. 3. At the Payee drop-down list, choose the appropriate payee. 4. Choose the appropriate bank account. 5. In the Payment date field, enter the date. 6. In the Check no. field, enter the check number. 7. In the CATEGORY column, choose the account to be debited. 8. In the AMOUNT column, enter the amount of the payment. 9. Click the Save and close button.

In QuickBooks Online the ____________ List serves as the accounts payable subsidiary ledger for the company.

Vendor List

Define purchase on account

When a company receives a bill for goods or services from a vendor but plans to pay it at a later date.

You can only add or update a vendor profile from the Vendors List. a. False b. True

a. False

What does QuickBooks do when you write a check in the Pay Bills window? a. automatically decreases (debits) the Accounts Payable account b. automatically increases (credits) the Accounts Payable account c. automatically increases (credits) the Accounts Receivable account d. automatically decreases (debits) the Accounts Receivable account

a. automatically decreases (debits) the Accounts Payable account

The TRANSACTION TYPE column of the Journal Report indicates a. the window where the activity was recorded. b. the account that was credited. c. the account that was debited. d. whether the transaction was a purchase or sale.

a. the window where the activity was recorded.

For a cash payment on a bill not previously entered in QuickBooks, a. use the Check window. b. you must first record the bill in the Bill window. c. use the journal to debit Cash. d. use the Pay Bills window.

a. use the Check window.

Which statement is true? a.The Vendor List serves as the accounts payable subsidiary ledger for the company. b.The Vendor List needs to be manually updated at the end of the month. c.The Vendor List is not used in QuickBooks transactions. d.The Vendor List serves as the accounts receivable subsidiary ledger for the company.

a.The Vendor List serves as the accounts payable subsidiary ledger for the company.

The Pay Bills windows displays a.all open bills as of a selected date. b.only bills that can be paid with a check. c.only one bill at a time. d.only bills that must be paid in full.

a.all open bills as of a selected date.

When you write a check in the Pay Bills window, QuickBooks Online a.automatically decreases (debits) the Accounts Payable account. b.automatically generates a paper check. c.automatically notifies the vendor. d.does nothing until you post entries at the end of the month.

a.automatically decreases (debits) the Accounts Payable account.

When you use the Pay Bills window in QuickBooks Online, a.for general ledger purposes, the bill is considered paid. b.the bill is not considered paid until the check is printed and sent. c.the check is automatically printed for you. d.you do not have the option to assign check numbers.

a.for general ledger purposes, the bill is considered paid.

A bill from a vendor is considered a a.liability. b.debit. c.account. d.transaction.

a.liability.

Where are cash purchases recorded in QuickBooks? a. Pay Bills window b. Check window c. Accounts Payable account d. Bill window

b. Check window

A payment is not recorded in the Check window until the check is printed. a.True b.False

b. False

The Bill window displays the Blank Space in the upper right corner. a. vendor account number b. balance due c. vendor name d. bill due date

b. balance due

In the QuickBooks Online Pay Bills window, the Payment account field allows the user to a. enter the vendor account number into which the payment will be transferred. b. select the method of payment. c. enter the customer account number issued by the vendor. d. choose a cash account from which to make the payment.

b. select the method of payment.

What happens when you click Make inactive in the Vendors window? a. The vendor's name is excluded from reports, but you can still enter transactions for the vendor. b. The vendor file is removed from the Vendor List. c. You can no longer enter transactions for the vendor, but the vendor will still be displayed in reports. d. The vendor file and past transactions are permanently deleted from the Vendor List.

b.The vendor file is removed from the Vendor List.

When you write a check in the Check window, a.QuickBooks Online tracks the activity through the Accounts Payable or Vendor reports. b.the account field is used to indicate the asset, expense, or drawings account to be debited. c.QuickBooks Online automatically decreases the Accounts Payable account. d.QuickBooks Online automatically debits the Cash account.

b.the account field is used to indicate the asset, expense, or drawings account to be debited.

If a company receives a bill for goods or services from a vendor but plans to pay it at a later date, a.this is called an account receivable. b.this is called a purchase on account. c.you do not need to do anything until you pay the bill. d.you enter the bill in the Pay Bills window.

b.this is called a purchase on account.

The Unpaid Bills Detail Report lists all unpaid bills for each _____ as of _____. a.vendor; the current date b.vendor; a specific date c.customer; the current date d.customer; a specific date

b.vendor; a specific date

For transactions recorded in the Check window, Blank Space is the default credit posting account. a. Retained Earnings b. Notes Payable c. Cash d. Accounts Receivable

c. Cash

A transaction entered in the Blank Space window will not be tracked through Accounts Payable or vendor reports. a. Bill b.V endor Credit c. Check d. Pay Bills

c. Check

A purchase on account is when a a. company makes a purchase with a company credit card. b. company makes a purchase with cash. c. company receives a bill for goods or services from a vendor but plans to pay it at a later date. d. employee makes a company purchase with an individual credit card.

c. company receives a bill for goods or services from a vendor but plans to pay it at a later date.

In a manual accounting system, all purchases of goods on account are first recorded in a multi-column a. general ledger. b. special ledger. c. purchases journal. d. Chart of Accounts List.

c. purchases journal.

In business terminology, a Blank Space is someone from whom the company buys goods and services. a. customer b. client c. vendor d. manufacturer

c. vendor

When a company receives a bill for goods or services, the bill a.is recorded in the Pay Bills window. b.can be left alone until it is paid. c.is recorded in the Bill window. d.is recorded in the Journal.

c.is recorded in the Bill window.

In QuickBooks Online, you cannot delete a vendor file, you can only a. stop updating it. b. cause it to appear at the bottom of the Vendor List. c. remove it from reports. d. make it inactive.

d. make it inactive.

When a bill (or account payable) previously recorded is to be paid, you enter the transaction in the a.cash payments journal. b.Chart of Accounts List. c.Vendor List. d.Pay Bills window.

d.Pay Bills window.

A purchase on account a.is the same as a credit memo. b.must be immediately paid. c.is not included in vendor reports. d.is posted to the Accounts Payable account by default.

d.is posted to the Accounts Payable account by default.

When making a partial payment on account, a.you use the Check window instead of the Pay Bills window. b.a warning message asks if you would rather pay the full amount. c.a credit memo is issued to the vendor. d.the vendor balance owed is reduced along with the cash balance in the checking account.

d.the vendor balance owed is reduced along with the cash balance in the checking account.

When you write a check in the Pay Bills window, QuickBooks Online automatically _________ the ____________ account.

decreases/ debits Accounts Payable