Quickbooks Online 2018 - Chapter 3 - study guide

How does a cash purchase recorded in the Check window affect the vendor file? a. The vendor file shows a vendor credit in the amount of the transaction. b. The vendor file shows an open balance in the amount of the transaction. c. The vendor file is unaffected. d. The vendor file shows a bill and a payment of that bill.

The vendor file is unaffected.

A vendor credit is a. a reduction of accounts payable as a result of a return or an allowance by a vendor. b. a credit to Accounts Receivable. c. a vendor balance that has been reduced by a payment. d. the same as a vendor invoice.

a reduction of accounts payable as a result of a return or an allowance by a vendor.

The Pay Bills windows displays a. only bills that can be paid with a check. b. all open bills as of a selected date. c. only bills that must be paid in full. d. only one bill at a time.

all open bills as of a selected date

When you use the Pay Bills window in QuickBooks a. the check is automatically printed for you. b. for general ledger purposes, the bill is considered paid. c. you do not have the option to assign check numbers. d. the bill is not considered paid until the check is printed and sent.

for general ledger purposes, the bill is considered paid.

Vendor reports in QuickBooks a. reflect the information and activities recorded in all Activities windows. b. include only the Vendor Balance Detail Report and Vendor Contact List Report. c. include the Unpaid Bills Report, the Vendor Balance Detail Report, and the Vendor Contact List Report. d. are not customizable.

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

A cash purchase a. is a payment of any bill or item other than accounts payable. b. is recorded as a debit to Accounts Payable and a credit to Cash. c. will be tracked through the Accounts Payable and Vendor reports. d. is a payment from the Cash account that is not by check, PayPal, electronic transfer, or debit card.

is a payment of any bill or item other than accounts payable.

Vendor activities in QuickBooks use the a. Bill, Pay Bills, and Check windows. b. Enter Vendors, Record Accounts, and Check windows. c. Pay Bills, Journal, and Check windows. d. Write Checks, Enter Invoices, and Pay Vendors windows.

Bill, Pay Bills, and Check windows.

Which one of the following accounts is a system default account for a vendor? a. Equity b. Accounts Receivable c. Accounts Payable d. Supplies Expense

Accounts Payable

In QuickBooks, which window is used to record a purchase on account? a. Pay Bills b. Bill c. Check d. Invoice

Bill

When a bill (or account payable) previously recorded is to be paid, you enter the transaction a. Vendor List. b. Pay Bills window. c. Chart of Accounts List. d. cash payments journal.

Pay Bills window

Payments on accounts are recorded in the a. Check window. b. Chart of Accounts window. c. Pay Bills window. d. Journal window.

Pay Bills window.

Click the _____ icon in the Check window to review recent payments recorded there and in the Pay Bills window a. Recent Transaction b. Payments c. Create d. Gear

Recent Transaction

Payment on account a. must always be paid in full. b. is payment of an outstanding account payable. c. is payment of a bill not previously recorded. d. does not include partial payments.

is payment of an outstanding account payable.

A purchase on account a. is the same as a credit memo. b. is not included in vendor reports. c. is posted to the Accounts Payable account by default. d. must be immediately paid.

is posted to the Accounts Payable account by default.

When a company receives a bill for goods or services, the bill a. is recorded in the Journal. b. is recorded in the Pay Bills window. c. can be left alone until it is paid. d. is recorded in the Bill window.

is recorded in the Bill window.

A bill from a vendor is considered a(n) a. account. b. liability. c. transaction. d. debit.

liability.

The Pay Bills window is for activities identified as a. payments of outstanding accounts payable. b. purchases on account. c. cash purchases. d. payments not in the form of check, credit card, or online payment.

payments of outstanding accounts payable

A(n) ________ journal is used to record all purchases of goods on account; it can be in a single-column or multi-column format. a. purchases b. cash payments c. accounts payable d. vendor

purchases

The Unpaid Bills Detail Report does not a. list all unpaid bills for each vendor as of a specific date. b. list each open bill (with date and invoice number) for a vendor. c. show vendors that have not sent bills. d. list any vendor credits applied.

show vendors that have not sent bills.

For a cash payment on a bill not previously entered in QuickBooks a. use the Pay Bills window. b. use the journal to debit Cash. c. use the Check window. d. you must first record the bill in the Bill window.

use the Check window.

The Unpaid Bills Detail Report lists all unpaid bills for each ________ as of ________. a. customer; a specific date b. customer; the current date c. vendor; a specific date d. vendor; the current date

vendor; a specific date

Which of the following statements is not true? a. When you write a check in the Pay Bills window, QuickBooks automatically decreases (debits) the Accounts Payable account. b. Paying for a cash purchase cannot be entered in the Check window. c. The Bill window is used to record purchases on account. d. As transactions are recorded in the activities windows, QuickBooks simultaneously updates the vendor's file in the Vendor List.

Paying for a cash purchase cannot be entered in the Check window.

Which of the following is a true statement? a. QuickBooks automatically updates any related reports with information from vendor transactions. b. Vendor files are automatically set up for you in QuickBooks. c. You can only view reports after you update the general ledger. d. It is not necessary to set up a vendor file for each vendor.

QuickBooks automatically updates any related reports with information from vendor transactions.

Which statement is true? a. The Vendor List is not used in QuickBooks transactions. b. The Vendor List needs to be manually updated at the end of the month. c. The Vendor List serves as the accounts receivable subsidiary ledger for the company. d. The Vendor List serves as the accounts payable subsidiary ledger for the company.

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

The Journal Report displays a. all invoices and purchase orders for the last month. b. all transactions recorded during a specified period of time. c. only accounts receivable transactions. d. only accounts payable transactions.

all transactions recorded during a specified period of time

The Vendor Balance Detail Report shows a. all vendor balances in alphabetical order. b. open bills for all vendors in alphabetical order. c. all vendor-related transactions in chronological order. d. all transactions tracked through accounts payable in chronological order.

all vendor-related transactions in chronological order.

When you enter a bill from a vendor, QuickBooks a. automatically debits the Accounts Payable account. b. automatically decreases the Cash account. c. requires you to enter the default account numbers. d. automatically credits the Accounts Payable account.

automatically credits the Accounts Payable account.

When you write a check in the Pay Bills window, QuickBooks a. automatically notifies the vendor. b. automatically generates a paper check. c. does nothing until you post entries at the end of the month. d. automatically decreases (debits) the Accounts Payable account.

automatically decreases (debits) the Accounts Payable account

Once a vendor file is established, transactions can include receiving a(n) a. bill from a vendor, paying that bill, and receiving cash from a customer's purchase. b. bill from a vendor and sending invoices to vendors. c. invoice from a customer, paying that invoice, and writing checks. d. bill from a vendor, paying that bill, and paying for a cash purchase.

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

When you make an entry for a new liability in the Bill window, QuickBooks does not automatically update the a. vendor's file in the Vendor List. b. checking account balance. c. Accounts Payable account. d. general ledger.

checking account balance.

To see all recent transactions for a vendor, open the vendor file from the Vendors List and a. click the Show all transactions button. b. click the Transaction List tab. c. review Open/Overdue amounts. d. click the Vendor Details tab.

click the Transaction List tab.

The Vendor List should contain a. only the company name and credit limit. b. only the company name and current balance owed. c. company name, address, contact person, terms, tax ID, and current balance owed. d. company name, address, contact person, and credit limit for security reasons.

company name, address, contact person, terms, tax ID, and current balance owed.

A vendor is a. a QuickBooks report. b. someone who buys goods or services from a company, either on account or for cash. c. someone from whom a company buys goods or services, either on account or for cash. d. a special type of journal.

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

When you write a check in the Check window a. the account field is used to indicate the asset, expense, or drawings account to be debited. b. QuickBooks automatically decreases the Accounts Payable account. c. QuickBooks automatically debits the Cash account. d. QuickBooks tracks the activity through the Accounts Payable or Vendor reports.

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

A vendor credit reduces a. the balance owed to the vendor. b. your accounts receivable balance. c. the amount of time you have to pay the vendor. d. your inventory.

the balance owed to the vendor

When reviewing a report, QuickBooks allows you to "drill down" from a report to a. a previous report. b. the original window where data has been entered. c. the Preferences window. d. the general ledger.

the original window where data has been entered.

When making a partial payment on account a. a warning message asks if you would rather pay the full amount. b. you use the Check window instead of the Pay Bills window. c. a credit memo is issued to the vendor. d. the vendor balance owed is reduced along with the cash balance in the checking account.

the vendor balance owed is reduced along with the cash balance in the checking account

In the Journal Report, the TRANSACTION TYPE indicates a. whether the transaction was completed with cash or on account. b. the system default accounts affected. c. whether the amount was a credit or a debit. d. the window where the activity was recorded.

the window where the activity was recorded.

If a company receives a bill for goods or services from a vendor but plans to pay it at a later date, a. you do not need to do anything until you pay the bill. b. you enter the bill in the Pay Bills window. c. this is called a purchase on account. d. this is called an account receivable.

this is called a purchase on account.

In QuickBooks, the Pay Bills window is used a. to write all checks. b. only to record cash payments. c. to pay bills not previously recorded in the Bill window. d. to record a payment on account.

to record a payment on account.