Quickbooks Quizes

Front 1

QuickBooks Pro would be a good software programfor a company with 100 employees.

True/False

Back 1

False

Front 2

Performing an activity within QuickBooks affectswhat happens behind the scenes in the program.

True/False

Back 2

True

Front 3

It is not important to understand basicaccounting principles to be an efficient QuickBooks user.

True/False

Back 3

False

Front 4

In the cash basis of accounting, you record theexpenses when they are accrued.

True/False

Back 4

False

Front 5

A portable company file is larger in size than abackup file.

True/False

Back 5

False

Front 6

You must store your QuickBooks company file onyour computer hard drive.

True/False

Back 6

False

Front 7

To use a QuickBooks backup file, you mustrestore it first.

True/False

Back 7

True

Front 8

All commands accessible on the Home page can befound through the menu bar as well.

True/False

Back 8

True

Front 9

You can choose whether you want to display the icon bar in yourQuickBooks window.

True/False

Back 9

True

Front 10

Maintenance releases are available forQuickBooks for a small fee.

True/False

Back 10

False

Front 11

In which location should you NOT back up yourcompany file?

-A USB flash drive -With Intuit's Online Backup Service -A network drive where your main company file is stored -An external hard drive

Back 11

A network drive where your main company file is stored

Front 12

In the event of data loss, what type of filehelps you recover any data entered after the last backup operation?

- Transaction log -Backup -Portable company -Network

Back 12

Transaction log

Front 13

To use QuickBooks portable company files, whatmust you do first?

- Restore the files -Replace the files -Reuse the files -Open the files

Back 13

Restore the files

Front 14

Which feature is a web-based resource that allows you to increase yourefficiency with QuickBooks?

-QuickBooks Resource -QuickBooks Calendar -QuickBooks App Center -Connections

Back 14

QuickBooks App Center

Front 15

You should always set your QuickBooks start dateto be the first day you started your business.

True/Fase

Back 15

False

Front 16

The five Ps teach you to plan your company wellinitially to avoid problems in the future.

True/Fase

Back 16

True

Front 17

Express Start is a quick company setup methodthat only asks you for the basics.

True/Fase

Back 17

True

Front 18

The normal balance of an income account is adebit balance.

True/Fase

Back 18

False

Front 19

By default, liabilities are always listed firstin the Chart of Accounts.

True/Fase

Back 19

False

Front 20

Preferences control the way you interact withthe QuickBooks program.

True/Fase

Back 20

True

Front 21

You should create a separate QuickBooks companyfile for each tax return you file.

True/Fase

Back 21

True

Front 22

The Report Center allows you to view what areport will look like without having to produce it.

True/Fase

Back 22

True

Front 23

If you choose the Detailed Setup option, youwill be taken to the EasyStep Interview to create your company file.

True/Fase

Back 23

True

Front 24

You can create a new company file in multiusermode.

True/Fase

Back 24

False

Front 25

What is it called when you enter only the totalamounts of historical transactions, not individual, for a new company file?

- Entering a summary journal entry -Entering a group transaction -Entering a manual entry -Entering an alternate transaction

Back 25

Entering a summary journal entry

Front 26

Which of the following accounts would show acredit normal balance?

Auto Loan Prepaid Insurance Checking Rent Expense

Back 26

Auto Loan

Front 27

What does QuickBooks NOT do when you choose toclose the books?

- Transfer the net income or net loss to Retained Earnings -Restrict access to transactions prior to the closing date by requiring a password -Allow you to clean up your data -Limit the number of reports you can run on prior-period data

Back 27

Limit the number of reports you can run on prior-period data

Front 28

Which task can you NOT complete in multiusermode?

- Create an invoice -Enter a bill to be paid -Delete an account from the Chart of Accounts -Enter a new customer

Back 28

Delete an account from the Chart of Accounts

Front 29

A customer is a person or a company to whom orwhich you issue funds.

True/False

Back 29

False

Front 30

You can delete a customer from the Customers& Jobs List as long as that customer hasn't been used in a transaction.

True/False

Back 30

True

Front 31

When working with the company file for anon-profit organization, you should enter donors in the Other Names List.

True/False

Back 31

False

Front 32

If you want to invoice a customer for a service,the service must first be set up as an item.

True/False

Back 32

True

Front 33

When you use a sales receipt to bill a customer,Accounts Receivable is debited.

True/False

Back 33

False

Front 34

The Transaction tab of the history panel allowsyou to view information about the active transaction.

True/False

Back 34

True

Front 35

While you can enter vendors "on thefly" in the Enter Bills window, this is not an option when dealing withcustomers and the Create Invoices window.

True/False

Back 35

False

Front 36

When you void a transaction, every trace of itis removed from behind the scenes, but evidence that the transaction existedremains in QuickBooks.

True/False

Back 36

True

Front 37

To use the QuickBooks Find feature, you mustknow the transaction date.

True/False

Back 37

False

Front 38

If an invoice is entered but the ReceivePayments window is not used when the payment is deposited, your income will bedouble-stated.

True/False

Back 38

True

Front 39

What account is debited when invoices are created?

Accounts Payable Accounts Receivable Checking Income Account

Back 39

Accounts Receivable

Front 40

What type of account is the Undeposited Funds account?

Asset Liability Equity Income

Back 40

Asset

Front 41

Which QuickBooks form would you use if acustomer is making a purchase on account?

Enter Sales Receipts Create Sales Form Enter Invoice Receipt Create Invoices

Back 41

Create Invoices

Front 42

What type of information can you find using theQuickBooks Search feature?

Forms/transactions Amounts and dates Menu commands All of the above

Back 42

Forms/transactions

Amounts and dates

Menu commands

All of the above

Front 43

In QuickBooks, subcontractors are considered vendors.

True/False

Back 43

True

Front 44

Vendors must be entered into the Vendors Listbefore you can enter a bill for them.

True/False

Back 44

False

Front 45

You can delete a vendor from the Vendor List aslong as it has been used fewer than ten times in transactions.

True/False

Back 45

False

Front 46

When you use the Enter Bills window inQuickBooks, you must specify a vendor.

True/False

Back 46

True

Front 47

The Pay Bills window shows all bills due inchronological order by due date.

True/False

Back 47

True

Front 48

You must use the Enter Bills and Pay Billsfeatures to account for expenses; you cannot just write a check.

True/False

Back 48

False

Front 49

If you use the cash basis of accounting, youMUST use the Write Checks window (not the Enter Bills window) when paying bills.

True/False

Back 49

False

Front 50

QuickZoom allows you to quickly print a reportfor a single list record.

True/False

Back 50

False

Front 51

If you accidently merge two list entries, youcan choose to undo the action.

True/False

Back 51

False

Front 52

You only have to enter your income transactionsto create an accurate Profit & Loss report.

True/False

Back 52

False

Front 53

Which of these is NOT a graph that can becreated in QuickBooks?

Budget vs. Actual Net Worth Assets and Liabilities Sales

Back 53

Budget vs. Actual Net Worth Assets and Liabilities Sales

Front 54

When you pay a bill, what account is debited?

Accounts Payable Checking Accounts Receivable Telephone Expense

Back 54

Accounts Payable

Front 55

Which of the following is NOT a list or databasetask performed within the Vendor List?

Edit a vendor's information Create a new vendor Enter a bill for a vendor Delete a vendor

Back 55

Enter a bill for a vendor

Front 56

What will prevent you from deleting a vendorrecord from the Vendor List?

- You have previously edited the vendor's information -You entered an account number for the vendor -You used the vendor in a transaction -All of the above

Back 56

You used the vendor in a transaction

Front 57

Payments received on an invoice that are held inUndeposited Funds automatically appear in the Checking register.

True/False

Back 57

False

Front 58

When you make a deposit to Checking, yourchecking account is credited.

True/False

Back 58

False

Front 59

In QuickBooks, Credit Card is a type of Bank account.

True/False

Back 59

False

Front 60

Only bank accounts have registers that detailall account transactions.

True/False

Back 60

False

Front 61

When you double-click a liability in the Chartof Accounts, a QuickReport is displayed.

True/False

Back 61

False

Front 62

Bank feeds allow you to save time from having totype in all your transactions, it helps you to maintain better accuracy in yourrecords, and also assists in cash flow management.

True/False

Back 62

True

Front 63

Reconciliation is the process of matching yourQuickBooks bank accounts to your bank statements.

True/False

Back 63

True

Front 64

The Chart of Accounts is a list of just yourcompany's bank accounts.

True/False

Back 64

False

Front 65

A Reconciliation Discrepancy report helps youfind the transactions changed since your last reconciliation.

True/False

Back 65

True

Front 66

Reconciliation reports only display transactionscleared by the bank.

True/False

Back 66

False

Front 67

Which of the following is not a step in the bankfeeds set up process?

Find Connect Process Link

Back 67

Process

Front 68

What is the first thing to do if your cleared QuickBooks transactions and the bank statement don't balance during the reconciliation process?

- Look for a transaction that is the same amount as the difference -Click the Unmark All button so you can start over -Go through all of the deposit transactions and make sure they are all checked -Review the payment transactions and make sure they are all the correct amounts

Back 68

Look for a transaction that is the same amount as the difference

Front 69

What window appears when you choose Banking > Make Deposits if there are funds in the Undeposited Funds account?

Undeposited Funds Register Make Deposits Deposits in Wait Payments to Deposit

Back 69

Payments to Deposit

Front 70

When you create a purchase order, Accounts Payable is debited.

True/False

Back 70

False

Front 71

Non-posting accounts appear at the bottom of you Chart of Accounts.

True/False

Back 71

True

Front 72

QuickBooks Pro uses the Last-in, First out method of inventory valuation.

True/False

Back 72

False

Front 73

The show lowest subaccount preference helps you overcome the problem of narrow account field in QuickBooks.

True/False

Back 73

True

Front 74

the Inventory Valuation Detail report tells you which items you need to reorder.

True/Fase

Back 74

False

Front 75

To include sates tax on a sales form, you must set up the tax as an item.

True/False

Back 75

True

Front 76

Sales orders can be used to schedule services to be performed.

True/False

Back 76

True

Front 77

You are not allowed to create your own discount payment terms.

True/False

Back 77

False

Front 78

To process an electronic customer payment, you should set up a new entry in the Payment Method List.

True/False

Back 78

True

Front 79

The Sales Graph can display the total sales by item or by vendor.

True/False

Back 79

False

Front 80

In which case would QuickBooks NOT be a good tool for tracking inventory for a company?

-The company sells one-of-a-kind antiques -The company sells approximately 75 items -The company uses the average cost method for inventory valuation -The company's items are purchased at wholesale and sold at retail cost

Back 80

The company sells one-of-a-kind antiques The company sells approximately 75 items

Front 81

To determine the value of your inventory by item, you would run the _____ report.
Answer: Inventory Stock Status by Item

-Sales by Item Summary

-Inventory Valuation Detail

-Inventory Valuation Summary

Back 81

Inventory Valuation Summary

Front 82

A discount for early payment on an invoice for $100 with terms of 2% 10 Net 30 would be _____.
Answer:

$10

$2

$4

$20

Back 82

$2

Front 83

What type of account is Purchase Orders?
Answer: Inventory Asset Cost of Goods Sold Inventory Expense Non-Posting

- Inventory Asset -Cost of Goods Sold -Inventory Expense -Non-Posting

Back 83

Non-Posting

Front 84

Which account would you find on a balance sheet report?

Payroll Liabilities Utilities Expense Sales Cost of Goods Sold

Back 84

Payroll Liabilities

Front 85

When you memorize a transaction, QuickBooks always automatically enters it for you.
Answer: True False

Back 85

False

Front 86

Petty Cash is set up as an expense account in your Chart of Accounts.
Answer: True False

Back 86

False

Front 87

You can fund your Petty Cash account by holding cash back from a deposit.
Answer: True False

Back 87

True

Front 88

Depreciation allows a business to match income to expenses.
Answer: True False

Back 88

True

Front 89

A fixed asset is an example of a contra account.
Answer: True False

Back 89

False

Front 90

A Long Term Liability is a loan that will be paid off in less than a year.
Answer: True False

Back 90

False

Front 91

You can enter petty cash expenditures just as you enter checks.
Answer: True False

Back 91

True

Front 92

Budgets that you create in QuickBooks must be account-based.
Answer: True False

Back 92

True

Front 93

Which of the following is NOT a balance sheet account?
Answer: Bank Service Charge - Truck Loan -Owner's Equity -Prepaid Insurance

Back 93

Bank Service Charge

Front 94

Which of the following is an Other Current Asset account?
Answer: - Checking Land Money Market Prepaid Rent

Back 94

Prepaid Rent

Front 95

What type of accounts do you depreciate?
Answer: Long Term Liabilities - Fixed Assets -Equity Accounts -Other Current Assets

Back 95

Fixed Assets

Front 96

QuickBooks creates the _____ account for you so you have a working balance sheet account from the start.
Answer: Retained Earnings - Opening Balance Equity -Owner's Equity -Accounts Receivable

Back 96

Opening Balance Equity

Front 97

The majority of payroll mistakes are due to payroll items being set up incorrectly.
Answer: True False

Back 97

True

Front 98

You should enter your subcontractors in the Employee List.
Answer: True False

Back 98

False

Front 99

Only those transactions entered via QuickBooks' payroll features affect payroll reporting.
Answer: True False

Back 99

True

Front 100

You will not be able to set up your employees until after you set up employee defaults.
Answer: True False

Back 100

False

Front 101

Workers Compensation is a type of payroll item.

Answer: True False

Back 101

True

Front 102

When you create paychecks, the Payroll Expense account is credited.
Answer: True False

Back 102

False

Front 103

When you want to pay the payroll liabilities while running full payroll in QuickBooks, you can just open a Write Checks window to make the payment.
Answer: True False

Back 103

False

Front 104

In QuickBooks, an employee is someone to whom you issue a W-2 or a 1099-MISC.
Answer: True False

Back 104

Answer: False

Front 105

When you discover that an employee was overpaid, you should void the paycheck and create a new one with the correct amount.

Answer: True False

Back 105

False

Front 106

Which of the following is NOT an example of a payroll item?
Answer: Federal Withholding - Hours Worked -Vacation Hourly -Health Insurance

Back 106

Hours worked

Front 107

When you create paychecks, what account is credited?
Answer: Checking - Payroll Expenses -Payroll Liabilities -Both A and C

Back 107

Both A and C

Front 108

In which account do you hold the taxes you withhold from your employees?
Answer: Sales Tax Payable - Payroll Liabilities -Checking -Payroll Assets

Back 108

Payroll liabilities

Front 109

Which payroll form do you provide to subcontractors at the end of the year?
Answer: W-2 Form 940 1099-MISC Form 1096

Back 109

1099-MISC

Front 110

You can only create estimates for jobs, not for customers.
Answer: True False

Back 110

False

Front 111

If you choose to create a progress invoice, it must be for a percentage of all items. You cannot create one for selected items from the estimate.
Answer: True False

Back 111

False

Front 112

You can enter time data as either a single activity or on a weekly timesheet.
Answer: True False

Back 112

True

Front 113

When you pass on billable time to a customer, you select the cost for the time on the Expenses tab of the Choose Billable Time and Costs window.
Answer: True False

Back 113

False

Front 114

QuickBooks allows users to track outstanding estimates by utilizing a non-posting account.
Answer: True False

Back 114

True

Front 115

Unearned income refers to the funds you are holding in the Undeposited Funds account.
Answer: True False

Back 115

False

Front 116

When you receive funds for a gift certificate, you hold them in an Other Current Liability account.
Answer: True False

Back 116

True

Front 117

In QuickBooks, you can use the mileage tracking feature to track mileage to be reimbursed to employees for the use of their own cars.
Answer: True False

Back 117

False

Front 118

You should use the specific finance charge settings outlined in this book for your own company.
Answer: True False

Back 118

False

Front 119

The most common way to bill customers for finance charges is to create and send separate invoices.
Answer: True False

Back 119

False

Front 120

Which report would you produce to determine which job is most profitable?
Answer: Job Profitability Detail -Job Estimates vs. Actuals Summary -Time by Job Summary -Job Profitability Summary

Back 120

Job Profitability Summary

Front 121

Which of the following is NOT a step you need to take to conduct job costing in QuickBooks?
Answer: Enter all job revenues and expenses - Create an estimate for the job -Use QuickBooks reports to analyze job data -Set up your data in the Customers & Jobs List

Back 121

Create an estimate for the job

Front 122

To enter mileage for a vehicle in QuickBooks, you first need to _____.
Answer:- enter the current IRS mileage rate -add the vehicle in the Other Names list -create a new non-inventory item to the Item List -None of the above

Back 122

enter the current IRS mileage rate

Front 123

Which of the following is NOT something you need to set up to track customer deposits in QuickBooks?
Answer: An inventory-part item An Other Current Liability account An other charge item A payment item

Back 123

An inventory-part item

Front 124

Before you can use custom fields in reports, you must first set them up in the Item List.
Answer: True False

Back 124

False

Front 125

Formatting deals with the appearance of the report, not with the data contained within it.
Answer: True False

Back 125

True

Front 126

You can customize your own Word template to use with your QuickBooks data.
Answer: True False

Back 126

True

Front 127

Once you set your company's default report basis, you cannot change it on individual reports.
Answer: True False

Back 127

False

Front 128

You can filter out any accounts with a zero balance on a report.
Answer: True False

Back 128

False

Front 129

When you memorize a report, you are memorizing the formatting and the data contained in it.
Answer: True False

Back 129

False

Front 130

You can use a Customer & Vendor Profile List for a purpose other than that for which it was intended.
Answer: True False

Back 130

True

Front 131

You must create your own form template to display custom fields.
Answer: True False

Back 131

True

Front 132

You must memorize a report before you can process it with a batch of reports.
Answer: True False

Back 132

True

Front 133

To analyze your QuickBooks data more effectively, you may wish to export it to Microsoft Excel.
Answer: True False

Back 133

True

Front 134

When you memorize a report, which of the following attributes would NOT be the same each time you recall the report?
Answer: The company name in bold - The accounts displayed -The accounting basis of the report -The balance of one of the accounts on the report

Back 134

The balance of one of the accounts on the report

Front 135

The option to create letters from Word is accessible from which menu option?
Answer: File - Company -Customers -Reports

Back 135

Company

Front 136

For which type of item can a custom field be set up?
Answer: sales tax group -subtotal -service -sales tax item

Back 136

Service

Front 137

If you operate using the cash basis of accounting, which of the following accounts will you not need to display on your balance sheet?
Answer: Accounts Receivable - Prepaid Rent -Company Checking Account -American Express Credit Card

Back 137

Accounts Receivable

Front 138

Class tracking in QuickBooks should be used to track different types of customers.
Answer: True False

Back 138

False

Front 139

The accounting cycle is a series of steps that helps the business keep its accounting records properly during the fiscal period.
Answer: True False

Back 139

True

Front 140

The QuickBooks class feature should be used for multiple purposes within a company file.
Answer: True False

Back 140

False

Front 141

The QuickBooks Doc Center feature is a good tool for analyzing business transactions.
Answer: True False

Back 141

False

Front 142

You can set per-item price levels with all versions of QuickBooks.
Answer: True False

Back 142

False

Front 143

A Statement of Cash Flows essentially translates a company's data from accrual to cash basis.
Answer: True False

Back 143

True

Front 144

You would find company stock transactions in the operating section of the Statement of Cash Flows report.
Answer: True False

Back 144

False

Front 145

Once a price level is set and associated with a customer or job, it will automatically fill in for you in future transactions and cannot be changed.
Answer: True False

Back 145

False

Front 146

Classes are most efficiently used to _____.
Answer: track types of customers - track additional information for one purpose -assign accounts to customers -record information about one customer

Back 146

track additional information for one purpose

Front 147

Which report would you run to easily apply classes to unclassified transactions?
Answer: Profit & Loss by Class -Balance Sheet by Class -Class Change - Profit & Loss Unclassified

Back 147

Profit & Loss Unclassified

Front 148

Which of the following is NOT a question you would ask when analyzing your business transactions during the first step of the accounting cycle?
Answer: Which account is credited and for what amount? - What is the source document for the transaction? -Is each account increased or decreased? -What does the completed entry look like?

Back 148

What is the source document for the transaction?

Front 149

Which of the following is an activity that you would find in the Financing section of the Statement of Cash Flows report?
Answer: Dividends that are paid -Production costs -Assets that the company bought -Payroll costs

Back 149

Dividends that are paid

Front 150

An example of an adjusting entry is one that adjusts the value of a fixed asset.
Answer: True False

Back 150

True

Front 151

An Income Summary account is used to clear out permanent account balances.
Answer: True False

Back 151

False

Front 152

QuickBooks will not allow you to record a transaction where debits do not equal credits.
Answer: True False

Back 152

True

Front 153

QuickBooks provides a worksheet for you to work with as you prepare your financial statements.
Answer: True False

Back 153

False

Front 154

When you account for depreciation, the account Accumulated Depreciation is credited.
Answer: True False

Back 154

True

Front 155

A permanent account is one for which the ending balance for one fiscal period is the opening balance for the next.
Answer: True False

Back 155

True

Front 156

The Income Statement shows the balance of permanent accounts as of a certain date.
Answer: True False

Back 156

False

Front 157

Analyzing the Balance Sheet will allow you to calculate the gross margin percentage.
Answer: True False

Back 157

False

Front 158

If the balance in the Income Summary account is a debit, then your company has a net loss for the fiscal period.
Answer: True False

Back 158

True

Front 159

One of the advantages of closing the books in QuickBooks is that you can restrict access to prior period transactions by setting a password.
Answer: True False

Back 159

True

Front 160

What transaction could you NOT record as a general journal entry?
Answer: A transfer of funds between classes - A transfer of funds between income accounts -The recording of adjusting entries -A record of a sale to a specific customer

Back 160

A record of a sale to a specific customer

Front 161

An adjusting entry may allow you to complete which of the following transactions?
Answer: Enter a bill from a vendor - Record depreciation for a fiscal period -Create a sales receipt to record the daily sales -Record a deposit into the Checking account

Back 161

Record depreciation for a fiscal period

Front 162

Which report allows you to track every entry, modification, or deletion to transactions in your file?
Answer: Closing Date Exception Report - Post-Closing Trial Balance Report -Accountant's Copy Report -Audit Trail Report

Back 162

Audit Trail Report

Front 163

Which of the following does QuickBooks NOT do for you automatically at the end of the fiscal year?
Answer: Transfer net income or net loss to Retained Earnings - Ensure you start the new fiscal year with zero balances for the permanent accounts -Close out temporary accounts -Allow you to start the new fiscal year with a net income of zero

Back 163

Ensure you start the new fiscal year with zero balances for the permanent accounts