ACC 252 FINAL EXAM

The _________ report compares your budgeted income and expenses to the actual amounts. A. Budget vs Actuals B. Profit and Loss C. Budget Overview D. Comprehensive Budget

A. Budget vs Actuals

The __________ report gives you complete information regarding salary and wages, tax information, deductions, and vacation/sick leave for each employee. A. Employee Details B. Employee Obligations C. Paycheck List D. Payroll Details

A. Employee Details

If you purchase inventory items and pay for them at the same time, you record the purchase on a(n) ______ form(s). A. Expense B. Purchase Order and Bill C. Bill D. Vendor

A. Expense

To view the quantity on hand for an inventory item, you prepare the ________ report. A. Inventory Valuation Detail B. Inventory Valuation Summary C. Either A or B D. None of the above

A. Inventory Valuation Detail

If you create a budget with locations, prior entries are classified as__________ . A. Prior to Budget B. Not Specified C. Unknown D. Unbudgeted

A. Prior to Budget

What payroll taxes are paid by both the employee and the employer? A. Social Security B. Federal Income T ax C. State Disability D. All of the above

A. Social Security

When referring to GAAP standards, the Vendors List functions as the ________ _______ Ledger in QuickBooks Online.

Accounts Payable

You may reconcile all _____ , _________ , and ______ accounts.

Asset, Liability, Equity

You record adjusting entries for prepaid expenses and depreciation when using ___________ basis accounting. A. Cash B. Accrual C. Budget D. GAAP Fundamental

B. Accrual

After editing an invoice in a closed period, you record the change in income by editing the adjusting entry _______ . A. For the Closing Date B. For transferring Net Income and Retained Earnings into the Capital account C. Both A and B D. You do not edit anything, you record another adjusting entry

B. For transferring Net Income and Retained Earnings into the Capital account.

If you donate a desk to Your Name's Beach Barkers, it is recorded in Your Name, Investment account and in ___________ . A. Checking B. Furniture: Original Cost C. Store Supplies D. Owner's Donations

B. Furniture: Original Cost

Changes made to an employee's pay rate will be effective _________ . A. For the Next Pay Period B. Immediately C. Next Year D. Next Quarter

B. Immediately

The _________ report tells you the quantity, total asset value, and average cost for inventory items. A. Transaction List by Vendor B. Inventory Valuation Summary C. Inventory Cost Analysis D. Unpaid Bills

B. Inventory Valuation Summary

The _________ report shows details for each paycheck created and includes total wages, taxes withheld, and deductions. A. Tax Liability B. Payroll Summary C. Employee Details D. Payroll Billing Summary

B. Payroll Summary

An employee's withholding allowances are entered on the _________ form. A. W-2 B. W-4 C. I-9 D. ED-44

B. W-4

To view the bills paid by check and credit card you prepare the ____ _______ ____ Report.

Bill Payment List

If the adjusting entry to transfer Net Income and Retained Earnings into the owner's capital account is made prior to the end of the year, the Balance Sheet shows ______________ . A. Retained Earnings B. Net Income C. Both Net Income and Retained Earnings D. None of the above because the Net Income and Retained Earnings have been transferred into Capital

C. Both Net Income and Retained Earnings

In Payroll Settings the Work Location must include the _________ . A. Telephone Number B. Number of Employees C. County D. Owner's Home Address

C. County

To see the Inventory Starting Value transaction, you prepare the ______ report. A. Inventory Starting Value B. Inventory Valuation Summary C. Inventory Valuation Detail D. Any of the above

C. Inventory Valuation Detail

The ____________ is used to prevent erroneous benefit payments and to enforce child support payments. A. Form I-9 B. CA PIT/SDIForm C. New Hire Report D. Employee ID

C. New Hire Report

When editing an employee, you enter the phone number in the ___________ section. A. Employment B. Pay C. Profile D. Personal

C. Profile

If inventory was damaged you adjust the ___________ . A. Inventory Starting Value B. Item in a JournalEntry C. Quantity D. Budget

C. Quantity

When a return is made for a Sales Receipt, a _________ is completed. A. Sales Receipt Return B. Credit Memo C. Refund Receipt D. Voided Transaction

C. Refund Receipt

To record a sale and the payment at the same time, you prepare a(n) __________ form. A. Invoice B. Receive Payments C. Sales Receipt D. Both A and B

C. Sales Receipt

The report that provides detailed information regarding Checks prepared and Petty Cash expenditures is the _____ ______ report.

Check Detail

The Account Category Type for Inventory Shrinkage is ____ __ _____ ____ .

Cost of Goods Sold

When you return something that was paid for by credit card, you prepare a(n) ______ ____ ______ .

Credit Card Credit

The four data lists you may import are _________ , _______ , ________ , and ________ ___ ________ .

Customers, Vendors, Accounts, Products and Services

You remove the date prepared and time prepared from a report footer by clicking the _________ button.

Customize

Information provided for a sole proprietor in the Company General Tax Information preference includes ____________ . A. Company Type B. Filing Name C. Filing Address D. All of the above

D. All of the above

Payment Methods are created for ________ . A. Debit Cards B. MasterCard C. Visa D. All of the above

D. All of the above

The Sales Tax Center must be set up to include ________ . A. Sales Tax Rates B. Name of the Sales T ax C. Agency collecting Sales Tax D. All of the above

D. All of the above

You may access the Inventory Quantity Adjustment form by __________ and clicking __________. A. Clicking Plus icon, Inventory Qty Adjustment in the Other column B. Opening the item in the Products and Services List, Quantity C. Clicking the drop-down list arrow in the item's Action column in the Products and Services List, Adjust Quantity D. All of the above

D. All of the above

To enter your initial budget figures, you may _______ . A. Copy a previous budget B. Record the amounts individually C. Copy amounts from This Fiscal Year or Last Fiscal Year D. Any of the above

D. Any of the above

The report that proves Assets = Liabilities + Owner's Equity is the ___________ . A. Trial Balance B. Income Statement C. Profit & Loss Report D. Balance Sheet

D. Balance Sheet

Opening Balances for Inventory Items that were added without preparing a purchase order or bill are entered into ___________ . A. Opening Balance Equity B. Inventory Assets C. Your Name, Investment D. Both A and B

D. Both A and B

To record the decrease in value for a fixed asset, you record ________ . A. Depreciation B. Depreciation Expense C. A Net Loss D. Both A and B

D. Both A and B

When you see the Review and Submit screen when processing payroll, you see data for Net Pay, Employee, Employer, and Total Payroll Cost on the ____________ . A. Title bar B. Payroll Budget section C. Button for Preview D. Dashboard

D. Dashboard

You may import company data from ___________ A. Excel files B. Quickbooks Desktop Company File C. Word Files D. Either A or B.

D. Either A or B?

The Top-Navigation Bar and the Left-Navigation or Alternate Left-Navigation Bars are shown on the_______. A. Dashboard B. Money Bar C. Activities Page D. Home Page

D. Home Page

To take a discount on merchandise ordered, you use the __________ Discount account. A. Sales B. Purchase C. Inventory D. Merchandise

D. Merchandise

When you record the Telephone Bill, in the Journal QuickBooks Online enters a _____ to an Expense Account and a ______ to Accounts Payable.

Debit, Credit

The _______ _______ Report prints the current date that cannot be changed at the top of the report.

Deposit Summary

A Delayed Charge is added to the customer's balance

False

A Logo authorizes you to access custom forms

False

A Purchase Order may never be closed manually.

False

A Reconciliation Report prints the last two bank reconciliation reports automatically.

False

A Vendor Credit increases the amount you owe a vendor.

False

A registered Educational Trial Version of Quickbooks Online is usable for 30 days.

False

A salaried employee is paid overtime.

False

All payroll reports must be printed before paying payroll taxes.

False

An inventory starting value transaction is recorded when you prepare a purchase order for an inventory item.

False

For a direct deposit check, you print a copy of the paycheck.

False

In QuickBooks Online Plus you cannot record an adjustment to the quantity of inventory.

False

The payroll plans for QuickBooks Online are updated once a year.

False

To view a list of Open Purchase Orders, you prepare a Vendor List report.

False

When importing accounts, all opening balances are entered automatically for Assets and Liabilities

False

When purging a company file, you have 30 days after program activation to do so.

False

When you have a budget, you cannot purchase office supplies if it is over the budgeted amount.

False

You cannot record an automatic loan payment when you reconcile a bank statement.

False

To verify employment eligibility status, you prepare ____ _-_ .

Form I-9

T o access Import Data click the ____ icon.

Gear

To give your accountant (instructor) access to your account, you click the ____ icon, ______ _____ on the Your Company menu, and the Invite Accountant button.

Gear, Manage Users

To ask for information about or to learn how to perform a task, click the _____ icon on the Top-Navigation bar.

Help

QuickBooks Online uses the ________ and the ________ to provide program access and data storage.

Internet, Cloud

To correct an error in an inventory item's opening balance, you record an adjustment to the _________ ________ _____.

Inventory Starting Value

When you create a Fixed Asset account and track depreciation, you give the as of date and the amounts for ________ ____ and ____________ .

Original Cost, Depreciation

You click the Pay Taxes button in the _______ ___ ______ in order to pay taxes.

Payroll Tax Center

Payroll Settings have three areas as part of the Setup Overview. They are _______ ___ ________ , _______ ___ _______ , _________ .

Payroll and Services, Company and Account, Employees

The ____ icon is located on the ___-__________ Bar.

Plus, Top-Navigation

Once the Import file has been selected, you will get a MAP Data screen that is used to match the __________ ______ _____ names and ____ _____ names.

Quickbooks Online Field, Your Field

A fast way to find your latest Purchase Orders is to click the ______ ____________ ____ in a blank Purchase Order.

Recent Transactions icon

To refund money to a customer, you prepare a ______ _______ . To decrease an amount owed for an Invoice, you prepare a ______ ____.

Refund Receipt, Credit Memo

In Your Name's Beach Barkers, the entry to transfer Net Income to Capital is made by debiting ________ ________ and crediting ____ ____, _______.

Retained Earnings, Your Name, Capital

The two Pay Rate categories used in the chapter are ______ and ______ .

Salary, Hourly

The names of the three discounts used in the text are _____ , ___________ , and ________ Discounts.

Sales, Merchandise, Purchase

In the Customer Center there are icons to print, export to Excel, or change ___________ .

Settings

The report that shows all of the entries made into each account in the Chart of Accounts is ____________ ______ __ _______ .

Transactions Detail By Account

If you fund Petty Cash by making a cash withdrawal at the bank, you enter it in the Petty Cash account by a completing a(n) ________ in QuickBooks Online.

Transfer

A Bundle is a group of sales items sold together

True

A Statement of Cash Flows organizes information regarding cash activities and projects the amount of cash at the end of a period.

True

A new employee does not have any vacation or sick pay accrued.

True

A sole proprietor does not use the Company Name as the Tax Filing Name.

True

After reconciling a credit card account, you may select the option to write a payment check now.

True

All payments received by QuickBooks Online, including debit cards and credit cards, are placed in Undeposited Funds until the bank deposit is made.

True

An Expense transaction is recorded for Petty Cash Purchases.

True

An adjusting entry for depreciation reduces the book value of fixed assets.

True

An employee may be added at any time.

True

An owner's withdrawal decreases cash and equity.

True

Depreciation is recorded to account for the decrease in value of a fixed asset.

True

Each Location of the business may use a different address and phone number.

True

If you record the wrong date for an inventory starting value, you correct the date on the Inventory Starting Value #START form.

True

If you transfer Net Income into Capital, on the Balance Sheet it will show as a negative in Retained Earnings and a positive in Net Income until the following year.

True

When editing a paycheck, you may change anything shown in a rectangular box.

True

When reconciling an account, if the statement amount is correct and your amount does not match it, you change the amount in your original transaction prior to completing the reconciliation.

True

When using Quickbooks online your data is saved in the cloud.

True

You activate Payroll by accessing Employees and clicking Turn on Payroll.

True

You can make a bill payment directly from the bill.

True

You may create Payroll Schedules in Payroll Settings.

True

You may prepare a budget for locations.

True

You must provide a valid email address when activating Quickbooks Online.

True

You must turn on Payroll in order to access the Payroll Tax Center

True

Cash and checks received from customers are entered into the ___________ _____ account until the bank deposit is made.

Undeposited Funds

Use the ______ _______ to add or edit vendor.

Vendor Center

To keep the books for a business, accounting transactions need to be _________ , __________ , and _________ .

analyzed, recorded, and posted.

The ____ -basis of accounting records income or revenue at the time cash is received and expenses at the time they are paid.

cash

A _____ is prepared to record an automatic loan payment from the bank.

check

If you only receive part of the merchandise ordered, you prepare a(n) ____ of the original purchase order for the missing amount.

copy

If you pay CA PIT/SDI taxes ______________ , you do not have to print or submit a coupon.

electronically

In QuickBooks Online Plus you may create a budget that tracks amounts in ______ and _______ accounts.

income, expense

In Your Name's Beach Barkers, the entry to transfer Net Income to Capital is made by debiting ________ ________ and crediting ____ ____, _______ .

retained earnings, your name, capital

When you make changes to the report footer, you click the ____ ______________ button to save the change for future reports.

save customizations

In a sole proprietorship, an owner's paycheck is considered a(n) __________ .

withdrawal

The current date is always printed on ______. A. Customer Balance Detail B. Bank Deposit Summary C. Transaction List D. Journal

B. Bank Deposit Summary

To access a blank invoice, you click the _____ icon. A. Gear B. Create (Plus) C. Customers D. Forms

B. Create (Plus)

When a customer returns an item from a sale on account, a(n) ________ is completed. A. Return Receipt B. Credit Memo C. Invoice D. Sales Receipt

B. Credit Memo

The report that lists all of the unpaid invoices for each customer is the ________ report A. Customer Balance Summary B. Customer Balance Detail C. Collections Report D. Open Invoices

B. Customer Balance Detail

When an invoice is ______ it is removed from the customer's register. A. Voided B. Deleted C. Edited D. Paid

B. Deleted

Which report shows every transaction recorded in Debit/Credit format? A. Trial Balance B. Journal C. Transaction List by Vendor D. ExpensesList

B. Journal

5.13. If the adjusting entry to transfer Net Income and Retained Earnings into the owner's capital account is made prior to the end of the year, the Balance Sheet shows ____________ . A. Retained Earnings B. Net Income C. Both Net Income and Retained Earnings D.None of the above because the Net Income and Retained Earning shave been transferred into capital

C. Both Net Income and Retained Earnings

To use a check to pay for a bill that has not been recorded, you access _________ in the Vendors column. A. PayBills B. Bills C. Check D. Accounts Payable

C. Check

To close income and expense accounts in QuickBooks Online, you _____________. A. Record adjusting entries for each account B. Do not have to do anything C. Enter a closing date on the Advanced tab in Account and Settings D. Transfer the total income and total expenses to Retained Earnings

C. Enter a closing date on the Advances tab in Account and Settings

When you create a new item for a product you sell, it is classified as a(n) ________ item. A. Service B. Non-inventory C. Inventory D. Product

C. Inventory

Which tab in the customer's account do you click in order to add Terms? A. Tax Info B. Notes C. Payment and Billing D. Address

C. Payment and Billing

To pay for small expenses using cash, you use the account. A. Cash B. Transfer C. Petty Cash D. Undeposited Funds

C. Petty Cash

A(n) _________ is prepared to record a reduction to an unpaid transaction between your company and a vendor. A. Refund Check B. Bill C. Vendor Credit D. Expense Transaction

C. Vendor Credit

Additional investments made by an owner may be cash or non-cash items.

True

If a customer issues a check that is returned marked NSF, you may charge the customer the amount of the bank charges and any penalty charges you impose.

True

Inventory may be purchased and paid for without preparing a purchase order.

True

Locations are allowed to select a descriptive name; such as, Store

True

Opening balances are imported for Customers and Vendors.

True

Sales tax is a fee charged by government agencies on sales of products.

True

The company credit card may be used to pay bills, pay expenses, or buy merchandise.

True

The total amount of a purchase order shows as an amount due in the vendor's register.

False

Sales discounts are always applied after sales tax

False

Terms of 2% 10 Net 30 are used for NSF Check penalties

False

Where do you get the Excel data files for importing company information? A. Download from Pearson's website B. Create Excel files yourself C. Create excel files from Quickbooks Desktop D. None of the above

A. Download from Pearson's website

Quickbooks Online Plus uses the_______ method of inventory valuation. A. FIFO B. Average Cost C. Declining Balance D. Accelerated Use

A. FIFO

An owner's withdrawal is recorded as a payroll expense.

False

Cash is the only payment method accepted for a Cash Sale.

False

In Quickbooks Online, the Accounts Receivable register replaces the Sales Journal.

False

In a computerized accounting program, you must record Brought Forward Balances to close the books.

False

Accrual-basis accounting matches the income from the period and the expenses for the period in order to determine the net income or net loss for the period.

True

Where do you record the 2% discount for early payment of a bill? A. Enter it on the bill B. Prepare a Vendor Credit C. Change the amount of the bill payment check D. Any of the above

A. Enter it on the bill

It is better to add _______ accounts rather than import them. A. Fixed Assets B. Retained Earnings C. Income D. Long-Term Liabilities

A. Fixed Assets

A sale on account is recorded on a(n)_________. A. Invoice B. Receive Payment C. Sales Receipt D. Charge Account Receipt

A. Invoice

Transactions may be categorized based on _______ and _______ . A. Location and Class B. Settings and Class C. Locations and Settings D. Any of the above

A. Location and Class

When a customer qualifies for an early payment discount, you record the discount ____________. A. On the original Invoice B. As a Journal entry C. On a new Invoice D. In the Sales Discount register

A. On the original invoice

Prepaid Insurance is recorded as a(n) _______ in a(n) ________ account. A. Prepaid Expense, Asset B. Prepaid Expense, Expense C. Asset, Asset D. Expense, Expense

A. Prepaid Expense, Asset

A(n) _______ is prepared to order merchandise. A. Purchase Order B. Bill C. Inventory List Report D. Expense

A. Purchase Order

You may apply for the Educational Version of Quickbooks Online Plus using your ________. A. Student Email B. A Gmail account established for the program C. Either of the above D. None of the above

A. Student Email

After editing an invoice in a closed period, you record the change in income by editing the ___________ . A. Closing Date B. Adjusting entry transferring Net Income and Retained Earnings into Capital C. You do not edit anything, you record another adjusting entry D. Both A and B

B. Adjusting entry transferring Net Income and Retained Earnings into Capital.

A Sales Discount is calculated ________ sales tax. A. Before B. After C. Before or After D. None of the above

C. Before or After

When a customer on account pays his bill you record a(n) _________. A. Sales Receipt B. Payment Receipt C. Credit Memo D. Invoice

B. Payment Receipt

Which report calculates the Net Income or Net Loss? A. Trial Balance B. Profit and Loss C. Statement of Cash Flows D. Balance Sheet

B. Profit and Loss

To erase all information entered by QuickBooks during the activation of QBO, you ________ all information. A. Edit B. Purge C. Transfer D. Import

B. Purge

When you create a check to pay for a bill that was recorded as a Bill, you ________. A. Write a check in Quickbooks Online B. Use pay bills C. Handwrite a check D. Any of the above

B. Use Pay Bills

In Your Name's Beach Barkers, what account should be used to record owner investments? A. Your Name, Capital B. Your Name, Investments C. Opening Balance Equity D. Retained Earnings

B. Your Name, Investments

A Customer Note, such as a dog's name, may be added by _________ . A. Editing the Individual Account B. Entering it in Add Notes in the Customer's Account C. Either A or B D. Entering the Note on an Invoice

B. entering it in Add Notes in the customer's account

With Terms of 2% 10 Net 30 what is the discount amount for a purchase of $500? A. 10¢ B. $1.00 C. $10.00 D. $100.00

C. $10.00

A bank statement may ___________. A. show service charges or interest not yet recorded B. be missing deposits intransit or outstanding checks C. show automatic payments D. all of the above

D. All of the above

You may view the audit history for a transaction in ______ view. A. Collapsed B. Expanded C. Compare D. All of the above

D. All of the above

After clicking the Plus icon, the Vendors column is used to select _______. A. Bills B. Pay bills C. Vendor Credit D. Any of the above

D. Any of the above

In order to customize information shown in the Vendors List, you click the ______ icon. A. Show B. Settings C. New Vendor D. Edit

D. Edit

Petty cash is funded by _________. A. Writing a check in Quickbooks and cashing it at the bank. B. Making a withdrawal from checking at the bank and recording a Transfer of Funds C. Entering a balance when creating the Petty Cash account D. Either A or B

D. Either A or B?

A sales on account means that the sale was paid for at the time of purchase.

False

All checks are written using Pay Bills.

False

Net Income is transferred into the owner's investment account.

False

Once a report has been customized, it may be accessed in Accountant Reports.

False

QuickBooks Online automatically calculates and inserts the 2% discount when paying for purchases from vendors.

False

The Customer Balance Summary shows the balances for all customers who owe the company money.

False

To pay sales tax, you click the Plus icon and Checks and then write the check.

False

To purchase a printer and pay for it at the same time, you create a bill.

False

You click the Recent Transactions icon to search for a specific invoice.

False

You record the amount of supplies on hand as the amount of the adjusting entry for supplies used.

False

A new sales item may be entered when recording a sale on an invoice.

True

The Bill Payment List displays a list of all of the bills paid during a specified date range.

True

The Gear icon may be used to access Lists in Quickbooks Online.

True

The Purchase Discounts account is used for a discount on payments of expenses or bills that are not for merchandise.

True

The Vendor Balance Summary report shows unpaid balances for vendors.

True