Quickbooks-Chapter 2 Practice Exam

A bill from a vendor is considered

a liability

A credit memo is

a reduction of Accounts Payable as a result of a return or an allowance by a vendor.

The Pay Bills window displays

all open bills as of a selected date

The Journal report

displays, in general journal format, all transactions recorded during a specified period of time.

When you use the Pay Bills window in QuickBooks,

for general ledger purposes, the bill is considered paid.

Vendor-related reports in QuickBooks

include the Unpaid Bills Detail report, the Vendor Balance Detail report, and the Vendor Contact List report.

A cash purchase

is a payment of any bill immediately upon receipt

Payment on account

is payment of an outstanding account payable.

To process transactions and organize data for reporting, QuickBooks establishes specific general ledger accounts as default accounts in each activity window. Which one of the following accounts is a system default account for a vendor?

Accounts Payable

n QuickBooks, which window is used to record a purchase on account?

Enter Bills window

Vendor activities in QuickBooks use the

Enter Bills, Pay Bills, and Write Checks windows.

Which QuickBooks window is not used when you record vendor transactions?

Enter Invoices

Payments on accounts are recorded in the

Pay Bills window

When a bill (or account payable) previously recorded is to be paid, you enter the transaction in the

Pay Bills window of Quickbooks

When a company receives a bill for goods or services, the bill

is recorded in the Enter Bills window

The Unpaid Bills Detail report

lists all unpaid bills for each vendor at a specific date

Terms of Net 30 Days means that

payment is due within 30 days.

The Pay Bills window is for activities identified as

payment of a purchase on account

Once a vendor file is established, transactions can include

receiving a bill from a vendor, paying that bill, and paying for a cash purchase.

The Unpaid Bills Detail report does not

show vendors that have not sent bills

A vendor is

someone from whom a company buys goods or services, either on account or for cash

When reviewing a report, QuickBooks allows you to "drill down" from a report to

the original transaction window where data has been entered.

Tracking vendor transactions should be completed in which order?

update Vendor Center, enter bills, pay bills, make cash payments, generate report

For a cash payment on a bill not previously entered in QuickBooks,

uses the Write Checks window

To process vendor transactions which of these QuickBooks menus is not used?

Journal

Which of the following is false?

Payment for a cash purchase cannot be entered in the Write Checks window.

A(n) _____ journal is used to record all purchases of goods on account; it can be in a single-column or multi-column format.

Purchases

Which of the following is a true statement?

QuickBooks automatically updates any related reports with information from vendor transactions

Which of these statements is not true about QuickBooks?

Reports, the third level of operation in QuickBooks, reflect only the information and activities recorded in the Vendor Center through the Activities windows.

Which statement is true?

The Vendor Center serves as the accounts payable subsidiary ledger for the company

A purchase on Account is

an Account Payable

When you enter a bill from a vendor, QuickBooks

automatically credits the Accounts Payable account

When you write a check in the Pay Bills window, QuickBooks

automatically decreases (debits) the Accounts Payable account

The Write Checks window is used for all cash purchases, including

checks, PayPal, electronic transfers, or debit cards.

The Vendor Center should contain

company name, address, contact person, type of vendor, terms, and other important information

When you write a check in the Write Checks window,

the account field is used to indicate the asset, expense, or drawings account to be debited.

When you make an entry for a new liability in the Enter Bills window, QuickBooks does not automatically update

the checking account balance.

When making a partial payment on account,

the vendor balance owed is reduced along with the cash balance

If a company receives a bill for goods or services from a vendor but plans to pay it at a later date,

this is called a purchase on account

n QuickBooks, the Pay Bills window is used

to record a payment on account