Quickbooks Online 2018 - Chapter 3 - study guide- modified

How does a cash purchase recorded in the Check window affect the vendor file?

The vendor file is unaffected.

A vendor credit is

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

The Pay Bills windows displays

all open bills as of a selected date

The Journal Report displays

all transactions recorded during a specified period of time

To see all recent transactions for a vendor, open the vendor file from the Vendors List and

click the Transaction List tab.

When you use the Pay Bills window in QuickBooks

for general ledger purposes, the bill is considered paid.

Vendor reports in QuickBooks

include the Unpaid Bills Report, the Vendor Balance Detail Report, and the Vendor Contact List Report.

A cash purchase

is a payment of any bill or item other than accounts payable.

Payment on account

is payment of an outstanding account payable.

Which one of the following accounts is a system default account for a vendor?

Accounts Payable

In QuickBooks, which window is used to record a purchase on account?

Bill

Vendor activities in QuickBooks use the

Bill, Pay Bills, and Check windows.

When a bill (or account payable) previously recorded is to be paid, you enter the transaction

Pay Bills window

Payments on accounts are recorded in the

Pay Bills window.

Click the _____ icon in the Check window to review recent payments recorded there and in the Pay Bills window

Recent Transaction

A purchase on account

is posted to the Accounts Payable account by default.

When a company receives a bill for goods or services, the bill

is recorded in the Bill window.

A bill from a vendor is considered a(n)

liability.

The Pay Bills window is for activities identified as

payments of outstanding accounts payable

A(n) ________ journal is used to record all purchases of goods on account; it can be in a single-column or multi-column format.

purchases

The Unpaid Bills Detail Report does not

show vendors that have not sent bills.

A vendor is

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

When reviewing a report, QuickBooks allows you to "drill down" from a report to

the original window where data has been entered.

For a cash payment on a bill not previously entered in QuickBooks

use the Check window.

The Unpaid Bills Detail Report lists all unpaid bills for each ________ as of ________.

vendor; a specific date

Which of the following statements is not true? a. When you write a check in the Pay Bills window, QuickBooks automatically decreases (debits) the Accounts Payable account. b. Paying for a cash purchase cannot be entered in the Check window. c. The Bill window is used to record purchases on account. d. As transactions are recorded in the activities windows, QuickBooks simultaneously updates the vendor's file in the Vendor List.

Paying for a cash purchase cannot be entered in the Check window.

Which of the following is a true statement? a. QuickBooks automatically updates any related reports with information from vendor transactions. b. Vendor files are automatically set up for you in QuickBooks. c. You can only view reports after you update the general ledger. d. It is not necessary to set up a vendor file for each vendor.

QuickBooks automatically updates any related reports with information from vendor transactions.

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

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

The Vendor Balance Detail Report shows

all vendor-related transactions in chronological order.

When you enter a bill from a vendor, QuickBooks

automatically credits the Accounts Payable account.

When you write a check in the Pay Bills window, QuickBooks

automatically decreases (debits) the Accounts Payable account

Once a vendor file is established, transactions can include receiving a(n)

bill from a vendor, paying that bill, and paying for a cash purchase.

When you make an entry for a new liability in the Bill window, QuickBooks does not automatically update the

checking account balance.

The Vendor List should contain

company name, address, contact person, terms, tax ID, and current balance owed.

When you write a check in the Check window

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

A vendor credit reduces

the balance owed to the vendor

When making a partial payment on account

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

In the Journal Report, the TRANSACTION TYPE indicates

the window where the activity was recorded.

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

this is called a purchase on account.

In QuickBooks, the Pay Bills window is used

to record a payment on account.