Exam 1- ACCT 3023

b. Filter section

In Customize Reports, you can change the types of transactions included on the report in the a. Rows / Columns section b. Filter section c. Header / Footer section d. General section

expenses

In what tab in the Account and Settings area is the activity "start using purchase orders" located

sales

In what tab in the Account and Settings area is the activity "turn on custom transaction numbers for sales forms" located

advanced

In what tab in the Account and Settings area is the activity "turn on warnings for duplicate check numbers" located

company

In what tab in the Account and Settings area is the activity "update or change company name" located

d. Payments

In which section of the customer record would you select the default credit terms for a customer? a. Name and contact b. Addresses c. Notes and attachments d. Payments e. Additional info

d. All of the above

Using the Advanced Search tool, you can limit your search to: a. Certain transaction types b. Certain dates c. Certain customers d. All of the above

c. Other current asset

What account type would you use when setting up an Inventory account in a merchandising company in QBO? a. Inventory b. Other asset c. Other current asset d. Merchandise Inventory

"settings" icon

What icon in quickbooks is used to access company accounts and settings, manage lists, and import data?

"search" icon

What icon in quickbooks is used to search for transactions, customers, vendors, etc. within your quickbooks online company?

"+ New" icon

What icon on quickbooks is used to open the create menu where you can access forms such as invoices, checks, and journal entries?

inventory

What is the product or service type for products you sell and track (quantities on hand)

non-inventory

What is the product or service type for products you sell but don't need to (or can't) track quantities on hand

service

What is the product or service type for services that your provide to customers for a fee

journal enrty

What would be the appropriate transaction description for adjusting entries?

payment

What would be the appropriate transaction description for collections from customers for sales on account?

check

What would be the appropriate transaction description for payments by check other than payments to vendors on account balances or payroll payments?

Bill

What would be the appropriate transaction description for purchases from a vendor on account?

a. Accounts payable

When a bill is recorded, the account credited has a(n) ______________ account type. a. Accounts payable b. Other current liability c. Liability d. Expense

c. In the Tools column on the settings icon menu (icon bar).

Where is the Import Data command located in QBO? a. On the Navigation bar under My Accountant. b. On the Advanced tab in the Account and Settings area. c. In the Tools column on the settings icon menu (icon bar). d. On the Dashboard of your QBO company.

b. Set a closing date and allow changes after viewing a warning and entering a password

Which method of closing the books provides greater control against entering transactions to a closed period? a. Set a closing date and allowing changes after viewing a warning b. Set a closing date and allow changes after viewing a warning and entering a password c. Telling all employees not to use a date prior to the closed period d. Not setting a closing date

accounts receivable

what is the appropriate account type in QB for "accounts receivable"

bank

what is the appropriate account type in QB for "cash"

income

what is the appropriate account type in QB for "consulting fee revenue"

equity

what is the appropriate account type in QB for "dividends"

long term liabilities

what is the appropriate account type in QB for "note payable (due 2025)"

b. $640 12000 x 8% x (8/12)

A company borrowed $12,000 at 8% interest on May 1, 2024, with principal and interest due April 30, 2025. Company's fiscal year ends December 31. What amount of interest expense would appear on the income statement at year end? a. $480 b. $640 c. $960 d. $560

d. On all desktop computers and most smartphones and tablets with internet connections

A company can access their QBO company files ___________. a. Only on a desktop computer with a Windows operating system b. Only on a desktop computer with a Mac OS operating system c. Only on desktop computers using either a Windows or Mac OS operating system d. On all desktop computers and most smartphones and tablets with internet connections

c. $52,000 cash receipts- 75000 -cash disbursements- 21000 =cash basis net income- 54000 - depreciation expense- 8000 -prepaid expenses- 5000 +accounts receivable- 7000 +accrued liabilities- 4000 =accrual net income- 52000

A company maintains records on a cash basis. During 2024, company collected $75,000 from customers and paid $21,000 in expenses. Depreciation expense of $8,000 would be recorded on an accrual basis. Over year, accounts receivable increased $7000, prepaid expenses decreased $5000, and accrued liabilities decreased $4000. The company's accrual basis net income was: a. $41,000 b. $57,000 c. $52,000 d. $45,000

d. $15,500 17200+68000-69700

A company reported a $17,200 liability in 2024 balance sheet for revenue received in advance. During 2025, $68,000 was received from customers and the 2025 income statement reported revenue of $69,700. What is the liability amount for deferred revenue that will appear on the 2025 balance sheet? a. $0 b. $17,200 c. $18,900 d. $15,500

b. automatically by Intuit

A company's QBO software is updated _______________. a. when the user clicks the Update Program link b. automatically by Intuit c. either automatically or on demand depending on the setting selected by the user. d. When the user purchases a new version.

c. to any invoice that exactly matches the payment amount first. If no invoices match the payment amount, then to remaining invoices in date order (oldest first).

By default, QBO automatically applies a payment on account received from a customer a. to the oldest invoice only. b. only to an invoice that exactly matches the payment amount. c. to any invoice that exactly matches the payment amount first. If no invoices match the payment amount, then to remaining invoices in date order (oldest first). d. QBO doesn't automatically apply payments.

b. vendor balances in categories representing ranges of days past due.

An A/P Aging Summary report shows a. all vendor bills by due date. b. vendor balances in categories representing ranges of days past due. c. vendor balances in categories representing ranges of days due in the future. d. only vendor bills past due.

b. One hour

By default, users are automatically signed out of QBO after ____________ of inactivity. a. 30 minutes b. One hour c. Three hours d. None of the above answers are correct. There is no automatic sign out.

b. Account and Settings

Choices about which QBO features are available in a company file are made through a. Preferences b. Account and Settings c. Help d. Features

a. Expensing prepaid rent. d. Interest expense incurred but not paid

Common adjusting entries that are done at month end include which of the following? Select all that apply. a. Expensing prepaid rent. b. Writing a check for rent. c. Writing a check for a monthly loan payment that includes interest. d. Interest expense incurred but not paid.

company seller, invoice, company purchaser, bill

Company Seller provides consulting services on account to Company Purchaser. ____ would create a(n) ____ document and send it to ____. Company Purchaser would enter it in their system as a(n) ____.

a. on the Receive payment form

Credit memos are manually applied to customer balances ______________________. a. on the Receive payment form b. on the Credit memo form c. on the Credit application form d. None of the above are correct. Credit memos can't be manually applied in QBO.

d. either sales receipt or receive payments forms depending on the nature of the transaction.

Customer payments by cash (currency) are recorded on a. sales receipt forms only. b. receive payment forms only. c. make deposits forms only. d. either sales receipt or receive payments forms depending on the nature of the transaction.

c. Accrual

During the setup process QBO automatically selects which method of accounting? a. Cash basis b. Modified cash basis c. Accrual d. Historical

a. are set up by clicking the settings icon and selecting Terms on the All Lists page.

New terms (payment terms) ___________________. a. are set up by clicking the settings icon and selecting Terms on the All Lists page. b. are set up by clicking the settings icon and selecting Products and Services. c. are set up by clicking Sales on the navigation bar and clicking New Transaction on the All Sales tab. d. can not be set up in QBO.

B. QBO will warn you if you try to post a transaction to the closed period

Once a closing date has been set in QBO, ___________________ . A. you can never post any transactions dated before the closing date to QBO B. QBO will warn you if you try to post a transaction to the closed period C. all transactions are moved to an archived file and stored by Intuit D. you can never post any transactions dated after the closing date to QBO

a. the way payments might be made by customers.

Payment methods are used to identify a. the way payments might be made by customers. b. the way payments might be made to vendors. c. the way payments might be made by customers or made to vendors, d. None of the above. Payment methods aren't used in QBO.

b. debiting an expense

Recording an expense for salaries incurred and paid in cash would be recorded by: a. debiting a liability b. debiting an expense c. debiting cash d. crediting an expense

d. Check

Sheff Industries uses cash to pay for any postage due when mail is delivered. When the transaction is entered in QBO, the transaction type normally used is a. Cash payment b. Bill payment c. Bill d. Check

b. accounts receivable

Temporary accounts would NOT include a. salaries expense b. accounts receivable c. rent revenue d. all are correct

B. is accessed by selecting the +New icon on the navigation bar

The Journal Entry form ____________. A. is accessed through the Dashboard B. is accessed by selecting the +New icon on the navigation bar C. is be accessed through My Accountant link on the navigation bar D. is accessed through the icon on the settings icon bar

c. The account number assigned to the company by the vendor.

The account no. field in the vendor record refers to what account? a. The general ledger account used to record purchases b. The general ledger account used to record purchases of inventory c. The account number assigned to the company by the vendor. d. The company's checking account number.

d. None of the above. Categories are only used to group items in the Product and Services list.

The category assigned to a product in the Product and Service list determines a. the account that will be debited when the item is sold b. the account that will be debited when the item is purchased c. the account that will be credited when the item is sold d. None of the above. Categories are only used to group items in the Product and Services list.

a. through a link on the "settings icon" menu.

The chart of accounts can be accessed ____________. a. through a link on the "settings icon" menu. b. through a link on the Dashboard. c. through a link on the " + new" menu. d. by clicking Sales on the navigation bar and selecting the Chart of Accounts .

C. $1,500 1400+1100-1000

The correct mount of prepaid insurance shown for a company on December 31, 2024 balance sheet was $1,400. On may 1, 2025, the company paid an additional premium of $1,100. In december 2025 the balance sheet had an amount of prepaid insurance that was correctly shown as $1000. The amount of insurance expense that should appear on the 2025 statement is: a. $2000 b. $1,900 C. $1,500 d. $1,600

B. the settings icon on the icon bar and click Reconcile

To reconcile a bank account, click ________________ . A. Banking on the navigation bar and select Reconcile B. the settings icon on the icon bar and click Reconcile C. the +New sign on the navigation bar and click Bank Reconciliation D. Reconcile on the navigation bar

D. Bank statement

The ending balance from the _________________ must be entered in the Start Reconciling screen. A. Previous bank statement B. Check register C. Cash account in the general ledger D. Bank statement

a. Zero

The goal when reconciling an account is to have the Difference field be a. Zero b. Equal to the Bank statement balance c. The sum of the checks and deposits d. Equal to the book balance

c. a debit to cash and credit to common stock

The journal entry to record the issuance of common stock in exchange for cash involves: a. a debit to common stock and credit to cash b. a debit to cash and credits common stock and retained earnings c. a debit to cash and credit to common stock d. all of these are correct

a. is used for entering customer or vendor credit terms

The list of payment terms in QBO is _________________. a. is used for entering customer or vendor credit terms b. only used for entering acceptable credit terms given to customers c. only used for entering acceptable customer payment methods d. only used for entering credit terms offered by vendors

c. Purging

The process that is used to delete the chart of accounts is known as ________. a. Estimating b. Inactivating c. Purging d. Deleting

b. using https://qbo.intuit.com/redir/testdrive as the URL

The test drive company is accessed ______________. a. through the publisher's website. b. using https://qbo.intuit.com/redir/testdrive as the URL c. through the company file provided by the instructor d. using https://qbo.intuit.com as the URL and clicking Test Drive

b. Sales Receipt

The transaction type used for recording cash sales is: Select one: a. Invoice b. Sales Receipt c. Cash Sale d. Payment

a. Three checks will automatically be created (one for each bill).

Three bills from the same vendor are displayed in the Pay Bills window. Which of the following statements is not true? a. Three checks will automatically be created (one for each bill). b. One check (paying all three bills) will be created if all three bills are selected. c. The due date of each bill will be displayed. d. You can elect to pay one, two or all three of the bills with a single check.

b. Two Deposit forms must be created. One for checks received on cash sales, one for payments received on account.

Three checks were received from three different customers using sales receipts. Two additional checks were received from two different customers as payments on account. Which of the following statements is not true? a. All five checks can be recorded on the same Deposit form. b. Two Deposit forms must be created. One for checks received on cash sales, one for payments received on account. c. The checks can be recorded on one or more Deposit forms. d. Four checks can be recorded on one Deposit form leaving the fifth check in Undeposited Funds

d. Any of the accounts listed can be charged in the Category Details section of a Bill.

Which of the following accounts can be charged (debited) in the Category Details section of a Bill? a. Supplies On Hand b. Equipment c. Rent Expense d. Any of the accounts listed can be charged in the Category Details section of a Bill.

b. Amount charged for haircuts in a hair salon d. Amount charged for the review of a contract for a client in a law firm

Which of the following sources of revenue should be set up as a service item in QuickBooks Online? Select all that apply. a. Amount charged for shampoo sold in a hair salon b. Amount charged for haircuts in a hair salon c. Amount charged for milk sold in a grocery store d. Amount charged for the review of a contract for a client in a law firm

c. Once a vendor is made inactive, you can never make the vendor active again.

Which of the following statements is not correct as it relates to vendors? a. Only vendors with $0 balances can be made inactive. b. Inactive vendors will not appear as an option in drop down menus where you are selecting vendors. c. Once a vendor is made inactive, you can never make the vendor active again. d. You can view inactive vendors in the vendor center by selecting the gear icon and selecting Include Inactive.

d. Multiple income accounts can be associated with a single service item.

Which of the following statements is not true? a. Service items can be grouped by category. b. The income associated with a service item can be edited. c. Descriptions entered for a service item will appear on sales forms. d. Multiple income accounts can be associated with a single service item.

C. Journal entries are created automatically by QBO when invoices to customers or checks to vendors are entered

Which of the following statements is true? A. Unbalanced journal entries can be saved in QBO. B. All debits must be listed first in QBO journal entries. C. Journal entries are created automatically by QBO when invoices to customers or checks to vendors are entered. D. Journal entries can only have two lines, one for the debit and one for the credit.

C. You can start a reconciliation and finish it later only if you click the Save for Later button on the reconciliation screen.

Which of the following statements is true? A. You must finish a bank reconciliation before exiting the bank reconciliation screen. B. You can start a reconciliation and finish it later only if you click the Save button on the reconciliation screen. C. You can start a reconciliation and finish it later only if you click the Save for Later button on the reconciliation screen. D. None of the above statements are true.

c. Check written to pay the telephone bill entered in the previous month

Which of the following transactions would most likely have the transaction type bill payment? a. Check written to pay employee's salary b. Check written to pay for pizza delivered to the office c. Check written to pay the telephone bill entered in the previous month d. Payment for magazine subscription using a company credit card

c. Sales by Product/Service Detail

You would like to print a report that shows income from the various services you provided during the past year. Which of the following reports would be most helpful? a. Income by Customer Summary b. Product/Service List c. Sales by Product/Service Detail d. Sales by Customer Detail