Quickbooks Online 2018 Practice Test

B

How do you manage default information for bank transactions that are downloaded? A. Banking->Add Account B. Banking->Rules C. Banking->Update D. Banking->Match

B

To set up overtime pay, you do add it as an hourly rate: A) True B) False

A

To setup the sales tax center, where do you go? a. Left Navigation Bar->Taxes b. Gear->Account and settings c. Accounting->Chart of Accounts d. None of the above

A

To turn on Class and Location tracking, where do you go? A. Gear->Account and Settings->Advanced->Categories B. Gear->All Lists C. Sales->Overview D. + New->Other

A

When you're working in QuickBooks Online, you'll spend most of your time using a form, a list, or a: A) Register B) Chart of Accounts C) Report D) Graph

C

Where can you find the transfer funds function in QuickBooks Online: A) Banking tab B) Home page C) Quick create D) Transactions tab

D

Where would you go to complete an Inventory adjustment? A. Gear->Products and Services->Adjust Qty B. Profit & Loss by Class C. + New->Inventory Qty Adjustment D. Both A and C

A

Where would you go to re-categorize all expenses for a vendor? A. Vendor Center->Click the Vendor->Select Transactions->Batch Actions->Categorize Selected B. Vendor Center->Edit Vendor C. Accounting->Chart of Accounts D. Gear->Account and Settings

D

Where would you go to setup new products and services? A. Left Navigation Bar->Sales->Products and Services B. Gear->Products and Services C. Gear->All lists D. All of the above

D

Which QuickBooks® Online subscription is most popular? A. Self-Employed B. Advanced C. Essentials D. Plus

B

Which account category is used when adjusting inventory? a. Cost of Goods b. Inventory Shrinkage c. Inventory Asset d. Sale of a Product

A

Which account register do you open to view checks that have cleared: A) Checking account B) Accounts receivable C) Cash on hand D) Uncategorized income

C

Which action would you take to make sure all income and expenses are entered correctly and match the monthly statements for your bank and credit card accounts? A. Add Account B. Import C. Reconcile D . Update

D

Which of the follow reports would you use to review sales tax owed? A. Sales by Customer Summary B. Balance Sheet C. Sales Tax Liability d) Both B & C

A

Which of the following best describes Location tracking: A) Report on profitability by location B) Customize the terminology as Entity C) Categorize line items on a bill to different locations D) Cannot be used in combination with Class tracking

D

Which of the following is a feature of QuickBooks Online Payroll: A) Client submits payroll tax payments and forms B) Export to QuickBooks Desktop for Win Mac C) Pay employees by direct deposit or print paychecks D) Access from a separate website outside of the QuickBooks Online account with central client list

D

Which of the following is correct regarding a company's legal entity type and the tax form it must file with the IRS? A) Sole Proprietor - Form 1065 B) Partnership - Form 1120 C) C Corporation - Form 1120S D) Sole Proprietor - Form 1040 Schedule C

B

Which of the following is false regarding updating QBO Lists? A) There are two basic ways to update QBO Lists: Before entering transactions and While entering transactions. B) QBO does not encourage updating While entering a transaction since it can lead to disorganization. C) If updating QBO Lists Before entering a transaction, use the Navigation Bar and select Accounting to update the Chart of Accounts. D) If updating While entering a transaction, then use the screen where you enter the transaction to update as well.

D

Which of the following reports allows you to track sales by location? A. Product and Services sales B. Open Invoices C. Sales by Customer detail D. Sales by Location Summary

C

Which of the following statements are NOT true regarding QBO Chart of Accounts? A) QBO automatically creates a Chart of Accounts when a new company is set up. B) QBO Chart of Accounts is customized by a user to fit its company's needs. C) QBO Chart of Accounts is customized to fit a company's needs and is not overly useful regarding tax return preparation since it is completed by using an IRS form. D) QBO Chart of Accounts is aligned with a company's tax return since QBO is used to organize financial information for tax preparation.

C

Which of the following statements regarding App subscriptions for QuickBooks Online is accurate: A) To add an app go to the app developers website and subscribe to it. Then give permission to sync with QuickBooks Online B) To add an app, from QBO, go to Intuit and click Find More Apps, and try it for free C) To add an app, from QBO, click Apps in the life navigation bar, search for the app and try if for free D) To cancel or manage an existing app subscription, go to the Intuit anywhere blue dot and click go to my apps

A

Which of these vendor-related transactions cannot be launched with one click from the "Quick Create" menu: A) Create new vendor B) Write Check C) Cash Expense D) Vendor Refund

A

Which option would you use to set reminders to re-order items? A. Re-order Points B. Qty on Hand C. Item Type D. SKU

B

Which report compares the amounts we budgeted to the amounts we received and spent? A. Balance Sheet B. Budget vs Actual C. Profit & Loss D. All the above

D

Which report displays a list of unpaid invoices by customer? A. Profit & Loss B. Sales by Item Detail C. Sales by Customer Summary D. Open Invoice

C

Which report would you use to complete a physical Inventory count? A .Product and Service List B. Inventory Valuation Summary C. Physical Inventory Worksheet D. Inventory Valuation Detail

B

Which report would you use to review income and expense by class? A. Sales by Customer Summary B. Profit & Loss by Class C. Unpaid Bills D. Sales by Product/Service Detail

D

Which report would you use to track the history of an item? A. Product and Service List B. Inventory Valuation Summary C. Open Purchase Order List D. Inventory Valuation Detail

C

To add locations to track income and expenses, where do you go? A. Gear->Products and services B. + New->Other C. Gear->All Lists->Locations D. Accounting->Chart of Accounts

C

To add classes to track income and expenses, where do you to go? A. Gear->Products and services B. + New->Other C. Gear->All Lists->Classes D. Accounting->Chart of Accounts

D

To create a new taxable product, where do you go? A. + New->Sales Receipt B. Gear->All Lists->Products and services C. Gear->Products and services D. Both B & C

A

You can customize any QuickBooks Online reports to show exactly the data you want: A) True B) False

B

To edit sales tax rates for a specific county, where do you go? A. + New->Other B. Left Navigation Bar->Taxes->Sales tax settings C. Left Navigation Bar->Sales D. All the above

A

. The chart of accounts is the framework used to categorize the information and transactions used to create reports. By using a chart of accounts and creating reports, you'll always know the current state of your business: A) True B) False

A

29. The financial statements must be prepared in a specific order. What is that order and why do financial statements need to be prepared in that order? A) Profit and Loss, Balance Sheet and Statement of Cash Flows. This order is required since the net income obtained from the Profit and Loss statement is used to increase owners' equity on the Balance Sheet. The Balance Sheet's updated accounts are needed to prepare the Statement of Cash Flows. B) Balance Sheet, Profit and Loss and Statement of Cash Flows. This order is required since the total assets obtained from the Balance Sheet is used to increase revenue on the Profit and Loss. Net income is needed to prepare the Statement of Cash Flows. C) Statement of Cash Flows, Profit and Loss, and Balance Sheet. This order is required since the cash obtained from the Statement of Cash Flows is used to increase revenue and the Profit and Loss statement. Updated accounts from the Profit and Loss statement are needed to prepare the Statement of Cash Flows. D) Profit and Loss, Balance Sheet and Statement of Cash Flows. This order is required since the net income obtained from the Profit and Loss statement is used to increase assets on the Balance Sheet and the Balance Sheet's updated accounts are needed to prepare the Statement of Cash Flows.

C

To enter a new invoice with sales tax, where do you go? A. + New->Sales Receipt B. Gear->All Lists C. + New->Invoice D. Both B & C

B

If you want to import your QuickBooks desktop data to QuickBooks Online, where would you find this option? A. Left navigation bar B. Gear icon C. + New icon D. None of the above

A

If you work with several companies, you'll be working with multiple QuickBooks Online company files. You can change from one company file to another at any time, but you can have only one company file open at a time in a single browser: A) True B) False

A

If your QuickBooks Online start date is before today's date, you also need to enter past transactions so that you have complete financial records from the start date forward: A) True B) False

A

In QBO, Recurring transactions can be classified as: 1. Scheduled 2. Unscheduled 3. Reminder. Which of the following statements is NOT true regarding these three classifications? A) Scheduled transactions are a great option to use for Recurring adjusting entry transactions since adjustments generally are for a constant amount each time. B) Scheduled transactions mean QBO automatically enters the transaction on the date the user specifies. C) Unscheduled transactions appear in the Recurring Transactions list but QBO will not automatically enter the transaction. D) Reminder transactions mean QBO will alert us with a reminder when we should use a recurring transaction to enter in an adjustment.

D

In QBO, account numbers are: A) used to uniquely identify specific accounts but do not assist in identifying an account type i.e. asset, liability, revenue, expense, and equity. B) used to only identify an account type and the account name identifies the specific account. C) used to uniquely identify accounts and help identify an account type. D) a combination of being randomly assigned and assigned alphabetically buy the user of QBO.

D

It is time to pay bills. Where do you go? A. + New icon->Expense B. + New icon->Check C. + New icon->Vendor Credit D. + New icon->Pay Bills

A

QBO groups transactions into the following different types? A) Banking and Credit Card, Customers and Sales, Vendors and Expenses, and Employees and Payroll. B) Banking and Credit Card, Customers and Sales, Payables, Employees and Payroll, and Other. C) Banking and Credit Card, Customers and Sales, Vendors and Expenses, Employees and Payroll, and Other. D) Banking and Savings, Customers and Sales, Vendors and Expenses, Employees and Payroll, and Other.

A

Unbilled time and costs can be viewed from multiple access points, including which of the following: A) The Customer Center's Money Bar B) The 'Quick Create' function submenu options C) The 'Search' function D) The Vendors tab

C

What is NOT true regarding QBO time tracking? A) A user must turn on QBO time tracking preferences before entering time. B) QBO provides two different ways to track time: Single Time Activity and Weekly Timesheet. C) Single Time Activity is not automatically added to an employee's Weekly Timesheet. Usually, Single Time Activity is used by subcontractors vs. employees. D) A Weekly Timesheet is used to enter time worked by each employee during the week and includes time billable to customers.

B

What is NOT true regarding Tax forms? A) The objective of the tax form is to provide information to federal and state tax authorities. B) When preparing tax returns, a company uses the same rules as those used to prepare financial statements. C) When preparing tax returns, a company uses different rules from those used to prepare financial statements. D) Tax forms include: Federal and State income tax returns, Federal Payroll Forms and Federal Form 1099.

D

What is the correct process to record a Bank Deposit (not related to customer sales)? A) Select the Gear icon, click on Bank and enter the date, select Received Form in Add New Deposits, then select the appropriate Account and enter in the information necessary. B) Select the Create (+) icon, select Bank Deposit under Other, click on Bank and enter the date, select Received Form in Add New Deposits, then select the appropriate Account and enter in the information necessary. C) Select the Gear icon, select Create (+), click on Bank and enter the date, select Received Form in Add New Deposits, then select the appropriate Account and enter in the information necessary. Use Attachments to add a file or photo of the source document. D) Select the Create (+) icon, select Bank Deposit under Other, click on Bank and enter the date, select Received Form in Add New Deposits, then select the appropriate Account and enter in the information necessary. Use Attachments to add a file or photo of the source document.

A

What is true regarding FUTA? A) It is a payroll tax owed by the business and reported annually on a tax form 940. B) It is a payroll tax owed by the business and reported quarterly on form 941 and annually on tax form 944. C) It is a payroll tax owed by the business and reported quarterly on form 940. D) It is a payroll tax shared by the employer and employee and reported quarterly on form 941 and annually on tax form 944.

A

What product type would you choose to add a delivery fee? A. Service B. Bundle C. Inventory D. Non-Inventory

D

What product type would you choose to add a water bottle you buy and sell? A. Service B. Non-Inventory C. Bundle D. Inventory

D

What report is available after a bank account has been compared to the bank statement? A. Statement of Cash Flows B. Bank Register C. Balance Sheet D. Reconciliation Summary

D

What types of change does a budget vs actual report show? A. Dollars B. Percentage C. Cash Flow D. Both A and B

B

Which selection below is FALSE regarding Adjustments? A) Adjustments bring accounts up to date and show the correct account balances on financial reports. B) Adjusting entries are dated the first day of the accounting period. C) Adjustments are typically made at the end of the accounting period to up date accounts before year-end reports are prepared. D) Adjustments are also called Adjusting Entries since we enter Adjustments by making entries into a Journal.

A

Which two QBO lists will be used when entering customer sales related transactions? A) Customers List, and Products and Services List. B) Banking List, and Invoices List. C) Customers List, and Sales List. D) Credit List, and Products and Services List.

B

Why is setting a closing date and a password strongly recommended: A) It populates the audit trail B) It sends an automatic email to the accountant C) It prevents a client from making changes to a closed period D) It creates a new Discrepancy Account in the Chart of Accounts

B

You have already reconciled for the month and found an old transaction in the Bank Center review section. Which action would you choose to address this? A. Review B. Exclude C. Go to register D. All the above

D

You are creating a new budget and need to determine an interval, what are the options? A. Monthly B. Quarterly C. Yearly D. All the above

D

You are creating a new budget and want to subdivide the budget, what are the options? A. Customer B. Class C. Location D. All the above

A

You have a new accountant. Where would you go to invite your accountant to your company file? A. Gear->Manage users->Accounting firms B. Gear->Account and Settings->Chart of Accounts C. Gear->Manage users->Users D. + New->Vendors

B

You just opened the mail and need to post three payments for open invoices. Where do you go to record the payments? A. Gear->Make Deposit B. + New icon->Receive Payments C. + New icon->Sales Receipt D. Search Icon->Create Invoice

D

You just opened the mail and received several bills. Where do you go to record the bills? A. + New icon->Expense B. + New icon->Bills C. Expenses->Vendors->Create Bill D. Both B and C

C

You need to identify which customers purchase the most. Which report will help you with this? A. Profit & Loss B. Sales by Item Detail C. Sales by Customer Summary D. Open Invoice

D

You plan on reconciling your checking account, which of the following information is required to begin? A. Statement Ending Balance B. Total Deposits C. Statement Ending Date D. Both A and C

D

You received payments for multiple invoices, and now you need to deposit them. Where do you go next? A. Left Navigation Bar->Banking B. Sales->Customer->Receive Payment C. + New icon->Receive Payment D. + New icon->Bank Deposit

C

You sold product to a customer and received payment at the time of sale. Now you need to record the sales in QuickBooks®. Which form would you use? A. Bill B. Deposit C. Sales Receipt D. Check

A

You want to create a budget for your company. Where do you access budgets in QuickBooks Online Plus? A. Gear->Budgeting B. Banking->Rules C. Accounting->Chart of Accounts D. None of the above

C

You want to invoice several items at the same time. What item type would you use? A. Service B. Non-Inventory C. Bundle D. Inventory

A

You want to view bills to be paid to vendors and check for errors, which report do you choose? A.Unpaid Bills Report B. A/P Aging Summary C. A/P Aging Detail D. Bill Payment List

C

You wrote a manual check for supplies at Office Depot and need to manually post the check. Where do you go? A. + New icon->Print Check B. + New icon->Expense C. + New icon->Check D. + New icon->Bill