QuickBooks Online Test 1

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

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."

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

True

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

Vendor credit memos reduce what you owe the vendor.

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

What 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 should you not delete a check?

You printed a check and the check number has been used.

You need to set up a new user so they can see reports but can do nothing else in QuickBooks. Put the steps for setting up a user who can only see reports in the correct 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 (Donna). 3. Click Make Inactive.

Your boss wants 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

How do delayed charges affect a customer's balance?

Delayed charges have no effect on a customer's balance.

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.

Your new employer is on the road a lot 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.

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.

Use the dropdown menus to identify whether each of the follow items is or is not a list in QuickBooks Online.

Is a list: Employees Customers Vendors Is not a list: Other Names

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 QuickBooks Online?

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

You need to add the inventory list to your QuickBooks Online. Put the steps for activating inventory in the correct order.

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

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

Step 1: Select the gear icon on the toolbar. Step 2: In the List column, click Products and Services. Step 3: Find the service, open the Action column dropdown menu, and select Edit. Step 4: Make the Change. Step 5: Select Save and Close.

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

Subaccounts

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 a 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

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 decide 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 changes back to QuickBooks?

You can't import changes in Excel back to QuickBooks.

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 to make one name different from the other.

What does the Apps tab do in QuickBooks?

Use the Apps tab to find other apps a business needs (or is already using) for their business (e.g., webstores, CRM, project management, etc.).

Which three statements about required fields in QuickBooks Online are true? (Choose three)

- You can enter a Sales Receipt if the Customer field is empty. - You cannot enter a Bill if the Vendor field is empty. - 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? (Choose three)

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

What is the purpose of the gear icon?

Accesses settings, lists, and tools

Use the dropdown menu to identify whether each of the following statements is true for Accrual Accounting or for Cash Basis Accounting.

Accrual Accounting: - Revenue is accounted when it is earned and expenses when incurred. - Provides a more accurate picture of the profitability of a company because it includes accounts receivables and payables. Cash Basis Accounting: - Expenses are recorded when paid and revenue whe received. - Mostly used by small business and for personal finances.

When would you enter a journal entry?

All of the answers are correct.

Which form cannot be customized in QuickBooks?

Bill

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

Click the Global Create button and select Expense. Fill out the expense and create/select EFT as the payment method. Save the transaction.

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 expense and use Debit Card as the payment method.

What three lists can you import from Excel into QuickBooks Online? (Choose three)

Customers, products and services, chart of accounts

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

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

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

Save customizations

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 issued?

Set the customer's Terms to Net30.

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 steps for setting up a new vendor in the correct order. Not all steps will be used.

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

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 steps for finding an invoice using the amount of the transaction in the correct order. Not all steps will be used.

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

Match each action with its keyboard shortcut key. Not all options will be used.

Expense: Ctrl + Alt (Opt) + x Customers: Ctrl + Alt (Opt) + c Search: Crtl + Alt (Opt) + f List shortcut keys: Crtl + Alt (Opt) + ?

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.

You need to change your company address in QuickBooks Online. Put the steps for changing the company address in the correct order. Not all steps will be used.

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

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

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

You made a sale, and the customer paid the entire amount in cash. How do you enter this sale into QuickBooks Online? Put the steps for entering this sale in the correct order. Not all steps will be used.

Step 1: Click the gear icon. Step 2: Select the Sales Receipt. Step 3: Enter the sale and payment information. Step 4: Save the transaction.

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 wither 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 as 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.