QuickBooks Exam

Ch.12 - It's a good idea to set the dividing date about _____ week(s) after the last day of whichever fiscal period you need.

2

Ch.3 - Up to how many default expense accounts can you have with each vendor?

3

Ch.6 - Karl wants to closely monitor his inventory, which includes several valuable items, to help prevent loss. What report can Karl run to quickly and easily to compare his inventory in QuickBooks against his physical inventory?

A Physical Inventory Worksheet

Ch.1 - What prior accounting knowledge should you have before using QuickBooks?

A basic knowledge of debits and credits, and what happens behind the scenes

Ch.3 - When bills are entered, which account is credited?

Accounts Payable

Ch.3 - You use the Pay Bills window to debit the _____ account.

Accounts Payable

Ch.7 - What account is credited when you use an Other Charge item to route bad debt to an expense account?

Accounts Receivable

Ch.1 - What accounting method records income when a sale is made and records an expense when it is incurred?

Accrual basis

Ch.5 - 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.

Ch.10 - Oliver is using his friend's computer to access his company file, which is saved to a flash drive. He's trying to insert his new company logo onto his custom template, but it isn't working. Which of these is most likely the reason why?

Adding a logo will not work if the company file is located on a flash drive.

Ch.9 - When is unearned income recorded as earned?

After you deliver the goods/services the customer purchased

Ch.10 - If a report has not been customized, what will it show?

All data for accounts, customers, or any other category

Ch.11 - How can accounting cycle information be used?

All of these option, Banks may use it when considering lending money to a business owner, The government may use it when assessing taxes, Business owners may use it to see how the business is going.

Ch.7 - Which statement about fixed assets is true?

All of these options, Businesses use fixed assets to promote the main operations of the business, Fixed assets are depreciable, Fixed assets are usually land, buildings, furniture, and vehicles.

Ch.11. - On which sales forms will you find the class field?

All of these options, Create Invoices, Create Purchase Orders, Pay Bills

Ch.9 - When tracking time, which fields are available regardless of whether you choose to enter time as a single activity or on a weekly timesheet?

All of these options, Customer:Job and Billable fields, Payroll Item and Service Item fields, Notes field

Ch.10 - What can you customize in your QuickBooks report?

All of these options, Header and footer information, Alignment, Header and footer formatting

Ch.2 - Which of these is an action you can take in the Lead Center to help track potential sales leads?

All of these options, Input contact and local information, Keep notes, Create and track tasks

Ch.9 - Which of these is an option with progress invoicing?

All of these options, Invoice for the full estimate, Invoice for a percentage of the full estimate, Invoice for selected items or for varying percentages of items

Ch.2 - Which aspects of doing business with customers are set up and executed in the Customer Center?

All of these options, Managing payment terms, Setting up sales tax, Tracking customers

Ch.7 - What can you choose when memorizing transactions?

All of these options, Not to be reminded and to have the transaction listed on the Memorized Transaction List, To have QuickBooks automatically enter the transaction based on a set schedule, To be reminded about the transaction

Ch.9 - When working with batch timesheets, what criteria must all workers must have in common?

All of these options, Their job, Their number of hours worked per day, Their payroll and service items

Ch.9 - What does the Time Tracking feature allow you to do?

All of these options, Track time for subcontractors, Invoice customers for the number of hours worked, Record single activities for a customer or job

Ch.11 - What can you do to help ensure that QuickBooks works properly for you?

All of these options, Try to estimate your cash flow for the near future, Make sure your inventory is accurate, Know what's in your bank accounts at the start of every business day, Run your Profit & Loss report and Balance Sheet reports fairly often.

Ch.10 - In what list can you set up a custom field?

All of these options, Vendor, Employee, Customer

Ch.9 - Which statement about assessing finance charges is true?

All of these options, You can decide which customers receive finance charges, You can print separate invoices for finance charges, You can view a customer's collection history via the Assess Finance Charges window.

Ch.10 - Custom fields are available for all types of items except:

All of these options, subtotals, sales tax items, sales tax groups

Ch.1 - What can you do with QuickBooks?

All these options, Run payroll for employees, Process sales transactions and cash receipts, Run end-of-period financial reports

Ch.11 - How long is a fiscal period?

Any length of time

Ch.4 - Wasim is a meticulous record-keeper and has been printing his QuickBooks reports every day, but he's becoming concerned about the cost and overuse of paper. How else could Wasim keep a record of his QuickBooks reports?

Any of these options, He can email the reports to himself as PDF or Excel files, He can export the reports to Excel, He can save the reports to his computer as PDF files.

Ch.2 - In QuickBooks, what is considered an item?

Anything the company buys, sells, or resells in the course of business

Ch.1 - When are transactions saved in QuickBooks?

As they are entered (automatically)

Ch.4 - In the Chart of Accounts, what are bank accounts listed as?

Assets

Ch.4 - You use the Balance Sheet Summary report to check that _____ are accurate and in balance.

Assets and liabilities

Ch.2 - When can you add a new customer or job to the Customer Center?

At any time

Ch.5 - Match each account type to its appropriate example.

Bank- savings account Other Current Asset- prepaid rent Fixed Asset- machinery Credit Card- American Express Other Current Liability- short term loan Long Term Liability- mortgage Equity- opening balance equity

Ch.8 - When must all W-4 information for an employee be entered?

Before you first run payroll

Ch.1 - Match these accounting terms to their descriptions.

Behind the scenes- the accounting QuickBooks performs when a transaction is recorded Activities- what the user enters on forms such as invoices or bills GAAP- principles generally accepted in the accounting world

Ch.4 - Which statement about deleted and voided transactions is true?

Both are recorded and become part of the overall records.

Ch.1 - Which of these QuickBooks tasks do/does NOT take place behind the scenes?

Both lists and reporting

Ch.3 - Weyland is entering a bill for supplies needed for a new 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.

Ch.5 - Which of these provides a way of grouping transactions according to your company's reporting and analyzing needs?

Classes

Ch.1 - Match each QuickBooks file type to its description.

Company file- a decompressed, regular file for carrying out daily transactions 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 Transaction log file- helps to recover any data entered after the last backup Network data file- contains important configuration data; should not be deleted

Ch.11 - Match each GAAP element listed to its best description.

Cost principle- assets are recorded at cost, not at fair market value Consistency principle- use the same accounting principles and methods year to year Monetary unit principle- use a stable currency for the unit of record Revenue principle- publicly traded companies record when revenue is earned, not when cash is received Prudence principle- choose a solution that is at least likely to overstate assets and income

Ch.1 - Keith has been using QuickBooks for several years. The system has recently been performing slowly, and Keith is worried that his company file is corrupted. What can Keith do to check the integrity of his file?

Create a backup file

Ch.10 - Lucas has been printing his reports for several months. The process is tedious, especially since he's creating the same reports every month, and he hates manually creating each report and printing them individually. What might you suggest to Lucas?

Create a memorized report group and process it as a batch.

Ch.3 - Match each action involved with managing a Vendor List to its description.

Create a subcontractor- you can do this on the fly in the Enter Bills window Edit a vendor- this action affects past and future transactions Delete a vendor- this is allowed if you have not used the vendor in a transaction Make a vendor inactive- do this for vendors not currently being used Merge list entries- this cannot be undone

Ch.4 - A credit card is a liability, so it's normal balance is a(n):

Credit

Ch.2 - What must you specify when creating an invoice?

Customer

Ch.9 - Match each field from the time data entry windows to its description.

Customer:Job- this helps you keep track of information needed for job costing Service item- enter information here to track services Payroll item:-enter information here to pay employees from time data Billable- check this field to pass on expenses to a customer Notes- enter information here to populate the description field in an invoice

Ch.1 - Elise's business has hundreds of transactions every day, and her accountant has suggested she back up her QuickBooks company file to secure her data. With so many daily transactions, how often should Elise back up her company file?

Daily

Ch.4 - Which statement about transferring funds between two asset accounts is true?

Debit the account that is increasing and credit the account that is decreasing.

Ch.2 - Match each item type with its description.

Discount- use this to. subtract a percentage of fixed amount from a total or subtotal Inventory Part- what you purchase, track as inventory, and resell Subtotal- use this to apply a percentage discount or surcharge to many items Sales Tax Item- calculates a single sales tax at a specific rate, which you pay to a single tax agency Payment- records partial remittance at the time of sale and reduces the total amount owed Service- what you charge for or purchase

Ch.4 - What does a reconciliation report show?

Discrepancies between QuickBooks and a bank statement

Ch.4 - What QuickBooks feature allows you to upload, store, and use scanned documents and other files?

Doc Center

Ch.7 - What is the term for when an owner takes money out of the company?

Draw

Ch.9 - Match each term to its description.

Estimate: can be created for either a customer or a job Job costing: will help in creating future estimates Progress invoicing: allows you to invoice from an estimate in stages Change orders: done after the estimate has been created Finance charge: assessed to customers who have not paid on time

Ch.3 - 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.

Ch.1 - Leann works for a nonprofit organization. At a past job she used QuickBooks to manage the business's finances, but she can't at this job because QuickBooks CANNOT be used for nonprofits.

False

Ch.1 - QuickBooks for Mac has the same basic look as the Windows version, but the functions are different.

False

Ch.1 - Rahim is having trouble managing his small business's finances. His friend is encouraging him to purchase QuickBooks because, "You don't have to know anything about accounting. QuickBooks does all the work and prevents you from having any problems." Is what Rahim's friend is saying true or false?

False

Ch.1 - 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

Ch.1 - The working QuickBooks company file, with the .QBW extension, is a compressed file.

False

Ch.10 - Although the preset reports DON'T include default headers/footers, you can create them.

False

Ch.10 - Formatting deals with the report data but NOT how that data is displayed.

False

Ch.10 - One formatting limitation in QuickBooks is that you CANNOT adjust how negative numbers are displayed on a report.

False

Ch.10 - Take care to use lists in QuickBooks only for their intended purposes.

False

Ch.10 - Use a fixed percentage to change the price of an individual item.

False

Ch.10 - 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

Ch.11 - Classes track the customers you are doing business with.

False

Ch.11 - One of the best things about QuickBooks is that the software does everything behind the scenes, so it's impossible to make accounting mistakes.

False

Ch.11 - The only way to add a document in the Doc Center is to scan it in.

False

Ch.11 - There are eight accounting cycle steps.

False

Ch.12 - Accounts for which the ending balance for one fiscal period is the opening balance for the next are called temporary accounts.

False

Ch.12 - Funds the owner withdrew from the company have no effect on the balance of the capital account at the end of the fiscal period.

False

Ch.12 - To prevent errors, QuickBooks requires you to have a certified accountant close the books.

False

Ch.12 - When importing an accountant's changes into your company file, you are prompted to create a portable copy of your file.

False

Ch.2 - Lists in QuickBooks are used for storing your list of accounts.

False

Ch.2 - To edit an existing transaction in QuickBooks, you void it and then re-create it.

False

Ch.2 - You CANNOT add information to a customer entry; you must enter the information into a job.

False

Ch.2 - You CANNOT edit a customer record after it has been created.

False

Ch.3 - In the Enter Bills window, be sure to include internal notes in the first memo field and any information you want printed on the check in the second memo.

False

Ch.3 - In the accrual basis of accounting, you do NOT have to use the Enter Bills and Pay Bills features in QuickBooks.

False

Ch.3 - When you make an item billable to a specific customer, the next time you invoice that customer, you must remember to manually enter the outstanding billable time and costs to the invoice because QuickBooks will NOT remind you.

False

Ch.3 - You must print the check at the time you enter transaction information into the Write Checks window.

False

Ch.4 - All financial institutions offer bank feed services that integrate with QuickBooks.

False

Ch.4 - Changing a transaction that has been cleared through reconciliation should NOT cause any problems.

False

Ch.4 - Deposits are the first step in the cycle of a sale.

False

Ch.4 - It is NOT necessary to indicate the main type of account when creating a new account.

False

Ch.4 - 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

Ch.5 - In QuickBooks, the start date is the date your company began doing business.

False

Ch.5 - Individual company preferences can be set by each user.

False

Ch.5 - Never use the Advanced Setup option when creating a company file; that option is for accounting professionals only.

False

Ch.5 - There is no limit to the number of users who can access a company file at a single time.

False

Ch.6 - In QuickBooks, non-inventory parts are tracked in the same way as inventory parts.

False

Ch.6 - Inventory tracking is automatically activated when you create a company file.

False

Ch.6 - Luckily, you don't have to know your state's sales tax requirements, because QuickBooks keeps that information up to date for you.

False

Ch.6 - Savings from discounts are deposited directly into your bank account, so you don't have to specify another account for the discounted amount.

False

Ch.6 - When entering a bill for inventory, enter any shipping charges in the Items tab along with the inventory items.

False

Ch.6 - You can set a default tax rate for the company but NOT for individual customers.

False

Ch.7 - Amortization is the process of a balance increasing over time.

False

Ch.7 - If you've made an error in charging sales tax, you will NOT be able to correct that error; you must make up the difference yourself.

False

Ch.7 - In a sole proprietorship, equity is what shareholders have invested in the company.

False

Ch.7 - Treating bad debt as a discount is recommended because it reduces sales tax liability.

False

Ch.7 - When the fiscal year ends, you must manually transfer your net income/loss into the Retained Earnings account.

False

Ch.8 - If you use an outside payroll service, you do NOT have to enter employee information into QuickBooks.

False

Ch.8 - In QuickBooks, voiding a paycheck is a very different process from voiding other transactions.

False

Ch.8 - QuickBooks offers three payroll service options: Manual, Enhanced, and Full Service.

False

Ch.8 - There's nothing that needs to be done with the payroll activity report received when working with an outside payroll service; just file it with your other paperwork.

False

Ch.8 - When you set employee defaults, QuickBooks automatically applies the preferences to all new employees you create and you CANNOT change them.

False

Ch.9 - All versions of QuickBooks include access to the full list of jobs reports.

False

Ch.9 - If you will perform only one job for a customer, you must create a job for that customer to track costing information.

False

Ch.9 - Mileage tracking is done so you can reimburse employees for their commutes to/from work.

False

Ch.9 - You can create estimates for jobs but NOT customers.

False

Ch.10 - What does a template include?

Formatting only

Ch.4 - Match each description to its term.

Funds are taken directly from your checking account- debit card purchase After this you can choose to write a check or enter a bill for the payment- credit card reconciliation Shows transactions that have and have not yet cleared the bank- reconciliation reports Shows all asset, liability, and equity accounts- balance sheet Provides a quick view of the company's bottom line- company snapshot

Ch.4 - Which statement about making deposits is true?

Funds received through sales are held in Received Payments, and you must move them to your bank account.

Ch.5 - Miguel is using the cash basis of accounting in QuickBooks. He's frustrated that whenever he prints a report, he must change the default, which is to print the report using the accrual basis. How can Miguel make his process easier?

He can change the default in the Reports & Graphs category on the Company Preferences tab.

Ch.5 - Roger is new to QuickBooks. He used to use a paper calendar to flag when upcoming bills were due. How can Roger use QuickBooks to remind himself of upcoming bill due dates?

He can create an item in the Item List to remind him of the upcoming bills.

Ch.2 - 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.

Ch.2 - Kyle's Item List includes many items for various cleaning services. They all start with different letters, so they don't appear together in the list, which means he must scroll up/down when choosing more than one service to include on an invoice. How can Kyle make finding his cleaning services items easier?

He can group them into subitems under a general term.

Ch.2 - Carlos has many customers in his company file and it's getting difficult for him to navigate through them all. He wants to clean up his list of customers by removing those he's pretty sure won't be coming in again. How can Carlos do this?

He can mark the unwanted customers as inactive.

Ch.4 - Adam is entering his utility bill payment into QuickBooks for the first time. In the Enter Bills window he uses a debit card to pay, and then he enters the transaction in the Write Checks window. Later he notices that the expense for the transaction shows as twice the amount he paid. Why?

He entered both a debit card payment and a write checks payment.

Ch.2 - Jemal is trying to create an invoice but in the Customer:Job list, only <Add New> is showing. What must Jemal do to populate his customer list?

He must first enter his customers into the Customers & Jobs List.

Ch.12 - As Carlos is closing the books for his small business at the end of the fiscal year, he notices a mistake on a transaction from several months ago. He can't fix it by adjusting the original transaction, because several other transactions and reports depend on that transaction. What should Carlos do?

He should make a general journal entry to move the money.

Ch.10 - 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.

Ch.6 - What does "2% 10" mean in the payment terms 2% 10 Net 30?

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

Ch.12 - Match the beginning of each phrase to its appropriate ending.

If the Income Summary account balance is a credit...- ...you debit it and credit the capital account, indicating a net income If the Income Summary account balance is a debit...- ...you credit it and debit the capital account, indicating a net loss With permanent accounts...- ...the ending balance for one fiscal period is the opening balance for the next With temporary accounts...- ...the balances are zeroed out at the end of the fiscal period

Ch.6 - In which situation would QuickBooks' batch invoicing feature be most useful?

If your company charges a standard monthly fee for many customers

Ch.12 - Where do you make adjusting entries?

In the Make General Journal Entries window

Ch.3 - The Profit & Loss report reflects all transactions that have affected:

Income and Expense accounts

Ch.1 - Omar is setting up his company in QuickBooks and selects the accrual basis of accounting. How will his business record income and expenses?

Income is recorded when sales are made; expenses are recorded when incurred.

Ch.2 - 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.

Ch.6 - Match each inventory report to its description.

Inventory Valuation Summary- shows the value of your inventory by item Inventory Valuation Detail- shows the specifics for transactions that affect inventory value Inventory Stock Status by Item- shows inventory that needs to be ordered Physical Inventory Worksheet- used to compare inventory on hand to inventory recorded in QuickBooks

Ch.8 - In QuickBooks, an employee is someone to whom you:

Issue a W-2 at the end of the year

Ch.7 - Why should you use the QuickBooks Loan Manager?

It includes a "what if" tool that allows you to experiment with loan scenarios.

Ch.12 - What does the inclusion of a Cost of Goods Sold section in a Profit & Loss report indicate about a business?

It likely deals with inventory.

Ch.10 - When you memorize a report, what does QuickBooks do?

It memorizes the format.

Ch.1 - If you've already been using QuickBooks, what does it do automatically when you start it?

It opens the last company file that was open when you exited QuickBooks.

Ch.12 - Which statement about QuickBooks' audit trail feature is true?

It tracks changes to transactions.

Ch.2 - Before you can add something to an invoice, it must be created as a(n):

Item

Ch.9 - If you have multiple projects for a customer, each project should be set up as a separate:

Job

Ch.9 - What QuickBooks feature helps you determine the profitability of each job in order to create future estimates?

Job Costing

Ch.12 - What type of transaction do you create to enter depreciation?

Journal entry

Ch.10 - What tool allows you to move and resize objects on custom forms?

Layout Designer

Ch.7 - Tax a business collects is considered a current _____ until paid.

Liability

Ch.2 - What type of information can the Search feature help you find?

List entries

Ch.7 - Jasmine is considering purchasing a backhoe for her construction business. What QuickBooks tool can help Jasmine consider and compare different loan options?

Loan Manager What If Scenarios

Ch.8 - Josh notices a minor error in an assigned class on one of the paychecks he's already distributed to his employees. What feature will prevent him from altering the wage amount or net pay while he corrects the class on the errant paycheck?

Lock Net Pay

Ch.5 - What account type is used to track an auto loan?

Long Term Liability

Ch.8 - Match each payroll error to its best fix.

Lost or damaged paycheck: reprint and reissue the check using the next check number Incorrect pay period dates within the calendar year: edit the information in the Review Paycheck window Employee was overpaid: correct on the next payroll Employee was underpaid: issue an unscheduled payroll check Incorrect paycheck item (not amount): use Lock Net Pay mode and correct the error

Ch.12 - Match each description to the term it describes.

Made to bring some general journal account balances up to date- Adjusting entries Also known as the Profit & Loss report- Income Statement Enter one for fixed assets every fiscal period in which you produce financial statements- Depreciation transaction Tracks every entry, modification, or deletion to transactions- The Audit Trail Do this when setting a closing date in QuickBooks- clean up your data Shows capital at the beginning/end of a fiscal year- Statement of Owner's Equity

Ch.7 - What QuickBooks feature allows you to easily enter repeated transactions?

Memorizing Transactions

Ch.11 - An inexperienced bookkeeper working with a traditional paper system may simply debit money from Checking when a purchase is made. Is this the correct approach?

No, they should also credit another account to balance the equation.

Ch.7 - 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 item while entering the transaction.

Ch.12 - While your accountant is working with an "accountant's copy" of your file, you can still:

None of these options, edit and delete accounts, reconcile accounts, add, edit, and delete transactions dated on or before the dividing date

Ch.5 - Talihah wants to allow some of her employees to access her QuickBooks company file, but she's worried that they may change her company preferences. What should Talihah do?

Nothing; only the administrator may set company preferences.

Ch.6 - Match each description to its correct term.

Offered to encourage customers to pay bills earlier- discount payment terms Wholesale purchase price of inventory- cost of goods sold Tracked and sold by quantity- inventory part Does not affect what happens behind the scenes- non-posting account An item purchased for a specific customer- non-inventory part

Ch.4 - Which of these accounts has its own register?

Opening Balance Equity

Ch.3 - Which of these CANNOT be edited after you have created and saved a new vendor?

Opening balance

Ch.11 - What are the three sections in the Statement of Cash Flows report?

Operating, Investing, and Financing

Ch.7 - Match each balance sheet account type to its description.

Other Current Asset: assets you plan to use or convert to cash within a year Fixed Asset: assets you don't plan to use or convert to cash within a year Long Term Liability: loans you don't plan to pay off within the next year Equity: the owner's investment in the company

Ch.3 - Akim is entering a bill from a vendor. When he opens the Enter Bills window and selects the vendor, the default expense account for that vendor automatically fills in, but, for this transaction only, he wants to use a different expense account. What should Akim do?

Override the default expense account by changing it for this individual transaction.

Ch.11. - What should you do before producing a Statement of Cash Flows report?

Pay all bills

Ch.10 - Match these lists to what form they use:

Payment Method List- receive payment form Ship Via List- create invoices form Customer Message List- enter sales receipt form Sales Rep List- customer & job list, additional info tab

Ch.8 - When you run payroll, you collect taxes and other deductions and hold them in a _____ account.

Payroll Liabilities

Ch.8 - Kent likes using QuickBooks for payroll, but he's tired of having to remind himself to enter the information, work around holidays, and keep straight how often different employees are paid. What feature can Kent use to automate the payroll process and reduce his frustration?

Payroll Schedules

Ch.8 - When working with an outside payroll service, which of these info tabs are left empty?

Payroll info

Ch.6 - Marcus is considering adopting QuickBooks for his small business, which stocks nearly a thousand different products. Which edition of QuickBooks should he purchase?

Point-of-Sale

Ch.8 - Omaira is setting up a new QuickBooks account for her existing business. What does she need in addition to the employee tax forms, considering that she's creating an account with an existing business that has been paying employees for some time?

Prior paychecks and liability payments

Ch.11 - Which report would you run to see if a class has been applied to each transaction?

Profit & Loss Unclassified

Ch.11 - What form tracks how much you've made or lost in a specific aspect of your business?

Profit & Loss by Class

Ch.6 - Inventory parts are tracked and sold by:

Quantity

Ch.6 - You purchase inventory items from several vendors. Some vendors send bills with each delivery, while others send one bill at the end of the month that includes all deliveries for that month. To receive items without a bill, use the _____ icon. To enter a bill that covers all deliveries for a month, use the _____ icon.

Receive Inventory; Enter Bills Against Inventory

Ch.4 - Lamar finds reconciling his bank statement with his QuickBooks file at the end of the month too time-consuming. Upon learning that his bank offers a bank feed with QuickBooks, Lamar signs up for the service. How will this change his monthly reconciliation?

Reconciliation will be quicker because most transactions will have been matched already.

Ch.4 - Match each report to the question it will answer.

Register QuickReport- what are all the transactions in my Checking account involving a specific payee? Reconciliation Summary- what checks have not cleared the bank as of the last bank statement? Company Snapshot- where can I see a quick view of my company's bottom line? Balance Sheet- which report shows all assets, liability, and equity accounts? Reconciliation Discrepancy- what changes in transactions may affect my next reconciliation?

Ch.1 - The act of decompressing a QuickBooks portable file is called:

Restoring

Ch.4 - Match each account name to its type.

Retail Product Sales- income Savings- bank Furniture and Equipment- fixed asset Payroll Liabilities- other current liability Owner's Draw- equity Undeposited Funds- other current asset

Ch.12 - At the end of the year, where is all net income or loss transferred?

Retained Earnings

Ch.7 - Match each equity account to its description.

Retained Earnings: where net income/loss is transferred at the end of the fiscal year Owner's Equity: amount of owner investment in the company Opening Balance Equity: offset account for initial balances when starting a company Sales Discount: not an equity account

Ch.4 - 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.

Ch.7 - While getting ready to remit her sales taxes, Jackie notices that the incorrect tax jurisdiction has been used for a certain customer. How can Jackie correct the problem?

She can go back to the original transactions and choose the correct tax item or group.

Ch.2 - Kendall is frustrated with having to manually populate every field whenever she enters a transaction. What can she do to help automate this process?

She can set defaults for specific information for each customer.

Ch.11 - Halah is reviewing her printed Profit & Loss by Class report and notices that an important transaction is missing. What is the most likely cause?

She did not apply the class information to the missing transaction.

Ch.3 - Hayden recently set up her company file and is now entering her first few transactions. As she works in the Pay Bills window, she sees that Check is the only available payment method. Credit Card is NOT an option. Why is this?

She must have a credit card account set up first.

Ch.9 - A few of Jen's customers have been late paying their invoices. She's made reminders by phone and email, but the situation hasn't improved. What can Jen do in QuickBooks to incentivize her customers to pay on time?

She should assess a late fee, service charge, or finance charge.

Ch.6 - Tina had been using the same payment terms for one of her longtime customers with no issue, but recently the customer has been late on payments. To hopefully encourage the customer to make more timely payments, Tina wants to add stricter terms to just the next transaction. How should she do this?

She should change the terms manually for the invoice, leaving the default alone.

Ch.6 - Clara lives in an area that requires her to send taxes to multiple tax agencies. How should she create her sales tax items in QuickBooks to properly collect the sales tax?

She should create a tax item for each agency and combine them into a single sales tax group.

Ch.8 - Match each payroll item to its type.

Sick Salary: yearly salary Office-Billable Time: hourly wage Bonus: addition Health Insurance: deduction Medicare Company: federal tax

Ch.10 - When creating a custom font in a report, what can you adjust?

Size, style, or color

Ch.5 - Match each QuickBooks term to its description.

Start Date- should not be too far in the past Company Preference- controlled by the administrator Personal Preference- controlled by individual users Start Setup- allows you to provide more information when creating your company file Chart of Accounts- listing of all asset, liability, equity, income, and expense accounts Subaccounts- can decrease the number of accounts shown on a Profit & Loss report

Ch.8 - For whom would you use a 1099-MISC form?

Subcontractors

Ch.9 - Which statement about creating a subsequent progress invoice for a customer is true?

Subsequent invoices will reflect the prior amounts and/or percentages.

Ch.7 - What QuickBooks tool allows you to see a prediction of future revenue for your business?

The Cash Flow Projector

Ch.6 - Where do you enter shipping charges for items received?

The Expenses tab on the Enter Bills window

Ch.12 - Kumar's business is expanding, and he is eager to find out just how much income has increased. Which report should Kumar run to compare profits from this year to last year?

The Profit & Loss Previous Year Comparison or Balance Sheet Previous Year Comparison

Ch.11 - If you worry that you haven't been consistently adding class information to transactions, what report could you run to see a list of transactions missing that information?

The Profit & Loss Unclassified report

Ch.7 - What tool shows how much money a company has set aside for sales taxes?

The Sales Tax Liability report

Ch.11 - Which report can indicate the financial health of the company?

The Statement of Cash Flows

Ch.12 - In traditional accounting, what is the report that adds all debits and credits so mistakes can be traced if debits don't equal credits?

The Trial Balance

Ch.8 - Where are subcontractors tracked?

The Vendor List

Ch.7 - Which of these is a way to record petty cash?

The Write Checks method

Ch.8 - Where do you enter employee paychecks?

The Write Checks window

Ch.1 - Which of these describes the GAAP consistency principle?

The company uses the same accounting principles and methods from year to year

Ch.8 - Which of these is required for payroll setup?

The employee's Social Security number

Ch.11 - What happens on the Profit & Loss by Category report if there are unclassified transactions?

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

Ch.10 - 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.

Ch.6 - How you set up sales tax in QuickBooks depends entirely on:

The state in which you conduct business

Ch.3 - What would prevent you from deleting a vendor from the Vendor List?

The vendor has been used in a transaction.

Ch.6 - What is the cost of goods sold?

The wholesale purchase price

Ch.1 - What do the arrows on the QuickBooks Home page indicate?

The workflow to follow when executing tasks in QuickBooks

Ch.1 - Rasha 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.

Ch.3 - Which statement about setting up subcontractors is true?

They should be set up as vendors, not as employees.

Ch.12 - 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

Ch.6 - Which of these should be set up as a non-inventory item?

Thread used by a seamstress

Ch.11 - Match each GAAP element listed to its best description.

Time-period principle- business activities are divided into time periods Matching principle- expenses are matched to revenue Business entity principle- the business is separate from its owner Materiality principle- when an item is reported, its significance is considered Objectivity principle- business statements are based on objectivity The assumption of the growing concern- the business will be in operation indefinently

Ch.5 - Classes can be assigned to:

Transactions

Ch.1 - Always back up your company file to a location NOT on the same hard drive as the original file.

True

Ch.1 - Data entry is the same in QuickBooks whether you use accrual or cash basis accounting.

True

Ch.1 - In QuickBooks, portable files must be restored before use.

True

Ch.1 - The QuickBooks working file has the .QBW extension and is the company file.

True

Ch.1 - The active window will always appear at the top of the Open Window List.

True

Ch.10 - After you set up a billing rate level, you choose the appropriate level for specific employees and vendors.

True

Ch.10 - Consistency in entries is the key to using custom fields effectively.

True

Ch.10 - Merging your QuickBooks data with a preexisting letter template in Microsoft Word is an example of integration between the two programs.

True

Ch.10 - You can adjust the default columns and their order in preset reports.

True

Ch.10 - You can apply filters to any report, but NOT all filtering options are available for every report.

True

Ch.11 - Files in the QuickBooks Doc Center are not secure, so take care with sensitive information.

True

Ch.11 - Most businesses use a year as their fiscal period.

True

Ch.11 - The Cash Flow Forecast report provides a glimpse of the cash that is and will be flowing into and out of the company.

True

Ch.11 - The Statement of Cash Flows looks at the cash inflows and outflows for a specific period.

True

Ch.11 - The date range for the Cash Flow Forecast report will be in the immediate future.

True

Ch.11 - The entire accounting cycle is started and finished within the accounting period.

True

Ch.12 - If you set a closing date in QuickBooks, you will NOT be able to create a closing date exception report that displays any modified transactions dated on or before the closing date.

True

Ch.12 - Preparing financial statements and performing year-end closing procedures, along with other tasks, is referred to as closing the books.

True

Ch.12 - The Income Statement will begin each fiscal year with all accounts displaying a zero balance.

True

Ch.12 - The audit trail feature is always on to ensure accurate recording of your QuickBooks data.

True

Ch.12 - You can adjust the average cost per inventory item by adjusting the total value of the inventory.

True

Ch.12 - You can delete a list entry after all transactions for that list entry have been deleted or summarized.

True

Ch.2 - Non-inventory items are tracked in the Cost of Goods account.

True

Ch.2 - Subitems do NOT affect the accounting behind the scenes.

True

Ch.2 - Use a sales graph to display your sales by item, customer, or rep.

True

Ch.2 - You CANNOT merge more than two customer names at one time.

True

Ch.3 - 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

Ch.3 - QuickBooks will hold checks to be printed in a queue until you are ready to print a batch of them.

True

Ch.3 - The Vendor List can be exported to contact management software, such as Microsoft Outlook.

True

Ch.3 - To be sure check items print in the proper location, align the checks to your printer.

True

Ch.3 - 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

Ch.3 - You CANNOT delete a vendor once you have used that vendor in a transaction.

True

Ch.4 - Bank Feeds automatically download your transaction history and account balance.

True

Ch.4 - Each balance sheet account has its own register.

True

Ch.4 - If you use a personal credit card occasionally for business purposes, you should NOT enter it into QuickBooks as business credit card.

True

Ch.4 - In QuickBooks, there is no limit to the number of credit cards you can use.

True

Ch.5 - Company preferences affect the way the company uses QuickBooks to do business.

True

Ch.5 - In QuickBooks, all transactions are tied to an account.

True

Ch.5 - The "Have a Question?" window changes depending on the active window.

True

Ch.5 - Transactions made prior to turning on the Class preference will NOT have a class assigned.

True

Ch.5 - When creating a new company file based on an older one, QuickBooks allows you to keep the existing lists and preferences but removes the transactions.

True

Ch.5 - You need to create an account for each type of expense and income you want to track.

True

Ch.5 - You should create a separate QuickBooks company file for each tax return you file.

True

Ch.6 - QuickBooks automatically creates your Sales Tax Liability account for you.

True

Ch.6 - The Enter Sales Receipts window does NOT affect Accounts Receivable.

True

Ch.6 - The Inventory Part window consists of two sides: one for sales information and one for purchase information.

True

Ch.6 - When accounting for returned merchandise, you can either issue a refund check or apply a credit toward a future purchase.

True

Ch.7 - A fixed asset is something you DON'T plan to use up or turn into cash within the next year.

True

Ch.7 - Accumulated Depreciation is a contra account and a fixed-asset account.

True

Ch.7 - Credit memos used to write off bad debt are applied to the original invoice.

True

Ch.7 - The Loan Manager pulls information from your Long Term Liability or Other Current Liability accounts.

True

Ch.7 - The Loan Manager tracks the principle and interest payments without having to set up separate amortization schedules.

True

Ch.8 - Anything you want included on a paycheck must first be set up as an item.

True

Ch.8 - The QuickBooks Manual Payroll option requires you to enter all employee and payroll information, including taxes, yourself.

True

Ch.8 - When working with payroll schedules, you can choose to pay employees by group or by batch.

True

Ch.8 - You edit, delete, and create new employees just as you do for customers and vendors.

True

Ch.9 - Funds sold as a gift certificate are considered unearned income.

True

Ch.9 - QuickBooks allows you to create multiple estimates for a single customer or job.

True

Ch.9 - QuickBooks can calculate finance charges due based on preferences you set.

True

Ch.9 - The Time by Job Summary report shows the number of hours spent on each job being tracked.

True

Ch.9 - The standard job, time, and mileage tracking reports can be customized.

True

Ch.9 - The timer feature is used for timed activities on the current day only.

True

Ch.9 - You can create a progress invoice for just a single item.

True

Ch.5 - Leila heard that classes can help her track unique aspects of her business, and she wants to start using them. She's looking for the Class column in the Create Invoices window but doesn't see it. What should Leila do?

Turn on class tracking in the Company Preferences.

Ch.2 - When you enter a Sales Receipt transaction, where do the funds go?

Undeposited Funds

Ch.2 - Match each form type to its best description and use.

Used to gather customer charges for a specific period.- Statements Used when a customer does not pay at time of service.- Invoice Used when a customer makes a payment at time of service.- Sales receipt

Ch.2 - To remove a transaction and still retain a record of it, use the _____ command.

Void

Ch.8 - 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.

Ch.8 - What form summarizes the W-2 information you provide to your employees and is submitted to the government?

W-3

Ch.3 - Match the phrases to complete accurate statements.

When entering bills... you must specify the vendor When paying bills... you debit Accounts Payable With cash-basis accounting... you can just write checks to pay bills

Ch.5 - Which statement about unused accounts created in the generic Starter Chart of Accounts is true?

You can either rename or delete these accounts.

Ch.5 - How can you control what employees can access in your QuickBooks file?

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

Ch.9 - Which statement about time tracking is true?

You can include billable mileage when you create an invoice.

Ch.8 - On the Expenses tab, how do you separate wages and expenses when creating an employee paycheck?

You enter gross wages on the first line and enter all deductions on the second line as a negative amount.

Ch.3 - Which statement about merging vendors is correct?

You must be logged in as an Admin user to merge vendors.

Ch.3 - What happens if you enter a bill through the Enter Bills window but pay it through the Write Checks window?

You will expense the purchase twice AND not "clear out" the entry in Accounts Payable.

Ch.12 - The last four steps of the accounting cycle deal with:

closing the books at the end of a fiscal period

Ch.5 - All reports in the Report Center are based on:

information held in the accounts

Ch.12 - When closing the books, if the balance in the Income Summary account is a credit, the company has experienced a(n):

net income

Ch.5 - If you want to use QuickBooks for multiple companies:

set up a company file for each tax return you will file

Ch.9 - When job time is marked as Billable on a timesheet, when you create paychecks or bills:

the billable hours are automatically imported

Ch.6 - When it comes to inventory, your profit is defined as:

the difference between your sales and cost of goods sold