Quickbooks/computerized Accounting Midterm

Front 1

Double entry account is used to record the amount received as a debit or credit?

Back 1

Debit

Front 2

Double entry accounting is used to record when an amount is given as a debit or credit?

Back 2

Credit

Front 3

This allows you to make debit and credit entries onscreen.

Back 3

OnScreen Journal

Front 4

This allows you to record transactions which are automatically converted into double entry accounting entries.

Back 4

OnScreen Forms

Front 5

This is a list of all the accounts for the company and tracks accounting information.

Back 5

Chart of Accounts

Front 6

summarizes hat the company owns and owes

Back 6

Balance Sheet

Front 7

summarizes what a company has earned and the expenses incurred to earn that income

Back 7

Profit and Loss Statement OR Income Statement

Front 8

summarizes cash inflows and cash outflows for operating, investing, and financing activities of a business.

Back 8

Statement of Cash Flows

Front 9

What is the quickbooks working file extension?

Back 9

.QBW

Front 10

What is the quickbooks backup file extension?

Back 10

.QBB

Front 11

What are the main categories on the homepage?

Back 11

Customer, Vendor, Employee, Banking, and Company

Front 12

What does the vendor section record?

Back 12

Purchase Orders
Inventory Received
Bills Received
Bills Paid

Sales Tax Paid

Front 13

What does the employees section do?

Back 13

Time Worked
Pay Employees
Payroll Liabilities
Process Payroll forms

Front 14

In the banking section, what can you do?

Back 14

Record Deposits
Write Checks
Reconcile Bank Statements
Open Check Register

Front 15

From the company section, you can access what?

Back 15

Chart of Accounts
Items and Services
Quickbooks Web and Mobile Apps
Calender

Front 16

How can you access reports

Back 16

Click "Reports" in the ICON BAR

Front 17

This lists assets, liabilities, and equity...

Back 17

Balance Sheet

Front 18

This lists income (revenue) and expenses

Back 18

Profits & Loss Accounts, Income Statement

Front 19

These are considered Non-Posting Accounts

Back 19

Purchase Orders and Estimates

Front 20

An ______ is a resource that a company owns. These are expected to have future benefits. EX: Cash, Accounts Receivable, and Inventory.

Back 20

Asset

Front 21

____ are amounts a company owes to others. These are obligations. EX: Accounts Payable, Sales Taxes payable, Interest Payable, Mortgage Payable.

Back 21

Liabilities

Front 22

_____ accounts represent the net worth of a business. It is calculated as an asset.

Back 22

Owners Equity

Front 23

Income statements list two different statement accounts which are:

Back 23

Income and Expense

Front 24

_____ Accounts record sales to customers and other revenues earned by the company

Back 24

Income

Front 25

____ Accounts record costs that have expired or have been consumed in the process of generating income.

Back 25

Expense

Front 26

____ ______ is calculated as an income less cost of goods sold and other expenses and is an attempt to measure efforts against accomplishments.

Back 26

Net Income

Front 27

A ______ is a record of all transactions affecting the checking account.

Back 27

Check Register

Front 28

This section allows you to record deposits, write checks, print checks, reconcile bank statements, view the check register, and enter credit card changes.

Back 28

Banking Section

Front 29

This is the only section that allows you to WRITE and PRINT checks.

Back 29

Banking

Front 30

Reasons to do this are either errors or timing differences (deposits in transit, outstanding checks, items not yet recorded by the company)

Back 30

Reconcile Bank Statements

Front 31

As far as checking accounts go in business, you should always have...

Back 31

A checking for just business and a separate checking for personal.

Front 32

This allows you to record and pay bills at the same time. When using this approach the bill is paid when it's received.

Back 32

One Step Approach to bill paying

Front 33

This approach allows you to record a bill when it is recieved and then pay the bill later when it is due.

Back 33

Two Step Approach to bill paying

Front 34

Quickbooks classifies deposits into two types which are:

Back 34

Payments from Customers and Nonsales Receipts.

Front 35

Cash recieved from loans, investments from owners, interest earned, and other income like rental income are all considered

Back 35

Non Sales Receipts.

Front 36

What are the two steps when recording a deposit from the record deposits icon?

Back 36

Record the payment recieved but not yet deposited, then record the deposit itself.

Front 37

This is an option for getting rid of a check that removes all record of the transaction.

Back 37

Deleting the check

Front 38

This is an option for getting rid of a check that changes the amount deduced in the check register to zero but the check still appears in the check register, thus leaving a record of the transaction.

Back 38

Voiding the check

Front 39

The customer pays with cash, check, or credit card at the time of sale. The sale is then record on a .....

Back 39

sales reciept

Front 40

The sale is recorded on an ____ when the good or service is provided and the customer decides to pay later.

Back 40

Invoice

Front 41

Accounts recievable means what?

Back 41

amounts that the company expects to receive in the future, by the promise of a customer for goods already received.

Front 42

This section includes finance charges, statements, refunds and credits, and accepting credit cards.

Back 42

Customer Section

Front 43

What are the three possible ways for a customer to record a sale?

Back 43

Cash sale (when they pay cash), credit sale (when they promise to pay later), and credit CARD sale (when they pay using a credit card)

Front 44

The following are all an example of ____ :

Suppliers that you buy inventory/supplies from, service companies that provide services to your company, financial institutions that provide financial services, tax agencies like the IRS, and utility and phone companies.

Back 44

Vendors

Front 45

Records vendor information

Back 45

Vendor List

Front 46

What are service items?

Back 46

services that can be purchased or sold

Front 47

What are inventory items?

Back 47

Items and goods that a business purchases, holds in inventory, and then resells to customers.

Front 48

What are non-inventory items?

Back 48

Items that quickbooks doesn't track the quantity on hand.

Front 49

An Item purchased for a specific customer job is considered what type of item?

Back 49

A non-inventory item

Front 50

What are the four main steps to processing payroll in quickbooks?

Back 50

Enter Time, Pay Employees, Pay Payroll Liabilities, Process Payroll Forms

Front 51

After entering time and paying employees, what is the next step in payroll?

Back 51

Pay Payroll Liabilities

Front 52

What is the first step of payroll?

Back 52

Enter Time

Front 53

What is the last step of payroll?

Back 53

Process Payroll forms

Front 54

This center contains the employee list with employee information like addressess and social security numbers.

Back 54

Employee Center

Front 55

There are three different ways to track time in quickbooks, what are they?

Back 55

Time Single Activity, Weekly Timesheet, and Online Timesheets

Front 56

Uses the stopwatch to time an activity and enter the time data

Back 56

Time Single Activity

Front 57

This uses ___ timesheet to enter time worked by each employee on various jobs during that specified time.

Back 57

Weekly Timesheet

Front 58

Enters billable hours from any internet-connected computer.

Back 58

ONLINE Timesheets

Front 59

This includes amounts from federal income taxes, state income taxes, FICA, and unemployement taxes.

Back 59

Payroll Liabilities

Front 60

This form summarizes the amount of unemployment tax paid and due by the employer.

Back 60

FORM 940

Front 61

Filed with the IRS, this form summarizes the amount of federal income tax, social security, and medicare withheld from employee paychecks and is filed by large companies.

Back 61

FORM 941

Front 62

This form summarizes the amount of federal income tax, SS, and medicare withheld from employee paychecks and is filed usually by smaller companies.

Back 62

FORM 944

Front 63

These are required to be given by the employer, to the employee, and summarize amounts paid the previous year for salaries, wages, and withholdings.

Back 63

W-2 Form

Front 64

This is filed with the social security administration and is a summary of all of an employer's W-2 forms.

Back 64

W-3 Form

Front 65

These THREE are withheld from employee paychecks during payroll

Back 65

Federal income tax, state income tax, and FICA

Front 66

The employer only has a specific share of what TWO things from paychecks during payroll periods?

Back 66

Their portion of FICA and unemployment taxes

Front 67

The accounting cycle is what? Starting with accounts.

Back 67

Chart of Accounts > Transactions > Trial Balance > Adjustments > Adjusted Trial Balance > Financial Reports

Front 68

What is a financial statement?

Back 68

reports used by investors, owners, and creditors to make decisions.

Front 69

Why might a (1)banker and (2)investor use a financial statement?

Back 69

(1)to decide whether to make a loan for a company

(2)to decide whether to invest in the company

Front 70

What are the three financial statements most commonly used by external users?

Back 70

Income Statement, Balance Sheet, Statement of Cash Flows

Front 71

What is the objective of a tax form?

Back 71

to provide information to federal and state tax authorities

Front 72

Federal income state ___ return, state ____ return, and forms 940, 941/944, W-2, W-3, and 1099 are all considered what?

Back 72

Tax Forms

Front 73

Who uses management reports and why?

Back 73

Used by: Internal users (managers)

Why: to make decisions regarding company operations and to satisfy a manager's information needs

Front 74

Cash Forecast, Cash Budget, and Accounts Receivable Aging Summary are all examples of what?

Back 74

Management Reports

Front 75

This is a listing of all of a company's accounts and the ending account balances.

Back 75

Trial Balance

Front 76

A trial balance can be created when?

Back 76

Before and after making adjustments

Front 77

What is the purpose of a trial balance?

Back 77

To verify that the account system balances.

Front 78

An accounting system is considered balanced when?

Back 78

When the total debits equal the total credits

Front 79

What is used to record adjustments and corrections in quickbooks?

Back 79

The Journal

Front 80

What are five types of adjusting entries?

Back 80

Depreciation, Prepaid Items, Unearned Revenue, Accrued Expenses, Accrued Revenue

Front 81

Define Depreciation when regarding financial statements and adjusting entries?

Back 81

Allocation of an asset's cost to periods used. IE: Straight line depreciation = (cost-salvage)/useful life

Front 82

What is a prepaid item adjusting entry?

Back 82

An adjustment on items that are prepaid like insurance or rent.

Front 83

What is an unearned revenue adjusting entry?

Back 83

When an adjustment is necessary to bring the revenue account and unearned revenue (liability) account up to date, after a customer has deposited money for a service they have not yet received.

Front 84

What is an accrued expenses adjusting entry? Give an example

Back 84

Expenses that are incurred but not yet paid or recorded.

EX: Accrued Interest Expense

Front 85

What is an accrued revenues adjusting entry?

Back 85

Revenues that have been earned but not yet collected or recorded

EX: Interest Revenue

Front 86

What are the steps in setting up a new company?

Back 86

EasyStep Interview > Customize the Chart of Accounts > Customer List > Vendor List > Item List

Front 87

What is a memorized transaction?

Back 87

a reoccurring transaction that has been memorized

Front 88

How do you memorize a transaction in Quickbooks?

Back 88

Click the 'Memorize' button in quickbooks before saving & closing the transaction.

Front 89

What two type of companies can you have in quickbooks?

Back 89

Service Companies and Product Companies

Front 90

What is a service company?

Back 90

A service company offers services only, such as Plumbing or Electricians

Front 91

What is a product company?

Back 91

A product company just sells products, IE: A clothing company, a suppliers store

Front 92

What is sales tax?

Back 92

A tax charged to each bill of sale by any merchandiser selling a product.

Front 93

How is a sales tax item created in Quickbooks?

Back 93

in the Item List with the rate and tax agency information. Quickbooks will automatically calculate the tax if it is set up correctly.

Front 94

What menus must you go through to set up a budget?

Back 94

Company > Planning & Budgeting > Set Up Budgets

Front 95

What is the audit trail feature?

Back 95

Allows you to track all changes made to your quickbooks file including additions, modifications, and deletions made to your records.

Front 96

What is the allowance method of Bad-Debt?

Back 96

It estimates bad debt expense and establishes an allowance or reserve for uncollectible accounts.

Front 97

When should the allowance method of Bad-Debt be used?

Back 97

when uncollectible accounts have a material effect on the company's financial statements used by investors & creditors and the company has to comply with GAAP

Front 98

What does GAAP stand for?

Back 98

Generally accepted accounting principles