Ch 2 Concepts Exam

A credit memo is

a reduction of Accounts Payable as a result of a return or an allowance by a vendor.

The Journal report

displays, in general journal format, all transactions recorded during a specified period of time.

The Unpaid Bills Detail report does not list

each paid and unpaid bill for a vendor as of a specific date.

The Pay Bills window allows you to do all of the following except

filter by balance and discount date.

When you use the Pay Bills window in QuickBooks,

for general ledger purposes, the bill is considered paid.

Vendor-related reports in QuickBooks

include the Unpaid Bills Detail, Vendor Balance Detail, and Vendor Contact List reports.

A cash purchase

is a payment of any bill immediately upon receipt.

To process transactions and organize data for reporting, QuickBooks establishes specific general ledger accounts as default accounts in each activity window. Which of the following accounts is a system default account for a vendor?

Accounts Payable

The Vendor Center contains such information as

All the choices are correct. company name, address, and contact person. current balance owed, payments terms, and credit limit. type of vendor and tax identification number.

Which of the following is displayed on the Vendor Balance Detail report?

All the choices are correct. current balance. liability account affected. transaction amount.

Which QuickBooks window is not used when you record vendor transactions?

Create Invoices

In QuickBooks, which window is used to record a purchase on account?

Enter Bills window

Vendor activities in QuickBooks use the

Enter Bills, Pay Bills, and Write Checks windows.

A payment on account is recorded in the

Pay Bills window.

A bill from a vendor is considered a(n)

liability

Terms of Net 30 Days means that

payment is due within 30 days.

The Pay Bills window is for activities identified as

payment of outstanding accounts payable.

A __________ journal is used to record all purchases of goods on account; it can be in a single-column or multicolumn format.

purchases

Once a vendor file is established, transactions can include

receiving a bill from a vendor, paying that bill, and paying for a cash purchase.

When a company receives a bill for goods or services, the bill

recorded in the Enter Bills window.

A vendor is

someone from whom a company buys goods or services, either on account or for cash.

When reviewing a report, QuickBooks allows you to "drill down" from a report to

the original transaction window where data has been entered.

For a cash payment on a bill not previously entered in QuickBooks,

use the Write Check window.

Which of the following is false?

Payment for a cash purchase cannot be entered in the Write Checks window.

Which of these statements is not true about QuickBooks?

Reports, the third level of operation in QuickBooks, reflect only the information and activities recorded in the Vendor Center through the Activities windows.

Which statement is true?

The Vendor Center serves as the accounts payable subsidiary ledger for the company.

Which of the following reports displays all transactions (paid and unpaid) for each vendor and shows the remaining balance owed, if any?

Vendor Balance Detail report

When you enter a bill from a vendor, QuickBooks

automatically credits the Accounts Payable account.

When you write a check in the Pay Bills window, QuickBooks

automatically decreases (debits) the Accounts Payable account.

The Write Checks window is used for all cash purchases, whether the payment is made by

check, PayPal, electronic transfer, or debit card.

Tracking purchases and payments on account should be completed in which order?

create vendor file in the Vendor Center, enter bills, pay bills, generate reports

A payment on account is recorded as a

debit to Accounts Payable and credit to Cash.

A purchase on account is recorded as a

debit to Asset/Expense and credit to Accounts Payable.

Which of the following is not a selection at the Payment section of the Pay Bills window?

suggested discount

When you write a check in the Write Checks window,

the account field is used to indicate the asset, expense, or drawings account to be debited.

When you make an entry for a new liability in the Enter Bills window, QuickBooks does not automatically update

the checking account balance.

When making a partial payment on account,

the vendor balance owed is reduced along with the cash balance.

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

this is called a purchase on account.

In QuickBooks, the Pay Bills window is used

to record a payment on account

QuickBooks automatically assigns __________ in the Journal report, which cannot be changed.

transaction numbers