Quickbooks Concept Study Quiz

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.

In QuickBooks, can you enter a vendor transaction without having first entered the vendor information in the Vendor Center? If yes, how? If no, what must you do?

Yes, in the Activities level of operation.

QuickBooks cannot delete a vendor that has

a balance or is part of a transaction for the fiscal period.

In QuickBooks' Pay Bills window, the Account field allows the user to

choose a bank account from which to make the payment.

While reviewing reports, it is often helpful to see the originating transaction or document; you can do this by using a feature known as

drill-down.

For transactions recorded in the Write Checks window, __________ is the default credit posting account.

Cash

The list of all accounts a business uses is called the

Chart of Accounts List.

QuickBooks uses the default __________ account from the Chart of Accounts to post all open bill liabilities.

Accounts Payable

The Pay Bills window uses these two default general ledger posting accounts.

Accounts Payable and Cash

When you enter a bill in the Enter Bills window, QuickBooks automatically updates all the following except the

Customer Center.

In QuickBooks, what do you have to do prior to entering transactions for a vendor?

Establish a file for the vendor in the Vendor Center.

What are the two tabs in the Enter Bills window in QuickBooks?

Expenses and Items

When entering vendor information in the New Vendor window, what happens if you exit the window before clicking OK?

Information for that vendor will be lost.

A bill from a vendor is considered a(n)

liability.

In the Pay Bills window, the user has the option of doing all the following, except

paying multiple vendors with one check.

Which of the following is not one of the items contained in the vendor's file?

payment history

Terms of Net 30 Days means that

payment is due within 30 days.

The Pay Bills window is designed only for payments of __________ bills.

previously recorded

QuickBooks' Enter Bills window is equivalent to the __________ in a manual accounting system

purchases journal

In QuickBooks, the Pay Bills window is used to

record the payment of an outstanding accounts payable.

In business terminology, a __________ is someone from whom the company buys goods and services.

vendor

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

When is a bill considered paid in QuickBooks?

when payment has been recorded in the Pay Bills window

A Journal report can be found in QuickBooks under __________ on the Reports menu.

Accountant & Taxes

How does QuickBooks handle transaction numbers?

It assigns them automatically and they cannot be changed.

What does the Clear Splits button at the Enter Bills window do?

It clears the entries on the Expenses or Items tab.

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.

When setting up a new vendor in the Vendor Center, what are the default terms?

Net 30 days

In a manual accounting system, all purchases of goods and services on account are first recorded in a multi-column

Purchases journal

Vendor transactions are entered in all the following windows except the

Reference window.

In QuickBooks, the __________ Center serves as the accounts payable subsidiary ledger for the company being paid.

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

A payment of a bill via a debit card is recorded in the ________ window.

Write Checks

A transaction entered in the __________ will not be tracked through Accounts Payable or Vendor reports.

Write Checks window

Where are cash purchases recorded in QuickBooks?

Write Checks window

A reduction of Accounts Payable as a result of a return or an allowance by a vendor is referred to as a(n)

credit memo.

What does QuickBooks do when you write a check in the Pay Bills window?

decreases (debits) the Accounts Payable account

Unlike a purchase on account entered in the Enter Bills window, a cash purchase recorded in the Write Checks window does not use

the Accounts Payable account.

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