ACC 240 Chapter 5 Quiz

When adding a new account in QuickBooks Online, click the New button and then click the drop-down button in the Blank Space field at the Account window. a.Account Type b.Subaccount Type c.Name d.Description

a.Account Type

To open the Chart of Accounts List using the Gear icon, click _____ and then click Chart of Accounts. a.All Lists b.Account and Settings c.Products and Services d.User Profile

a.All Lists

The list of accounts a company uses as it conducts its business is referred to as the a.Chart of Accounts List. b.general ledger. c.general journal. d.Vendor List.

a.Chart of Accounts List.

Adjustments to account balances are recorded in the Blank Space window. a.Journal Entry b.Pay Bills c.Bill d.Check

a.Journal Entry

Which statement is false? a.QuickBooks Online does not record adjusting journal entries in a manner similar to that of a manual accounting system. b.QuickBooks Online does not follow the format of the special journals for daily transactions. c.Behind the scenes, QuickBooks Online records the activity in general journal format, as seen in the Journal Report. d.In QuickBooks Online all activities are recorded in the different windows depending on the nature of the activity.

a.QuickBooks Online does not record adjusting journal entries in a manner similar to that of a manual accounting system.

Which statement about the Balance Sheet Report is false? a.The Balance Sheet Report shows the same information as the Adjusted Trial Balance Report. b.The Balance Sheet may be displayed in a standard, summary, or comparative format. c.A detailed report can be produced showing all transactions affecting balance sheet accounts. d.The Balance Sheet Report shows the assets, liabilities, and equity balances as of a certain date.

a.The Balance Sheet Report shows the same information as the Adjusted Trial Balance Report.

Which of the following statements regarding credit amounts in a manual accounting system is not true? a.They are always recorded as negative numbers. b.They must equal the debit amount for each transaction. c.They can increase or decrease an account balance. d.They are recorded for each transaction.

a.They are always recorded as negative numbers.

In QuickBooks Online, the Chart of Accounts List consists of the a.account number, name, account type, detail type, and balance. b.account name, debits, and credits. c.account name and a required account number. d.account name, type, and activities.

a.account number, name, account type, detail type, and balance.

QuickBooks Online uses the Blank Space and Blank Space to establish the system default accounts. a.account type; detail type b.category type; account number c.account name; account number d.detail type; account name

a.account type; detail type

Adjusting journal entries are a.adjustments made to accounts at certain periods of time to bring the balances up to date. b.only used in manual accounting. c.recorded in the Customer List and Vendor List. d.recorded in special journals in QuickBooks Online.

a.adjustments made to accounts at certain periods of time to bring the balances up to date.

In the Journal Entry window, which of the following is optional to record? a.an explanation of the transaction b.the accounts to be used c.the credit amount d.the debit amount

a.an explanation of the transaction

Chapter 5 suggests that a trial balance should be printed a.before recording adjusting journal entries. b.after every purchase. c.each time you close QuickBooks Online. d.after every sales transaction.

a.before recording adjusting journal entries.

What types of transactions might be recorded in a special journal? a.frequent, similar transactions (e.g., sales, purchases) b.transactions that should not be included in period-end reports c.transactions that should not be posted to the general ledger d.transactions for a specified period of time (e.g., weekly, monthly)

a.frequent, similar transactions (e.g., sales, purchases)

To open the Journal Entry window, begin by clicking a.the +New button on the Navigation bar. b.Taxes on the Navigation bar. c.the Gear icon on the title bar. d.Reports on the Navigation bar.

a.the +New button on the Navigation bar.

In a manual accounting system, the document in which transactions are initially recorded chronologically is a.the general journal. b.the Chart of Accounts. c.a special journal. d.the general ledger.

a.the general journal.

Which of the following is required in order to record a journal entry? a.There must be a description for the entry. b.The total dollar value of the debits must equal the total dollar value of the credits. c.You must use the automatically assigned journal entry number. d.One of the accounts debited or credited must be a bank account.

b.The total dollar value of the debits must equal the total dollar value of the credits.

When transactions are recorded in activity window (e.g., Bill, Pay Bills, Check), QuickBooks Online also records these activities in Blank Space format using debits and credits. a.balance sheet b.general journal c.special journals d.subsidiary ledger

b.general journal

In the Account List Report, balances are listed for each of these types of accounts except ________ accounts. a.liability b.income c.equity d.asset

b.income

In QuickBooks Online, registers are not available for Blank Space accounts. a.asset or liability b.income or expense c.liability or equity d.asset or equity

b.income or expense

Reports, the fourth level of operation in QuickBooks Online, a.do not need to be printed after you complete the adjusting journal entries. b.reflect the activities and adjustments recorded in activities windows. c.should be prepared before adjusting journal entries. d.come from the information compiled in the Lists/Centers.

b.reflect the activities and adjustments recorded in activities windows.

Which of the following is used in a manual accounting system but not in QuickBooks Online? a.a general ledger b.special journals c.account names d.account types

b.special journals

To customize the Journal Report to show only the adjusting journal entries, use the Blank Space feature. a.Sort By b.Header/Footer c.Filter d.Display

c.Filter

By what name is the income statement known in QuickBooks Online? a.General Ledger Report b.Balance Sheet Report c.Profit and Loss Report d.Adjusted Trial Balance Report

c.Profit and Loss Report

________ are available for ________ accounts and display daily activity in a format similar to a personal checkbook. a.Account QuickReports; balance sheet b.Registers; income and expense c.Registers; balance sheet d.Account QuickReports; income and expense

c.Registers; balance sheet

Which statement about the Profit and Loss Report is false? a.The Profit and Loss Report displays revenue and expenses for a specified period of time. b.A detailed Profit and Loss Report can be produced that lists all transactions affecting a particular item on the report. c.The Profit and Loss Report is available in the Review Sales section in Reports window. d.The Profit and Loss Report can be displayed in a standard or comparative format.

c.The Profit and Loss Report is available in the Review Sales section in Reports window.

Which of the following statements about adjusting journal entries is not true? a.The adjusted balances are used to prepare the financial statements. b.They update balances in one or more accounts. c.They are recorded in special journals. d.They are often prepared by a company on a monthly basis.

c.They are recorded in special journals.

A company must prepare financial statements a.quarterly. b.monthly. c.at least once a year. d.before adjusting journal entries are made.

c.at least once a year.

If account numbers are used, where will they appear in the Account List Report? a.They will not appear in the report. b.in the second column c.in the first column d.in the last column

c.in the first column

The Balance Sheet report may be displayed in a a.detailed or summary format. b.summary format only. c.standard, summary, or comparative format. d.standard format only.

c.standard, summary, or comparative format.

Behind the scenes, QuickBooks Online updates a.Activity windows. b.debits and credits. c.the general ledger balances, the Chart of Accounts List balances, the trial balance, and financial statements. d.the general journal, the trial balance, the Customer List, and the Vendor List

c.the general ledger balances, the Chart of Accounts List balances, the trial balance, and financial statements.

What is another name for the Profit and Loss Report? a.Balance Sheet b.General Ledger Report c.Trial Balance Report d.Income Statement

d.Income Statement

The trial balance is a.a report containing all the general ledger parent account names, their net balances, and the total of all the balances. b.only used in a manual accounting system. c.used to determine if the financial statements comply with GAAP. d.a report containing all the general ledger account names, their respective debit or credit balances, and the total debits and total credits

d.a report containing all the general ledger account names, their respective debit or credit balances, and the total debits and total credits

The General Ledger Report in QuickBooks Online displays a.only journal entries marked as an Adjusting Entry. b.the trial balance for each account and total debits and credits for the specific time period. c.the balance for each account, grouped by account type. d.all activity in each account and the balance after each activity.

d.all activity in each account and the balance after each activity.