Quickbooks

billable time.

Time worked by company personnel that can be billed to customers is

The Item List stores information about

a company's service items, inventory part items, and sales tax.

A customer is

a person or business to which the company sells goods or services to, either on account or for cash

In QuickBooks, a job is

a project, assignment, or any identifiable segment of work for a customer called.

subaccounts show

a subtotal amount on the financial statements in addition to the regular account balances.

To set up payroll in QuickBooks, the first step is to

activate (enable) the payroll feature

Once the system default accounts for payroll are created

additional payroll accounts and subaccounts can be added

The Item List includes

all items the company sells, both inventory and service items.

To change the heading in any report

click the Customize Report button on the top of the report.

The Time by Job Summary report

displays employee time spent on each job

A quickbooks user enters a transaction based on the nature of the activity such as

enter bills, write checks and create invoices

Activities in QuickBooks are identified using common business language such as

enter bills, write checks and create invoices

Reversing entries are

entries recorded in the general journal to offset a balance in an account

The Employee Center in QuickBooks is where you can

establish a file for each employee and then process payroll transactions.

Accounts are marked as subaccounts for the primary purpose of showing a subtotal or net amount of the parent account on the

financial statements.

Payroll management reports provide the company with valuable information concerning payroll costs, such as

gross pay, payroll liabilities and withholding, and employer payroll taxes

purchase on account

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

Reports

in QuickBooks can be easily corrected and a revised report immediately printed

Bank statements detail the activity

in the account for the month but do not show the balance on the company's records.

Payments on account are recorded

in the pay bills window

Expenses for a company, in addition to the employee's gross pay, include the various taxes imposed on the employer,

including Social Security tax (FICA), Medicare tax, Federal Unemployment Insurance (FUTA), and state unemployment insurance (SUI).

A job

is a project, assignment, or any identifiable segment of work for a customer

Profit & Loss by Job report

is a report that displays the revenues, expenses, and net profit for each job for a specified period of time

Income Statement

is another name for the Profit & Loss report

Job Profit

is job revenue less job expenses.

types of liabilities include

Accounts Payable, Credit Card, Other Current Liability, and Long Term Liability

While reviewing the Customer Center created in QuickBooks Setup

Add the people you do business with pages, you can correct all information in the Edit Customer window, except the Current Balance.

types of assets include

Bank, Accounts Receivable, Other Current Asset, Fixed Asset, and Other Asset.

reconciling items.

Differences between the bank statement and company records that have to be reconciled are called

Transactions for payroll Activities are entered in

Pay Employees and Pay Liabilities windows. 3. In QuickBooks, the Employee Center contains background information for each employee, such as name, address, Social Security number, pay rate, and applicable tax deductions.

behind the scenes

QuickBooks uses traditional accounting procedures to record, summarize and report financial information

Inventory

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

The second step in four levels of operation in quickbooks

is recording background information in lists and centers

a vendor

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

Time Tracking

is the process by which a company maintains records of time worked by employees for various customers or jobs.

Net pay

is the total earnings for an employee minus all employee withholdings and deductions is the correct definition

Gross pay

is the total earnings for the employee for a specific pay period before any withholdings and deductions.

The write checks window

is used for all cash purchases, including checks, papal, electronic transfers, or debit cards

the Enter Sales Receipts window

is used for all cash sales of goods and services.

the enter bill windows

is used to record a purchase on account

. Time Tracking

is used to track the billable time allocated to the jobs.

Income earned for a particular job is

job revenue.

Sales discounts are often a 1% or 2% reduction of the invoice amount if the payment is

made within 10 days of the invoice date.

You can create your own invoice by

making a copy of an existing template and then customizing the copy.

Term of Net 30 days

means the payment is due in 30 days

When you use the EasyStep Interview and QuickBooks Setup windows,

only part of New Company Setup is completed. The next part of the process does not include creating the company file

If you wanted to include a custom field in the Vendor Center,

open any vendor in the Edit Vendor window, then on the Additional Info tab, click the Define Fields button.

The Enter Payroll Information window is used to

select the employee(s) to be paid at the current pay date.

Differences between the bank statement and company records have to be reconciled

so that the cash balance in the company accounting records agrees with the balance in its bank statement.

When the payroll feature is activated, QuickBooks automatically creates

two default general ledger accounts: Payroll Liabilities and Payroll Expenses.

For adjusting journal entries

uses the Make General Journal Entries window in a manner similar to that of a manual accounting system

A sale on account occurs

when a company sells goods or services to a customer but does not receive payment until a future date.

Collection of accounts receivable occurs

when a customer pays part or all of their outstanding balance due the company

If there is an error in the Current Balance, you can correct it

when viewing journal entries in the Vendor Center.

The Write Checks activity window is

where cash purchases of inventory items are recorded

The Enter Sales Receipts activity window is

where cash sales of inventory are recorded

The Weekly Timesheet window in QuickBooks is

where time worked by company personnel is entered.

The Edit Employee-Additional Info tab is

where you would create a custom field for an employee.

If the bank records an NSF from a customer

you must record the transaction in the Create Invoices window to re-establish the accounts receivable for this customer and deduct the cash that was never actually collected.

Liability

A bill from a vendor is considered a

transaction

A monetary business event or activity

The four levels of operation with QuickBooks are

New company setup, lists/centers, activities, and reports

transactions can include sending an invoice to a customer and receiving cash from a customer's purchase.

Once a customer file is established

Once you activate the payroll feature and the manual calculations feature

QuickBooks automatically sets up a Payroll Item List, which you may access from the Lists menu.

A check written and recorded by a company that has not yet been paid by the bank is

an outstanding check.

. A check written by a customer that had non-sufficient funds for the company deposit is

an NSF check

A purchase on account is

an account payable

The W-2 form is prepared

annually and furnished to each employee

Adjusting journal entries

are adjustments made to accounts at certain periods of time to bring the balances up to date

The reconciliation procedure in QuickBooks ensures that company cash records

are correct and agree with that of the bank.

A Computerized accounting software package

as business activities are recorded, all necessary reports are instantly prepared

Many companies utilize credit cards to pay bills a

as this allows the company to track expenses of a specific nature, such as travel and entertainment expenses

Preferences are enabled or disabled

as you answer questions in the EasyStep Interview window or if you go directly to the Preferences window.

A company must prepare financial statements

at least once a year.

The Item List is for

both inventory and non-inventory items

QuickBooks multiplies the quantity purchased by

by the unit cost to arrive at the Amount and Amount Due figures

The Pay Employees windows are used to

calculate gross pay, taxes, and net payroll for employees.

The account types

consist of Assets, Liabilities, Equity, and Income and Expense.

The first level of operation within QuickBooks

creating and setting up a new company file with the background information for the new company

Financial Statements

summaries of the financial information of a company

FICA tax (Social Security) and Medicare tax are

taxes imposed on both the employer and employee.

Customer activities in QuickBooks use

the Create Invoices, Receive Payments, Enter Sales Receipts, and Make Deposits windows.

Inventory reports include

the Inventory Valuation Detail report, Inventory Stock Status by Item report, and the Purchases by Item Detail report.

A company remits its tax liability payments to

the United States Treasury

when a company receives a bill for goods or services

the bill is recorded in the enter bills window

When a customer pays an invoice

the company enters this transaction in the Receive Payments window.

the collection of all customer files compromises

the customer list

An employee will have amounts deducted from his or her paycheck by

the employer for FICA, Medicare, federal income tax, and state income tax (if applicable).

QuickBooks automatically changes balance sheet and income statement accounts based on

the inventory information on the Item List.

When a company creates an invoice for goods or services

the invoice is recorded in the Create Invoices window.

The Payroll Item Listing report displays

the payroll item, type, rates, and limits for some of the mandatory taxes, and the expense and liability accounts relating to the payroll item.

The Missing Checks report is

the report that displays detailed information for each check written from a specific account.

When a company sells a product to a customer,

the sales tax amount charged is added to the invoice price of the product.

The Transfer Funds window allows you to identify

the source (transferor) cash account, receiving (transferee) account, amount to be transferred, and current balance of the source account.

the Reconcile window is used

to compare the balance per the bank statement to the balance per the company's accounting records

you can customize all reports

to modify the appearance of the report or the fields of information to be displayed.

the Create Invoices window is used

to record a sale on account.