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163 Cards in this Set

  • Front
  • Back

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




True/False

False

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




True/False

True

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




True/False

False

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




True/False



False

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




True/False



False

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




True/False



False

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




True/False



True

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




True/False



True

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




True/False



True

Maintenance releases are available forQuickBooks for a small fee.




True/False



False

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




A network drive where your main company file is stored

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
Transaction log

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

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

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

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


QuickBooks App Center

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




True/Fase



False

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




True/Fase



True

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




True/Fase




True

The normal balance of an income account is adebit balance.




True/Fase




False

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




True/Fase



False

Preferences control the way you interact withthe QuickBooks program.




True/Fase



True

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




True/Fase




True

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




True/Fase




True

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




True/Fase




True

You can create a new company file in multiusermode.




True/Fase




False

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
Entering a summary journal entry

Which of the following accounts would show acredit normal balance?

Auto Loan Prepaid Insurance Checking Rent Expense
Auto Loan

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

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

Delete an account from the Chart of Accounts


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




True/False


False

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




True/False



True

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




True/False




False

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




True/False




True

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




True/False




False

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




True/False




True

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



False

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




True/False




True

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




True/False



False

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




True/False



True

What account is debited when invoices are created?



Accounts Payable Accounts Receivable Checking Income Account


Accounts Receivable

What type of account is the Undeposited Funds account?

Asset Liability Equity Income
Asset

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


Create Invoices

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

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

Forms/transactions

Amounts and dates

Menu commands

All of the above


In QuickBooks, subcontractors are considered vendors.




True/False



True

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




True/False




False

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




True/False




False

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




True/False




True

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




True/False




True

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




True/False



False

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




True/False




False

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




True/False



False

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




True/False



False

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




True/False




False

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

Budget vs. Actual Net Worth Assets and Liabilities Sales

Budget vs. Actual Net Worth Assets and Liabilities Sales

When you pay a bill, what account is debited?

Accounts Payable Checking Accounts Receivable Telephone Expense
Accounts Payable

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
Enter a bill for a vendor

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
You used the vendor in a transaction

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




True/False




False

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




True/False




False

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




True/False




False

Only bank accounts have registers that detailall account transactions.




True/False




False

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




True/False




False

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




True

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




True/False



True

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




True/False




False

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




True/False




True

Reconciliation reports only display transactionscleared by the bank.




True/False




False

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

Find Connect Process Link




Process

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


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

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


Payments to Deposit

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




True/False

False

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




True/False


True

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




True/False


False


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




True/False


True

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




True/Fase


False

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




True/False


True


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




True/False


True


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




True/False


False

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




True/False


True


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




True/False


False

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


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

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

Inventory Valuation Summary

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


$10


$2


$4


$20

$2

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


Non-Posting

Which account would you find on a balance sheet report?

Payroll Liabilities Utilities Expense Sales Cost of Goods Sold


Payroll Liabilities

When you memorize a transaction, QuickBooks always automatically enters it for you.
Answer: True False
False
Petty Cash is set up as an expense account in your Chart of Accounts.
Answer: True False
False
You can fund your Petty Cash account by holding cash back from a deposit.
Answer: True False
True
Depreciation allows a business to match income to expenses.
Answer: True False
True
A fixed asset is an example of a contra account.
Answer: True False
False
A Long Term Liability is a loan that will be paid off in less than a year.
Answer: True False
False
You can enter petty cash expenditures just as you enter checks.
Answer: True False
True
Budgets that you create in QuickBooks must be account-based.
Answer: True False
True
Which of the following is NOT a balance sheet account?
Answer: Bank Service Charge - Truck Loan -Owner's Equity -Prepaid Insurance
Bank Service Charge
Which of the following is an Other Current Asset account?
Answer: - Checking Land Money Market Prepaid Rent
Prepaid Rent
What type of accounts do you depreciate?
Answer: Long Term Liabilities - Fixed Assets -Equity Accounts -Other Current Assets
Fixed Assets
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
Opening Balance Equity
The majority of payroll mistakes are due to payroll items being set up incorrectly.
Answer: True False
True
You should enter your subcontractors in the Employee List.
Answer: True False
False
Only those transactions entered via QuickBooks' payroll features affect payroll reporting.
Answer: True False
True
You will not be able to set up your employees until after you set up employee defaults.
Answer: True False
False

Workers Compensation is a type of payroll item.

Answer: True False
True
When you create paychecks, the Payroll Expense account is credited.
Answer: True False
False
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
False
In QuickBooks, an employee is someone to whom you issue a W-2 or a 1099-MISC.
Answer: True False

Answer: False

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
False
Which of the following is NOT an example of a payroll item?
Answer: Federal Withholding - Hours Worked -Vacation Hourly -Health Insurance
Hours worked
When you create paychecks, what account is credited?
Answer: Checking - Payroll Expenses -Payroll Liabilities -Both A and C
Both A and C
In which account do you hold the taxes you withhold from your employees?
Answer: Sales Tax Payable - Payroll Liabilities -Checking -Payroll Assets
Payroll liabilities
Which payroll form do you provide to subcontractors at the end of the year?
Answer: W-2 Form 940 1099-MISC Form 1096
1099-MISC
You can only create estimates for jobs, not for customers.
Answer: True False
False
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
False
You can enter time data as either a single activity or on a weekly timesheet.
Answer: True False
True
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
False
QuickBooks allows users to track outstanding estimates by utilizing a non-posting account.
Answer: True False
True
Unearned income refers to the funds you are holding in the Undeposited Funds account.
Answer: True False
False

When you receive funds for a gift certificate, you hold them in an Other Current Liability account.
Answer: True False
True
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
False
You should use the specific finance charge settings outlined in this book for your own company.
Answer: True False
False
The most common way to bill customers for finance charges is to create and send separate invoices.
Answer: True False
False
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
Job Profitability Summary
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
Create an estimate for the job
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
enter the current IRS mileage rate
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
An inventory-part item
Before you can use custom fields in reports, you must first set them up in the Item List.
Answer: True False
False
Formatting deals with the appearance of the report, not with the data contained within it.
Answer: True False
True
You can customize your own Word template to use with your QuickBooks data.
Answer: True False
True
Once you set your company's default report basis, you cannot change it on individual reports.
Answer: True False
False
You can filter out any accounts with a zero balance on a report.
Answer: True False
False
When you memorize a report, you are memorizing the formatting and the data contained in it.
Answer: True False
False
You can use a Customer & Vendor Profile List for a purpose other than that for which it was intended.
Answer: True False
True
You must create your own form template to display custom fields.
Answer: True False
True
You must memorize a report before you can process it with a batch of reports.
Answer: True False
True
To analyze your QuickBooks data more effectively, you may wish to export it to Microsoft Excel.
Answer: True False
True
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
The balance of one of the accounts on the report
The option to create letters from Word is accessible from which menu option?
Answer: File - Company -Customers -Reports
Company
For which type of item can a custom field be set up?
Answer: sales tax group -subtotal -service -sales tax item
Service
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
Accounts Receivable
Class tracking in QuickBooks should be used to track different types of customers.
Answer: True False
False
The accounting cycle is a series of steps that helps the business keep its accounting records properly during the fiscal period.
Answer: True False
True
The QuickBooks class feature should be used for multiple purposes within a company file.
Answer: True False
False
The QuickBooks Doc Center feature is a good tool for analyzing business transactions.
Answer: True False
False
You can set per-item price levels with all versions of QuickBooks.
Answer: True False
False
A Statement of Cash Flows essentially translates a company's data from accrual to cash basis.
Answer: True False
True
You would find company stock transactions in the operating section of the Statement of Cash Flows report.
Answer: True False
False
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
False
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
track additional information for one purpose
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
Profit & Loss Unclassified
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?
What is the source document for the transaction?
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
Dividends that are paid
An example of an adjusting entry is one that adjusts the value of a fixed asset.
Answer: True False
True
An Income Summary account is used to clear out permanent account balances.
Answer: True False
False
QuickBooks will not allow you to record a transaction where debits do not equal credits.
Answer: True False
True
QuickBooks provides a worksheet for you to work with as you prepare your financial statements.
Answer: True False
False
When you account for depreciation, the account Accumulated Depreciation is credited.
Answer: True False
True
A permanent account is one for which the ending balance for one fiscal period is the opening balance for the next.
Answer: True False
True
The Income Statement shows the balance of permanent accounts as of a certain date.
Answer: True False
False
Analyzing the Balance Sheet will allow you to calculate the gross margin percentage.
Answer: True False
False
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
True
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
True
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
A record of a sale to a specific customer
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
Record depreciation for a fiscal period
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
Audit Trail Report
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
Ensure you start the new fiscal year with zero balances for the permanent accounts