Quickbooks Practice Test
What are the first two steps to set up payroll in QuickBooks?
1) Sign up for a payroll service; and 2) complete the Payroll Setup Interview.This is the correct answer. At the end of the Payroll Setup Interview,QuickBooks has an accurate record of employees, earnings, deductions, and payroll history, and you are ready to create your firstpaycheck.
What is the maximum number of names that can be included on the Names lists in QuickBooks Pro or Premier?
14,500This is the correct answer. You can have as many names as you want in QuickBooks Enterprise Solutions.
Which of these functions can only be performed by the Administrator?
Add new users and change their access privilegesThis is the correct answer.Even a user set up as an ExternalAccountant can't add or edit users.
What is equity?
Assets minus (-) liabilities.This is the correct answer. It is what the company has that is worth money (assets) minus what the company owes to other people (liabilities). It is similar to your net worth—what you own minus what you owe.
You suspect that someone has changed a transaction. What report should you run?
Audit Trail ReportThis is the correct answer. The audit trail shows you transactions that have been added, edited, and deleted. It also shows you the original transaction and who changed the transaction, as well as the exact date and time.
When you send a QuickBooks report to Excel, which feature allows you to have a drop-down list for each column to allow filtering?
Auto FilterThis is the correct answer. To do this, open a report and click Export.Then click the Advanced tab. Below "Turn on the following features for this report," select Auto Filtering.
What are the 2 main Financial Statements you can run from the "Company and Financial" category of reports?
Balance Sheet, Profit and LossThis is the correct answer. The Profit and Loss is also known as theIncome Statement.
Which of the following Payroll Services are available with QuickBooks?
BasicWith this option, you record paychecks, and QuickBooks calculates taxes for you. Only use this option if an accountant is responsible for filing federal and state tax forms.b.EnhancedWith this option, you get the Basic features, plus QuickBooks can automatically complete your federal and statetax forms. You can also pay and file electronically in most states.c.AssistedWith this option, you record paychecks, and QuickBooks calculates taxes for you. At this point, Intuit Payroll pays your taxes, files all state and federal forms, and guaranteesaccuracy and timeliness.d.All of the aboveThis is the correct answer. If you work for a company or own a business, it's important to understand your choices for running payroll.
Can you delete a list entry (for example, an item)?
Both A and B are correct.This is the correct answer because both "a" and "b" are correct.
When you run Financial Statements in QuickBooks, what bookkeeping basis can you use to view the report?
Cash Basis.In the Reports and Graphs preferences, you can tell QuickBooks to run all summary reports on a cash basis. On the cash basis, QuickBooks only shows money you've actually received (no unpaid invoices) and money you've actually spent (no unpaid bills).b.Accrual Basis.In the Reportsand Graphs Preferences, you can tell QuickBooks to run all summary reports on an accrual basis. On the accrual basis, QuickBooks shows all invoices as income (even if you haven't received all the payments) and all bills as expenses (even if you haven't paid them). You can show a profit but not have any money in the checking account.c.You can switch the bookkeeping basis if you want.When you run a report, you click Customize Report and change the basis in the display tab.d.All of the above.This is the correct answer.
What can you do in the Reports & Graphs Preferences (Edit > Preferences)?
Change the summary basis (Accrual or Cash) for all reportsThe choice you make in the Preference sets the default for all reports. You can always change the basis on a specific report if you choose.b.Change Format options like font color and sizeClick the Format button to change Header/Footer and Fonts & Numbers for all reports.c.Set which date to use for aging reportsYou can use the date of the invoice/bill or the due dated.All of the aboveThis is the correct answer.
How do you edit a collections letter?
Choose Company > Prepare Letters with Envelopes > Customize LetterTemplates.This is the correct answer. You can also create a new letter from scratch, convert an existing Word letter, and organize your letter templates.
How do you set up multiple users in QuickBooks Pro or Premier?
Choose Company > Set Up Users and Passwords > Set Up Users.This is the correct answer. The Administrator can give a user access to all areas of QuickBooks or selected areas of QuickBooks or set them up as an External Accountant. If you choose Selected Areas of QuickBooks, you can set permissions for each functional area as No Access, Full Access, or Selective Access.
How do you set up QuickBooks to automatically use discounts and credits?
Choose Edit > Preferences > Bills > Company Preferences, and then select to automatically use discounts or credits.Use this preference to automatically take early pay discounts and/or to automatically apply a specific vendor's credit to pay that vendor's bill. This preference ensures you don't forget to take the discounts and credits you have
How do you customize QuickBooks by changing the color scheme and adding or removing icons from the Home page?
Choose Edit > Preferences > Desktop View.This is the correct answer. You can change the color scheme, and under the Company Preferences tab, you can hide icons you don't use on the Home page.
How do you switch to Multi-User Mode?
Choose File > Switch to Multi-user Modefrom the menu.This is the correct answer. When the file is in Multi-User Mode, more than one user can access the file (but they must all be using the same version of QuickBooks). There are certain activities that can only be performed in single-user mode (QuickBooks will alert you when this is the case), but anyone can access the file in single-user mode.
How do you restore a company file from a backup copy?
Choose File> Open or Restore Company. Select Restore a backup copyand click Next. Choose Localor Online Backupand click Next. Select the file to restore and click Open.Choose where to restore the file to and click Save.This is the correct answer.
Suppose you customized an invoice in QuickBooks. You really like how it looks and want your estimates to look similar. How do you do this?
Choose Lists > Templates. Select the form you want to duplicate. Then click the Templates button and selectDuplicate. Then select the type of template youwant to create with the same look, in this case, estimate.This is the correct answer. You can also do this with other forms like purchase orders and sales orders.
How do you display or print a batch/group of reports quickly?
Choose Reports > Process Multiple Reports.This is the correct answer. You can choose from All Reports, or you can select a specific group.
When you set up a new Payroll Item using the EZ setup wizard, which is not a choice?
City/Local TaxesThis is the correct answer. There is no choice for city or local taxes.Select Custom Setup, and then choose Other Tax.
You don't like how a form (for example, an invoice) looks when you print it. How can you change it?
Click Customizeat the top of the form.This is the correct answer. You can customize most forms you send toCustomers and Vendors. There are some forms you can't customize. For example, you can't customize a bill (because you receive bills) or checks (which you can change slightly but not truly customize).
You notice that multiple accounts should actually be subaccounts. How can you quickly make these accounts subaccounts of another account?
Click on the diamond to the left of the account, drag it below the appropriate parent account, and release the mouse button. Then click on the diamond again, drag it to the right, and release the mouse button.This is the correct answer. You can use this shortcut on any list with diamonds (for example, the Customer: Job list).
When setting up a new company through the Advanced/Detailed Setup, some company information is optional and some is absolutely required. Which of the following pieces of information does QuickBooks require you to enter during the EasyStep Interview?
Company nameThis is the correct answer. This is the only required field in theCompany Information.
What is the easiest way to organize your memorized reports?
Create a report group.
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 MemoThis is the correct answer. On the Home Page, click Refunds andCredits. This decreases the amount owed by the customer and reverses the sale.
What methods for purchasing can be recorded using the Write Checks window?
Debit card purchaseIn the No. Field, type "Debit." This records that money was taken out of the bank account by a debit card transaction.b.Petty cash purchaseFirst, set up a Petty Cash bank account. Then you can use the Write Checks window with Petty Cash in the Bank Account field.c.ATM withdrawalIn the No. Field, type "ATM." This records that money was taken out of the bank account by an ATM transaction.d.All of the aboveThis is the correct answer
What options (tabs) do you have to change a report when you click Customize Report?
DisplayUse the Display tab to change the appearance of a report. You can change the report basis (accrual or cash), add or remove columns (on reports that list transactions), and much more.b.FiltersUse the Filters tab to narrow the information QuickBooks presents. For example, you could set a filter to only show one type of transaction, a specific amount, or only cleared transactions.c.Header/Footer and Fonts & NumbersUse the Header/Footer tab to change what appears in the heading of a report. Use the Fonts & Numbers tab to change the color and size of the fonts, among other things.d.All of the above
Suppose you have to track a specific piece of information about your customers that QuickBooks does NOT track. What is the best way to do this?
Edit a customer and click the "Additional Info" tab. Click Define Fieldsto create a Custom Field to track anything you want.This is the correct answer. You can modify list reports to display this field/information. You can also customize forms to display this field/information.
What report should you use to help you complete the state unemployment tax form?
Employee State Taxes Detail
What transaction/form do you begin with to enter a vendor credit?
Enter BillThis is the correct answer. Open the Enter Bills window and selectCredit in the top left part of the form. This turns theBill into a Vendor Credit, which reduces the amount you owe a Vendor.
How do you track accounts payable in QuickBooks?
Enter a bill, and then use the Pay Bills window.This is the correct answer. If you enter abill, you MUST use the PayBills window to pay the bill.
What keyboard shortcut allows you to see a total for all four names lists?
F2This is the correct answer. In addition to product information,QuickBooks displays how many total names are in the current company file.
When you invoice for time and costs, where does QuickBooks get the billable time or costs?
From billable time entered on timesheets and/or billable costs entered on checks and bills.This is the correct answer. When you enter an expense, item, or time and also assign that line to a Customer: Job, QuickBooks displays a billable checkmark. You can uncheck this if you don't want to invoice for the cost.
Which of the following is a way to access a report in QuickBooks?
From the Reports menuClick the Reportsmenu, and QuickBooks displays different categories of reports.b.From the Report CenterClick the Report Centericon, or from the menu choose Reports >Report Center. Here you can see thumbnail images of each report, andyou can scroll through reports in a carousal view.c.By clicking Reports at the bottom of listsThis provides access to reports related to just that list.d.All of the aboveThis is the correct answer.
What are the main sections of the Profit & Loss?
Income, Cost of Goods Sold, and ExpensesThis is the correct answer. First, you see the money coming in, then the direct cost to earn that money (Cost of Goods Sold), and then the expenses (overhead) to run the business. The difference between the Income and the costs is the company's profit or loss.
Which of the following is NOT an Item Type?
IncomeThis is the correct answer. Income is an Account type.
What item type should you use for inventory that you assemble from other items and then sell?
Inventory Assembly
What is the purpose of the Chart of Accounts?
It is how you categorize financial transactions.This is the correct answer. The Chart of Accounts is a way to label or categorize all the money/value that comes into a business, all the money/value that goes out, andall the money that is transferred between different categories.
When reconciling your bank account in QuickBooks, what must the beginning balance match?
It should always match the opening balance on the paper bank statement.
Which of the following is NOT a backup option in QuickBooks?
Manually back up the file.To do this, choose File > Create Backup. Select Onlineor Local backupand set the options for your backup. When asked when you want to save your backup, select Save it now.b.Automatically back up the data file when closing QuickBooks.To do this, choose File > Create Backup. Select Onlineor Local backupand set the options for your backup. When asked when you want to save your backup, select Only schedule future backups. Select the box to "Save backup copy automatically when I close my company file" and indicate how often you want this to happen.c.Schedule an unattended backupTo do this, choose File > Create Backup. Select Onlineor Local backupand set the options for your backup. When asked when you want to save your backup, select Only schedule future backups. Click Newto schedule regular backups of your company file.d.All of the above are QuickBooks backup options.This is the correct answer.
How do you move columns on a report?
Move your cursor over the column heading, and when it becomes a hand, click and drag the column to the desired position.
What happens to the inventory asset account when you enter a purchase order for inventory?
No accounts are affected.This is the correct answer. Purchase Orders are nonposting. This means they do not affect accounts at all.
You've just been hired by a bakery that sells delicious cup cakes. When they buy ingredients (flour, eggs, milk, and sugar), they use the Expense tab and assign the costs to a Cost of Goods Sold account. You need to set up an item for cakes. What item typeshould you use?
Non-inventory PartThis is the correct answer. Use a non inventory part when you sell (or buy) an item but don't need to keep track of the quantity on hand.
How does entering time for a job affect job cost reports?
None of the above.This is the correct answer.
You've customized an invoice and are ready to use it. But when you open the invoice, QuickBooks displays the default Intuit Invoice. How do you change it?
On the invoice, click the Templatedrop-down arrow and select your customized invoice.
How do you create a memorized group of reports?
Open the Memorized Report Listand then click Memorized Report > NewGroup.This is the correct answer. Open the Memorize Report List from theReport Center or Report menu. This lets you group similar reports together.
How do you create a memorized group of reports?
Open the Memorized Report Listand then click Memorized Report> NewGroup.
When you create a statement and select "All open transactions as of statement date," what does QuickBooks show on the statement?
Open transactions as of thestatement date
When you start a company or are hired as a bookkeeper, it is important to know which edition of QuickBooks you are using. What are the major QuickBooks editions?
QuickBooks Online, QuickBooks Pro, QuickBooks Premier, QuickBooks Enterprise SolutionsThis is the correct answer. QuickBooks Online is accessed via theWeb. The other options are desktop software with increasing functionality (starting with Pro and ending with Enterprise Solutions, the most advanced QuickBooks).
If you moved a list entry up or down, what happens when you add a new entry to the list?
QuickBooks adds new list entries to the top of the list, regardless of alphabetic order.This is the correct answer.
What happens if you click Collapse on a report?
QuickBooks hides Subaccounts and only shows Parent accounts.This is the correct answer. Use this feature to hide unnecessary detail if you are preparing a report for someone who just wants the "big" picture and none of the detail contained in subaccounts.
What happens if you double-click a diamond on a report column?
QuickBooks opens a detailed report about just that column. This does not happen in QuickBooks.b.QuickBooks automatically adjusts the column width to fit the data in the column. This does not happen in QuickBooks.c.QuickBooks hides the column.This does not happen in QuickBooks.d.None of the above.This is the correct answer. If you click on the diamond tothe right of a column, you can drag it to the right to make it bigger, or to the left to make it smaller. If you drag it to the left past the column to the left, QuickBooks hides the column completely.
What happens when you press F2 in QuickBooks?
QuickBooks opens the Product Informationwindow which includes version and company file information.This is the correct answer. QuickBooks displays information regarding the version and release of QuickBooks you are using.
What happens when you QuickZoom on a number in a report?
QuickBooks shows more detail about the number on the report.This is the correct answer. On a summary report, QuickZoom displays a list of transactions that makes up that number. On a report that lists transactions, QuickZoom opens the actual transaction.
When entering a journal entry, what happens if the debits don't equal the credits?
QuickBooks will not allow you to record the transaction.This is the correct answer.
If you choose to remove transactions as ofa specific date from the "Condense Data" window, what does QuickBooks do?
Removes all transactions while leaving lists, preferences, and service subscriptions intact.This is the correct answer.
How do you combine or merge two list entries?
Rename the unwanted list entry to match the name of the list entry you want to merge into.This is the correct answer. There are some cases where you can't merge or combine entries. You can't merge entries of a different "type." For example, you can't merge an expense account into an income account.
You have customized and then memorized a report. What does QuickBooks save when memorizing a report?
Report header, filters, and columns but not the actual transactionsThis is the correct answer. This means each time you run the report,QuickBooks automatically updates the information based on new, edited, and deleted transactions. You can memorize a report you want to see each month with updated information.
If the computer that houses your QuickBooks data crashes, what should you do?
Restore a back up copy of your company fileThis is the correct answer. QuickBooks suggests you back up your company file daily, monthly, and at the end of the year. Restore one of these files to have access to your data.
What options do you have after you create a credit memo in QuickBooks?
Retainas an available creditThis credit can be applied to future invoices.b.Give a refundChoose this option, and QuickBooks opens the Write Checks window so you can issue a refund.c.Apply to an invoiceUse this option to apply the credit to a specific invoice.d.All of the aboveThis is the correct answer. A credit memo is used when a customer returns goods or you want to credit them for services you've provided. It "reverses" a sale.
Suppose you own a company that repairs bicycles. What item type should you use for "bicycle repair"?
ServiceThis is the correct answer.
How can you stop yourself and others from deleting, editing, or adding transactions in a closed period?
Set a closing dateThis is the correct answer. You must set a closing date, especially for the end of the year, once you've sent your accounting records to the accountant for tax preparation.
Why must you set deposit frequencies for the taxes or deductions your company has to pay (PayrollLiabilities)?
So that Payroll Liabilities show up in the Pay Scheduled Liabilities list in the Payroll Center.This is the correct answer. QuickBooks uses this information to list the due date, status(upcoming, due, overdue), amount, and other important information so you remember to pay your payroll liabilities on time.
You successfully reconciled the checking account last month. This month, when you begin to reconcile the same account, you notice that the beginning balance calculated by QuickBooks is different from the beginning balance according to the bank. How can this happen?
Someone changed or deleted a cleared transaction.This is the correct answer. QuickBooks calculates this balance each time you reconcile by adding all the payments and deposits that have been cleared. If someone changes or deletes one of those cleared transactions, the beginning balance in QuickBooks will be different.
What account (on the Chart of Accounts) is affected when you sell an item?
The account you selected when you setup the item.This is the correct answer. The account you choose (usually an income account for sales items) determines how items affect financial statements.
You've been hired by a company that started in 1911. They've never used QuickBooks. During the Advanced/Detailed Setup, what "Start Date" should you use in the EasyStep Interview?
The date you want to begin tracking the company's finances in QuickBooks.This is the correct answer. You should use a date for which you have accurate starting balances. If the date is in the past (for example, the beginning of this fiscal year), you will have to enter transactions that have occurred up to that point.
What does the term "Double-entry accounting" mean?
There are always at least two accounts involved in every financial transaction.This is the correct answer. Debits must equal credits, so for every transaction, there is a source and a use.
What do you need to record in QuickBooks when a customer's check bounces (the customer had non-sufficient funds, NSF)?
There is less money in the checking account.Do not edit or delete the original deposit. You must record that you now have less money. You can record this in the check register or with a check.b.The customer owes you for the amount of the check (and optionally a bounced check fee).When you record the withdrawal from your checking account (answer "a"), use "Accounts Receivable" as the account in the expense tab. This records that the customer owes you money.c.The NSF fee the bank charged you.Even though it was not your fault, the bank will charge you a fee. You can record this when you find out about the NSF check. Or you can record it when you reconcile the checking account.d.All of the above.This is the correct an
What is a reason to use the Items tab when entering a bill?
To assign a cost to a job or purchase inventory.This is the correct answer. To have accurate job cost reports in the "Jobs, Time, and Mileage" category, QuickBooks requires item information on any job-related expense. You must also enter inventory items when you purchase them so QuickBooks can keep track of the quantity on hand.
When would you enter a journal entry?
To correct errors (if you have a strong accounting background) This is correct, but so are the other choices.b.For year-end adjustmentsThis is correct, but so are the other choices.c.To enter depreciationThis is correct, but so are the other choices.d.All of the aboveThis is the correct answer. You should only use journal entries if you have a strong accounting background and truly understand debits and credits. Also, you should not use journal entries instead of the built-in forms and windows in QuickBooks. This can create unexpected results on reports.
When would you use the Expenses tab on a payroll liability check?
To enter late fees/penalties or interest.This is the correct answer. Use an expense account to ensure that late fees/penalties don't affect the actual taxes you are paying.
What is one way that QuickBooks uses the Account Type?
To identify where the account appears on the financial statementsThis is the correct answer. The first set of accounts appear on theBalance Sheet (Assets, Liabilities and Equity). Then the next types of accounts appear on the Profit & Loss Statement (Income, Cost of Goods Sold, and Expenses).
What is the purpose of Progress Invoicing?
To invoice from an estimate in incrementsThis is the correct answer. When Progress Invoicing is turned on (Preferences) and you create an invoice for a customer with an Estimate, QuickBooks provides 3 choices: 1. Invoice for the entire estimate; 2. Invoice for a percentage of the entire estimate; 3. Invoice for selected items/percentages of each item.
When a customer purchases goods or services but does not pay you at the time of the sale
To record a customer payment at the time of sale
What is the purpose of subaccounts?
Track finances in more detail by grouping accounts in a logical fashion and showing a subtotal for those accountsThis is the correct answer. You can have a "parent" account (for example, Insurance) with subaccounts below it (for example, Car Insurance). You can even have a subaccount of a subaccount (up to 5 levels). When you run a report, click "Collapse" to hide subaccounts and only display "parent" accounts.
How do you set up multiple businesses in QuickBooks (assuming each business files a separate tax return)?
Use the Advanced/Detailed Setup to go through the EasyStep interview for each company to create a separate company file.This is the correct answer. You might also create a new file if the old file is beyond repairing and you want to start over. If you want to start over, consider this option. Choose File > Utilities > Clean Up Company Data. QuickBooks will delete all transactions but will keep the lists and preferences so you don't have to start from scratch.
You notice that when you print an invoice, the information in a field is cut off (that is, it doesn't fit). How can you fix this?
Use the Layout Designer tomake the field wider.This is the correct answer. However, you cannot increase the number of characters QuickBooks allows in that field.
Suppose your address information appears on the upper left of your invoice and you want to move it to the lower right. How would you do this?
Use the Layout DesignerThis is the correct answer. The Layout Designer allows you to move logos and other elements on a form. The changes you make appear on the printed copy of the form.
Which of the following reports answers the question "What transactions make up the current balance I owe each Vendor?"
Vendor Balance DetailThis is the correct answer. For each Vendor, QuickBooks lists the transactions that contribute to (or make up) what you owe.
Suppose you have a subcontractor who receives a 1099 from your company. Which list should you add them to?
Vendor List
If you set up and track Sales Tax in QuickBooks, which category of reports contains Sales Tax reports?
Vendors and PayablesThis is the correct answer. Although the taxes are based on sales, you owe the money, so it is a payable. From this category you can run the Sales Tax Liability Report.
When printing paychecks, what is the preferred check style to give an employee a paystub?
Voucher. This is the correct answer. This style prints one check per page. The check on top, and the voucher contains information regarding earnings, taxes, and payroll.
What form must you give to an employee?
W-2
When setting up a new employee, what is important about the Payroll Info tab?
Whatever you enter/see in this window affects each paycheck, unless you change the information on the paycheck itself.This is the correct answer. You enter wages (hourly or annual salary), and QuickBooks calculates the amount per paycheck for you. You also enter any deductions (for example, health insurance) that you want QuickBooks to take from each paycheck.
When should you create an invoice in QuickBooks?
When a customer purchases goods or services but does not pay you at the time of the sale
When would you create an estimate in QuickBooks?
When a customer requests a bid, quote, or proposal
If you associatea service item with two accounts, how does QuickBooks know which account to use on a transaction?
When the item is on a sales form, QuickBooks uses the account under "Sales Information" in the item setup. When it's on a purchase form, it uses the accountunder "Purchase Information."This is the correct answer. You can set up an item to affect different accounts (based on whether it's a sale or purchase) by selecting "This service is performed by a sub-contractor or partner."
How do you track sick or vacation time in QuickBooks?
When you set up an employee, define how QuickBooks should accrue time. You can do this in the QuickBooks Payroll Setup window (setting upemployees) or by clicking Sick/Vacation when you edit an employee. Tell QuickBooks how the employee earns sick/vacation time (for example, per hour, per check, a set number of hours per year, and so on).b.Set up a sick or vacation wage item.This is important because QuickBooks only decreases the "banked" or earned hours when you use a sick/vacation wage item.c.Pay an employee with a sick or vacation wage item.When the employee takes paid time off, use the sick/vacation wage item to pay them. This will decrease the sick/vacation hours available.d.All of the above.This is the correct answer. All these steps are necessary.
You received 5 customer payments in the mail. At the bank you deposit the 5 checks as one deposit. When you record the 5 separate payments in QuickBooks, how do you show that the 5 checks were actually 1 deposit?
When you use the Receive Payments window, QuickBooks doesn't deposit the money in your checking account. After you record the 5 payments, click Record Deposits and select the 5 checks.This is the correct answer. When you record a customer payment,QuickBooks automatically "stores" the payments in the Undeposited Funds account. When you record a deposit, QuickBooks lists the payments in that account that have not yet been deposited.
You need to enterthe same transaction each month (for example, an insurance payment). How can you automate this process in QuickBooks?
While the transaction is on the screen, choose Edit > Memorize check(or the name of the transaction).This is the correct answer. You can memorize most transactions except transactions that require the user to provide more input like Paying Bills or running Payroll.
Which form should you use to enter petty cash expenditures?
Write Checks or use check registerThis is the correct answer. Make sure that the bank account is a PettyCash account that you set up (not your actual checking account).
What do the diamonds mean on certain lists (for example, the diamonds to the left of each Customer:Job)?
You can click on the diamond and move the list entry to a different locationon the list.This is the correct answer.
What are other benefits of using items?
You can track the actual quantity of goods or services you sell .Items can be tracked in any unit. For service industries, you could think of quantity as hours. You couldn't do this if you tracked all your income using accounts.b.They can save you time by automatically entering a description and price on forms.If you set up a description andprice when you set up the item, QuickBooks automatically enters this information for you on transactions.c.They allow you to track a lot of detail without cluttering your Chart of Accounts. You can have 14,500 (in Pro and Premier) or unlimited items that are allassociated with a few Income accounts. On a Profit and Loss, you see overall sales. If you need detail, you can run item-based sales reports.d.All of the above.This is the correct answer.
Which of the following statements is true concerning items?
You can use one item to represent different services or goods.If your company sells a different service or product each time, you can set up a "catch-all" item and just change the description on each invoice. You can also set up items that represent categories of thingsyou sell (for example, Labor and Parts)b.Items allow you to track your sales in more detail without cluttering your Chart of Accounts or Profit & Loss.You can have up to 14,500 items "flowing" to a few income accounts. This allows you to get a simple view of your sales on the Profit & Loss, while you can get more detailed information from Sales reports.c.To create an invoice, you must use an item.Invoices require items because this is how QuickBooks knows which account to use for the income (the account you use when you set up the item).d.All of the above.This is the correct answer
During the Advanced/Detailed Setup, how do you setup a new account that is not on the default list of accounts during the EasyStep Interview?
You can't add accounts that are not on the QuickBooks default list. Finish the interview and add the accounts directly to the Chart of Accounts.This is the correct answer. Also, you can't add any balances to the accounts (an opening Trial Balance). However, you can add bank account balances.
How do you use Write Checks to pay Payroll Liabilities so your Payroll reports are accurate?
You can't.This is the correct answer. You can't enter Payroll Items on the WriteChecks window. This means your payroll reports would be wrong because they are based on Payroll Items. You should select the payments you want to make from the Pay Scheduled Liabilities list inthe Payroll Center. Then click View/Pay.
When should you NEVER delete a check?
You printed a check, and the check number has been used.This is the correct answer. If a check number has been used, you must account for it. By voiding the check, you keep a record of the check number and show that the check is voided. You also ensure that QuickBooks will warn you if you try to record that same check number again.
Why would you restore a data file from the backup file?
You wish to review the company data as it stood at an earlier date. This is possible, but so are the other answers.b.The company data file on your hard drive is damaged and cannot be used. This isa common reason to back up.c.Your computer crashed. You reloaded QuickBooks, and now you are ready to open the company file.When you reload QuickBooks, it does not contain your company data. You have to restore this from a backup.d.All of the above.This is the correct answer.
During the Advanced/Detailed Setup, you can turn on and off which features in the EasyStep Interview?
a.Sales taxesThis is true, but you can also turn on and off other features among these possible answers.b.InventoryThis is true, but you can also turn on and off other features among these possible answers.c.Progress InvoicingThis is true, but you can also turn on and off other features among these possible answers.d.All of the aboveThis is the correct answer. If you want to turn a feature on or offAFTER the Easy Step Interview, choose Edit > Preferences.
During the Advanced/Detailed Setup, you can set up a password for which of the following users during the EasyStep Interview?
administratorThis is the correct answer. QuickBooks assumes the person who is completing the Easy Step Interview is the administrator and only asks for this password.