ENT 356 Final
Which of the following accounts would least likely appear on a cash-basis balance sheet?
Accounts Receivable
What report would let you how much money, in total, each customer owes your company?
Accounts receivable summary report
Under the ____________basis of account, revenues and expenses are recorded when they are earned, regardless of when the money is actually received or paid.
Accrual.
All of the following are risks of using Apps with QuickBooks Online except which one?
Apps can be powerful, time-saving solutions for accountants and clients.
Transactions downloaded from credit card companies into a _______________ file can be uploaded into QBO.
CSV
What types of transaction types can you use to record the use of a wire transfer from your checking accounts to pay a vendor?
Expense
What tab in Account and Settings would allow a company to activate the use of Purchase Orders?
Expenses
QBO uses what method to value inventory?
FIFO
True or False: Connecting QuickBooks Online to a bank account and downloading banking transactions increases the risk of making manual data entry errors.
False
In Customer Reports, you can chance the types of transactions included on the report in the
Filter section
All of the following forms can be customized in QBO except which one?
Refund receipt
By default, when setting up a new customer, QuickBooks Online assumes the customer is ______.
Taxable
Changing the order of the accounts on the Profit & Loss report ________________
can be done by changing the account numbers
What transactions would most likely have the transaction type bill payment?
check written to pay the telephone bill entered in the previous month
To adjust the amount of inventory on hand,
click +New on the navigation bar and select Inventory Qty Adjustment
A mid-year closing date can be set in QBO by
clicking Close the books in the accounting section of the advance tab and account and settings
Sales tax payments are recorded by ________________
clicking Taxes on the navigation bar and selecting Record Tax Payment.
Transaction forms can be accessed by __________________
clicking the +New on the icon bar
Customized reports that have been saved are accessed by clicking Reports on the navigation bar and ______________
clicking the Custom Reports tab
Terms that are used on bills _________ used on invoices
come from the same list of terms
The Expense Account selected for inventory parts would normally have the account type ______________
cost of goods sold
A company uses the Allowance method when accounting for bad debts. When a specific invoice is deemed uncollectible, the company could create a _____________ for the uncollectible amount in QBO.
credit memo
The areas of a report that you can customize include:
General (i.e. number format), Header/Footer, Filter, Rows/ Columns
What is a best practice in preparing a bank deposit?
Group all customer payments with the same payment method together in one deposit.
Which icon below would be used to manage lists in QBO such as terms, categories and classes?
Settings gear image
What information is not required on a journal entry?
Description
Where is the Import Data command located in QBO?
In the Tools column on the settings/gear icon menu
The first download after setting up the bank feed will include the last ___ days of transactions, unless excluded.
90
All of the following are reasons for establishing a products and services list in QuickBooks Online except which one? The products and services on your list will show up on sales forms. When you run sales reports that include your products and services it will be easy for you to determine your sales trends. The use of products and services ensures a consistent mapping to income accounts on the chart of accounts. All of the above are valid reasons to establish a products and services list in QuickBooks Online.
All of the above are valid reasons to establish a products and services list in QuickBooks Online
Which of the following details can be found on an audit log? The date of any change to your books, The name of the user who made the change, The type of change or event
All of the above can be found on the audit log.
QuickBooks Online can connect to which types of financial accounts?
Bank account, Credit card account, Investment account at national bank
Recurring transactions can be used for all of the following types of transactions except which one?
Bill payment
Balance Sheet and Profit & Loss (income statement) reports can be accessed from the _____________ section on the standard reports tab of the report window.
Business Overview
Which of the following is true about journal entries?
By selecting Reverse after saving a journal entry, QBO will create a duplicate journal entry dated the first day of the subsequent month with the debit and credit amounts reversed. Debit amounts must equal credit amounts before you can save a journal entry.
Accounts that act inactive ______________.
Can be made active by clicking the gear icon on the Chart of Accounts list, selecting the Include inactive accounts box, and then selecting Make active in the ACTION dropdown menu for the account to be re-activated
Store receipts can be uploaded into quickbooks in which of the following methods?
Capture a receipt on a mobile device, email the receipt to quuickbooks, upload a receipt from your computer or google drive
Which choice below identifies lists that can be imported into QuickBooks Online without the use of a specialized App?
Chart of Accounts, Customers, Products and Services, and Vendors
The monthly rent is due for your office space. You do not receive a bill; rather you know how much to pay based on the lease agreement. What transaction form should you use to pay the landlord?
Check
In the Company tab of Account and Settings, which of the following fields cannot be edited?
Company name, EIN, tax form, company address
Lucille's Luxury Cars owes your company money for consulting work that was done. After receiving your company's invoice, Lucille calls you to let you know that there is an error on the invoice. What is the best method to handle this situation?
Create a Credit memo for the amount of the error. Send Lucille's Luxury Cars the credit memo. Apply the credit memo to the original invoice resulting in a reduction of the amount owed by Lucille's Luxury Cars by the amount of the credit memo.
Your company received 15 units of an inventory item from Super Suppliers. A bill was entered into QuickBooks Online. Later it is determined that one item is broken and it is returned to the vendor. Of the options below what is the best way to record this return to the vendor?
Create a vendor credit and use the Item details section to record a credit for 1 of the inventory items.
Michael is the owner of 5 snow cone stands in the state of Colorado. He would like your company to provide products and services to each of the five different snow cone stands, but he wants you to send all invoices to his main office. He also wants to be able to pay with one consolidated check and to receive a combined statement of account. Select the best method below to use when setting up these customers to satisfy Michael's request.
Create one parent customer for the main office and create 5 sub-customers, one for each of the snow cone stands. Select Bill with parent on each sub-customer.
What is the journal entry to record the write off a specific customer invoice assuming the company uses the Allowance method for accounting for bad debts?
DR Allowance for Doubtful Accounts; CR Accounts Receivable
Location tracking in QBO can be changed to which of the following titles?
Department, division, store, territory
When setting up a new company in QBO, what is helpful information you should know about the company?
Does the company sell products, services, or both? Does the company manufacture anything themselves? Do you have or plan to have multiple reporting entities? Does the company collect sales tax?
What account type would you use then setting up an inventory account in a merchandising company in QBO?
Inventory
Terms are used on which of the following customer transactions?
Invoice
Which of the following are tasks that can be automated in QuickBooks Online?
Invoice unbilled activity, pre-fill with previously entered content, apply credits
After uploading a receipt into QuickBooks Online what option would you use to link the receipt to an existing transaction?
Match
QBO must be backed up by the user _______.
Never. QBO is backed up by Intuit.
Products or items that you buy or sell, but don't need to track quantities should be set up as which of the following in QuickBooks Online?
Non-Inventory
Where in QuickBooks Online are 1099 contractors identified?
On the vendor record
How many entries can be associated with one Quickbooks Online Plus subscription?
One
Your accountant has completed all the year-end accounting work and submitted your final financial statements to the bank and other external agencies as required. What can you do to help prevent users of QuickBooks Online from modifying transactions that have occurred in the past?
Open Account and Settings and enter a closing date as of the end of completed year.
When a customer makes a payment on their account balance using their credit card, it would normally be recorded as a(n) ___________ transaction type.
Payment
The person who creates the initial Quickbooks Online account will be assigned what type of role in Quickbooks Online?
Primary Admin
Information about items sold be a company are maintained in the _______ list
Products and Services
Which financial statement will identify the gross profit earned for a period of one month?
Profit and Loss
If you select Finish Now on a reconciliation before the difference is zero what will happen to the difference?
QBO automatically makes an adjustment to an account called Reconciliation Discrepancies for the amount of the difference
A Sales Receipt is essentially a combination of which two transactions?
Receive payment and invoice
Unscheduled recurring transaction
Saved with partial or complete data and without a schedule. Nothing happens to this type of template until you choose to use it
You would like to change the name of one of the general ledger accounts created by QBO during the setup process. What is the first step to do this?
Select Accounting from the Navigation bar and select Chart of Accounts
How do you customize the email message that is sent to a customer with a sales form? Select all that apply.
Select the gear icon. Select Custom form styles and edit the Emails section, Select the gear icon. Select Account and Settings. On the Sales tab, select Messages and customize the appropriate email.
For each item listed below, select if this is more likely an inventory item or a service.Weekly pool cleaning (brushing and leaf removal), Replacement leaf bags for robotic pool cleaner, 12-pack of Chlorine tablets, Weekly Testing of pool chemical levels.
Service, Inventory, Inventory, Service
The display name is
The unique identifier of a customer, vendor, or employee
You decide to work on your client's accounting work from a busy coffee shop instead of your office. You do not want to people to look over your shoulder at the information on your dashboard. What is the best way to hide the dashboard information while at the coffee shop?
Toggle on the privacy switch on the Dashboard
Your company sells the same products to both wholesale and retail customers. You would like to be able to track the profitability of each type of customer. Of the options below, which option will provide you the best information for this type of tracking?
Track sales by class
Which report below would be a good starting point to determine the five suppliers you have spent the most money on in the past 12 months?
Transaction list by vendor
Scheduled recurring transaction
Transactions with a fixed schedule and amounts that don't change, such as rent payments, loan payments, and depreciation
Reminder recurring transaction
Transactions with a fixed schedule that need to be edited before they are created, such as utility bills
True or False: Activating customer discounts allows you to track the discounts in a separate account on your profit and loss statement.
True
True or False: Apps expand the capabilities of QuickBooks Online.
True
Which report would identify billable expenses that have not yet been billed to a customer?
Unbilled Charges Report
You wrote check # 4567 to Best Insurance Company for $1,000 and mailed it to the vendor. The check was written for the wrong amount. What is the difference between voiding the check and deleting the check?
Voided checks still appear on the check register with a $0, whereas deleted checks no longer appear in the check register
On a Bank deposit form, which situation below best describes when you would use the "Add funds to this deposit" section?
When you have received money that is not customer related such as a dividend or royalty that you need to deposit in the bank.
Select all of the following statements that are true as it relates to converting a QuickBooks Desktop File to QuickBooks Online.
You should compare financial reports between the two versions after conversion to verify accuracy. The process of converting to QuickBooks Online is initiated from within QuickBooks Desktop.
Dru Brand is a vendor from who your company purchases supplies. Dru recently started purchasing items from your company. You need to create an invoice for Dru. Select the option below that best describes how to manage Dru as both a vendor and a customer.
You will need to set up Dru as a new customer and use a display name that is different than her display name on her vendor record.
After reconciling a credit card account,
a check for full or partial payment of the balance can be recorded, a bill for the statement balance can be recorded, or the credit card balance can be left in the credit card liability account
During the setup process QBO automatically selects what method of accounting?
accrual
When a journal entry is saved in QBO __________
all affected financial statements are automatically updated
The name entered in the Company field of a vendor record _______________
appears in the address information box on checks, purchase orders, bills, and bill payments
A company's QBO software is updated ______________
automatically by Intuit
During the setup process for a new QBO company file, Quickbooks automatically creates what?
basic chart of accounts
The transaction type used to record purchases from vendors on account is
bill
For each account listed below, select if the account is used on a service, an inventory item, or both. Assume the service item is purchased from a third party. Income Account, Inventory Asset, Expense Account
both inventory and service, inventory, both inventory and service
Apps that can be installed and used with QuickBooks Online can be located _______________.
by selecting the Apps from the left-hand navigation bar
Everly Industries, a customer, owes the company $800 on invoice #822 dated 7/1. The credit terms on the invoice at 1/10, Net 45. Everly pays $792 on 7/5. As part of the journal entry to record the payment received, accounts receivable should be
credited by $800
Shipping address can be used with
customers
When entering cash received from a non-customer, what QBO form should be used?
deposit
All of the following transactions below would be good candidates to use a bank rule except which one? Utility expense, Monthly rent expense payments, Purchase of fuel for your work trucks, Hourly payroll worker paycheck
hourly payroll worker paycheck
What product/ service type should be used when setting up products sold by a company that uses a perpetual inventory system?
inventory part
What are the steps in order for selling a service to a customer on account
invoice the customer, receive the payment, record a bank deposit
A billable expense ______. Select all that make the statement true.
is a feature that must be activated in Account and Settings, can be added to the next invoice or sales receipt to the identified customer, can have a markup
The Open Purchase Order List ___________
is a list of all unfilled purchase orders
Merging accounts __________________________.
is irreversible
Before a report can be set to be automatically emailed every week from QBO, the report
must be saved as a customer report
The vendor Center can be accessed from where?
navigation bar
Credit card transactions that are downloaded from a bank feed into QuickBooks Online are _____________ compared to entering an Expense directly in QuickBooks Online which is _______. (Assume bank rules are not used).
not automatically posted; automatically posted
The search toll link is located ____________________
on the icon bar
The account type for the Undeposited Funds account is
other current asset
What tab would you select to set of edit the credit terms of a customer?
payment and billing
The process that is used to delete the chart of accounts is know as _________________
purging
The transaction type for recording customer refunds is __________
refund receipt
What accounts can be charged (debited) in the Category Details section of a bill?
rent expense, prepaid insurance, and security deposit
You would like to print a report that shows income from the various services you provided during the past year. What reports would be most helpful?
sales by product/ service detail
To apply an early payment discount using a credit memo, you must have a service item created for the early payment discount. What account should you select for the income account when setting up this service item?
sales discount
The minimum reorder point represents __________
the minimum number of unites that should be on hand
In a strong internal control system,
the person ordering supplies should not be the person receiving and authorizing the payment for the supplies
To reconcile a bank account, click __________
the settings/ gear icon on the icon bar and click Reconcile
The chart of accounts can be accessed _______________
through a link on the settings gear icon menu
What functions are available in QBO?
tracking inventory, invoicing customers, and paying bills
An A/P Aging Summary report shows
vendor balances in categories representing ranges of days past due