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