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.