Test 1 Answer Key (Ch.1-6)

Match each QuickBooks user interface element with its description.

+ New menu: Displays a list of categorized transactions Top-right navigation tools: Include Help, Search, andNotifications Gear icon: Where you access the Your Company, Lists, Tools, and Profile menus Navigation bar: Gives access to the various centers

What is the equity value for Craig's Design and Landscaping Service?

-$7,695.04

Every transaction requires at least _____ accounts.

2

Match these transaction icons with their meanings.

: A definite match in the QuickBooks register exists. : One or more transactions are a potential match. : The transaction was manually added from bankfeeds. : Set up an automatic bank feed. : The transaction has been cleared.

What is the test drive?

A free version of the software that allows you try outfeatures without the risk of negatively impacting your truecompany file

Match these reconciliation problems with their solutions

A transaction is missing in QuickBooks. : Add thetransaction and then return to the reconciliation. An error was made when entering the transaction. : Clickthe transaction inside the reconciliation, edit it, andcontinue. The bank made an error. : Adjust your balance until theissue is resolved and then reverse the transaction.

Match each task to its corresponding action.

Add a new customer. : This can be done from within asales form. Create a receipt or invoice. : Use the Action menu. Delete a customer. : This isn't allowed; use the MakeInactive command instead. Use a non-QuickBooks list. : Use the Import Data tool. See a snapshot of Accounts Receivable.

What is the basic accounting equation?

Assets = Liabilities + Owner's Equity

Match each user type to its description.

Bank : Checking Income : Service/Fee Income Long Term Liabilities : Notes Payable Other Current Assets : Prepaid Expenses Expenses : Utilities Fixed Assets : Machinery & Equipment

Which statement about historical transactions is false?

Because entering journal entries can be tricky, it'savoided with historical transactions.

Akim is entering a bill from a new vendor whose name does not appear in theChoose a Vendor menu. What should he do?

Choose Add New from the menu and create the newvendor right from the bill.

Which term describes the QuickBooks Online accounting system?

Cloud-based

Blaire contracted with a local print shop to print her weekly sales flyers and otheradvertising materials. Every month, the print shop will deduct the cost of the month'sprinting from her company's checking account. How can Blaire ensure thetransactions are categorized properly?

Create a bank rule.

Which "behind the scenes" image shows what happens when you pay a credit cardbalance?

Credit: Checking Debit:CR card payable

Match each situation with the appropriate action or result.

Customer paid cash at the time of sale : Create a salesreceipt Customer shows twice in the Customers List : Merge thecustomers Customer is associated with multiple jobs : Set up sub-customers Customer will pay at the end of the job : Create aninvoice Customer paid for a completed job : Applied toUndeposited

Which "behind the scenes" image shows what happens when you pay a bill ?

Debit:A/P Credit:Checking

Which 'behind the scenes' image shows what happens when you record the receiptof a payment?

Debit:Undeposited fund Creadit: A/R

Which statement about deleted and voided transactions is true?

Deleted transactions are removed; voided transactionsare retained with zero values.

What type of form is used for payments made with a debit card, credit card,automatic withdrawal, or wire transfer?

Expense

Which statement about using QuickBooks Online on a mobile device is false?

For privacy, customer information is not accessible

Match each description to its term.

Funds are taken directly from the Checking account :Debit card purchase After this, write a check or enter a bill for the payment :Credit card reconciliation Compares transactions that have and haven't yet clearedthe bank : Reconciliation Shows all asset, liability, and equity accounts : Balancesheet This holds customer payment funds until you depositthem into your bank account : Undeposited Funds

You just starting using QuickBooks to manage your existing business. Yourcustomer list is in Excel. How do you get the list into QuickBooks?

Import the customer list.

Match each item to its description

Include inactive: Make the Vendors List show vendors without recent action Expenses center: Where you can import vendors, among other things Vendors List: Customizable and editable for your changing needs Display Name As The only required field when setting up a new vendor

Match each account type with its best description.

Income : All the sales and fees earned

What item on the Profit and Loss report should be the same as on the balancesheet?

Net Income

Located at the top of the Navigation bar, what does the + New button do?

Opens a menu of transactions grouped by Customers,Vendors, and Employees

Match each account type to its detail type.

Other Current Assets : Prepaid Expenses

Match each QuickBooks subscription type with the business it's best suited for.

Plus : Has inventory with FIFO valuation

Match each user type to its description

Standard: This user can be granted limited or full access but no admin privileges Company Admin: This user has full privileges and access to all areas of the company file Reports: This user can display company information on screen or in print (.xlsx, .pdf) Time Tracking: This user has

What is an Action menu?

The right-side column on some screens with a drop-down menu of associated actions

Why is it important to properly set up the Products and Services lists?

To automate accounting and ensure the creation oflinks to the appropriate detail and summary reports

Why create the Chart of Accounts?

To categorize assets, liabilities, expenditures, andrevenue

Why use gear icon?

To quickly access the Your Company, Lists, Tools, andProfile menus

What lists can you NOT import from Excel into QuickBooks?

Transactions

By default, where are customer payments deposited?

Undeposited Funds

Identify the FALSE statement regarding vendor data.

Use the Import Data tool to map your vendors with theirassociated customers.

Match each situation to the form that should be used.

You will pay for the purchase later. : Bill

A vendor transaction is recorded as an expense when:

payment is made at the time of purchase