Accounting Quickbooks Ch 1-4

Which icon allows you to create a new transaction?

(+) New icon.

Which account number range usually identifies equity accounts?

30000 to 39999.

When can a QuickBooks List be updated?

Before entering transactions and while entering transactions.

For tax purposes, a Limited Liability Company (LLC) may elect to be treated as all of the following except:

C Corporation filing a form 1120.

Which of the following QBO accounts can be connected and then download transactions from a bank or credit card company?

Credit Card Accounts.

Sales transactions relate to:

Customers.

What are the four main ways QuickBooks Online records money out?

Expense, Check, Bill > Pay Bills, and Purchase Order > Bill > Pay Bills.

Which onscreen form is used to record a vendor transaction when a payment is made at the time of purchase?

Expense.

Which QBO Navigation Bar selection provides information about vendor transactions?

Expenses.

Which of the following QBO Navigation Bar selections would not provide information about customers and customer transactions?

Expenses.

A company should never use separate checking accounts for business transactions and for the owner's personal transaction.

False.

QBO Lists requires us to continually re-enter the same information each time we enter a new transaction.

False.

QuickBooks Online is updated only once a year when a new version is issued.

False.

When setting up a new company in QBO, selections are made during the set up. It is easy to change all the selections and preferences at a later time.

False.

An example of an income account is:

Fees earned.

Which tax return is used by a Partnership?

Form 1065.

Which tax return is used by a C Corporation?

Form 1120.

Which icon allows you to view All Lists?

Gear Icon.

View the selection for tax form that a QBO company is using by selecting:

Gear icon > Account and Settings > Company.

Which icon allows you to enter a recurring transaction?

Gear icon.

Which of the following is true regarding inactive accounts in QBO?

If you need to restore an inactive account, QBO will permit you to do so.

Which of the following is an advantage of importing a QBO Chart of Accounts instead of entering it manually?

Importing a Chart of Accounts using a csv file can save a significant amount of time by eliminating the need to re-key each account into QBO.

Which types of accounts appear on the Profit and Loss Statement?

Income accounts and expense accounts.

Equity accounts are:

Increased with credits and decreased with debits.

Expense accounts are:

Increased with debits and decreased with credits.

Which onscreen form is usually used to record a sales transaction that the customer will pay later?

Invoice.

QuickBooks automatically converts transaction information entered in an onscreen form to a(n)

Journal Entry.

Net income is calculated as:

Net Income = Revenues − Expenses.

Which account should be used to make a rent payment for a company's office building?

Operations related checking account.

An adjusting entry is considered a(n) ___________ type transaction.

Other.

Which account should be used to make a mortgage payment for the home of a company's owner?

Owner's personal checking account.

All of the following are true regarding Owners' Equity except:

Owners' Equity accounts represent the net worth of a business, and are only increased by an investment in the business.

Which tax return is used by a sole proprietorship?

Schedule C attached to Form 1040.

Which recurring transaction type automatically enters the transaction on a specified date?

Scheduled.

___________ are examples of unrecorded charges that appear on a bank statement.

Service charges.

In the QuickBooks Online Check Register the check mark (✔) column indicates which of the following?

The check mark indicates whether the bank transaction is C (cleared), R (reconciled), or blank (uncleared, unreconciled).

Why is it important to align QuickBooks Online with a company's legal entity and tax information?

The type of legal entity a business uses impacts the equity accounts needed and the tax form filed by the business.

____________ occur when the company records an amount before the bank records the amount.

Timing differences.

If your bank or credit card company does not provide connectivity to QBO for your bank and credit card accounts, you can download bank and credit card transactions into a csv file and then load the csv file into QBO.

True.

When we connect our bank accounts and credit card accounts with QBO, we can download expenses automatically from the bank or credit card company into QBO.

True.

Usually account numbers are:

Used as a coding system to identify the account type.

Paying a bill is considered a(n) _______________ type transaction.

Vendors and Expenses.

Expenses transactions relate to:

Vendors.

Which tax return is used by an S Corporation?

Form 1120S.

Revenues are:

Increased with credits and decreased with debits.

Assets are:

Increased with debits and decreased with credits.

Which onscreen form is used to enter an adjusting entry?

Journal.

What does the QuickBooks Online Check Register do?

QuickBooks Online Check Register tracks banking activities.

Which account number range usually identifies assets accounts?

10000 to 19999.

Which account number range usually identifies liability accounts?

20,000 to 29,999.

Which account number range usually identifies revenue (income) accounts?

40,000 to 49,999.

Which account number range usually identifies expense accounts?

50,000 to 59,999.

When matching bank or credit card downloaded transactions to a transaction already recorded in QuickBooks Online, what are the possible actions that appear in the Action column?

Add, Match, or View.

Select the statement that is not true regarding Assets.

Assets are the amounts a company owes to others.

The Balance Sheet summarizes what a company owns and what it owes. What account types are on the Balance Sheet?

Assets, Liabilities, and Owners' Equity.

Financial statements include:

Balance Sheet, Profit and Loss Statement, and the Statement of Cash Flows.

Which report summarizes what a company owes and owns on a particular date?

Balance Sheet.

Which of the following is correct?

Balance sheet accounts have balances that are carried forward from year to year.

Money coming in to a company that is not related to customer sales should be recorded using the

Bank Deposit form.

Timing differences on a bank reconciliation include all of the following except:

Bank Errors.

The banking activities that QuickBooks Online records include:

Bank deposits, transfers, and checks.

Recording a check is considered a(n) ___________ type transaction.

Banking.

Which Navigation Bar selection displays credit card balances?

Banking.

Which transaction types should be recorded using the Bank Deposit form?

Cash received from loans, Interest earned, and Other income.

When using QBO, from which one of the following screens could you add a new account?

Chart of Accounts.

Small enterprises that have a strictly cash-based operation sometimes just use the ___________ to record all transactions.

Check Register.

Which transaction should not be recorded using the Expense or Check onscreen form?

Paychecks to employees for wages and salaries.

Which report summarizes what a company has earned and the expenses incurred to earn the income?

Profit and Loss Statement.

What does the My Accountant feature enable you to do?

Provide your accountant administrative access to your QuickBooks Online company.

The QBO SatNav, which assists with navigating QuickBooks Online, contains which of the following main processes?

QBO Settings, QBO Transactions, and QBO Reports.

The recurring transaction type that generates an alert when we should use a recurring transaction to enter a new transaction is:

Reminder.

The QuickBooks Online (+) New icon lists various transactions that can be created. It is commonly used for all of the following transaction types except:

Reports

Profit and Loss Statement includes the following account types:

Revenues and Expenses.

Customer sales should only be recorded using

Sales Receipts or Invoices.

One way to record money coming into QBO is:

Sales Receipts.

The Banking screen provides the following information except:

Sales Transactions.

To view the Products and Services List, select:

Sales from the Navigation Bar > Products and services tab.

Transactions are exchanges between our business and

employees, customers, and vendors.

QuickBooks Online refers to the QuickBooks system accessed through a web browser with data stored ________________

in the cloud.

Reconciling bank statements

involve comparing bank records and the company's records, assist in detecting errors, and is part of good internal controls.