4340 Midterm Chapter Quizzes

Match the following form (transaction type) with the appropriate transaction description: Journal Entry Check Bill Payment

Adjusting Entries Payments by check other than payments to vendors on account balances or payroll payments Purchases from a vendor on account Collections from customers for sales on account

When a journal entry is saved in QBO, ________________. Select one: A. affected financial statements are not updated until the accounting period is closed B. all affected financial statements are automatically updated C. affected financial statements are not updated until a Journal report is printed D. only the trial balance report is automatically updated

B. all affected financial statements are automatically updated

To reconcile a bank account, click ________________ . Select one: A. Banking on the navigation bar and select Reconcile B. the gear icon on the icon bar and click Reconcile C. the sign on the navigation bar and click Bank Reconciliation D. Reconcile on the navigation bar

B. the gear icon on the icon bar and click Reconcile

The act of bringing external data into a company file

Importing

The name entered in the Company field of a vendor record __________________. Select one: a. appears in the address information box on checks, purchase orders, bills, and bill payments. b. acts as an identifier in QBO. c. must be different than the name entered in the Display name as field. d. must include the account number assigned by the vendor.

a. appears in the address information box on checks, purchase orders, bills, and bill payments.

The chart of accounts can be accessed ____________. Select one: a. through a link on the gear menu. b. through a link on the Dashboard. c. Through a link on the +New menu. d. By clicking Sales on the navigation bar and selecting the Chart of Accounts .

a. through a link on the gear menu.

Which of the following statements is true? a. You can only have one account with an account type of Accounts Payable in QBO. b. You can have multiple accounts payable accounts for use in recording vendor bills and tracking vendor balances in QBO but they must each have a different name and they must all have an Accounts Payable account type. c. You can have multiple accounts payable accounts in QBO but only the default Accounts Payable account created by Intuit can be used when entering bills or bill payments. d. Vendor balances cannot be tracked in QBO.

c. You can have multiple accounts payable accounts in QBO but only the default Accounts Payable account created by Intuit can be used when entering bills or bill payments.

When a purchase made with a credit card is recorded in QBO, a. cash is credited. b. a liability account is credited (Account Payable account type). c. a liability account is credited (Credit Card account type). d. a liability account is credited (Other Current Liability account type).

c. a liability account is credited (Credit Card account type).

The general ledger account Undeposited Funds in QBO represents ___________. a. all cash sales b. the balance in accounts receivable c. amount of cash, checks, or credit card payments received and recorded but not yet deposited d. None of the above

c. amount of cash, checks, or credit card payments received and recorded but not yet deposited

title of column in the credit card reconciliation screen listing all credits to the account being reconciled

charge

transaction type used to record up-front payments to vendors

check

status of a bank transaction marked as cleared during the reconciliation process

cleared

date set by user; used to limit entry of transactions dated prior to that date

close date

number used to identify batch for timing of software updates

cluster number

transaction type used to record credit given to customer

credit memo

customer name appearing on invoices, sales receipts, or credit memos

customer name

Which of the following functions are available in QBO? Select one: a. Tracking inventory b. Invoicing customers c. Paying bills d. All of the above functions are available in QBO.

d. All of the above functions are available in QBO.

Which of the following accounts can be charged (debited) in the Category Details section of a Bill? Select one: a. Rent expense b. Prepaid insurance c. Security deposit d. Any of the accounts listed can be charged in the Category Details section of a Bill.

d. Any of the accounts listed can be charged in the Category Details section of a Bill.

Sheff Industries uses cash to pay for any postage due when mail is delivered. When the transaction is entered in QBO, the transaction type normally used is Select one: a. Cash payment b. Bill payment c. Expense d. Check

d. Check

Everly Industries, a customer, owes the company $800 on invoice #822, dated 7/1. The credit terms on the invoice are 1/10, Net 45. Everly pays $792 on 7/5. As part of the journal entry to record the payment received, accounts receivable should be Select one: a. Debited by $792 b. Credited by $792 c. Debited by $800 d. Credited by $800

d. Credited by $800

The pencil icon [] is used to do which of the following tasks in QBO? Select one: a. Import data. b. Print a report. c. Add a new user. d. Edit company settings in Account and Settings on the gear icon.

d. Edit company settings in Account and Settings on the gear icon.

Which of the following statements is not true? Select one: a. Service items can be grouped by category. b. The income associated with a service item can be edited. c. Descriptions entered for a service item will appear on sales forms. d. Multiple income accounts can be associated with a single service item.

d. Multiple income accounts can be associated with a single service item.

Which account might be credited when a Product and Services list is imported? a. Inventory b. Cost of goods sold c. Accounts payable d. Opening balance equity

d. Opening balance equity

The account type for the Undeposited Funds account is Select one: a. Income b. Bank c. Cash d. Other current asset

d. Other current asset

Vendors a. can be deleted as long as there are no outstanding amounts due to the vendor. b. can be deleted at any time. c. can be deleted if there has never been any activity with that vendor. d. cannot be deleted.

d. cannot be deleted.

The search tool link is located ________________. Select one: a. on the navigation bar b. by clicking Search on the Dashboard c. in the top left corner of the QBO website d. on the icon bar

d. on the icon bar

When a credit card statement is reconciled, a. the user can elect to create a bill for the statement balance. b. the user can elect to write a check for the statement balance. c. the user can elect to retain the balance in the credit card liability account. d. the user can elect any of the three options listed

d. the user can elect any of the three options listed

Payments to vendors can be entered ___________. a. using the Check transaction type b. using the Bill Payment transaction type c. using the Expense transaction type d. using Check, Bill Payment, or Expense transaction types

d. using Check, Bill Payment, or Expense transaction types

status of bank transaction that has been marked as cleared as part of a completed reconciliation

reconciled

transaction type used for recording cash sales

sales receipt

default general ledger account used to initially record cash received

undeposited funds

individual or company from whom goods or services are purchased

vendor

Which of the following cannot be imported into QBO? a. Sales and expense settings b. Inventory balances c. Accounts receivable balances d. Accounts payable balances

a. Sales and expense settings

When selling services to customers on account, there are three common steps. i. Bank deposit ii. Create invoice iii. Receive payment Select the correct order for the steps listed above. Select one: a. i, iii, ii b. ii, iii, i c. iii, ii, i d. i, ii, iii Feedback

b. ii, iii, i

You would like to print a report that shows income from the various services you provided during the past year. Which of the following reports would be most helpful? Select one: a. Sales by Product/Service Detail b. Product/Service List c. Income by Customer Summary d. Sales by Customer Detail

a. Sales by Product/Service Detail

A service item in QBO a. can be linked to more than one general ledger account. b. must be linked to one, and only one, general ledger account. c. can only be linked to an accounts receivable type account. d. can be, but doesn't need to be, linked to an account.

b. must be linked to one, and only one, general ledger account.

An A/P Aging Summary report shows Select one: a. all vendor bills by due date. b. vendor balances in categories representing ranges of days past due. c. vendor balances in categories representing ranges of days due in the future. d. only vendor bills past due.

b. vendor balances in categories representing ranges of days past due.

removal of all data from a company file

purge

The Journal report includes ____________. a. all accounting transactions no matter where (how) they were recorded b. only those accounting transactions recorded in the Journal Entry form c. only accounting transactions recorded through certain forms d. only accounting transactions NOT recorded in the Journal Entry form

a. all accounting transactions no matter where (how) they were recorded

You have been asked to prepare the Profit & Loss (Income Statement) report for the month of January 2021. You generate the report and provide it to the Controller. The Controller tells you that the report looks wrong. You review the following selections you made when running the report.

- Look at Dates - Look to see ending balance is correct

an individual or company that receives payments that must be reported to the IRS

1099 vendor

Matching the following icons with their purpose or use A. +New B. Search Icon C. Question Mark D. Gear Icon 1. Use this icon to open the create menu where you can access forms such as invoices, checks, and journal entries. 2. Use this icon to access company accounts and settings, manage lists and import data. 3. Use this icon to search for transactions, customers, vendors, etc. within your QuickBooks Online company.

A B D

Three bills from the same vendor are displayed in the Pay Bills window. Which of the following statements is not true? Select one: a. Three checks will automatically be created (one for each bill). b. One check (paying all three bills) will be created if all three bills are selected. c. The due date of each bill will be displayed. d. You can elect to pay one, two or all three of the bills with a single check.

a. Three checks will automatically be created (one for each bill).

Balance Sheet and Profit & Loss (income statement) reports can be accessed from the ___________ section on the standard reports tab of the report window. Select one: A. Business Overview B. Employees C. Who Owes You D. Payroll

A. Business Overview

All transactions posted to an account being reconciled will appear on the bank reconciliation screen in QBO EXCEPT a. cleared transactions and uncleared transactions recorded through a general journal entry. b. cleared transactions. c. uncleared transactions. d. uncleared bill payment transactions.

b. cleared transactions.

The Supplies on hand account has a $485 balance on November 30. The actual cost of supplies on hand on November 30 is $295.An adjusting journal entry should be made in November as follows: Select one: A. DR Supplies expense $190; CR Supplies on hand $190 B. DR Supplies on hand $295; CR Supplies expense $295 C. DR Supplies on hand $495; CR Supplies expense $495 D. DR Supplies expense $295; CR Supplies on hand $295

A. DR Supplies expense $190; CR Supplies on hand $190

Changing the order of the accounts on the Profit & Loss report ______________. Select one: A. can be done by changing the account numbers B. can be done directly on the Profit & Loss report C. cannot be done D. can be done through Account and Settings

A. can be done by changing the account numbers

After reconciling a credit card account, Select one: A. a bill for the statement balance must be recorded. B. full or partial payment of the statement balance must be recorded. C. a check for full or partial payment of the balance can be recorded, a bill for the statement balance can be recorded, or the credit card balance can be left in the credit card liability account. D. the payment of the statement balance or a bill for the statement balance must be recorded.

C. a check for full or partial payment of the balance can be recorded, a bill for the statement balance can be recorded, or the credit card balance can be left in the credit card liability account.

A mid-year closing date can be set in QBO by _________________ . Select one: A. selecting set closing date on the Dashboard B. changing the company's fiscal year end C. clicking Close the books in the Accounting section of the Advanced tab of Account and Settings D. either clicking set closing date on the Dashboard or by selecting set closing date in the Accounting section of the Advanced tab of Account and Settings Feedback

C. clicking Close the books in the Accounting section of the Advanced tab of Account and Settings

During the month your company paid for gasoline for the company vehicles using the company credit card issued by First Bank. Match the journal entries that are prepared behind the scenes with the corresponding transaction or event that has occurred in QBO. Record purchases on credit card as an Expense Transaction. Reconcile the credit card account and enter a bill for payment later. Pay the credit card bill with a check

DR: Gasoline expense CR: Credit Card Payable DR: Credit Card Payable CR: Accounts Payable DR: Accounts Payable CR: Checking

On a sales receipt the account selected in the Deposit to field results in a _________ to that account.

Debit

For each activity listed below, select the appropriate tab in the Account and Settings area where the action is located. Start using purchase orders Turn on warnings for duplicate check numbers Turn on custom transaction numbers for sales forms Turn on warnings for duplicate check numbers

Expenses Company Sales Advanced

Match the following product or service description with their matching product or service type. Products you buy and/or sell and that you track quantities of. Products you buy and/or sell but don't need to (or can't) track quantities of, for example, nuts and bolts used in an installation. Services that you provide to customers, for example, landscaping or tax preparation services.

Inventory Non-inventory Service

Under the ______ basis of accounting, revenues and expenses are recorded when they are earned, regardless of when the money is actually received or paid. Select one: a. Accrual b. Cash c. Modified Cash d. Cryptocurrency

a. Accrual

During the setup process for a new QBO company file, QuickBooks automatically creates which of the following? Select one: a. Basic chart of accounts b. Employees c. Vendors d. Tax return

a. Basic chart of accounts

The transaction type used to record purchases from vendors on account is: Select one: a. Bill b. Invoice c. Check d. Expense

a. Bill

Which of the following accounts could be reconciled using the reconciliation tool in QBO? (Select all that apply. Assume all of the accounts listed were in the company's chart of accounts.) a. Cash (Bank account type) b. Prepaid Expenses (Other Current Asset account type) c. Accounts Payable (Accounts Payable account type) d. Unearned Revenue (Other Current Liability account type)

a. Cash (Bank account type) b. Prepaid Expenses (Other Current Asset account type) d. Unearned Revenue (Other Current Liability account type)

Transaction forms can be accessed by ________________. Select one: a. Clicking on the +New icon bar b. Clicking the on the gear icon bar c. Clicking Forms on the navigation bar d. Clicking Forms on the icon bar

a. Clicking on the +New icon bar

Which account might be debited when a vendor list is imported? a. Interest expense b. Accounts payable c. Cost of goods sold d. Opening balance equity

a. Interest expense

The account that is credited when a credit memo is completed in QBO must have the account type _______________. a. Bank b. Accounts receivable c. Accounts payable d. Other current asset e. Other current liability

b. Accounts receivable

Which of the following sources of revenue should be set up as a service item in QuickBooks Online? Select all that apply. Select one or more: a. Amount charged for shampoo sold in a hair salon b. Amount charged for haircuts in a hair salon c. Amount charged for milk sold in a grocery store d. Amount charged for the review of a contract for a client in a law firm

b. Amount charged for haircuts in a hair salon d. Amount charged for the review of a contract for a client in a law firm

In Customize Reports, you can change the types of transactions included on the report in the Select one: a. Rows / Columns section b. Filter section c. Header / Footer section d. General section

b. Filter section

The Vendor Center can be accessed from which of the following? Select one: a. Icon bar b. Navigation Bar c. Dashboard d. Any of the above

b. Navigation Bar

The default account Undeposited Funds has the account type _________________. a. Bank b. Other current asset c. Other asset d. Other current liability e. Accounts receivable

b. Other current asset

Information about items sold by a company are maintained in the _____________ list. Select one: a. Inventory b. Products and Services c. Items d. Products

b. Products and Services

On an Expense, who is the payee? a.The name of the credit card b. The name of the vendor or business that the product or service was purchased from c. The name of the credit card company. d. The name of the employee using the credit card.

b. The name of the vendor or business that the product or service was purchased from

After your QBO company is setup, where do you go to enable and show account numbers for accounts in your chart of accounts? Select one: a. Accounting on the navigation bar b. The on the icon bar then select Account and Settings and go to the Advanced tab c. Select on the navigation bar and select List d. The icon on the icon bar and select Chart of Accounts Feedback

b. The on the icon bar then select Account and Settings and go to the Advanced tab

On the first day of a new fiscal year, QBO automatically closes a. all temporary accounts. b. all revenue and expense accounts. c. all revenue, expense, and equity accounts. d. all revenue, expense, and dividend accounts.

b. all revenue and expense accounts.

A company's QBO software is updated _______________. Select one: a. when the user clicks the Update Program link b. automatically by Intuit c. either automatically or on demand depending on the setting selected by the user. d. When the user purchases a new version.

b. automatically by Intuit

A company file ________________. a. can be purged an unlimited number of times as long as the user's subscription is active b. can be purged an unlimited number of times within the first 60 days of a new subscription c. can be purged up to 60 times d. cannot be purged

b. can be purged an unlimited number of times within the first 60 days of a new subscription

transaction type used for recording invoices received from vendors

bill

vendor invoice number

bill number

transaction type used to record payments to vendors on account

bill payment

During the setup process QBO automatically selects which method of accounting? Select one: a. Cash basis b. Modified cash basis c. Accrual d. Historical

c. Accrual

A purchase of a computer, on account, would be recorded in the ____________ section of a bill in QBO. a. Item details b. Fixed assets c. Category details d. Computer Equipment

c. Category details

Which of the following transactions would most likely have the transaction type bill payment? Select one: a. Check written to pay employee's salary b. Check written to pay for pizza delivered to the office c. Check written to pay the telephone bill entered in the previous month d. Payment for magazine subscription using a company credit card

c. Check written to pay the telephone bill entered in the previous month

Which of the following is not deleted when a company file is purged? a. Transactions b. Most general ledger accounts c. Company settings d. None of the listed answers are correct. Transactions, accounts, and settings are all deleted.

c. Company settings

Which of the following accounts would NOT appear on the income statement? Select all that apply. Select one or more: a. Service revenue b. Loss on sale of equipment c. Dividends d. Prepaid expenses e. Depreciation expense

c. Dividends d. Prepaid expenses

Where is the Import Data command located in QBO? Select one: a.On the Navigation bar under My Accountant. b. On the Advanced tab in the Account and Settings area. c. In the Tools column on the gear icon menu (icon bar). d. On the Dashboard of your QBO company.

c. In the Tools column on the gear icon menu (icon bar).

What account type would you use when setting up an Inventory account in a merchandising company in QBO? Select one: a. Inventory b. Other asset c. Other current asset d. Merchandise Inventory

c. Other current asset

On the picture below, which tab would you select to set or edit the credit terms of a customer? Select one: a. Address b. Tax info c. Payment and billing d. Attachments e. Additional info

c. Payment and billing

The process that is used to delete the chart of accounts is known as ________. Select one: a. Estimating b. Inactivating c. Purging d. Deleting

c. Purging

If you select Finish Now on a reconciliation before the difference is zero what will happen to the difference? Select one: a. Nothing. Its stays there until the next month's reconciliation is performed. b. QBO automatically makes an adjustment to the account being reconciled for the amount of the difference. c. QBO automatically makes an adjustment to an account called Reconciliation Discrepancies for the amount of the difference. d. QBO saves the difference for you to find later.

c. QBO automatically makes an adjustment to an account called Reconciliation Discrepancies for the amount of the difference.

The transaction type for recording customer refunds is ___________________. Select one: a. Check b. Customer Refund c. Refund Receipt d. Cash Refund

c. Refund Receipt

In a strong internal control system, ____________________. Select one: a. Only someone in the accounting department should be authorizing payment for supplies b. Only someone in the accounting department should be ordering supplies c. The person ordering supplies should not be the person receiving and authorizing the payment for the supplies d. The same person who orders supplies should also receive and authorize payment for the supplies

c. The person ordering supplies should not be the person receiving and authorizing the payment for the supplies

transaction type used to record bank deposit

deposit

specific customer identifier

display name

vendor identifier

display name

When setting up a new company in QBO, which of the following is helpful information you should know about the company? Select one: a. Does the company sell products, services or both? b. Does the company manufacture anything themselves? c. Do you have or plan to have multiple reporting entities (e.g. multiple stores)? d. Does the company collect sales tax? e. All of these are good questions to consider when setting up a new company.

e. All of these are good questions to consider when setting up a new company.

There is an underlying journal entry behind every completed form listed below except _________________. a. Invoice b. Credit memo c. Bank deposit d. Sales receipt e. None of the above answers is correct.

e. None of the above answers is correct.

company's legal year

fiscal year

transaction type used to record sales on account

invoice

transaction type used for recording an adjusting entry

journal entry

number used to identify a specific user of QBO

license number

an example of a payment term

net 15

default account used by QBO as part of the import process

opening equity balance

title of column in the credit card reconciliation screen listing all debits to the account being reconcile

payment

transaction type used for recording customer payments on account

payment

customizable features

settings

date of statement received from bank

statement ending date