Acct w/ QuickBooks Final
Chart of Accounts List
The list of accounts a company uses as it conducts business.
Transfer Funds
The movement of money from one account to another account.
Employee
The person hired by the company who will receive salary or wages on a regular basis.
Acounting
The process of recording, summarizing, and presenting financial information of a company in the form of financial statements.
How are invoice numbers handled in the Create Invoice window?
The user enters the desired number in the INVOICE # field.
What happens when you check the Vendor is inactive box in the Edit Vendor window?
The vendor's name is no longer displayed in reports, but the vendor information is retained.
In the Unpaid Bills Detail report, what is the purpose of the small diamonds in the title headings?
They can be clicked and dragged to change the column width.
When a company file is open, QuickBooks will display the company name in the _____ of the main window.
Titles Bar
Gross Pay
Total earnings for an employee for a specific period before withholdings and deductions.
Net Pay
Total gross earnings for an employee minus all employee withholdings and deductions.
A _____ is the general term for a monetary business event or activity.
Transaction
What report is typically run just after the adjusting journal entries have been recorded?
Trial Balance renamed Adjusted Trial Balance
What happens when you enter a partial payment for an invoice in the Receive Payments window?
You can leave it as an underpayment or write off the extra (unpaid) amount.
In the discussion of backup files in Chapter 1, it was recommended that this bee added as part of the company file name for the backup copy.
Your name or initials
QuickBooks cannot delete a vendor that has
a balance or is part of a transaction for the fiscal period.
Adjustments made to accounts at certain periods of time (for example, at the end of the month) are referred to as
adjusting journal entries.
The General Ledger report in QuickBooks displays
all activity in each account and lists the balance after each activity.
The Item List should include
all items sold by the company, including services.
In QuickBooks' Pay Bills window, the Account field allows the used to
choose a bank account from which to make the payment.
If a new customer needs to be added while in the Create Invoice window you can
click <Add New> at the Customer:Job drop-down list.
While reviewing reports, it is often helpful to see the originating transaction of document; you can do this by using a feature known as
drill-down.
Sales discounts are typically offered to customers to encourage
early payment of outstanding invoices.
Before you can enter inventory transaction in QuickBooks, you must
establish a file for each inventory item.
In QuickBooks, a customer file cannot be deleted if the customer
has a balance or has been part of a transaction during the current accounting period.
The list of accounts a company uses as it conducts its business is referred to as the
Chart of Accounts.
Accrual Basis of Accounting
Accounting method that requires the recording of revenue when it is earned and the recording of expenses when they are incurred regardless of cash receipts or cash payments.
QuickBooks uses the default _____ account from the Chart of Accounts to post all open bill liabilities/
Accounts Payable
Which of the following would be considered a liability type account?
Accounts Payable
Which of the following would not be considered as an asset type account?
Accounts Payable
The Pay Bills window uses these two default general ledger posting accounts.
Accounts Payable and Cash
For transactions created in the Create Invoices window, _____ is the default general ledger posting account.
Accounts Receivable
The Customer Balance Detail report is similar to the
Accounts Receivable subsidiary ledger.
Most of the daily accounting tasks in QuickBooks occur in this level of organization.
Activities
Which report displays the Unadjusted Balance, Adjustments, and Adjusted Balance for all accounts?
Adjusted Trial Balance (Worksheet)
Adjusting Journal Entry
Adjustments made to accounts at certain periods of time, such as the end of the month of the end of the fiscal year, to bring the balances up to date.
To select a menu choice using only the keyboard, hold down the _____ key and type the letter that corresponds to the underlined letter in the menu name.
Alt
When you double-click an asset account in the Chart of Accounts List window, the account's register is displayed. What happens if you double-click and expense account instead?
An Account QuickReport is displayed.
Sales Tax
An amount charged on the sale of merchandise, usually a percentage of the sales price. It is collected by the company as part of the sale and later remitted to the appropriate government agency.
Inventory Adjustment
An amount recorded in an expense or loss account to reflect the reduction of inventory value and/or quantity due to loss, theft, or damage.
When making backup copies of business computer files, it is advisable to store them
At an offsite location
This QuickBooks report if structured to show assets, liabilities, and equity balances for a business as of a certain date.
Balance Sheet Standard
In QuickBooks, the Make Deposits window is accessed by clicking _____ on the main menu bar.
Banking
To record a cash purchase and receipt of an inventory item, begin by clicking _____ on the main menu bar.
Banking
One way to open the Make General Journal Entries window is to begin by clicking _____ on the main menu bar.
Company
Sales of inventory items on account are recorded in the _____ window.
Create Invoices
The people or business that a company sells goods or services to are collected in this QuickBooks Center.
Customer
Which of the following QuickBooks reports displays all transactions for each customer with the remaining balance owed?
Customer Balance Detail
In QuickBooks, the _____ serves as the accounts receivable subsidiary ledger.
Customer Center
To help manage its collections, a company would use the _____ in QuickBooks Pro.
Customer-Related Reports
Deductions
Deductions generally refer to amounts taken out of the employee's paycheck for various fringe benefits such as insurance and pension.
Which of the following is not one of the choices on the main menu bar in the QuickBooks main window?
Delete
Reconciling Items
Differences between the bank statement and the company's accounting records agree with the balance in its bank statement.
Debit
Dollar amount recorded in the left column of an account. Depending on the account, it either increases or decreases the balance in the account.
Credit
Dollar amount recorded in the right column of an account. Depending on the account, it either increases or decreases the balance in the account.
If you accidentally delete an inventory item from the Item Lit, immediately click _____ and then Undo Deleter
Edit
When an inventory item is sold for cash, the transaction is recorded in the _____ window.
Enter Sales Receipts
Reversing Entries
Entries recorded in the general journal to offset a balance in an account.
In QuickBooks, what should you do prior to entering transactions for a customer?
Establish a file for a customer.
In QuickBooks, what do you have to do prior to entering transaction for a vendor?
Establish a file for the vendor in the Vendor Center.
Credit Card Charges
Expenditures chard to a credit card to be paid at a later date.
What are the two tabs in the Enter Bills window in QuickBooks?
Expenses and Items
To determine the most recent update of QuickBooks downloaded to your computer, use the
F2 function key or Ctrl + 1 on the keyboard
The option for switching between single- and multi-user modes in QuickBooks is found under _____ on the main menu bar.
File
To make a backup copy of a company file, begin by clicking _____ on the main menu bar.
File
When no company file is open, only _____ are active on the main menu bar in the QuickBooks main window.
File and Help
In customizing the Journal report to show only the adjusting journal entries, you would be using the _____ feature.
Filter
_____ are the summaries of the financial information of a company.
Financial Statements
Net 30 Days
Full payment of an invoice within 30 days of the invoice date is requested.
What does GAAP stand for?
Generally Accepted Accounting Principles
Accounting for the financial activity of any company involves all of the following except
Hiring Employees
In QuickBooks, register are not available for _____ accounts.
Income and Expense
This inventory report displays the on-hand status of each inventory item and whether it should be reordered.
Inventory Stock Status by Item
The Items tab of the _____ window is designed for purchases of inventory items on account.
Receive Items and Enter Bills
The Adjust Quantity/Value on Hand activity window is used to record changes in the inventory resulting from
items being lost, stolen, damaged, or spoiled.
Adjusting journal entries are usually dated the
last day of the month.
The Receive Payments window in QuickBooks displays all
open invoices for a particular customer.
Double-clicking a customer name in the Customer Center will
open the customer file in Edit Customer mode.
In the Pay Bills window, the user has the option of doing all the following, except
paying multiple vendors with one check.
On the Items tab of the Receive Items and Enter Bills window, the QTY field is where you enter the
quantity of items purchased.
The Enter Sales Receipts window is used to record sales where payment is
received immediately.
In QuickBooks, the Pay Bills window is used to
record the payment of an outstanding accounts payable.
For inventory items in the Items List, the Income Account field indicates the general ledger posting account for
revenue.
The Cost field in the Edit Item window contains the
unit cost for the item.
What is a 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.
Customer
A person or business that the company sells goods or services to, either on account or for cash.
Job
A project, assignment, or any identifiable segment of work for a customer.
Sales Discount
A reduction in the selling price if the invoice payment is made shortly after the invoice date.
Credit Memo
A reduction of Accounts Payable as a result of a return or an allowance by a vendor.
Trial Balance
A report containing all the general ledger account names, their respective debit and credit balances, and the total debits and total credits.
Cash Sale
A sale for which payment is received immediately.
Sale on Account
A sale on account occurs when a company sells goods or services to a customer but does not receive payment until a future date.
Single-User Mode
A setting in QuickBooks that allows only one user on a single computer to access a company file.
Multi-User Mode
A setting in QuickBooks that allows up to five users to access a company file a the same time, each on their own individual computer.
When entering adjusting journal entries in the Make General Journal Entries window, what happens if the total dollar value of debits does not equal the total dollar value of credits?
A warning window will appear, and if corrections are not made, you will not be able to save the journal entry.
Of the various pieces of information collected when setting up an account in QuickBooks, which of the following is not optional.
Account type
QuickBooks automatically assigns this extension to backup copies.
.QBB
QuickBooks automatically gives a restored copy of a backup the _____ extension.
.QBW
What file extension is automatically assigned to a company file in QuickBooks?
.QBW
Outstanding Check
A check written and recorded by the company that has not yet been paid by the bank.
Deposit in Transit
A deposit recorded on the company's books, usually at the end of the month, yet deposited too late to be on the current month's bank statement.
Payroll Journal (Register)
A journal used to calculate payroll and record payroll entries for each employee.
Cash Payments Journal
A journal used to record all cash payment activities including the payment of accounts payable.
Cash Receipts Journal
A journal used to record all cash receipt activities including collection of accounts receiveable.
Purchases Journal
A journal used to record all purchases of goods on account; can be in a cingle-column or multi-column format.
Sales journal
A journal used to record all sales of goods on account; can be in single-column or multi-column format.
Transaction
A monetary business even or activity.
Payroll
Involves the computing of employees' gross earnings, withholdings, and deductions, and net pay; the preparation of paychecks or setting up direct deposit; the proper recording of payroll-related transactions; submission of payroll withholdings to the appropriate agency; and preparation of payroll compliance reports.
How does QuickBooks know what revenue account to credit in the Create Invoice window?
It uses the revenue account specified in the Items List for the goods or services being purchased.
Inventory item files are included in the
Item List
Special Journals
Journals such as the purchases journal, sales journal, cash receipts journal, and cash payments journal. These journals can be used instead of the general journal to chronologically record similar transactions. A the end of the month, transactions in the special journals are posted (Rewritten) to the general ledger.
In the QuickBooks main menu window, this element extends vertically across the left side of the window.
Left Icon Bar
In addition to customer reports from the Customers & Receivables submenu, customer reports can be viewed from the _____ submenu of the Reports menu.
List
Vendor reports can be accessed by opening the Vendors & Payables submenu of Reports on the main menu bar, or by opening the
List submenu of the Reports menu
In addition to the Reports option on the main menu bar, QuickBooks also allows you print many inventory reports from the _____ window.
Lists
To add a new account in QuickBooks, being by clicking _____ on the main menu bar and then click Chart of Accounts.
Lists
Chart of Accounts, Customer, and Item are all examples of QuickBooks
Lists/Centers
Adjustments to account balances are recorded in the _____ window.
Make General Journal Entries
Inventory
Merchandise that is sold to customers for a profit.
The QuickBooks accounting software packages are designed with this type of user in mind.
Non-Accountants
Collection of Accounts Receivable
Occurs when a customer pays part or all of their outstanding balance due the company; sometimes referred to as payment of accounts receivable.
Payment on Account
Payment of an outstanding accounts payable.
Cash Purchase
Payment of any bill or item other than accounts payable.
The Pay Bills window is designed only for payments of _____ bills
Previously recorded bills.
Generally Accepted Accounting Principles (GAAP)
Principles used to prepare the financial statements of a company. They consist of both formal accounting regulations and procedures mandated by regulatory agencies and of traditionally used accounting procedures.
Bank Reconciliation
Procedure used to determine the correct cash balance in an account by comparing the activity recorded in the account to the activity recorded on the bank statement.
By what name is the income statement known in QuickBooks?
Profit & Loss Report
This report shows all purchase information for each inventory item, including vendor name, cost per unit, quantity purchased, and total cost.
Purchases by Item Detail
Which is not a version of the QuickBooks software?
QuickBooks Consolidation Solutions
Vendor
Someone from whom the company buys goods or services, either on account or for cash.
Financial Statements
Summaries of the financial information of a company. The most common are the income statement and the balance sheet.
Fiscal Year
The 12-month financial reporting year of the company. It can be the calendar year or any other 12-month period.
How does the Receive Payments window handle a situation in which a customer pays two invoices in full with a single payment?
The amount is automatically applies to the two invoices.
Employer
The company that hires workers.
General Journal
The document in which transactions are initially recorded chronologically. At the end of the month, transactions in the journal are posted (rewritten) to the general ledger.
General Ledger
The document in which transactions are summarized by account.
This asset account is used when cash is received but not immediately posted to a Cash account.
Undeposited Funds
QuickBook's Open Invoices report lists all _____ or each customer at a specified date.
Unpaid Invoices
Periodic Inventory System
Values the inventory periodically based on a physical count of the merchandise; usually done once a year.
Perpetual Inventory System
Values the inventory periodically based on a physical count of the merchandise; usually done once a year.
In QuickBooks, the _____ Center serves as the accounts payable subsidiary ledger for the company being paid.
Vendor
In business terminology, a _____ is someone from whom the company buys goods and services.
Vendor
This group of QuickBooks reports are especially useful in helping a company manage its liability payments, ensure timely and correct remittances, and control cash flow.
Vendor Reports
To record a purchase and receipt of an inventory item on account, begin by clicking _____ on the main menu bar.
Vendors
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.
When are you prevented from deleting an inventory item from the Item List?
When it has a balance or has been part of a transaction during the current period.
Withholdings
Withholdings generally refer to the payroll taxes the employer is required to take out of the employee's paycheck and submit to the appropriate government agency.
A payment of a bill via debit card is recorded in the ______ window.
Write Checks
Cash purchases of inventory items are recorded in the _____ window.
Write Checks
Where are cash purchases recorded in QuickBooks
Write Checks Window
In QuickBooks, you can subtotal two or more accounts by designating them as _____; the account to which the subtotals roll up is referred to as the _____ account.
subaccounts; parent
In accounting terms, inventory refers to
the ready-made merchandise that is sold to customer for a profit.
In the upper left corner of QuickBooks' Enter Bills window, there are options labeled Bill and Credit. When would you use the credit option?
to enter a credit memo from a vendor.