Accounting Applications MidTerm Exam- Chapters 1-5

How are subaccounts added to the Chart of Accounts (COA)?

Add subaccounts by selecting (New) from the Chart of Accounts window, then enter the (Account Type), select (Detail Type) and enter a name. Check Sub-account box to confirm the account is a subaccount

Select the statement that is not true regarding Assets

Assets are the amounts a company owes to others

Which report summarizes what a company owes and owns on a particular date?

Balance Sheet

What are the four main ways QuickBooks Online records money out?

Expense, Check, Bill > Pay Bills, and Purchase Order >Bill> Pay Bills

Which screen provides information about vendor transactions?

Expenses

An example of an income account is:

Fees earned

Which tax return is used by a C Corporation?

Form 1120

What tax return is used by a S Corporation?

Form 1120S

In QuickBooks Online, if the Deposit to: Undeposited Funds account is selected on the Sales Receipt, then funds are recorded directly in the

Undeposited Funds account

How are sales transactions recorded?

Sales Receipts and Invoices

Increased with credits and decreased with debits

Transactions

What is the maximum number of accounts in the chart of accounts for QuickBooks Online Plus?

250

Which account number range usually identifies revenue (income) accounts?

40000 - 49999

Which account number range usually identifies expense accounts?

50000 - 59999

What is a Bundle type product and service?

A collection of products and services that a company sells together

What is a Delayed Credit?

A form used to record money that will be added to a customer's account at a specified future date that the customer may apply to a future sale

What is an Inventory type product and service?

A product a company sells and tracks the quantity

Which of the following are valid criteria types to use with the Search feature?

All of the choices are correct (Display names, Dates, Amounts)

Which transaction types should be recorded using the Bank Deposit form?

All of the choices are correct (Interest earned, Cash received from loans, Other income)

Reconciling bank statements _____

All of the choices are correct (Is part of good internal controls, Involve comparing bank records and the company's records, Assist in detecting errors

Accounts Receivable is:

Amounts owed from customers

Timing differences on a bank reconciliation include all of the following except:

Bank Errors

When can a QuickBooks List be updated?

Before entering transactions and while entering transactions

Which of the following is correct regarding QuickBooks Online Chart of Accounts?

By customizing the QuickBooks Online Chart of Accounts to align with the business tax return, countless hours can be saved in preparation time

Which of the following is not a transaction category?

Company Preferences

The _____ is used to record a reduction in the amount a customer is charged

Credit Memo form

All of the following are true regarding QuickBooks Online Customers List except:

Customers List contains past sales transactions and allows us to estimate future intended sales

When entering customer and sales related transactions, which two QuickBooks Online Lists will be used?

Customers List, and Products and Services List

Recording a refund receipt is considered a(n) _____ type transaction

Customers and Sales

What are the two different methods of accounting for bad debts:

Direct Write-off method and Allowance method

Equity accounts are:

Increased with credits and decreased with debits.

Assets are:

Increased with debits and decreased with credits

In the Quickbooks Online Navigation Bar, what information is provided by the Dashboard?

Information about the QuickBooks Online Company

Which onscreen form is usually used to record a sales transaction that the customer will pay later?

Invoice

The _____ is used to record a sales transaction when the product or services is provided to the customer and the customer promises to pay later

Invoice form

QuickBooks automatically converts transaction information entered in an onscreen form to a _____

Journal Entry

Which icon allows you to search for a transaction?

Magnifying glass icon

Which field typically appears in the Bank Register but not usually in reports?

Memo

Banking transactions involve _____ going into and out of a company's bank account

Money

Net Income is calculated by?

Net Income= Revenues - Expenses

Which account should be used to make a rent payment for a company's office building?

Operations related checking account

An adjusting entry is considered a(n) _____ type transaction

Other

On the Dashboard, what does Invoices graph display?

Overdue and not yet due amounts from customers

All of the following are true regarding Owners' Equity except:

Owners' equity accounts represent the net worth of a business, and are only increases by an investment in the business

_____ is an example of a supporting document for money going out of a company

Paid invoice

Which transaction should not be recorded using the Expense or Check onscreen form?

Paychecks to employees for wages and salaries

The "Select Payments Included in This Deposit" section of the Bank Deposit form lists _____

Payments received from customers but not deposited yet

The ____ summarizes the income a company has earned and the expenses incurred to earn the income

Profit and Loss Statement

What does the My Accountant enable you to do?

Provide your accountant administrative access to your QuickBooks Online company

What does the QuickBooks Online Check Register do?

QuickBooks Online Check Register keeps track of all banking activities

How does QuickBooks Online assist in achieving the primary objective of accounting?

QuickBooks Online is used to capture, track, sort, summarize, and communicate financial information

The QuickBooks Online New (+) icon lists various transactions that can be created. It is commonly used for all of the following transaction types except:

Reports

Which recurring transaction type automatically enters the transaction on a specified date?

Scheduled

What is the process to add a new transaction from the Check Register window?

Select the drop-down arrow by Add Check, then select the transaction type

What is the purpose of connecting appropriate QuickBooks Online accounts to bank records?

Streamlines the collections and tracking of sales taxes

In the QuickBooks Online Check Register the check mark (✔) column indicates which of the following:

The check mark indicates whether the bank transaction is C (cleared), R (reconciled) or blank (uncleared, unreconciled)

The Allowance method for accounting for bad debts is:

The method should be used if uncollectible accounts have a material effect on a company's financial statements

In QuickBooks Online, if the Deposit to: Undeposited Funds account is selected on the Invoice, then funds are recorded directly in the

Undeposited Funds account

Usually account numbers are

Used as a coding system to identify the account type

_____ sell products or provide services to our company

Vendors