Accounting 2: Quickbooks Certification Questions

What are three areas where you can find everything you need?

+ (To create new txns), Setting Gear (for settings), and the navigation bar on the left (work in specific functional areas such as customers or reports)

You recently paid a vendor with a hand written check and entered the check into your QuickBooks bank register. The check has now posted to your bank account. How do you record this in your quickbooks online bank register? (5 Steps)

1. Click accounting in the left navigation menu 2. Find the bank account, and then click view register 3. Select the check to open the details 4. IN the status column, click do display a C status 5. Save

You are setting up a new vendor in QuickBooks Online, and you want to add a vendor type. How do you identify a vendor type in QuickBooks? (4 steps)

1. Click on the vendors in the left menu bar 2. Click the new button 3. Complete the vendor information fields 4. Manually enter the vendor type in the Other field.

Your company has selected a new vendor to provide all of your office supplies. How do you set up a new vendor in QuickBooks Online? Put the 4 steps for setting up a new vendor in the correct order.

1. Click on vendors in the left menu bar 2. Click the New button 3. Enter the vendor's name and profile information 4. Enter the Vendor's billing rate, terms, opening balance, and account number.

Two customers with unpaid invoices pay you in case on the same day. Customer A paid $400, and Customer B paid $240. Because the deposits are made on the same day, the bank statement will show just one deposit of $640. How do you record these payments so your Bank Register in QuickBooks Online also shows only one aggregated deposit for the day of $640? (4 steps)

1. Click receive payment next to each customer and record their individual payment amounts 2. Deposit the money to undeposited funds 3. Click the + icon and select bank deposit. Select both payments from the list 4. Save the aggregated $640 deposit

One of your regular customers ordered the wrong product and returns it. You agree to credit the customer's account for the amount of the returned purchase. How do you issue a Credit Memo to a customer's account? Put the steps to record a customer credit in the right order (5 steps).

1. Click the + icon 2. Select credit memo 3. Choose the customer 4. Complete the fields in the credit memo 5. Save and close the Credit Memo

You made a sale and the customer paid the entire amount in cash. How do you enter this sale into QuickBooks Online? Put the 4 steps in order

1. Click the + icon 2. Select the sales receipt 3. Enter the sale an payment information 4. Save the transaction

You need to set up a new user so they can see reports but can do nothing else in quickbooks. Here are the 5 steps in order.

1. Click the company menu and choose Manage users 2. In the manage users screen, click new 3. For user type, choose reports only and click next 4. Enter the user's email address and click next 5. Click the reports tab

Your customer, Donna Comeback, has gone out of business and you will never sell to her again. Put the steps for removing her from the customer list in the correct order.

1. Click the customer tab 2. Edit the customer you want to remove 3. Click make inactive

Your boss asks you to remove a product you no longer sell. How do you do this? (4 steps)

1. Click the gear icon next to the company name. 2. Click products and services to open this list. 3. Click the dropdown list to the right of the product you want to remove 4. Select make inactive

Your computer retail store has decided to sell repair services. You must add this new list to quickbooks online. How do you add new services to quickbooks? (5 steps)

1. Click the settings icon 2. Select products and services 3. Click the new button 4. Select service 5. Enter a service name, information, rate, and account to track income

You need to change your company address in QuickBooks online? Put the 2 steps in order.

1. Click the settings icon on the home page 2. Select Account and settings

What are the steps to reinstate a customer account? (3 steps)

1. Click the small gear and select include inactive 2. Select the customer you wish to restore 3. Click on make active button

On non-transaction regular pages (ex: home page), which four options are shortcut keys in Quickbooks online? (Select 4)

1. Ctrl + Alt + h : Help 2. Ctrl + Alt + ? : Shortcut keys 3. Ctrl + Alt + c : Customers 4. Ctrl + Alt + e : Expenses

Which three lists can you import from Excel into QuickBooks Online (Choose three).

1. Customers 2. Products and Services 3. Char of Accounts

You made a purchase for your company using a hand-written check. What must you remember to do differently when you record this check in QuickBooks Online?

Deselect the "Print later" box and enter the check number

What is the primary reason for setting a Closing Date in QuickBooks

To restrict users from deleting, editing, or adding transactions to a closed period, such as previous fiscal year

What is the purpose of the Audit Log report?

To track any changes and deletions to transactions, as well as track which user makes the change or deletion

True or False: Because QuickBooks Online is in the cloud, you don't need to manually back it up.

True

True or False: When a sale occurs, the income account selected ruing the setup of a product/service increases on the profit and loss statement.

True

Your company has 2 departments: landscaping and a greenhouse. You'd like to see how your business is doing overall and how each department is doing individually. This means you need to tag each transaction as either landscaping, greenhouse, or split to both. What is the best way to set this up in QuickBooks?

Turn on Classes and set up the greenhouse and landscaping each on their own class

Which of the following statements is true regarding Undeposited Funds in QuickBooks?

Undeposited Funds is an account used to record payments before you make a deposit

You have two customers with the same name. How do you handle this in QuickBooks?

Use a middle initial or other letter in the display name.

True or False: When using QuickBooks Online, all users need to use the same operating system in order to access the same data.

False

When should you select your checking account as the payment account on an expense form?

When you are entering a debit card transaction, when you are entering a wire transfer, and when you are entering a payment made online directly from your bank account

How do you apply a vendor credit memo to a bill in quickbooks?

When you pay the bill, select the credit you want to apply toward the payment

Your employer asks if you can automate the process of entering the rent check in QuickBooks. How do you answer?

Yes, I can dod this by making the rent check recurring. I can even tell QuickBooks to stop creating these checks after a certain number of months.

Which of the following is true regarding accessing QuickBooks Online?

You can access QuickBooks from almost any browser or any computer with an internet connection

Select the statement that is not true

You can import a report from Excel back into QuickBooks (as long as you exported the report from quickbooks originally)

You've just been hired as a bookkeeper, and the company's QuickBooks is a mess. There are many list entries that are duplicates. You decided to merge list entries to clean up the lists. Which of the following statements is true about merging.

You can only merge names from the same type

You sent a QuickBooks report to excel and made some changes. How do you import the change in the excel back to QuickBooks?

You can't import changes in excel to quickbooks

If you use QuickBooks on your mobile device, how do you update your QuickBooks so that someone using it on the web can see your changes?

You do nothing. Quickbooks is always up to date with info from the mobile device

When should you not delete a check?

You printed a check and the check number has been used

You finished entering all the transactions for last year, and just sent the file to the tax preparer. How do you ensure that no one accidently deletes or edits a transaction last year?

Set a closing date and password in the advanced lab of the company settings

You're setting up a new customer. How do you tell QuickBooks that this customer's invoices should be due 30 days after they're used.

Set the customer's Terms to Net30

When would you enter a journal entry?

To correct errors, For year-end adjustments, and To enter depreciation.

Which three fields must be populated on the email form of QuickBooks in order for the form to save? (3 choices)

1. Body message 2. Recipient email adress 3. Subject

You need to find an invoice, but all you know is the total amount. You can't remember the customer or even what you sold. How can you find the invoice. Put the 3 steps in order.

1. Press the search icon and search for the specific amount 2. Enter the transaction amount 3. Select the transaction from the list of results

You need to add the inventory list to your QuickBooks Online. Put the five steps in order.

1. Select Company Menu 2. Select Company Settings 3. Select Sales 4. Select Products and services 5. Select Track inventory quantity on hand

How do you add custom fields so that they can be used on a sales form? (3 steps)

1. Select company settings 2. Select sales 3. Select sales from content

You want to change the hourly rate of a service provided by your company. Put the 5 steps for editing a Service in the correct order.

1. Select the setting icon on the toolbar 2. In the list column, click products and services 3. Find the service, open the action column dropdown menu, and select edit 4. Make the change 5. Select save and close

You need to track your company sales and expenses by department. Put the following steps in order for tracking transactions for departments in the correct order. (4 steps)

1. Turn on Classes in company settings 2. Create your departments on the Class List 3. On sales and expense transactions, select the class(es) associated with each transaction 4. Run the Profit and Loss by Class report

You need to customize a report the same way every week. To save time, you want QuickBooks to remember your customizations. Place the steps to this process in the correct order. (5 Steps)

1. When the report is customized, click save customizations 2. Name the report and click save 3. When you want to run the report, click the reports tab 4. Click the My reports tab 5. Click on the report name to run it

Which statements about required fields in quickbooks are true? (Select three)

1. You can enter a sales receipt if the customer field is empty 2. You cannot enter a Bill if the vendor field is empty 3. You cannot enter an invoice if the Customer field is empty.

Which three statements are true about setting up a product or service in QuickBooks Online? (Select Three)

1. You can use product/service to represent different services 2. Products/Services allow you to track your sales in more detail without cluttering your Chart of Accounts or Profit & Loss 3. To create an invoice, you can use either a product or a service

You notice there are many duplicate entries on lists, such as the same customer or account entered twice with slightly different spellings. You've decided to merge the duplicates. Which three statements are true about merging list entries?

1. You cannot merge a customer with a vendor entry 2. You can only merge names from the same type 3. You cannot merge expenses and items

Your boss want to know where the business stands overall. On the Balance Sheet, the company has 100,000 in assets and 30,000 in liabilities. What is the company's equity.

70,000

What is the purpose of the settings icon?

Access settings, lists, and tools

Which is not a QuickBooks Online user type?

Accounting

Your boss wants to know if there are any overdue bills. What report would you run to give him this information?

Accounts Payable Aging report

Which statement is true about setting up new QuickBook Online accounts?

Accounts are automatically created based upon your industry type. However, you can add more accounts later

When in quickbooks can you find out the status of what you owe to a vendor when it's due?

Accounts payable aging report or the vendor balance detail report

Which of the following is Accrual Accounting and which is cash basis accounting.

Accrual Accounting: Revenue is accounted for when it is earned and expenses when incurred. Provides a more accurate picture of the profitability of a company because it includes accounts receivable and payables. A company makes a sale and record the expected revenue as an Accounts receivable transaction. Cash Basis Accounting: Expenses are recorded when paid and revenue when received. Mostly used by small businesses and for personal finances. The most common method of accounting. A company makes a sale, but revenue is not realized until the invoice is paid.

Which QuickBooks Online groups have access levels that can be applied to Regular and Custom users?

All, None, or Limited

What is the difference between invoice and a Sales Receipt?

An invoice records a sale and how much your customer owes. A sales receipt records a sale and the payment you received.

Which of these reports delays information about your liabilities?

Balance sheet report

Which form cannot be customized in QuickBooks?

Bill

You're setting up QuickBooks Online for a company that already has information in Excel. What can you import into QuickBooks from Excel?

Certain lists (customers, vendors, products and services, and the chart of accounts

Your new employer is confused by the money bar. He insists that more customers are overdue. How can you fix this?

Change the customer terms

Which of the following is a list in QuickBooks online?

Chart of accounts

What is the first step you must take if you want to automatically email a report?

Click Save Customization so the report appears under my custom reports

How would you customize a profit and loss report to only show the total legal and professional fees?

Click collapse

How do you search for a transaction in QuickBooks?

Click the SEARCH icon and search by transaction number, amount, or date

How would you enter a transaction that won't be downloaded in which you paid for a service using a debit card?

Click the global create button and select expense. Fill out the debit card as a payment method.

Your company hired a trainer to teach a two day course on Microsoft Excel. You paid the instruct-ore using an Electronic Fund Transfer (EFT). How do you record an EFT transaction in QuickBooks?

Click the global create button and select expense. Fill out the expense and create/select EFT as the payment method.

You purchased office supplies using a company credit card not connected to online banking, How would you record this in QuickBooks?

Click the global create button and select expense. Fill out the expense and select the credit card as the payment account.

Your boss asks you to record an order she just placed for some inventory. You haven't received the items yet, and don't owe anything to your vendor/supplier at this time. How would you record this in quickbooks?

Click the global create button and select purchase order. Fill out the form and save the transaction.

You're working in QuickBooks at a coffee shot for a few hours and don't want to share your company's financial information with everyone there. How can you fix this?

Click the privacy mode switch on the home page

What transaction should you enter if a customer returns a damaged product or, in the case of a service, complains so much you decide to offer a refund?

Credit memo

Match Each action with its keyboard shortcut.

Ctrl + Alt + x : Expense Ctrl + Alt + c : Customers Ctrl + Alt + f : Search Ctrl + Alt + ? : List shortcut keys

Sally the supplier and Van the Vendor want to buy something from you. What list should you add them to in quickbooks?

Customer

Your new employer is on the road and would like to view overdue customers so she can phone them and possibly visit them to collect payment. How can she do this?

Download and use the free QuickBooks online app that's available for iOS (Apple) and Android

Which of the following items are a list and not a list?

List: Employees, customers, and vendors Not a List: Other names

You are setting up a new product you will frequently need to purchase for your company. You want QuickBooks Online to provide fields to track the product. How do you set up a new product to be tracked by QuickBooks?

Enable the box, "I purchase this product/service from a supplier"

You have a customer who isn't sure they want you to do some work they need, but you want to record that they're interested. How do you do that in QuickBooks?

Enter an estimate

Why would a business choose to enter a bill and then pay the bill later (requiring two steps) instead of just recording the check or expense when paying the bill (requiring one step)

Entering a bill and paying it later allows you to track accounts payable

You reduce an invoice you entered last month has changed significantly, but you don't make the change. How can you find out who changed it and what they changed?

Look at the audit log report

How do delayed charges affect a customer's balance?

Have no effect on a customers balance

Your new employer has been using QuickBooks for 6 months. He is frustrated because none of the sales he enters appear on the QuickBooks sales reports. However, the sales do appear on the profit and loss report. Why is this happening?

He's recording sales using the bank deposit screen, journal entry, or directly into the bank register.

What is one reason not to use a bank deposit or journal entry to record sales?

If you record sales through the bank deposit or journal entry screen, the sale will not appear on sales reports.

Your employer wants you to include some legal fine print in the footer of every invoice. However, you already use the customer message field to include a thank-you message. How can you add the legal fine print to the bottom of all invoices without using the Customer Message field?

In the Customize For Style window, click the footer tab and type the fine print in the footer text field.

When you purchase inventory, which account is increased?

Inventory asset

When setting up a new QuickBooks account, which of the following is true about the chart of accounts?

It is possible to add or more accounts after starting a new company

Your employer asked you to track the service person assigned to each sale. She wants to see their name on the invoice. How can you track the sales person on the sales forms?

Navigate to company settings, and in the sales category of settings, create a custom field for sales reps.

In QuickBooks Online, entering a purchase order for inventory affects which accounts?

No accounts are affected because purchase orders are non-posting transactions

You need to create a recurring invoice. How do you do this in QuickBooks Online?

Open the transaction form (invoice in this case) and click Make recurring.

The owner of the business asks you to set up QuickBooks to automatically email him a specific report on a regular basis (e.g weekly or monthly). How would you do this?

Run the report you want to email. Click save customizations. Select reports and go to my custom reports. Select the line of the report on the list and click Edit. Set the email schedule in this window.

If you have a customized report that you use each month, which feature lets you run the report with updated data each month.

Save customizations

Which is QuickBooks Online and Which is QuickBooks Desktop?

QuickBooks Online: Remote access to accounts is available using mobile apps. Customer doesn't need to back up data or maintain servers. QuickBooks Desktop: Requires customer to perform backups. Customer must reinstall software on servers if there are IT issues (e.g crashes or upgrades).

When you invoice for time and costs, where does QuickBooks get the billable time or costs?

QuickBooks gets the billable time or costs from the billable time entered on timesheets and/or billable costs entered on checks and bills

When entering a journal entry, what happens if the debits don't equal the credits?

QuickBooks will not allow you to record the transaction

How do you track Accounts Payable (A/P) in Quickbooks? (Two Steps)

Step 1: Enter a bill Step 3: Pay The Expense

What type of account must you have to collapse the Profit and Loss report?

Subaccounts

Your employer wants you to create a new QuickBooks company. What information should you know to set it up?

The company's industry

A company uses QuickBooks, but they need another program or app to manage all the transaction they have with their customers. They don't want to enter every customer twice. What do you suggest they do?

Use the Apps tab in Quickbooks to find a CRM app

What does the Apps tab do in QuickBooks?

Use the apps tab to find other apps a business needs

Which of the following statements regarding vendor credit memos is true?

Vendor credit memos reduce what you owe to the vendor

You mailed a check to pay your monthly rent. The check was lost in the mail and was never cashed. What should you do with the check in QuickBooks?

Void the check