Acct 1210 CH10

What type of entry is a delayed charge? -Adjustment -Depreciation -Invoice -Non-posting

?

What is the accounting cycle? -Ten steps that dictate how a business must operate financially -Three steps that require you to analyze transactions and record journal and ledger entries -A series of steps that help a business properly keep its accounting records during the fiscal period -A series of steps outlined by the IRS and that is mandated for all businesses

A series of steps that help a business properly keep its accounting records during the fiscal period

What is the first step of the accounting cycle? -Prepare the financial statements for the fiscal period. -Post the transaction to the general ledger. -Analyze the business transaction.Prepare a trial balance report. -Record the transaction to the general journal.

Analyze the business transaction.Prepare a trial balance report.

Juan wants to track the profitability of three aspects of his restaurant: dining, bar, and merchandise sales. What feature does he use? -Report center -Transaction labeler -Class tracking -Profitability tracker

Class tracking

How can you keep track of services performed before adding charges to an invoice? -Set up location tracking to record where the services were performed. -Keep a handwritten log of the individual services. -Create delayed charges for the services as completed. -The vendor keeps track of the services performed.

Create delayed charges for the services were performed.

Delayed charge : Invoice: Credit memo: Delayed credit: -Tracks a service that you will charge a customer for later -Made in anticipation of a sales return -Create this when the returned item is received -How you charge a customer for services you've tracked

Delayed charge : Tracks a service that you will charge a customer for later Delayed credit : Made in anticipation of a sales return Credit memo : Create this when the returned item is received Invoice : How you charge a customer for services you've tracked

What agency sets the GAAP principles? -Financial Accounting Standards Board -Internal Revenue Service -Intuit -CPA Association

Financial Accounting Standards Board

How does QuickBooks assist with the third step of the accounting cycle? It posts transactions to the general ledger. It moves information you entered in forms to the journal. It attaches source documents to transactions. It ensures classes are applied to all transactions.

It post transactions to the genera ledger.

How long is a fiscal period? -It's determined by the business. -A year -A month -A week

Its determined by the business

What is a limitation associated with location tracking? -There's no option to automatically apply the same location to all lines on a form. -Only one location per transaction form can be tracked. -Banking deposits can't be tracked. -The reports for location tracking are limited.

Only one location per transaction form can be tracked.

What report tracks how much you've made or lost in a specific aspect of your business? -Profit & Loss by Class -Profit & Loss by Category -Invoice Class Applications -Class Profit

Profit & Loss by Class

Match each GAAP principle listed to its description. Prudence : Objectivity : Consistency : Revenue recognition : The methods least likely to overstate assets and income are used. The same accounting methods are used year to year. Publicly traded companies record when revenue is earned. Business statements are impartial and absent of bias.

Prudence : The methods least likely to overstate assets and income are used. Consistency : The same accounting methods are used year to year. Revenue recognition : Publicly traded companies record when revenue is earned. Objectivity : Business statements are impartial and absent of bias.

What companies are bound to the generally accepted accounting principles? -All -Privately owned -None -Publicly owned

Publicly owned

You used your company Visa card to buy lunch. What action do you take in QuickBooks? -Record a sales receipt. -Create an invoice for it then make a deposit to Checking. -Record an expense transaction. -Eating lunch isn't related to the business, so there's nothing to do in QuickBooks.

Record an expense transaction.

What are the Generally Accepted Accounting Principles? -Statements that report on a businessâ finances for a period -Regulations set by the Financial Accounting Standards Board (FASB) to regulate accounting practices -Rules found in IRS publication 97-1040 -Principles used by the manufacturing industry

Regulations set by the Financial Accounting Standards Board (FASB) to regulate accounting practices

What is an example of a class in accounting? -Partnership -Remodeling -Non-profit -Billing Rate

Remodeling

What is NOT a generally accepted accounting principle? -Revenue recognition -Reputation -Consistency Prudence -Objectivity

Reputation

When you use location tracking, what report helps you track sales growth at each of your store locations? -Profit and Loss by Class -Sales by Store Summary -Transaction List by Customer -Sales by Product/Service Summary

Sales by Store Summary

Place the accounting cycle steps in order. Step 1: Step 2: Step 3: Step 4: Step 5: -Analyze the transaction. -Record the transaction in a journal. -Post the transaction to the general ledger. -Generate a trial balance and analyze account balances. ----Prepare the financial statements for the fiscal period.

Step 1 : Analyze the transaction. Step 2 : Record the transaction in a journal. Step 3 : Post the transaction to the general ledger. Step 4 : Generate a trial balance and analyze account balances. Step 5 : Prepare the financial statements for the fiscal period.

Why use class tracking? -To produce an accurate profit and loss report -To produce an accurate balance sheet -To produce reports that focus on assets and expenses -To produce reports that focus on the aspects of the business you're tracking

To produce reports that focus on the aspects of the business you're tracking

What must you be sure to do once you've begun using class tracking? -Restart the accounting cycle. -Turn on location tracking. -Use it for every transaction. -Run the Profit & Loss by Class report.

Use it for every transaction