Quiz Questions

which equation would you use to calculate net income a. I-E=NI b. I+E=E c. A=L+E d. debts equal credits

I-E=NI

the file extension QuickBooks uses to identify a file exported from QuickBooks is (blank) a. IFF b. QBM c. QBW d. QBX

IFF

in what month does the fiscal yr for most small businesses (corporations not included) start in QuickBooks? a. January b. July c. December d. June

January

at the end of the yr your give your accountant the (blank) when you still want to be able to work in your current file at the same time? a. accountant's copy b. company file c. portable file d. exported file

accountant's file

amounts owed by a business to its vendor are called (blank) a. accounts payable b. loan payable c. cash d. accounts receivable

accounts payable

when you want to know how much money you owe your vendors, which subsidiary ledger would you review? a. accounts payable b. general ledger c. cash d. accounts receivable

accounts payable

if you wish to track the amount of money your customers owe you, which account type should you use? a. accounts payable b. bank c. accounts receivable d. fixed asset

accounts receivable

if you want to enter a customer type in the new customer, which tab should you select? a. additional info b. job info c. address info d. payment settings

additional info

(blank) save your valuable QuickBooks files and data to secure location? a. backups b. shortcuts c. exports d. imports

backups

what are two key financial reports

balance sheet income statement

when adding a checking account to your chart of accounts, you should use which account type? a. bank b. accounts payable c. fixed asset d. other income

bank

you would use which upper-menu option to access transfer funds for transferring funds between bank accounts? a. company information b. reports c. banking d. file

banking

in what order does the ledger list transactions a. by size of balance b. by account c. chronologically d. by journal entry

by account

the chart of accounts tracks the items and services that you sell?

false - chart of accounts describes the collection of accounts that you use to track the flow of money into, through and out of your business.

you can use a keyboard shortcut ALT+A to quickly access the chart of accounts? true or false

false - its CTRL+A to access chart of accounts

QBM is the file extension assigned to your regular QuickBooks company file true or false

false- QBM is for a portable file

every journal entry includes a debit and a credit that do not necessary need to equal each other? true or false

false- a debit and a credit must equal each other

QuickBooks balances your debits and credits during the condense data process? true or false

false- condense data process replaces transactions with summary entries

the accounts receivable subsidiary edger contains all transactions posted from the journal. true or false

false- it is the general ledger that contains all transactions posted from the journal.

when you create a new company file in QuickBooks, the program sill automatically log you in as manager? true or false

false- logs you in as administrator

partnership is the most common type of business

false- most business are sole proprietorship

when you want to back up your quickbook file to a USB Flash Drive, which option do you select in the create backup window? a. schedule backup b. online backup c. options d. local backup

local backup

if you need to update the company's legal name, which feature in QuickBooks can you use? a. chart of accounts b. my company c. job info d. open and restore company

my company

the (blank) is compressed version of your existing company file a. accountant's copy b. company file c. portable file d. exported file

portable file

which QuickBook features should you access to set a closing date for your file? a. verify data b. templates c. preferences d. calendar

preferences

you notice a misspelling in one of the account names on your chart of accounts. What steps should you take to edit the account name? a. right-click on the account from within the chart of accounts and choose edit account. b. click on the company menu option and select my company c. click on the reports menu and generate a balance sheet standard report d. open the preference window and select the accounting icon

right-click on the account from within the chart of accounts and choose edit account.

the ledger list transactions chronologically true or false

false

you can use the export and import features to transfer historical transactions to another file? true or false

false

calculate the equity of a company if it has liabilities of $201,000 and assets $630,000 a. $527,000 b. $429,000 c. $722,000 d. $483,000

$429,000

what should be the first digit assigned to all income accounts types when you assign account numbers in QuickBooks? a. 2 b. 4 c. 1 d. 3

4

How can you restore a vendor if you accidentally delete it? a. close QuickBooks and open it again b. CTRL+Z c. enter another vendor d. CTRL+E

CTRL+Z

The file extension used by QuickBooks to identify a backup file is? a. QBB b. QBM c. QBW d. QBX

QBB

the file extension QuickBooks uses to identify a portable company file is (blank) a. QBB b. QBM c. IFF d. QBX

QBM

what is the three digit file extension for a portable file? a. QBX b. QBB c. QBM d. QBW

QBM

the file extention used by QuickBooks to identify an accountant's copy is (blank)_ a. QBB b. QBM c. QBW d. QBX

QBX

it is common practice to create a general journal entry in an accounts receivable or accounts payable controlling account true or false

false

which of the following best describes the balance sheet? a. a report that lists income over the period b. a report that details the balance of inventory for a business c. a report that provides the balance of owner's equity d. a report that lists what a business owns, owes, and the net value of the business to the owners

a report that lists what a business owns, owes, and the net value of the business to the owners

amounts owed by a customer to a business are know as (blank) a. accounts payable b. loan payable c. cash d. account receivable

account receivable

what would you give your accountant at the end of the yr when you still want to be able to work in your current file at the same time? a. portable file b. exported file c. company file d. accountant's copy

accountant's copy

the accounting equation is expressed as income minus expense? true or false

false

when you create a new company file in QuickBooks, the program will automatically log you in as what kind of user? a. administrator b. manager c. user d. profile supervisor

administrator

3 accounts in a balance sheet are?

asset liability equity

what are the 4 start accounts needed developing a chart of accounts

assets account liability accounts equity accounts revenue accounts

how do you express the accounting equation a. assets divided by liabilities times equity equals income b. assets divided by liabilities times equity. c. income minus expense d. assets plus equity equals liabilities

assets divided by liabilities times equity

which of the following describes the collection of accounts that you use in QuickBooks to track the flow of money into, through, and out of business? a. chart of accounts b. item list c. register d. customer center

chart of accounts

what does a complete verification of your files do each time you back up in QuickBooks? a. check your quickbook file to ensure that data isn't corrupted. b. check to see that your bank account are in balance c. verify that debits equal credits d. check to see that you've entered company information(such as address and tax id's) correctly

check your quickbook file to ensure that data isn't corrupted.

summaries of subsidiary accounts kept in the general ledger are (blank) a. controlling accounts b. general ledgers c. journals d. aging reports

controlling accounts

you buy equipment, pay $5,000 and take out a loan for the rest of the price of the equipment, which is $15,000. do you debit or credit cash? a. debit b. credit

credit

you buy supplies on credit. do you debit or credit accounts payable? a. debit b. credit

credit

change made to the My Preferences tab apply to all users of the file? true of false

false

the best account type to track the amount of money you owe your vendors is accounts receivable? true or false

false

you buy equipment of $10,000with cash. Do you debit or credit the fixed asset account? a. credit b. debit

debit

you pay off a loan. do you debit or credit loans payable? a. debit b. credit

debit

you receive cash. do you debit or credit the cash amount? a.. debit b. credit

debit

4 ways cash flows through a business

deposit+payments into/out checking deposit+payments into/out savings petty cash funds transactions made in your cash register

Which type of transaction should be cleared during a reconciliation of your QuickBooks checking account? a. deposits that appear in QuickBooks but not on the bank statements. b. deposits that appear on the bank statement but not in QuickBooks c. Checks that appear in QuickBooks but not on the bank statement d. deposits that appear both in QuickBooks and on the bank statement.

deposits that appear both in QuickBooks and on the bank statement.

double entry bookkeeping means you must make at least two journal entries each month to record transaction? true or false

false

implementing a policy of separation of duties makes a company vulnerable to theft? true or false

false

which type of journal entry is not generated automatically by QuickBooks? a. general b. bill c. invoice d. deposit

general

which button will help you quickly locate a transaction written to specific payee when you are in the bank register window of QuickBooks? a. go to b. restore c. splits d. edit transaction

go to

which of the following can't be transferred to another file using the export and import feature in QuickBooks? a. item list b. historical transactions c. budgets d. chart of accounts

historical transactions

what is the name for money your business receives from your customers in exchange for products and services you provide? a. credit card b. income c. loan d. expense

income

what does the accounts receivable subsidiary ledger do a. it provides a detail of customer accounts alphabetically b. it provides a general ledger total for the account receivable accounts c. it contains all transactions posted from the journal d. it provides a detail of vendor accounts alphabetically

it provides a detail of customer accounts alphabetically

why is it important to reconcile your checking account in QuickBooks? a. so your chart of accounts is accurate b. so your net book values for your fixed assets are correct c. so that your lists are all complete d. so your checking account balance is correct and you can quickly identify and correct any errors or issues.

so your checking account balance is correct and you can quickly identify and correct any errors or issues.

what is the most common type of business a. LLC. b. corporation c. sole proprietorship d. partnership

sole proprietorship

separate reports where the customer and vendor are kept alphabetically are (blank) a. journals b. general ledger c. subsidiary ledgers d. journal entries

subsidiary ledgers

under what circumstance would QuickBooks prevent you from deleting an account from the chart of accounts? a. the account is misspelled b. there is another account by the same name c. the account has been utilized in a transaction d. the account is assigned the incorrect account type

the account has been utilized in a transaction

if you want to keep track of important tasks, which list can you use? a. the customers & jobs list b. the calendar to do list c. the chart of accounts d. the vendors list

the calendar to do list

which of the following indicates a failure to reconcile? a. the cleared check total shown in the reconciliation window matches the checks total on the bank statement. b. the cleared deposit total shown in the reconciliation window matches the deposit total on the bank statement c. the difference total in the reconcile window displays zero upon completion of the reconciliation process. d. the difference total in the reconcile window displays a number other than zero upon completion oh the reconciliation process.

the difference total in the reconcile window displays a number other than zero upon completion oh the reconciliation process

what balance should you enter in the ending balance field when you completing your reconciliation? a. the sum of all payments transactions in your register b. the sum total of all deposits in your register c. the ending balance shown in your bank account register in QuickBooks d. the ending balance displayed on your bank statement.

the ending balance displayed on your bank statement

what is the one reason for you to create a strong internal control system? a. to comply with shareholder decisions b. to prevent errors in recording and reporting c. to limit access to your accounting system to only one user d. to safeguard employees

to prevent error in recording and reporting

why is it an good idea to set up a separate account for each user of your company's QuickBooks software? a. to individually recognize employees for their hard work b. to ensure users can process vendor invoices in a timely manner c. to give each user access to all functions within QuickBooks d. to restrict user access to specific areas of the program necessary for his or her job function .

to restrict user access to specific areas of the program necessary for his or her job function .

when setting up a new user, which of the following would you find listed under the Sensitive Accounting Activities window? a. create sales and accounts receivable transactions b. print and balance sheets c. transfer funds between accounts d. change the format of the income statement

transfer funds between accounts

a bank account is best used to track the balance of checking accounts, savings accounts, cds, money markets, and the like? true or false

true

a complete verification if your file ensures that data isn't corrupted each time you back up in QuickBooks true or false

true

a portable file is a compressed version of your existing company file? true or false?

true

a strong internal control system prevents errors in recording and reporting? true or false

true

an appropriate account number for a truck account is 19500? true or false

true

if a company has liabilities of $137,000 and assets of $398,000, its equity is $261,000? true or false

true

the ability to transfer funds between accounts is considered a sensitive accounting activity? true or false

true

the balance sheet is a report that lists what a business owns, owes, and the net value of the business to the owner? true or false

true

the fiscal year for most business starts in January?

true

the fixed asset account type is best used to track long term assets in a business , like equipment and buildings. true or false

true

the general journal entry is not generated automatically by QuickBooks true or false

true

the net income equation is expressed as income minus expense? true or false

true

you can organize generic accounts by adding subaccounts? true or false

true

you can use the open or restore company features in QuickBooks to open a new company file or to restore a backup file

true

you use function key F3 to preform a search in QuickBooks? true or false

true

you use the enter bills function to record invoices you receive from vendors true or false

true

you use the write checks window to create checks to pay vendors and others true or false

true

you'd use the schedule backup window to designate when and how often you'd like to back up your file? true or false

true

your business receives income from your customers in exchange for products and services you provide?

true

what are 4 questions to ask myself to enter a transaction?

what accounts are affected by entry are the accounts asset, liabilities, owners equity income or expense does the transaction increase or decrease the account type does the information require a debit or a credit entry

what is the most accurate definition of double entry bookkeeping? a. debits must be twice the amount of credit b. when recording a journal entry, debits must always equal credits c. every journal entry must include a debit and credit, although they do not necessarily need to equal each other. d. you must make at least two journal entries each month to record transactions

when recording a journal entry, debits must always equal credits

when we talk about separation of duties, what makes a company vulnerable to theft? a. an employee is in the role that puts him or her in a position to steal an asset b. when the employee has access to the company assets c. when a company has assets d. the company doesn't use QuickBooks as its accounting software

when the employee has access to a company asset

if you have already written and submitted a check, which Checkbooks window should you use to enter it? a. pay bills b create purchase orders c. enter bills d. write checks

write checks

if you don't enter information in all the fields when you set up a new customer, what will happen? a. you can always use the edit function in those fields later b. you'll never be able to go back and fill in those fields c. you can correct your omissions by using CTRL+Z d. your customer records will always be incorrect

you can always use the edit function in those fields later

how can you keep your income and expenses organized in your chart of accounts? a. you can study the item list carefully b. you can add reminders to remind you when to pay bills c. you can break down generic accounts by adding subaccounts d. you can use estimates to provide a customer quote

you can break down generic accounts by adding subaccounts

Under what circumstances will QuickBooks allow you to delete a customer or vendor? a. you can only delete a customer or vendor if there are transactions recorded b. you can only delete a customer or vendor if the record has no transactions. c. you can always delete a customer or vendor d. you can always delete vendor, but can never delete a customer

you can only delete a customer or vendor if the record has no transactions.

what might be a likely reason why the total of your subsidiary ledger doesn't agree with your controlling account balance a. QuickBooks posted transactions to the wrong account b. you have created a general journal entry that contained one or more controlling accounts c. QuickBooks hasn't posted all transactions d. you have not yet run your subsidiary ledger reports

you have created a general journal entry that contained one or more controlling accounts