ACCT 107 - Final Exam

The people or businesses that a company sells goods or services to are collected in this QuickBooks Center.

Customer

Which of the following QuickBooks reports displays all transactions for each customer with the remaining balance owed?

Customer Balance Detail

In QuickBooks, the __________ serves as the accounts receivable subsidiary ledger.

Customer Center

The Items tab of the __________ window is designed for purchases of inventory items on account.

Receive Items and Enter Bills

In QuickBooks, you can subtotal two or more accounts by designating them as __________; the account to which the subtotals roll up is referred to as the __________ account.

subaccounts; parent

To help manage its collections, a company would use the __________ in QuickBooks Pro.

customer-related reports

While reviewing reports, it is often helpful to see the originating transaction or document; you can do this by using a feature known as

drill-down.

Sales discounts are typically offered to customers to encourage

early payment of outstanding invoices.

Before you can enter inventory transactions in QuickBooks, you must

establish a file for each inventory item.

In customizing the Journal report to show only the adjusting journal entries, you would be using the __________ feature.

filter

In QuickBooks, a customer file cannot be deleted if the customer

has a balance or has been part of a transaction during the current accounting period.

Accounting for the financial activity of any company involves all of the following except

hiring employees.

In QuickBooks, registers are not available for __________ accounts.

income and expense

The Adjust Quantity/Value on Hand activity window is used to record changes in the inventory resulting from

items being lost, stolen, damaged, or spoiled.

Adjusting journal entries are usually dated the

last day of the month.

The QuickBooks accounting software packages are designed with this type of user in mind.

non-accountants

The Receive Payments window in QuickBooks displays all

open invoices for a particular customer.

Double-clicking a customer name in the Customer Center will

open the customer file in Edit Customer mode.

In the Pay Bills window, the user has the option of doing all the following, except

paying multiple vendors with one check.

The Pay Bills window is designed only for payments of __________ bills.

previously recorded

On the Items tab of the Receive Items and Enter Bills window, the QTY field is where you enter the

quantity of items purchased.

The Enter Sales Receipts window is used to record sales where payment is

received immediately.

In QuickBooks, the Pay Bills window is used to

record the payment of an outstanding accounts payable.

For inventory items in the Items List, the Income Account field indicates the general ledger posting account for

revenue.

In accounting terms, inventory refers to

the ready-made merchandise that is sold to customers for a profit.

In the upper left corner of QuickBooks' Enter Bills window, there are options labeled Bill and Credit. When would you use the Credit option?

to enter a credit memo from a vendor

A(n) __________ is the general term for a monetary business event or activity.

transaction

The Cost field in the Edit Item window contains the

unit cost for the item.

QuickBooks's Open Invoices report lists all __________ for each customer at a specified date.

unpaid invoices

In business terminology, a __________ is someone from whom the company buys goods and services.

vendor

What is a purchase on account?

when a company receives a bill for goods or services from a vendor but plans to pay it at a later date

When are you prevented from deleting an inventory item from the Item List?

when it has a balance or has been part of a transaction during the current period

In the discussion of backup files in Chapter 1, it was recommended that this be added as part of the company file name for the backup copy.

your name or initials

This asset account is used when cash is received but not immediately posted to a Cash account.

Undeposited Funds

In QuickBooks, the __________ Center serves as the accounts payable subsidiary ledger for the company being paid.

Vendor

This group of QuickBooks reports are especially useful in helping a company manage its liability payments, ensure timely and correct remittances, and control cash flow.

Vendor reports

To record a purchase and receipt of an inventory item on account, begin by clicking __________ on the main menu bar.

Vendors

If a new customer needs to be added while in the Create Invoice window you can

click <Add New> at the Customer:Job drop-down list.

QuickBooks uses the default __________ account from the Chart of Accounts to post all open bill liabilities.

Accounts Payable

Which of the following would be considered a liability type account?

Accounts Payable

Which of the following would not be considered an asset type account?

Accounts Payable

The Pay Bills window uses these two default general ledger posting accounts.

Accounts Payable and Cash

For transactions created in the Create Invoices window, __________ is the default general ledger posting account.

Accounts Receivable

The Customer Balance Detail report is similar to the

Accounts Receivable subsidiary ledger.

Most of the daily accounting tasks in QuickBooks occur in this level of organization.

Activities

Which report displays the Unadjusted Balance, Adjustments, and Adjusted Balance for all accounts?

Adjusted Trial Balance (Worksheet)

This QuickBooks report is structured to show assets, liabilities, and equity balances for a business as of a certain date.

Balance Sheet Standard

In QuickBooks, the Make Deposits window is accessed by clicking __________ on the main menu bar.

Banking

To record a cash purchase and receipt of an inventory item, begin by clicking __________ on the main menu bar.

Banking

The option for switching between single- and multi-user modes in QuickBooks is found under __________ on the main menu bar.

File

To make a backup copy of a company file, begin by clicking __________ on the main menu bar.

File

When no company file is open, only __________ are active on the main menu bar in the QuickBooks main window.

File and Help

__________ are the summaries of the financial information of a company.

Financial statements

What does GAAP stand for?

Generally Accepted Accounting Principles

In the QuickBooks main window, this element extends vertically across the left side of the window.

Left Icon bar

In addition to customer reports from the Customers & Receivables submenu, customer reports can be viewed from the _______ submenu of the Reports menu.

List

Vendor reports can be accessed by opening the Vendors & Payables submenu of Reports on the main menu bar, or by opening the

List submenu of the Reports menu.

In addition to the Reports option on the main menu bar, QuickBooks also allows you print many inventory reports from the __________ window.

Lists

To add a new account in QuickBooks, begin by clicking __________ on the main menu bar and then click Chart of Accounts.

Lists

Chart of Accounts, Customer, and Items are examples of QuickBooks

Lists/Centers.

Adjustments to account balances are recorded in the __________ window.

Make General Journal Entries

QuickBooks cannot delete a vendor that has

a balance or is part of a transaction for the fiscal period.

Of the various pieces of information collected when setting up an account in QuickBooks, which of the following is not optional?

account type

Adjustments made to accounts at certain periods of time (for example, at the end of the month) are referred to as

adjusting journal entries.

The General Ledger report in QuickBooks displays

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

The Item List should include

all items sold by the company, including services.

When making backup copies of business computer files, it is advisable to store them

at an offsite location.

In QuickBooks' Pay Bills window, the Account field allows the user to

choose a bank account from which to make the payment.

The list of accounts a company uses as it conducts its business is referred to as the

Chart of Accounts.

QuickBooks automatically assigns this extension to backup copies.

.QBB

QuickBooks automatically gives a restored copy of a backup the __________ extension.

.QBW

What file extension is automatically assigned to a company file in QuickBooks?

.QBW

When entering adjusting journal entries in the Make General Journal Entries window, what happens if the total dollar value of debits does not equal the total dollar value of credits?

A warning window will appear, and if corrections are not made, you will not be able to save the journal entry.

To select a menu choice using only the keyboard, hold down the __________ key and type the letter that corresponds to the underlined letter in the menu name.

Alt

When you double-click an asset account in the Chart of Accounts List window, the account's register is displayed. What happens if you double-click an expense account instead?

An Account QuickReport is displayed.

One way to open the Make General Journal Entries window is to begin by clicking __________ on the main menu bar.

Company

Sales of inventory items on account are recorded in the __________ window.

Create Invoices

Which of the following is not one of the choices on the main menu bar in the QuickBooks main window?

Delete

If you accidentally delete an inventory item from the Item List, immediately click __________ and then Undo Delete Item.

Edit

When an inventory item is sold for cash, the transaction is recorded in the __________ window.

Enter Sales Receipts

In QuickBooks, what should you do prior to entering transactions for a customer?

Establish a file for the customer.

In QuickBooks, what do you have to do prior to entering transactions for a vendor?

Establish a file for the vendor in the Vendor Center.

What are the two tabs in the Enter Bills window in QuickBooks?

Expenses and Items

To determine the most recent update of QuickBooks downloaded to your computer, use the

F2 function key or Ctrl + 1 on the keyboard.

This inventory report displays the on-hand status of each inventory item and whether it should be reordered.

Inventory Stock Status by Item

How does QuickBooks know what revenue account to credit in the Create Invoice window?

It uses the revenue account specified in the Items List for the goods or services being purchased.

Inventory item files are included in the

Item List.

By what name is the income statement known in QuickBooks?

Profit & Loss report

This report shows all purchase information for each inventory item, including vendor name, cost per unit, quantity purchased, and total cost.

Purchases by Item Detail

Which is not a version of the QuickBooks software?

QuickBooks Consolidation Solutions

How does the Receive Payments window handle a situation in which a customer pays two invoices in full with a single payment?

The amount is automatically applied to the two invoices.

How are invoice numbers handled in the Create Invoice window?

The user enters the desired number in the INVOICE # field.

What happens when you check the Vendor is inactive box in the Edit Vendor window?

The vendor's name is no longer displayed in reports, but the vendor information is retained.

In the Unpaid Bills Detail report, what is the purpose of the small diamonds in the title headings?

They can be clicked and dragged to change the column width.

When a company file is open, QuickBooks will display the company name in the __________ of the main window.

Title bar

What report is typically run just after the adjusting journal entries have been recorded?

Trial Balance renamed Adjusted Trial Balance

A payment of a bill via a debit card is recorded in the ________ window.

Write Checks

Cash purchases of inventory items are recorded in the __________ window.

Write Checks

Where are cash purchases recorded in QuickBooks?

Write Checks window

What happens when you enter a partial payment for an invoice in the Receive Payments window?

You can leave it as an underpayment or write off the extra (unpaid) amount.