QuickBooks

Backup file

A compressed copy of your data that can be stored online.

Portable company file

A compressed copy of your data; great for sending via email.

Company File

A decompressed, regular file for carrying out daily transactions.

Kili is setting up a new company file and, as he scrolls through the list of industries, he doesn't find one that perfectly fits his business. He knows QuickBooks will create accounts based on the industry selected and is worried that it won't have the accounts he needs no matter what industry he chooses. What advice might you give Kili?

Add your own accounts to the Chart of Accounts after setup is complete.

Bonus

Addition

Made to bring some general Journal account balances up to date

Adjusting entries

When working with batch timesheets, what criteria must all workers must have in common?

All of these options

Progress invoicing

Allows you to invoice from an estimate in stages

Advanced Setup

Allows you to provide more information when creating your company file

Start Setup

Allows you to set up new a company file with only basic information

Credit Card

American Express

Owner's Equity

Amount of owner investment in the company

When are transactions saved in QuickBooks?

As they are entered (automatically)

Finance charge

Assessed to customers who have not paid on time

Cost principle

Assets are recorded at cost, not at fair market value

Fixed Asset

Assets you don't plan to convert to cash within a year

Other Current Asset

Assets you plan to use or convert to cash within a year

Shows all asset, liability, and equity accounts

Balance Sheet

Time period Principle

Business activities or divided into time periods

Objectivity principle

Business statements are based on objectivity

Sales tax item

Calculates a single sale tax at a specific rate, which you pay to a single tax agency

Estimate

Can be created for either a customer or a job

Subaccounts

Can decrease the number of accounts shown on a Profit & Loss report

Wetland is entering a bill for supplies needed for a job and for which the customer will pay. Using the Enter Bills window, how can Weyland pass the supplies cost on to the customer?

Check the "Billable?" box for the supplies

Do this when setting a closing date in QuickBooks

Clean up your data

Provides a quick view of the company's bottom line

Company Snapshot

Network data file

Contains important configuration data; should not be deleted.

Personal Preference

Controlled by individual users

Company Preference

Controlled by the administrator

Wholesale purchase price of inventory

Cost of goods sold

Ship Via List

Create invoices form

After this you can choose to write a check or enter a bill for the payment

Credit card reconciliation

Sales Rep List

Customer & Job List, Additional Info Tab

Funds are taken directly from your checking account

Debit card purchase

Health Insurance

Deduction

Enter one for fixed assets every fiscal period in which you produce Financial statements

Depreciation transaction

Offered to encourage customers to pay bills earlier

Discount payment terms

Make a vendor inactive

Do this for vendors not currently being used.

What QuickBooks feature allows you to upload, store, and use scanned documents and other files?

Doc Center

Change orders

Done after the estimate has been created

Customer Message List

Enter sales receipts form

Nolan has entered a bill but did NOT use the Pay Bills window. Which statement describes the behind -the-scenes effect of this?

Expenses are double-stated and Accounts Payable for the vendor is not cleared out.

Matching principle

Expenses are matched to revenue

Amortization is the process of a balance increasing over time.

False

In QuickBooks, non-inventory parts are tracked in the same way as inventory parts.

False

In QuickBooks, the start date is the date your company began doing business.

False

The cash basis accounting method means the sales transaction is recorded when the sale is made and expenses are recorded when they are incurred.

False

Using a debit card deducts funds from a checking account, which is an asset. This means the debit card normal balance is a credit.

False

While you can pay employees or vendors directly using billing rate levels, you can't make that cost billable and pass it on to a customer.

False

You CANNOT add information to a customer entry; you must enter the information into a job.

False

Medicare Company

Federal tax

Scheduled reports

Have selected reports emailed to you automatically

Eisa recently added a new customer. After about a week of entering transactions for that customer, Eisa notices that he misspelled the customer's name when he originally created the record. How can Eisa most efficiently correct the problem?

He can edit the customer name in the Customer Center, as any changes made to the customer record will change all future and past transactions.

Barry wants to show appreciation to his best customer by discounting all of their business. What's the easiest way for him to do this?

He should use fixed percentage price levels to decrease the items being charged to that customer.

Transaction log file

Helps to recover any data entered after the last backup.

Office-Billable Time

Hourly wages

What does "2% 10" mean in the payment terms 2% 10 Net 30?

If paid within 10 days, the customer receives a 2% discount.

Also known as the profit and loss report

Income statement

What happens behind the scenes if you don't use the Receive Payments window to record a payment on an invoice?

Income will be overstated and Accounts Receivable will not be cleared out.

Tracked and sold by quantity

Inventory part

In QuickBooks, an employee is someone to whom you:

Issue a W-2 at the end of the year.

Chart of Accounts

Listing of all asset, liability, equity, income, and expense accounts

Jasmine is considering purchasing a backhoe for her construction business. What QuickBooks took can help Jasmine consider and compare different loan option.

Loan Manager What If Scenarios

Long Term Liability

Loans you don't plan to pay off within the next year

Long term Liability

Mortgage

When closing the books, if the balance in the income summary account is a credit, the company has experienced a (n):

Net income

Sayid is entering the purchase of a new truck for the company. He starts the transaction; selects the correct account; and enters the date, vendor, and amount before realizing that he did not first create the fixed asset item for the new truck. Does Sayid have to cancel the transaction and start over?

No; he can create the fixed asset items while entering the transaction.

An item purchased for a specific customer

Non- inventory part

Does not affect what happens behind the scenes

Non-posting account

Sales Discounts

Not an equity account

Opening Balance Equity

Offset account for initial balances when starting a company

Equity

Opening balance equity

Industry specific reports

Options include reports for job costing professional services, construction, and retail businesses

Other Current Asset

Prepaid rent

Revenue principle

Publicly traded companies record when revenue is earned, not when cash is received

Payment Method List

Receive payments form

Shows transactions that have and have not yet cleared the bank

Reconciliation reports

Payment

Records partial remittances at the time of sale and reduces the total amount owed

Contributed reports

Reports that are shared as templates with others in the QuickBooks community

Bank

Savings account

Rasha doesn't like how her Chart of Accounts is sorted and that she must scroll up/down to find accounts. What can she do to make it easier to find the accounts she needs?

She can click a column heading to sort that column.

Prudence principle

She is a solution that is least likely to overstate assets and income

Fixed Asset

Short term loan

Other Current Liability

Short term loan

Start Date

Should not be too far in the past

Inventory Stock Status by Item

Shows inventory that needs to be ordered

Inventory Valuation Detail

Shows the specifics for transactions that affect inventory value

Inventory Valuation Summary

Shows the value of your inventory by item

Commented reports

Snapshots of reports with user notes, queries, and other feedback

Shows capital at the beginning/end of a fiscal year

Statement of owners equity

Tracks every entry, modification, or deletion to transactions

The audit trail

With temporary accounts...

The balances are zeroed out at the end of the fiscal period

The assumption of the growing concern

The business Will be in operation and definitely

Business entity principle

The business is separate from the owner

With permanent accounts...

The ending balance for one fiscal period is the opening balance for the next

Equity

The owner's investment in the company

Kumar's business is expanding, and he is eager to find out just how much income has increased. Which report should Kumasi want to compare profits from this year to last year?

The profit and loss previous year comparison or balance sheet previous year comparison

What happens on the profit and loss by category report if they are unclassified transactions?

The report will include a column showing the unclassified amount for each transaction

Catelina wants to create custom fields on a standard form provided by QuickBooks but she can't find the option to do so. Why not?

The standard reports in QuickBooks cannot be customized in this way.

Which report can indicate the financial health of the company?

The statement of cash flows

Rasgar is working in QuickBooks as a heavy storm begins. Her building is notorious for losing power during storms, so she wants to save her company file right away. How should she do this?

There is no need to save because QuickBooks automatically saves all actions.

Edit a vendor

This action affects past and future transactions

Merge list entries

This cannot be undone

Delete a vendor

This is allowed if you have not used the vendor in a transction

During the data cleanup process that can occur after the books are closed, which transactions are NOT summarized?

Those that are linked to others with open balances

Files in the QuickBooks docs center are not secure, so take care with sensitive information

True

In QuickBooks, portable files must be restored before use.

True

Mitch is trying to pay a bill for the first time in QuickBooks, but the bank account from which he will draw the funds is NOT listed. Mitch needs to add the bank account to his Chart of Accounts.

True

Subitems do NOT affect the accounting behind the scenes.

True

The timer feature is used for timed activities on the current day only.

True

When accounting for returned merchandise, you can either issue a refund check or apply a credit toward a future purchase.

True

When selecting a payment date in the Pay Bills window, set the date the payment should be reflected in your bank and Accounts Payable

True

When working with payroll schedules, you can choose to pay employees by group or by batch.

True

You can create a progress invoice for just a single item.

True

You edit, delete, and create new employees just as you do for customers and vendors.

True

Monetary unit principal

Use a stable currency for the unit of record

Consistency principle

Use the same accounting principles and methods year to year

Subtotal

Use this to apply a percentage discount or surcharge to many ítems

Discount

Use this to subtract a percentage or fixed amount from a total or subtotal

Physical Inventory Worksheet

Used to compare inventory on hand to inventory recorded in QuickBooks

What should you do if you used a regular check to pay payroll taxes?

Void the check and then process the payment through the Pay Payroll Liabilities window.

Register QuickReport

What are all the transactions in my Checking account involving a specific payee?

Reconciliation Discrepancy

What changes in transactions may affect my next reconciliation?

Reconciliation Summary

What checks have not cleared the bank as of the last bank statement?

Service

What you charge for or purchase

Inventory Part

What you purchase, track as inventory, and resell

Materiality principle

When an item is reported, its significance is considered

Company Snapshot

Where can I see a quick view of my company's bottom line?

Retained Earnings

Where net income/loss is transferred at the end of the fiscal year

Balance Sheet

Which report shows all asset, liability, and equity accounts?

Job costing

Will help in creating future estimates

Sick Salary

Yearly salary

Create a subcontractor

You can do this on the fly in the Enter Bills window.

How can you control what employees can access in your QuickBooks file?

You can grant access rights for specific areas to each employee.

If the income summary account balance is a debit...

You credit it and debit the capital count, and the kidding a net loss

If the income summary account balance is a credit...

You debit it and credit the capital account, indicating a net income