Quickbooks Proadvisor Certification Study

Front 1

Used to track income and expenses for separate segments of the business

Back 1

classes

Front 2

Starting in 2011 what editions of Quickbooks can produce a balance sheet by class report

Back 2

Premier and Enterprise

Front 3

If Class is enabled is the user forced to class when making a journal entry?

Back 3

No

Front 4

In a retail environment what might class be used to report

Back 4

departments

Front 5

Are classes used to analyze customers, vendors, or sales items?

Back 5

No, those are able to be analyzed without having to use classes

Front 6

Where is class turned on in QuickBooks?

Back 6

Preferences/'Acccounting/Company

Front 7

Is it possible to establish subclasses in Quickbooks

Back 7

Yes

Front 8

When class is turned on what forms is a class field added to?

Back 8

invoices, checks, bills, credit card charges, and other forms.

Front 9

What accounts are automatically set up by quickbooks?

Back 9

Accounts Receivable, Inventory Asset, Undeposited Funds

Front 10

When does QB automatically set up the Accounts Receivable account?

Back 10

During the Easy Step interview or the first time an invoice is created

Front 11

When does QB automatically set up the Invnetory Asset account?

Back 11

When the first inventory part or inventory assembly is created in a company.

Front 12

Name the 5 asset account types of balance sheet accounts in QuickBooks?

Back 12

Bank
Accounts Receivable
Other Current Asset
Fixed Assets
Other assets

Front 13

Name the 5 liability account types of balance sheet accounts in QuickBooks?

Back 13

Accounts Payable
Credit Card
Other current liability
Long Term Liability
Equity

Front 14

Name the 5 P&L Account Types

Back 14

Income
Cost of Goods Sold
Expenses
Other Income
Other Expenses

Front 15

What is the Chart of Accounts

Back 15

A chart of accounts is a complete list of a company's accounts and their balances

Front 16

What are the accounts that appear on the balance sheet called?

Back 16

Balance Sheet accounts

Front 17

Who are the 5 system stakeholders?

Back 17

Client,
Government
Customer /Vendor
Financial Institution
Accountant/Advisor

Front 18

What is the account number

Back 18

The account number of the account

Front 19

What is the account name?

Back 19

The name of an account in your chart of accounts

Front 20

What is the account description>

Back 20

A brief description of the account

Front 21

What is the account opening balance?

Back 21

The opening balance of the accouun

Front 22

How do you use the remind me to order checks flag in the account?

Back 22

Whatever number you enter when that check is written the user is alerted to order checks

Front 23

How does Track reimbursed Expenses flag work?

Back 23

When checked the expenses incurred in this account update an associted income account as well

Front 24

When should you create an account in the chart of accounts?

Back 24

if you want to see the account listed on your Statement of Financial Income and Expense or on your Statement of Financial Position.

Front 25

When should you create an item vs. an account?

Back 25

you can create items to track detailed revenue and expense information

Front 26

What are the three main attributes of an account?

Back 26

- Broad category of income and expenses
- Appears on financial statements

Front 27

What are the two main attributes of an item?

Back 27

- provide detailed revenue info
Appear in item list and used to create sales and purchasing documents

Front 28

Where will you find a list of the preset quickbooks chart of accounts

Back 28

In the EasyStep Interview

Front 29

Can Quickbooks separate income statements by division using classes?

Back 29

Yes

Front 30

With which version does Quickbooks Premier and Enterprise provide Balance Sheets by class?

Back 30

2011

Front 31

Does class tracking allow you to create a balance sheet by class report?

Back 31

Yes

Front 32

Does class tracking allow you to breakdown income and expense by department in one report?

Back 32

Yes

Front 33

Does class tracking allow you to track segments of a business independantly of customers and vendors?

Back 33

Yes

Front 34

What is a customer in QuickBooks?

Back 34

Anyone who pays for good or services

Front 35

If you are using jobs should you enter a starting balance for the customer?

Back 35

If you are going to track separate jobs for this customer, do not enter an opening balance. QuickBooks calculates and tracks the overall balance for this customer from the balances you enter for the individual jobs

Front 36

What is another way other than entering the starting balance for a customer?

Back 36

Create an invoice representing what the customer owes which will be reflected as the customer balance.

Front 37

What would you use to capture special information about your customers that is not provided?

Back 37

The custom fields.

Front 38

What is a vendor?

Back 38

The people or companies from whom you buy goods and services as well as banks and tax agencies

Front 39

What are the three ways to enter a Vendor starting balance?

Back 39

In the open balance filed on the vendor list, by entering a single invoice reflecting total owed, entering an invoice for each open invoice

Front 40

What is the account field used for in the vendor list?

Back 40

to record the client's account number with the vendor. QuickBooks puts this information in the Memo field of checks that pay bills from this vendor

Front 41

What is an employee?

Back 41

QuickBooks defines an employee as someone your client gives a W-2 form to at the end of the year

Front 42

What is the custom service rate on the employee list used for?

Back 42

Determining how much a job will be charged per hour for employees labor

Front 43

What characters are used to bracket reference information not to be displayed that will not be printed on the paycheck

Back 43

{ }

Front 44

What are customer types useful for?

Back 44

Customer types are useful for grouping customers into categories like commercial/Residential/Industrial or wholesale/retail

Front 45

Customer types should be used for different purposes?

Back 45

False, use them for one purpose

Front 46

What are the two ways you can access the lists like the Customer type list and the Job type list?

Back 46

From the list menu or while adding or editing customer, jobs, etc.

Front 47

What is the definition of an item?

Back 47

anything that a company buys, sells, or resells in the course of business, such as products, shipping and handling charges, discounts, and sales tax (if applicable).

Front 48

What are the ten item types in quickbooks?

Back 48

Assembly, Sevice,

Front 49

How do items help in QuickBooks?

Back 49

- Easier to fill out sales forms with default descriptions, costs, taxability etc.
- Facilitate accounting for sales and purchases with default revenue and expense accounts
- Provide ability to track quantities purchase and sold
- provide the ability to create subtotals and discounts

Front 50

What is a "service" item type used for?

Back 50

For chargin customers for labor provided either the production of an assembly or directly as a sales order item

Front 51

What does Job Costing provide?

Back 51

The ability to track and manage the costs incurred for a job and the profitability

Front 52

What are reimbursable expenses?

Back 52

Reimbursable Expenses are expenses incurred on a job that will be invoiced back to the customer for reimbursement. The process of reimbursable expenses includes the tracking of expenses related to a specific job. The job expenses are then transferred to an invoice for customer payment of the expense

Front 53

What is the difference between Job Costing and Reimburseable expenses?

Back 53

simply that with job costing, the expenses are not directly billed to the customer for payment. In essence, the tracking of reimbursable expenses is job costing plus billing customers directly for job expenses.

Front 54

Where is the flag set for reimburseable expenses and markup established?

Back 54

Under preferences/time and expenses/company tab

Front 55

How does QuickBooks handle reimburseable expenses when the track reimbursed expenses as income is off?

Back 55

The income posts directly to the original expense account as a credit, reducing the expense amount

Front 56

How does QuickBooks handle reimburseable expenses when the track reimbursed expenses as income is on?

Back 56

The income received is tracked in an income account. This will show as two entries on the Profit and Loss. When the expense is reimbursed on an invoice for this type of expense, QuickBooks records the customer's payment in the income account.

Front 57

When is a good date to use as a start date when setting up QuickBooks?

Back 57

Beginning of fiscal year is best, othewise start of the month.

Front 58

Should you use the last day of the previous period or the first day of the new period as the starting date?

Back 58

The last day of the previous period

Front 59

How many simultaneous user are supported by QuickBooks Pro?

Back 59

5

Front 60

How many simultaneous user are supported by QuickBooks Enterprise?

Back 60

30

Front 61

What do you do to give other users access to th data on the primary computer?

Back 61

Turn on "Host multiuser access" on the primary computer

Front 62

What is a license?

Back 62

a legally binding contract that allows individuals to use copyrighted materials within a fixed set of limitations

Front 63

Where is the QuickBooks enduser license agreement (EULA)?

Back 63

on the
Help menu, search for “license agreement.” A link to Read the QuickBooks Software License Agreement appears in the lower window

Front 64

What can you do with a multi-user license?

Back 64

Install the Software on the number of computers equal to a number of user licenses you purchased

Front 65

When setting up payroll what can you do to make it easier to enter multiple employees?

Back 65

Create employee defaults to add new employees

Front 66

What are the five methods for entering an opening balance during setup

Back 66

EasyStep Interview
Journal Entries
Forms (like invoices and bills)
Registers
Lists

Front 67

What are the limitations of using Journal entries for entering opening balances?

Back 67

- Cannot use to record inventory quanitities
- Can enter only one AR or AP transaction per journal entry so you need to make multiple entries

Front 68

When entering the "lump sum" balances for customer, vendors, and inventory what does the client lose?

Back 68

The detail for the original transaction is lost and the offsetting transaction is to uncategorized income or expense

Front 69

Once a customer or Vendor has been set up or used in a transaction can you still use the List method to enter the opening balance?

Back 69

No, you must use one of the other methods

Front 70

When do you use the opening balance equity account?

Back 70

When you use registers to enter beginning balances (except retained earnings which has not register)

Front 71

What do you need to do after you have entered all account balances

Back 71

Make a journal entry to transfer amounts from opening balance equity to retained earnings accounts

Front 72

When a client needs more detailed information than an opening balance would provide when setting up a system what method should be used?

Back 72

Forms

Front 73

When does QB create the Opening Balance Equity Account

Back 73

First time the open balance for a balance sheet account is entered in QBs

Front 74

If a file is password protected who is the only person who has unlimitted access to all areas?

Back 74

Administrator

Front 75

Whatl allows tracking of segments of the business without using subaccount in the Chart of Accounts?

Back 75

Classes

Front 76

What is used to categorize the businesses customers in a way that is meaningful?

Back 76

Customer types

Front 77

What feature lets you enter payroll info that employees have in common for reuse when entering other employee info?

Back 77

Employee Default

Front 78

When exporting and importing QuicBooks data what format does the program use?

Back 78

IIF

Front 79

What is an item in QuickBooks?

Back 79

Anything that a company buys, sells, or resells

Front 80

What are Job Types used for?

Back 80

Classifying jobs so that you can group and subtotal similar jobs on reports

Front 81

What are maintenance releases?

Back 81

An update to an existing version of QuickBooks to implement fixes

Front 82

What is Multi-user mode?

Back 82

The mode that lets more than one person work on quickbooks at the same time

Front 83

What is NASBA

Back 83

National Association of State Boards of Accountancy

Front 84

What is Opening Balance Equity

Back 84

Opening balance for a balance sheet when QuickBooks is first setup

Front 85

What is the Start Date?

Back 85

The date a business chooses as the starting point for its financial records in QuickBooks. This is the date at which QuickBooks has complete information—the balance for each balance sheet account must be correct as of the start date. The start date can be in the past if you enter historical records; it can be the current date; or it can be a future date if the client's preference is to enter information gradually.

Front 86

What are vendor types?

Back 86

A feature that lets you categorize vendors in ways that are meaningful to the business

Front 87

What are the limitations of using Journal entries for entering opening balances?

Back 87

- Cannot use to record inventory quanitities
- Can enter only one AR or AP transaction per journal entry so you need to make multiple entries

Front 88

When entering the "lump sum" balances for customer, vendors, and inventory what does the client lose?

Back 88

The detail for the original transaction is lost and the offsetting transaction is to uncategorized income or expense

Front 89

Once a customer or Vendor has been set up or used in a transaction can you still use the List method to enter the opening balance?

Back 89

No, you must use one of the other methods

Front 90

When do you use the opening balance equity account?

Back 90

When you use registers to enter beginning balances (except retained earnings which has not register)

Front 91

What do you need to do after you have entered all account balances

Back 91

Make a journal entry to transfer amounts from opening balance equity to retained earnings accounts

Front 92

When a client needs more detailed information than an opening balance would provide when setting up a system what method should be used?

Back 92

Forms

Front 93

When does QB create the Opening Balance Equity Account

Back 93

First time the open balance for a balance sheet account is entered in QBs

Front 94

If a file is password protected who is the only person who has unlimitted access to all areas?

Back 94

Administrator

Front 95

Whatl allows tracking of segments of the business without using subaccount in the Chart of Accounts?

Back 95

Classes

Front 96

What is used to categorize the businesses customers in a way that is meaningful?

Back 96

Customer types

Front 97

once your QuickBooks data file is completely set up, "Opening Balance Equity" should what value?

Back 97

Zero. If it is not zero, go back to your client's original Trial Balance and locate the discrepancies before moving on.

Front 98

What are historical transactions?

Back 98

Transactions that took place before the start date selected

Front 99

In what order should historical transactions be entered?

Back 99

In sequential order because they often rely on the previous transaction

Front 100

How will account balances be affected if all historical transactions are not yet entered?

Back 100

Account Balances will be incorrect

Front 101

In what order should historical transactions be entered?

Back 101

Sales and Account Receivables
Vendor and Accounts Payable
Summarized Payroll
Historical Bank & Credit Card
Bank Reconciliation

Front 102

How should sales tax that is owed to the state on the opening date be handled?

Back 102

Enter in the opening balance for the Sales Tax liability account.

Front 103

After the sales tax opening balance is established how does QuickBooks maintain the proper balance?

Back 103

Using the sales tax information associated with the sales form

Front 104

If Sales Tax payable isn't on the Chart of Account List what does that mean?

Back 104

You haven't set up the account

Front 105

What is a tax agency?

Back 105

A governmental agency to whom tax needs to be paid

Front 106

What does QuickBooks do with a depreciation amount when it is entered?

Back 106

Subtracts it from the cost of the asset

Front 107

What are the seven reports used to verify correct setup?

Back 107

Balance Sheet
Profit and Losss Report
Open Invoice Report
Unpaid Bills Report
Inventory Valuation Report
Payroll Liabilities Report
Payroll Summary Report

Front 108

If company information changes need to be made after the Easystep interview where is it done?

Back 108

Company Information Window

Front 109

Why should Accounts Receivable historical transactions be entered before others?

Back 109

To insure the invoices are in place to receive the payments

Front 110

What are used to turn certain features on and off and control the behavior of the program?

Back 110

preferences

Front 111

What are the two categories of preferences in QuickBooks? ,

Back 111

Personal and Company

Front 112

Who can setup and change company preferences?

Back 112

Administrator and External Accountant

Front 113

What does the quickbooks coach do on the home page?

Back 113

Guides users through the flow and provides tips on when and how to do each task. It shows and describes features tat have been turned on

Front 114

What does the account balances window show on the home page?

Back 114

Quick access to bank and credit card by displaying balances with ability to click down to account

Front 115

Where is information entered that QuickBooks uses to track about customers, vendors, employees and items

Back 115

Custom Fields

Front 116

How many custom fields can be added to a particular list?

Back 116

Seven on each, 15 total for all lists

Front 117

What capabilities does the Basic Customization window allow?

Back 117

adding of logo, color scheme, font, and the ability to add/remove/change company information

Front 118

What does the Layout designer allow the user to do?

Back 118

Move and resize the objects

Front 119

Where does QuickBooks store templates in the Template list?

Back 119

In the Templates list

Front 120

Does changing the template form alter the transaction?

Back 120

No. even if a field is removed quickbooks still stores the information with the original transaction

Front 121

How does the user initiate the customization process on a form?

Back 121

By clicking the customize icon on the top right of the form

Front 122

What special powers does the administrator have?

Back 122

Add new users
Deleting existing users
Change a user's access priviliges
Import and export data
Change company preferences
Change company information
Set or edit closing dates
Create and accountant copy
Clean up a data file

Front 123

What if the administrators password is lost?

Back 123

Contact Intuit for password removal service options

Front 124

When using "Selected areas of QuickBooks" what levels of access are available in each area?

Back 124

No access
Full access
Selected access

Front 125

Does QuickBooks zero out account balances and roll them forward to retained earnings when you close a period?

Back 125

No, It simple restricts access to the closed period

Front 126

How do you assure that changes are not made to a period after it is changed?

Back 126

By setting a password

Front 127

Where do you set the password and close date to restrict access to the closed period?

Back 127

Preferences, Accounting, company preferences

Front 128

What tool can be used to see if changes have been made on or before the closing date?

Back 128

View the closing date exception report

Front 129

What tool is available to research transaction history

Back 129

QuickBooks audit trail

Front 130

Does QuickBooks online have an activity log?

Back 130

Yes

Front 131

Can the QuickBooks audit trail be turned off?

Back 131

No. For security reasons it can not be turned off

Front 132

What fields trigger an audit trail record

Back 132

Name,account,amount, quantity cl

Front 133

How many total custom fields are provided by Enterprise editions

Back 133

30

Front 134

Does QuickBooks allow an administrator set the audit trail to print without saving?

Back 134

Yes so an employee could print a document and not save so their would be no record of the event