QB - CH5 - Banking and Credit Card Transactions

Match these reconciliation problems with their solutions: A transaction is missing in QBO An error was made when entering a transaction The bank made an error --Adjust your balance until the issue is resolved and then reverse the transaction --Add the transaction and then return to the reconciliation --Click the transaction in side the reconciliation, edit it, and continue

A transaction is missing in QBO - Add the transaction and then return to the reconciliation An error was made when entering a transaction - Click the transaction in side the reconciliation, edit it, and continue The bank made an error - Adjust your balance until the issue is resolved and then reverse the transaction

In the Chart of Accounts, what are bank accounts listed as? --Debits --Credits --Assets --Liabilities

Assets

What type of accounts can be added to the bank feed? --Equity accounts and inventory accounts --Bank accounts and credit card accounts --Credit card accounts and equity accounts --Inventory accounts and bank accounts

Bank accounts and credit card accounts

Which 'behind the scenes' image shows what happens when you pay a credit card balance? --Credit Card Payable 100 on Debit, Office Supplies Expense 100 on Credit --Checking 100 on Debit, Credit Card Payable 100 on Credit --Checking 100 on Credit, Credit Card Payable 100 on Debit --Office Supplies Expense 100 on Credit, Checking 100 on Debit

Checking 100 on Credit, Credit Card Payable 100 on Debit

Blaire contracted with a local print shop to print her weekly sales flyers and other advertising materials. Every month, the print shop will deduct the cost of the month's printing from her company's checking account. How can Blaire ensure the transactions are categorized properly? --Set up a bank feed with the print shop --Create a bank rule --Don't let the print shop make automatic deductions; they should send a monthly bill --Keep an expense log for printing costs

Create a bank rule

Which statement about deleted and voided transactions is true? --Voided transactions are removed; deleted transactions are retained with zero values --Both are removed from the overall records --Deleted transactions are removed; voided transactions are retained with zero values --Both are recorded and become part of the overall records

Deleted transactions are removed; voided transactions are retained with zero values

What type of transaction do you create when using an EFT, online payment, or wire transfer to move funds out of your account? --Feed --Deposit --Transfer --Expense

Expense

How can you get your purchase receipts into QuickBooks Online for automatic categorization and matching to your bank feed? --Upload images of them using the built-in receipt capture feature --Use the Import tool --Convert the physical receipts to CSV or TXT files --Set up a transfer for each purchase

Upload images of them using the built-in receipt capture feature

When you pay a bill using a credit card, the bank account _____ while the expense account _____. --increase; remains the same --increase; decreases --decrease; increases --remains the same; decreases

decrease; increases

Elijah wants to make sure what he enters into QuickBooks matches what's on his bank statement. He should perform a(n): --discrepancy search --reconciliation --account match --bank match

reconciliation

Match each description to it's term: Funds are taken directly from the Checking account After this, write a check or enter a bill for payment This compares transactions that have and haven't yet cleared the bank This shows all asset, liability and equity accounts This holds customer payment funds until you deposit them into your bank account --Undeposited Funds/Payments to Deposit --Reconciliation --Debit card purchase --Balance sheet --Credit card reconciliation

Funds are taken directly from the Checking account - Debit card purchase After this, write a check or enter a bill for payment - Credit card reconciliation This compares transactions that have and haven't yet cleared the bank - Reconciliation This shows all asset, liability and equity accounts - Balance sheet This holds customer payment funds until you deposit them into your bank account - Undeposited Funds/Payments to Deposit

What statement about making deposits is TRUE? --Funds received through sales are held in Accounts Payable, and you must move them to your bank account --Funds received through sales are held in Undeposited Funds/Payments to Deposit and you must move them to your bank account --Funds received through sales are held in Savings, and you must move them to Checking --Funds received through sales are held in Accounts Receivable and you must move them to your bank account

Funds received through sales are held in Undeposited Funds/Payments to Deposit and you must move them to your bank account

Fajer's reconciliation shows a difference between her QuickBooks account and bank statement. What's the first thing she should do to try to resolve it? --Run a Reconciliation Discrepancy report --Look for a transaction in the same amount as the difference and ensure whether it should be cleared --Cancel a reconciliation and start over or change the difference to a previously cleared amount --Determine whether there is a bank error

Look for a transaction in the same amount as the difference and ensure whether it should be cleared

What item on the Profit and Loss report should be the same as on the balance sheet? --Gross income --Net income --Losses --Expenses

Net income

After comparing transactions entered into QuickBooks with the business's statements, what account is created to record differences found? --Differences --Reconciliation Discrepancies --Chart of Accounts --Banking Errors

Reconciliation Discrepancies

Lamar finds reconciling his bank statement with his QuickBooks file at the end of the month too time-consuming. Upon learning that his bank offers a bank feed with QuickBooks, Lamar signs up for the service. How will this change his monthly reconciliation? --The teller will do the reconciliation for him --It won't. Reconciliation will likely take just as long as be just as complicated --He will not have to do reconciliation at all anymore --Reconciliation will be quicker because most transactions will be matched already

Reconciliation will be quicker because most transactions will be matched already

Match each part of the Banking center to what it shows: Reviewed Excluded Recognized For Review All --Transactions to be matched or added to the register --Transactions in the register that need to be matched --Transactions from the bank feed that have been matched or added to the register --Transactions downloaded from the bank feed --Transactions removed from For Review

Reviewed - Transactions from the bank feed that have been matched or added to the register Excluded - Transactions removed from For Review Recognized - Transactions in the register that need to be matched For Review - Transactions downloaded from the bank feed All - Transactions to be matched or added to the register

What are bank feeds? --The automatic categorization of transactions according to set preferences --The connection between QuickBooks and your bank and credit card providers --Real time versions of the balance sheet and profit and loss report --The difference between the QuickBooks balance and the bank account balance

The connection between QuickBooks and your bank and credit card providers

In the Banking center Category or Match column, what does an entry like this indicate? (Picture shows green box with green wording saying 2 matches found) --There is a bank rule associated with this transaction --There is a definite matching transaction --There is a "money in" EFT transaction in the register --There is at least one potential matching transaction

There is at least one potential matching transaction

In the Banking center Category or Match column, what does an entry like this indicate? (Picture shows green box with 1 match found, red arrow pointing, Bill Payment 6) --There is definitely a matching transaction --There is a "money in" EFT transaction in the register --There is at least one potential matching transaction --There is a bank rule associated with this transaction

There is definitely a matching transaction