Accounting Certification Practice Test #3

Tangible items that you can purchase (a case of tile, a box of screws, or lumber to frame a new house) Intangible items (actions provided by someone such as a home inspector or a plumber)

Products Services

For each statement below, determine whether it is related to QuickBooks Payments or traditional Receive Payments.

QuickBooks Payments: These are automatically deposited in your bank account. You customer clicks a link on their invoice email to pay via credit card. Receive Payments: You must deposit these in the bank. You receive a check from your customer.

What transaction should you enter if a customer returns a damaged product, or in the case of service, complains so much you decide to write them a check for a refund?

Refund Receipt

A money-in transaction workflow involves recording customers' transactions within QuickBooks, creating an invoice, recording the payment once received, and depositing the funds into an account.

True

It is possible to specify a preferred payment method from the Payment and billing page.

True

Using credit cards and bank transfers makes bookkeeping simpler because QuickBooks automatically matches payments payments with invoices and reconciles them with bank statements.

True

When setting up a tax-exempt customer, a reason for exemption is needed.

True

For each statement below identify if the statement is True or False.

True: You can enter a Sales Receipt if the Customer field is empty. False: You can enter an Invoice if the Customer field is empty. You can enter a Receive Payment if the customer field is empty.

The ______ account is a temporary account QuickBooks uses to hold payments (cash or check) before they are deposited into a bank account.

Undeposited Funds

Which of the following statements is true regarding Undeposited Funds in QuickBooks?

Undeposited Funds is an account used to record payments before you make a deposit.

Which online payment options automatically deposit payments into a bank account? Choose two answers.

1. Bank Transfers 2. Cards

You made a sale, and the customer paid the entire amount in cash. How do you enter this sale into QuickBooks Online? Put the steps for entering this sale in the correct order. Not all steps will be used.

1. Click the "+ New" icon. 2. Select the Sales Receipt. 3. Enter the sale and payment information. 4. Save the transaction.

Your computer retail store has decided to sell repair services. You must add this new list to QuickBooks Online. How do you add a new Services list to QuickBooks Online? Put the steps for adding a new list in the correct order.

1. Click the "Gear" Icon 2. Select Products and Services 3. Click the New button 4. Select Service 5. Enter a service Name, Information (description), Rate, and Account to track income.

1. Create a Sales Receipt for the work done for Customer A. 2. Click Receive Payment next to Customer B and record the payment received. 3. Select Deposit from the <+New> icon and select the transactions for Customer A and Customer B. 4. Click Receive payment next to Customer A and record the payment received.

1. Correct 2. Correct 3. Correct 4. Incorrect

What information is found in the header of a sales form? Choose three answers.

1. Email Address 2. Phone Number 3. Business Name

When setting up a new inventory item what accounts have to be defined?

1. Income account 2. Expense account 3. Inventory asset account

Which statements about inventory products are true? Choose two answers.

1. Inventory products are tracked as assets on the balance sheet. 2. Inventory products will not be recorded on the balance sheet until they have been sold

1. Sale to a customer on account. 2. A cash sale to a customer. 3. Money taken to the bank. 4. Money returned to a customer. 5. Blank

1. Invoice 2. Sales Receipt 3. Deposit 4. Refund Receipt 5. Credit Memo

1. You must set up the sub-customer before the parent-customer. 2. If Bill with Parent option is selected on the sub-customer, you can see the activity of the sub-customer, you can see the activity of the sub-customer in the parent customer account. 3. If Bill with Customer option is selected on the sub-customer, then payments received must be applied to the parent customer. 4. Sub-customer could be used when one customer has multiple shipping locations where you ship product.

1. No 2. Yes 3. No 4. Yes

All of the fields below are fields that can be edited when changing the email sent to the customer with their invoice except which two?

1. Priority 2. From Address

Arrange the steps to create a money-in transaction workflow in the correct order.

1. Recording customers' transactions within QuickBooks 2. Creating an invoice 3. Recording the payment after it is received 4. Depositing the funds into an account

Diamond Shores Utility never received the check John sent them for $175.00. John needs to void the transaction within his QuickBooks Online account before sending them a new check. Arrange the steps John should take to void the transaction in the correct order.

1. Select Expenses 2. Select the Diamond Shores bill for $175.00 3. Select More 4. Select Void 5. Select Yes 6. Select the OK button

After a check from Fish World Tampa has been taken to the bank, Jill needs to make a bank deposit to move the funds from the Undeposited Funds QuickBooks account to her checking account. Jill would like to get $100.00 cash back and deposit the remaining $50. Arrange the steps Jill should take to make a bank deposit in the correct order.

1. Select New 2. Select Bank deposit 3. Select the Fish World Tampa check box 4. Activate the cursor in the Cashback amount field 5. Type: 100.00 6. Select Save and Close

Fish World Tampa sent a check for their invoice. Select two ways to mark this payment as received.

1. Select Sales and then Customers. From the Customer list, locate Fish World Tampa. Select Receive Payment. Enter the payment amount and method. Deposit into the Undeposited Funds account. Select Save and close. 2. Select New and then Receive payment. Under Outstanding Transactions, select Fish World Tampa. Enter the payment amount and method. Deposit into the Undeposited Funds account. Select Save and close.

Becky wants to give a customer a discount on their purchase. Arrange the steps Becky should take to activate a customer discount in correct order.

1. Select Settings 2. Select Account and Settings 3. Select Sales 4. Select Discount 5. Turn on Discount 6. Select Save

Sally created a Products and Services list in QuickBooks. She wants her inventory tracked so that she will know what items are in stock and be alerted when items need to be restocked. Arrange the steps Sally should take to turn on inventory tracking and alerts for low inventory in the correct order.

1. Select Settings 2. Select Account and Settings 3. Select Sales 4. Select Edit Product and Services 5. Turn on Track quantity and price/rate 6. Turn on Track inventory quantity on hand 7. Select Done

What information can be customized in the email form? Choose three answers.

1. Subject Line and Greeting 2. Full Details or Summarized Details 3. Message to Customer

Which are considered services? Choose two answers.

1. Tile Installation 2. A Home Inspection

Why do companies use customer discounts? Choose two answers.

1. To boost sales. 2. To cultivate a loyal relationship.

1. Discounts can at a percentage rate. 2. Discounts can be a dollar amount. 3. Discounts are a list in QBO. 4. Discounts are always applied to total after the sales tax is added.

1. Yes 2. Yes 3. No 4. No

Which three statements are true about setting up a product or service in QuickBooks Online? (Choose three)

1. You can use one product/service to represent different services or goods. 2. Products/Services allow you to track your sales in more detail without cluttering your Chart of Accounts or Profit & Loss. 3. To create an invoice, you can use either a product or a service.

QuickBooks automatically deposits payments within ______ of receiving them.

2-3 days

There is an outstanding receivable balance in an account from a company that has gone out of business. What would be used to write off the bad debt?

A Credit Memo

What is the difference between an Invoice and a Sales Receipt?

An Invoice records a sale and how much you customer owes. A Sales Receipt records a sale and the payment you received (it doesn't track any amount as owed).

What is a sub-customer?

An individual or company that is connected to a parent.

Which form cannot be customized in QuickBooks?

Bill

Which feature is customizable in the content section of a sales receipt template?

Label Spacing

A _______ can be issued to reduce the amount of money a customer owes.

Credit Memo

What transaction should you enter if a customer returns a damaged product that they have not yet paid for?

Credit Memo

You are setting up a new product you will frequently need to purchase for your company. You want QuickBooks Online to provide fields to track the product. How do you set up a new product to be tracked by QuickBooks?

Enable the box, "I purchase this product/service from a supplier."

It is possible to change the color and font options in an email.

False

Non-inventory products are recorded on the Profit and Loss statement after they are sold.

False

What is one reason to not use a bank deposit or journal entry screen to record sales?

If you record sales through the bank deposit or journal entry screen, the sale will not appear on sales reports.

Invoices are issued to customers to ______.

request a payment