Quickbooks-Chapter 2 Practice Exam
A bill from a vendor is considered
a liability
A credit memo is
a reduction of Accounts Payable as a result of a return or an allowance by a vendor.
The Pay Bills window displays
all open bills as of a selected date
The Journal report
displays, in general journal format, all transactions recorded during a specified period of time.
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 report, the Vendor Balance Detail report, and the Vendor Contact List report.
A cash purchase
is a payment of any bill immediately upon receipt
Payment on account
is payment of an outstanding account payable.
To process transactions and organize data for reporting, QuickBooks establishes specific general ledger accounts as default accounts in each activity window. Which one of the following accounts is a system default account for a vendor?
Accounts Payable
n 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.
Which QuickBooks window is not used when you record vendor transactions?
Enter Invoices
Payments on accounts are recorded in the
Pay Bills window
When a bill (or account payable) previously recorded is to be paid, you enter the transaction in the
Pay Bills window of Quickbooks
When a company receives a bill for goods or services, the bill
is recorded in the Enter Bills window
The Unpaid Bills Detail report
lists all unpaid bills for each vendor at a specific date
Terms of Net 30 Days means that
payment is due within 30 days.
The Pay Bills window is for activities identified as
payment of a purchase on account
Once a vendor file is established, transactions can include
receiving a bill from a vendor, paying that bill, and paying for a cash purchase.
The Unpaid Bills Detail report does not
show vendors that have not sent bills
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.
Tracking vendor transactions should be completed in which order?
update Vendor Center, enter bills, pay bills, make cash payments, generate report
For a cash payment on a bill not previously entered in QuickBooks,
uses the Write Checks window
To process vendor transactions which of these QuickBooks menus is not used?
Journal
Which of the following is false?
Payment for a cash purchase cannot be entered in the Write Checks window.
A(n) _____ journal is used to record all purchases of goods on account; it can be in a single-column or multi-column format.
Purchases
Which of the following is a true statement?
QuickBooks automatically updates any related reports with information from vendor transactions
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
A purchase on Account is
an Account Payable
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, including
checks, PayPal, electronic transfers, or debit cards.
The Vendor Center should contain
company name, address, contact person, type of vendor, terms, and other important information
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
n QuickBooks, the Pay Bills window is used
to record a payment on account