Quickbooks

2 data?

What are two ways to limit access to QuickBooks company A)

User ID and password required to access all of t

he company data. B) User ID and password required to access selected accounts in the Chart of Accounts. C)

User ID and password required to access selected

D)

All of the above.

E)

Only A. and C. above.(correct)

areas of company data.

3

When a document prints sideways, it is called: A)

portrait orientation.

B)

vertical orientation.

C)

standard orientation.

D)

horizontal orientation.

E)

landscape orientation.(correct)

Feedback: !

4

Access to QuickBooks company data can be to all areas or limited to:

A)

Specific accounts in the Chart of Accounts.

B)

Payroll and Time Tracking.(correct)

C)

Cash Sales transactions.

D)

QuickBooks Administrator tasks.

E)

None of the above.

Feedback: Try again - the answer is shown.

5

The Chart of Accounts lists accounts and account numbers for what purpose(s)? A)

To identify specific Customers, Vendors, and Emp

loyees. B) To identify the employee/user who records transa ctions into the accounting system. C)

To list on the financial statements.

D) To record transactions in the accounting system and sort and track information.(correct) E)

All of the above.

Feedback: Try again - there is one answer.

6

Owner's Equity is increased by: A)

Investments by owners.

B)

Net profits retained in the business.

C)

Expenses.

D)

Amounts paid to owners as return on their invest

E)

Both A and B are correct.(correct)

ments.

Feedback: !

7

Liability accounts are: A)

Temporary accounts.

B)

Company's obligations to others.(correct)

C)

Owners' investment in the company.

D)

Resources owned by the company and expected to h

E)

Net Profits/Losses of the company.

ave a future benefit.

Feedback: These result from transactions that increase/decrease Owner's Equity.

8 Which of the following is NOT a Profit and Loss group ac count type or transaction? A)

Cost of Goods Sold.

B)

Accounts Receivable.(correct)

C)

Gain on Sale of investments.

D)

Sales or revenues.

E)

Rent expense.

Feedback: This is a valid P&L account type.

9 or income statement.

Non-posting accounts do not appear on the balance sheet A)

Appear on the income statement.

B)

Can appear on either the balance sheet or income

statement. C) e sheet or income statement.

Non-posting accounts do not appear on the balanc

D)

Include purchase orders and estimates.(correct)

E)

Include invoices and sales orders.

Feedback: Examples of non-posting accounts include purchase orders and e stimates.

10

Changes to the chart of accounts may be made: A)

at the beginning of a fiscal period.

B)

at any time.(correct)

C)

before the end of the fiscal year.

D)

once established, the chart of accounts may not

E)

None of the above.

be modified.

1

The Check Register window, titled "Checking", allows the following transaction: A)

Payments by check, Online Banking, Deposits, Pri

B)

Payments by check, Deposits, Bank Reconciliation

C)

Payment by check, Transfer Funds, Deposits.

D)

Payments by check, Deposits, Print documents.(co

E)

Payments by check, Online Banking, Print documen

nt documents.

.

rrect)

ts. Feedback: Online Banking requires the Online Banking window. Try again.

2

Which of the following would be entered using the Custom

er Navigator? A)

Payments from customers.(correct)

B)

Investments from owners.

C)

Interest earned.

D)

A. and B. only.

E)

All of the above.

Feedback: Investments from owners and interest earned are entered using the Banking Navigator.

3

What are source documents?

A) Only documents received from external sources, s uch as customers and vendors, which support transactions. B) Only documents, created internally within the co mpany, which support transactions. C) Supporting documents that provide proof that tra nsactions occurred. They should be discarded to prevent duplicate use. D)

Include canceled checks, receipts and paid invoi

ces.(correct) E) Some external documents are source documents, bu t that is only part of the answer. Try again. Feedback: Some, but not all, documents are reports are source documents. Try again.

4

QuickBooks "bills" are payments owed to vendors, and can be recorded and paid in the following ways: A)

One-step approach: Record and pay the bill when

it is received. B) Two-step approach: Record the bill when it is re ceived. Pay the bill when it is due.

C) Two-step approach: Record the bill when it is re ceived. Pay the bill when statement is received. D)

Only A. and B.(correct)

E)

Only A. and C.

Feedback: Try again - the answer is shown.

5 to:

The Write Checks window (One-Step Approach) can be used

A) Pay for expenses, non-inventory items, and servi ces if bills are not already entered in the Enter Bills window.(correct) B)

Pay sales taxes.

C)

Pay payroll taxes and liabilities.

D)

Only A and B.

E)

Pay bills already entered in the Enter Bills win

dow. Feedback: Instead of Write Checks window, use Pay Bills window.

6 The journal entry to record the deposit of the owner's c heck as an investment in the company includes: A)

a debit to the owner's equity account and a cred

B) redit to the bank account.

a debit to the owner's liability account and a c

it to the bank account.

C) a debit to the bank account and a credit to the owner's accounts receivable account. D) a debit to the bank account and a credit to the owner's equity account.(correct) E)

None of the above.

Feedback: Try again - the answer is shown.

7

Listed below are the different types of accounts and the effects that debits and credits have on them. Which is ? A)

Asset, Debits increase

B)

Liability, Credits increase

C)

Owner's Equity, Debits increase(correct)

D)

Revenues (Income), Credits increase

E)

Expenses, Debits increase

Feedback: This is a true statement.

8 In performing the Bank Reconciliation process, timing di fferences include all of the following except: A)

Book errors.(correct)

B)

Deposits in Transit.

C)

Service Charges.

D)

Interest earned.

E)

Outstanding Checks.

Feedback: This is an example of a timing difference.

9

What is QuickBooks Online Banking?

A) The requirement to input checks and deposits tra nsaction data only "on line", as specified in each window. B) The option to input checks and deposits transact ion data "on line" that you choose in each window. C) online using the Internet.

The requirement to conduct banking transactions

D) The option to conduct banking transactions onlin e using the Internet.(correct) E) The option to conduct banking transactions onlin e using Intuit/QuickBooks as the company's Internet Service Provider (ISP). Feedback: QuickBooks does not provide ISP access to the Internet. Try ag ain.

10 llowing except:

1 nts are true, except:

From the Banking Navigator, you can record all of the fo A)

Checks.

B)

Sales Receipts.(correct)

C)

Credit Card Transactions.

D)

Deposits.

E)

None of the above.

All of the following statements regarding customer payme

A) Sales Receipts are used when a customer pays wit h cash, check or credit card at the time of sale. B)

Invoices are used when a customer buys on credit

and then pays later. C) n credit and then pays later.

Feedback: !

Receive Payments are used when a customer buys o

D)

None of the above is true.

E)

All of the above are true.(correct)

2

To enter a cash sale, a(n) ___________ is completed. A)

Sales Receipt(correct)

B)

Invoice

C)

Deposit

D)

Debit

E)

None of the above.

Feedback: Try again - the answer is shown.

3 vities, except:

Customers' data is included in all of the following acti A)

Credit Card Sales.

B)

Credit Sales.

C)

Refunds and Credits.

D)

Bank Reconciliation.(correct)

E)

Cash Sales.

Feedback: Customers pay cash at the time of a Cash Sale.

4 ing:

From the Customer: Job List window you can do the follow A)

Add or Edit a Customer.

B)

Access the Phone and Contact Reports.

C)

Make Inactive, or Delete a Customer.

D)

Add a New Job.

E)

All of the above.(correct)

Feedback: ! You can do all the listed activities and more from the Custo mer: Job List window.

5 g ways except:

Customer Reports can be accessed in each of the followin

A) Customer Center: summarizes customer information in one location (Customer Navigator). B)

Customer Reports window on the Customer Navigato

r. C) Report Finder: permits you to locate reports by type of report (Report Navigator). D)

Report Menu: Reports on the Report menu are grou

E)

None of the above - all are ways to access Custo

ped by type of report.

mer Reports.(correct) Feedback: !

6 Select the answer as it relates to the Customer Registe r and the Accounts Receivable balance. A)

They are not related.

B) The Customer Register tracks customer charges, p ayments and customer account balances. The accounts receivable balance is the am ount the company expects to receive in the future.(correct) C) The Customer Register is a report showing all cu stomers' balances and the accounts receivable balance for an individual customer . D)

They provide the same information.

E)

All of the above.

Feedback: Try again - only one answer is shown.

7

Customer Jobs are: A)

B) ses, by customer.(correct)

lists of each customer's transactions. projects used to track status, revenue and expen

C)

required for every Sales transaction.

D)

types of customer reports.

E)

None of the above.

Feedback: Try again - the answer is shown.

8

Undeposited Funds represents: A)

accounts receivable.

B) cash or checks received from customers but not y et deposited in the bank.(correct) C)

all cash sales

D)

all cash and credit sales

E)

None of the above.

Feedback: Try again - the answer is shown.

9

Form templates for Invoices include: A)

Product, Service, Progress.

B)

Product, Professional, Custom.

C)

Product, Professional, Service, Custom.(correct)

D)

Product, Service, Progress, Custom.

E)

Progress, Product, Professional, Service.

Feedback: Progress invoices are not included in the form template select ion.

10 Which of the following is true regarding Reminder Statem ents and Billing Statements? A)

Reminder statements summarize invoices.

B)

Reminder statements are used instead of invoices

C)

Billing statements summarize invoices.

D)

Billing statements are used instead of invoices.

E)

Both A & D are true.(correct)

.

1 A Vendor, in QuickBooks, is any individual or organizati on that provides products or services to a company. All of the following are Ven dors except: A) Individuals or organizations that purchases the company's products or services.(correct)

B)

Service companies that provide services to a company.

C)

Financial institutions that provide financial services.

D)

Tax agencies such as the IRS.

E)

Suppliers from whom the company buys inventory or supplies.

Feedback: These are vendors.

1 At the end of an accounting period, adjusting entries are made to: A) To ensure a profit B) Bring the accounts up to date(correct)

C) Debit or credit the checking account D) Prove that debits equal credits

2 Which one of the following is not a financial statement? A) Statement of Cash Flows B) Profit & Loss C) Trial Balance(correct) D) Balance Sheet

3 Accrued Revenues are: A) Revenues that have been earned, but not collected(correct) B) Payment received in advance of receiving the service C) Revenues that have been collected, but not yet earned D) Revenues that have been recorded

4 The financial accounting definition of depreciation is the: A) Loss of value of the asset over time B) Estimation of the physical wear of an asset C) Allocation of the asset's cost to periods used(correct) D) Recovery of the asset's cost through depreciation deductions

5 The tax definition of depreciation is the: A) Loss of value of the asset over time B) Estimation of the physical wear of an asset C) Allocation of the asset's cost over time D) Recovery of the asset's cost through depreciation deductions(correct)

6

Sales are recorded under cash basis accounting when: A) The goods or services are provided regardless of whether the payment is collecte d from customers B) The costs are incurred to earn the revenue C) The cash is collected from customers(correct) D) The bookkeeper has time to record the transactions

7 Sales are recorded under accrual basis accounting when: A) The goods or services are provided regardless of whether the payment is collecte d from customers(correct) B) The costs are incurred to earn the revenue C) The actual cash is collected from customers D) The bookkeeper has time to record the transactions

8 The Balance Sheet lists: A) Assets, Revenues, and Owner's Equity B) Assets, Liabilities, and Owner's Equity(correct) C) Revenues, Expenses, and Net Income D) Revenues, Liabilities, and Net Income

9 Which one of the following classifications is not found on the Statement of Cash Flows? A) Cash Flows from Selling Activities(correct) B) Cash Flows from Financing Activities C) Cash Flows from Investing Activities D) Cash Flows from Operating Activities

10 Which of the following is ? A) Statement of Cash Flows is reported on a particular date B) The Income Statement is reported on a particular date

C) The Balance Sheet is reported on a particular date(correct) D) The Balance Sheet is reported for a specific time period 1 Which tax form would you select for a sole proprietorship? A) Form 1120 B) Form 1120S C) Form 1040(correct) D) Form 1065

2 To create a new company data file in QuickBooks, use the: A) File Restore B) EasyStep Interview(correct) C) New Setup File D) Company Menu

3 When setting up a new company in QuickBooks, you can change the ________ later. A) Vendor List B) Chart of Accounts C) Customer List D) All of the above(correct)

4 When setting up an existing company in QuickBooks, you would enter a beginning b alance for all the following except: A) Income Statement accounts(correct) B) Balance Sheet accounts C) Vendors to whom you owe money D) Customers who owe you money

5

The QuickBooks Setup window provides a way to add: A) Vendor information B) Customer information C) Banking information D) All the above(correct)

6 A company's legal name is used legal documents, such as: A) Advertising B) Sales C) Contracts(correct) D) Marketing

7 Which types of accounts appear on the balance sheet? A) All accounts B) Cash Flow accounts C) Income, Expense, Liability accounts D) Assets, Liabilities, and Owner's Equity accounts(correct)

8 Accumulated Depreciation-Computer would be defined in QuickBooks as a _______ an d a sub-account of ____________. A) Owner's Equity; Computer Cost B) Fixed Asset; Computer(correct) C) Fixed Asset; Accumulated Depreciation D) Expense; Depreciation Computer

9 The Vendor List contains information about: A) The credit rating of the vendors B) The quantity of non-inventory parts on hand C) Vendors addresses, contacts, and phone numbers(correct)

D) Customer addresses, contacts, and phone numbers

10 The Customer List contains information about which of the following: A) Inventory items B) Customer addresses, contacts, and phone numbers(correct) C) Non-inventory items D) Credit rating of customers

1 Deposits can be recorded using the Deposits icon or directly in the ___________. A) Bank Reconciliation B) General Ledger C) Chart of Accounts D) Check Register(correct)

2 Cash purchases are recorded using the _________ window. A) Write Checks(correct) B) Pay Bills C) Chart of Accounts D) Receive Items

3 The steps to record credit purchases are: A) Receive Items > Write Checks B) Write Checks > Print Check C) Enter Bills > Pay Bill > Print Check(correct) D) Create Purchase Order > Print Check

4 Memorized transactions are used to record: A)

Recurring transactions(correct) B) Only cash payments C) Non-recurring transactions D) Only credit payments

5 An example of memorized transaction is: A) Purchase of a building B) None of the above C) Monthly Rent payment(correct) D) Weekly Sales receipts

6 When bills are paid, QuickBooks reduces the __________ balance. A) Undeposited Funds B) Accounts Payable(correct) C) Accounts Receivable D) Sales

7 In the Create Invoices window, the _______ button is used to select costs billab le to a particular customer. A) Select All B) Discount Info C) Item/Expense D) Time/Costs(correct)

8 When a customer payment is received, QuickBooks reduces the __________ balance. A) Undeposited Funds B) Sales C) Accounts Receivable(correct) D) Accounts Payable

9 All of the following are examples of adjusting entries made at the end of an acc ounting period except: A) Recording depreciation expense for a computer for the year B) Recording a cash sale(correct) C) Recording the amount of unused supplies on hand at year-end D) Recording depreciation expense for equipment for the year

10 Fixed assets may be added to the Fixed Assets List using the Enter Bills window or: A) By making a general journal entry B) In the Chart of Accounts C) By using Item List > Item > New D) By using Lists > Fixed Asset Item List(correct) 1 Which type of corporation uses the Form 1065 and Schedule K-1? A) Sole Proprietorship B) Partnership(correct) C) C Corporation D) S Corporation

2 When creating a QuickBooks file for an existing company, any opening balance ent ered in customer accounts receivable is automatically offset by an entry in the: A) Uncategorized Expense account B) Uncategorized Income account(correct) C) Opening Balance Equity account D) Capital Stock account

3 When creating a QuickBooks file for an existing company, any opening balance ent ered in vendor accounts payable is automatically offset by an entry in the:

A) Uncategorized Expense account(correct) B) Uncategorized Income account C) Opening Balance Equity account D) Capital Stock account

4 When setting up an existing company in QuickBooks, an opening adjustment transfe rs balance in the Opening Balance Equity account to the: A) Uncategorized Expense account B) Uncategorized Income account C) Capital Stock account(correct) D) None of the above

5 In QuickBooks, which two accounts are needed when recording the purchase of equi pment that will last for more than one accounting period? A) Accumulated Depreciation Equipment; Equipment Expense B) Equipment Expense; Equipment Cost C) Supplies on Hand; Equipment Expense D) Equipment Cost; Accumulated Depreciation Equipment(correct)

6 Sales Tax Payable is recorded in which type account? A) Income B) Expense C) Liability(correct) D) Owner's Equity

7 Wholesale customers: A) Pay sales tax B) Pay no sales tax(correct) C) Pay a manufacturing tax

D) Pay sales tax on labor only

8 When recording the sale of a product, which account is increased? A) Cost of Goods Sold(correct) B) Inventory C) Notes Payable D) Accounts Payable

9 Sales tax rate information is entered in the _________ window. A) Employee List B) Customer List C) Vendor List D) Item List(correct)

10 When recording the receipt of an item and the quantity received differs from the quantity ordered: A) Change the quantity using the Enter Bills window B) Change the quantity on the Create Items Receipts window(correct) C) Wait until all of the items are received to record them D) Change the quantity on the Purchase Order 1 A loan that is to be paid within one year is classified as a: A) Long-term Liability B) Current Asset C) Other Current Liability(correct) D) None of the above

2 QuickBooks offers all of the following payroll services except: A)

QuickBooks Basic Payroll Service B) QuickBooks Enhanced Payroll Service C) QuickBooks Assisted Payroll Service D) QuickBooks Manual Payroll Service(correct)

3 To enable QuickBooks payroll for The Paint Palette: A) Click Edit > Preferences > Payroll and Employees > Company Preferences(correct) B) Click Vendors > Preferences > Payroll and Employees > Company Preferences C) Click Employees > Preferences > Payroll and Employees > Company Preferences D) Click Banking > Preferences > Payroll and Employees > Company Preferences

4 The employer must match which one of the following taxes paid by an employee? A) State Income B) Medicare(correct) C) Federal Income D) Federal Unemployment

5 Which one of the following items is not needed when calculating employee net pay ? A) Extra Withholdings B) Federal Unemployment Withholding C) Filing Status(correct) D) Number of Allowances

6 The steps for creating paychecks using QuickBooks are: A) Review/Create Paychecks, Enter Payroll Information, Print Paychecks B) Enter Payroll Information, Review/Create Paychecks, Print/Distribute Paychecks(c orrect) C) Review Paychecks, Enter Payroll Information, Distribute Paychecks D)

None of the above

7 All of the following are payroll liabilities owed to outside agencies except: A) Net Pay(correct) B) Federal Income taxes C) State Income taxes D) Unemployment taxes

8 The following taxes are reported on form 941 except: A) FICA-Medicare (employer and employee) B) State income taxes withheld from the employee paychecks(correct) C) Federal income taxes withheld from the employee paychecks D) FICA-Social Security (employer and employee)

9 For small businesses, when is Form 941 filed with the IRS? A) Weekly B) Quarterly(correct) C) Annually D) Monthly

10 Net Pay is equal to: A) Gross pay minus deductions for federal and state income taxes and unemployment t axes B) Gross pay minus federal and state income taxes, but not FICA taxes C) Gross pay plus deductions for FICA taxes and federal and state income taxes D) Gross pay minus deductions for FICA taxes and federal and state income taxes(cor rect) 1 The owner of a sole proprietorship files ________ attached to Form 1040 to repor t income and tax deductions for the business.

A) Form 1120 B) Schedule C(correct) C) Schedule D D) Schedule K

2 When preparing bids for customer jobs, you would print the following: A) Progress Billing Report B) Chart of Accounts and Vendor List C) Estimates(correct) D) General Journal and General Ledger

3 To record a payment by credit card, use the same process as recording a payment by: A) Check(correct) B) Cash C) All the above D) None of the above

4 In order to prepare year-end adjustments, you would provide your accountant a co py of your QuickBooks Company files using: A) Accountant's Copy (.QBX file)(correct) B) Year-End file (.QBY file) C) Backup file (.QBB file) D) Working file (.QBW file)

5 To plan for future business expansion, you may want to develop a(n) ________ in QuickBooks. A) Payroll Liabilities Report B) Net Worth Graph C)

Income Tax Preparation Report D) Budget Report(correct)

6 To record a write-off of an uncollectable accounts receivable in QuickBooks, you could do any of the following except: A) Make a journal entry to remove the customer's accounts receivable B) Select Edit and then delete the uncollectable customer invoice(correct) C) Use the Credit Memo window D) Use the Receive Payments window

7 Progress Invoicing is used when: A) A business undertakes a job that lasts a long period of time and needs to bill c ustomers as the job progresses(correct) B) A business purchases from an outside vendor and needs a longer period of time to pay the purchase invoice C) Customers have a bad credit rating D) Estimates are used

8 When doing business in multiple currencies, QuickBooks allows you to: A) Associate a currency with a vendor B) Specify the currencies to accept C) Associate a currency with a customer D) All the above(correct)

9 When saving reports as a file to a disk, QuickBooks permits you to select from a ll of the following file formats except: A) Spreadsheet file B) ASCII file C) Tab delimited file D) All the above(correct)

10 The Audit Trail feature permits you to track what type of changes made to QuickB ooks record? A) Additions B) Modifications C) Deletions D) All the above(correct)

1 All of the following tasks can be completed in the Vendors section of the Home p age except: A) Create Invoices(correct) B) Receive Inventory C) Purchase Orders D) Enter Bills

2 In QuickBooks, information about transactions is entered in onscreen forms that look like printed forms, such as: A) Check B) Invoice C) Purchase Order D) All the above(correct)

3 All of the following are one of the four main categories of transactions in Quic kBooks, except: A) Banking B) Items & Services(correct) C) Customers D) Employees

4 To add your name to a report to Identify your printout you would: A) You cannot add your name to a QuickBooks report B) Select Company Info from the Company menu and then enter your name in the Compan y Name field(correct) C) Select Modify Report, and then type your name in the Name field D) Type it in directly at the top of the report

5 From the Customer section of the Home page, all of the following transactions ca n be recorded except: A) Create Invoices B) Create Estimates C) Pay Bills(correct) D) Receive Payments

6 You can print checks: A) From the Write Checks window B) From the File menu, Print Forms C) From the Banking section of the Home Page D) All of the above(correct)

7 In the Company section of the Home page, you can: A) Pay bills B) Record deposits C) View the Chart of Accounts(correct) D) Enter employee information

8 The sequence of steps to save a backup copy is: A) File > Restore > Save B)

File > Backup > Save C) File > Portable Company File > Save D) File > Save Copy or Backup > Backup Copy > Finish(correct)

9 Which one of the following activities is not associated with the Employee sectio n of the Home page? A) Print Checks(correct) B) Pay Liabilities C) Process Payroll Forms D) Enter Time

10 The Home page in QuickBooks includes: A) Report generators B) Used only for infrequent tasks C) Flowcharts of transactions(correct) D) Items Lists

1 Only the _________ can add users with passwords and limit user access to selecte d areas. A) Accountant B) Owner or Owners C) QuickBooks Administrator(correct) D) Employees or Users

2 An example of an asset account is: A) Mortgage payable B) Sales Taxes Payable C) Inventory(correct) D) None of the above.

3 Income accounts in a company are used to track: A) Sales to customers and other revenue earned(correct) B) Costs that have expired or been consumed C) Cost of items sold to customers D) Purchases from vendors

4 What are assets? A) Net worth of a company B) Amounts paid to owners C) Resources that a company owns with future benefit(correct) D) Amounts owed to others and are future obligations

5 Accounts used for only one year are called: A) Temporary accounts(correct) B) Short-term assets or liabilities C) Supply accounts D) Estimate accounts

6 Each of the following is a permanent account, except: A) Land B) Owner Withdrawals(correct) C) Accounts Payable D) Owner's Equity

7 One way to display the account numbers in the Chart of Accounts is to select the following from the Menu Bar: A) Vendors > Preferences > Accounting

B) Banking > Preferences > Numbers(correct) C) Edit > Preferences > Accounting D) Company > Chart of Accounts > Numbers

8 Which of the following choices is not used to modify the chart of accounts? A) Deleting accounts with balances(correct) B) Adding new accounts C) Editing accounts D) Deleting unused accounts

9 Accounts can be categorized into the following groups, except into: A) QuickBooks accounts(correct) B) Balance Sheet accounts C) Profit & Loss accounts D) Non-posting accounts

10 To print the Statement of Cash Flows you would select: A) Banking Center > Financial & Budget B) Report Center > Company & Financial(correct) C) Company Center > Customers & Receivables D) Business Services Center > Company & Financial 1 The Check Register: A) Keeps track of the company purchase orders and vendors B) Is located directly on the Company Navigation Bar C) Records all transactions affecting the Checking account(correct) D) Lists all accounts and their account numbers

2 All of the following tasks may be completed in the Banking section of the Home p age except: A) Receive Items(correct) B) Write Checks C) Reconcile accounts D) Make deposits

3 Payments from customers are entered using the _________ section on the Home page . A) Company B) Vendor C) Customer(correct) D) Banking

4 In the Check Register, the term "split" indicates the payment is split between t wo or more: A) purchase orders B) invoices C) checks D) accounts(correct)

5 Which one of the following activities is associated with the Banking section of the Home Page? A) Receive payments B) Pay employees C) Write checks(correct) D) Pay bills

6 The one-step approach (Write Checks window) should not be used to pay the follow ing: A)

Sales taxes(correct) B) Expenses, such as rent, utilities, and insurance C) Bills for non-inventory items, such as office supplies D) Bills for services, such as accounting or legal services

7 Deposits other than customer payments are entered using the _________ section on the Home page. A) Company B) Vendor C) Customer D) Banking(correct)

8 When voiding a check: A) QuickBooks changes the amount deducted in the Check Register to zero(correct) B) It is better to Delete the check to erase all records of the transaction C) Select the Change Transaction button in the Checking window D) The voided check no longer appears in the Check Register

9 When reconciling a bank account, which of the following is not considered a timi ng difference (difference between the bank balance and the book balance)? A) Interest earned B) Deposits in transit C) Errors(correct) D) Unrecorded charges

10 One of the objectives of a bank reconciliation is: A) To update the bank's records B) Update accounting records with unrecorded items(correct) C) To record monthly adjusting entries D)

To update the chart of accounts

1 All of the following are ways that a customer can pay for goods or services exce pt: A) Credit card sales B) Cash sale C) Invoice sale(correct) D) Credit sale

2 When a customer pays with _________ at the time of sale, click the Create Sales Receipts icon. A) Cash B) Check C) Credit card D) All the above(correct)

3 The following types of reports are available from the Report Center > Customers and Receivables except: A) Job Profitability reports(correct) B) Accounts Receivable Aging reports C) Customer List reports D) Customer Balance reports

4 Under what circumstances is a progress invoice used in QuickBooks? A) When the job is completed B) QuickBooks does not support progressive invoicing C) When the customer is billed as the work progresses(correct) D) Always, all invoices are progressive.

5 Which one of the following activities is not associated with the Customer sectio n of the Home page? A) Finance Charges B) Purchase Orders(correct) C) Refunds and Credits D) Statements

6 Credit sales occur when a company provides goods and services to customers and i n exchange receives: A) a promise that the customer will pay later(correct) B) an invoice from the customer C) a certified check from he customer D) a note payable from the customer

7 Accounts Receivable Reports can be accessed from the: A) Enter Bills icon in the Vendor section of the Home Page B) Deposit icon in the Customer section of the Home Page C) Company Information icon on the File menu D) Report Center or Customer Center(correct)

8 When a credit sale is recorded on an invoice, QuickBooks records a: A) debit (increase) to cash B) credit (increase) to owner's contribution C) debit (increase) to accounts receivable(correct) D) credit (increase) to accounts payable

9 The Job Profitability Summary Report is accessed from the: A)

Vendor Center B) Report Center(correct) C) Employee Center D) Company Center

10 The steps to record a credit sale in QuickBooks are: A) Create Purchase Order, Receive Payment, Record Deposit B) Create Invoice, Receive Payment, Record Deposit(correct) C) Create Sales Receipt, receive Payment, Record Deposit D) None of the above 1 QuickBooks considers all of the following to be vendors except: A) Utility companies B) Suppliers of inventory and supplies C) Tax agencies such as the IRS D) None of the above(correct)

2 Which one of the following is not a vendor transaction? A) Order goods B) Receive inventory C) Make deposits(correct) D) Receive bills

3 The Enter Bills window is used to record which one of the following transactions ? A) Owner's investment B) Services received but not yet paid(correct) C) Items sold to customers D) Cash purchases of supplies

4 Which of the following activities and the QuickBooks window used to record it is ? A) Receive goods; Item List(correct) B) Order goods; Purchase Order C) Record inventory information; Item List D) Sell goods and bill customers; Invoice

5 Which one of the following activities is associated with the Vendor section of t he Home page? A) Items & Services B) Invoices C) Manage Sales Taxes(correct) D) None of the above

6 All the following are non-inventory items except: A) Cleaning services B) Items purchases for a specific customer job C) Items purchased and used by the company, such as office supplies D) Goods purchases for resale to customers(correct)

7 Recording a purchase of goods using QuickBooks involves all the following steps except: A) Create invoice order to bill customers for purchases(correct) B) Create purchase order to order items from vendor C) Receive item and record as inventory or non-inventory part D) Receive bill and record obligation to pay vendor later

8 QuickBooks tracks inventory using the: A)

Weighted-average method(correct) B) First-In-First-Out C) Last-In-Last-Out D) All the above

9 Which one of the following reports helps track past due bills and bills that are due shortly? A) Customer Aging Summary B) Accounts Payable Aging Summary(correct) C) Accounts Receivable Aging Summary D) Vendor Aging Report

10 The Physical Inventory Worksheet is used when: A) inventory items are physically placed in the warehouse B) the computer goes down C) taking a physical count of inventory on hand(correct) D) All the above

1 A company is not required to withhold payroll taxes for: A) Employees paid by the hour B) Salaried employees C) Out-of-state employees D) Subcontractors(correct)

2 A payment to a stockholder is recorded as: A) Employee paycheck B) Vendor payment C) Owner withdrawal(correct) D)

None of the above

3 To turn on QuickBooks time tracking feature, the following steps must be complet ed: A) Click Employees > Payroll > Time Tracking B) Click Edit > Preferences > Time and Expenses > Time Tracking(correct) C) Click Preferences > Reminders > Time Tracking D) Click Employees > Payroll and Employees > Time Tracking

4 New employees complete form ________ to indicate filing status and allowances. A) W-2 B) W-3 C) W-4(correct) D) 1099

5 In the Weekly Timesheet window you can record: A) Time billable to a specific vendor B) Time billable to a specific customer(correct) C) How many shipments of inventory items were received D) Number of purchase orders from each supplier

6 In addition to time worked on a specific job, QuickBooks can also track which of the following for billing to specific customer jobs? A) Items B) Expenses C) Mileage D) All the above(correct)

7 A company completes form ________ to summarize for the IRS, the amount of federa

l income tax, Social Security, and Medicare withheld from employee paychecks for the year. A) W-3 B) 940 C) 944(correct) D) None of the above

8 Which one of the following is not a payroll liability? A) Property taxes(correct) B) Unemployment taxes C) State income taxes withheld D) Federal income taxes withheld from employee paychecks

9 Subcontractor information is entered into QuickBooks using: A) Employee List B) Other Names List C) Item List D) Vendor List(correct)

10 QuickBooks permits you to track employee time in each of the following ways exce pt: A) QuickBooks Online Time Tracking B) Timesheet C) Paycheck(correct) D) Stopwatch 1 At the end of an accounting period, adjusting entries are made to: A) To ensure a profit B) Bring the accounts up to date(correct) C) Debit or credit the checking account

D) Prove that debits equal credits

2 Which one of the following is not a financial statement? A) Statement of Cash Flows B) Profit & Loss C) Trial Balance(correct) D) Balance Sheet

3 Accrued Revenues are: A) Revenues that have been earned, but not collected(correct) B) Payment received in advance of receiving the service C) Revenues that have been collected, but not yet earned D) Revenues that have been recorded

4 The financial accounting definition of depreciation is the: A) Loss of value of the asset over time B) Estimation of the physical wear of an asset C) Allocation of the asset's cost to periods used(correct) D) Recovery of the asset's cost through depreciation deductions

5 The tax definition of depreciation is the: A) Loss of value of the asset over time B) Estimation of the physical wear of an asset C) Allocation of the asset's cost over time D) Recovery of the asset's cost through depreciation deductions(correct)

6 Sales are recorded under cash basis accounting when: A)

The goods or services are provided regardless of whether the payment is collecte d from customers B) The costs are incurred to earn the revenue C) The cash is collected from customers(correct) D) The bookkeeper has time to record the transactions

7 Sales are recorded under accrual basis accounting when: A) The goods or services are provided regardless of whether the payment is collecte d from customers(correct) B) The costs are incurred to earn the revenue C) The actual cash is collected from customers D) The bookkeeper has time to record the transactions

8 The Balance Sheet lists: A) Assets, Revenues, and Owner's Equity B) Assets, Liabilities, and Owner's Equity(correct) C) Revenues, Expenses, and Net Income D) Revenues, Liabilities, and Net Income

9 Which one of the following classifications is not found on the Statement of Cash Flows? A) Cash Flows from Selling Activities(correct) B) Cash Flows from Financing Activities C) Cash Flows from Investing Activities D) Cash Flows from Operating Activities

10 Which of the following is ? A) Statement of Cash Flows is reported on a particular date B) The Income Statement is reported on a particular date C) The Balance Sheet is reported on a particular date(correct)

D) The Balance Sheet is reported for a specific time period 1 Which tax form would you select for a sole proprietorship? A) Form 1120 B) Form 1120S(correct) C) Form 1040 D) Form 1065

2 To create a new company data file in QuickBooks, use the: A) File Restore B) EasyStep Interview(correct) C) New Setup File D) Company Menu

3 When setting up a new company in QuickBooks, you can change the ________ later. A) Vendor List B) Chart of Accounts C) Customer List D) All of the above(correct)

4 When setting up an existing company in QuickBooks, you would enter a beginning b alance for all the following except: A) Income Statement accounts(correct) B) Balance Sheet accounts C) Vendors to whom you owe money D) Customers who owe you money

5 The QuickBooks Setup window provides a way to add: A)

Vendor information B) Customer information C) Banking information D) All the above(correct)

6 A company's legal name is used legal documents, such as: A) Advertising B) Sales C) Contracts(correct) D) Marketing

7 Which types of accounts appear on the balance sheet? A) All accounts B) Cash Flow accounts C) Income, Expense, Liability accounts D) Assets, Liabilities, and Owner's Equity accounts(correct)

8 Accumulated Depreciation-Computer would be defined in QuickBooks as a _______ an d a sub-account of ____________. A) Owner's Equity; Computer Cost B) Fixed Asset; Computer(correct) C) Fixed Asset; Accumulated Depreciation D) Expense; Depreciation Computer

9 The Vendor List contains information about: A) The credit rating of the vendors B) The quantity of non-inventory parts on hand C) Vendors addresses, contacts, and phone numbers(correct) D) Customer addresses, contacts, and phone numbers

10 The Customer List contains information about which of the following: A) Inventory items B) Customer addresses, contacts, and phone numbers(correct) C) Non-inventory items D) Credit rating of customers 1 Deposits can be recorded using the Deposits icon or directly in the ___________. A) Bank Reconciliation B) General Ledger C) Chart of Accounts D) Check Register(correct)

2 Cash purchases are recorded using the _________ window. A) Write Checks(correct) B) Pay Bills C) Chart of Accounts D) Receive Items

3 The steps to record credit purchases are: A) Receive Items > Write Checks B) Write Checks > Print Check C) Enter Bills > Pay Bill > Print Check(correct) D) Create Purchase Order > Print Check

4 Memorized transactions are used to record: A) Recurring transactions(correct) B) Only cash payments

C) Non-recurring transactions D) Only credit payments

5 An example of memorized transaction is: A) Purchase of a building B) None of the above C) Monthly Rent payment(correct) D) Weekly Sales receipts

6 When bills are paid, QuickBooks reduces the __________ balance. A) Undeposited Funds B) Accounts Payable(correct) C) Accounts Receivable D) Sales

7 In the Create Invoices window, the _______ button is used to select costs billab le to a particular customer. A) Select All B) Discount Info C) Item/Expense D) Time/Costs(correct)

8 When a customer payment is received, QuickBooks reduces the __________ balance. A) Undeposited Funds B) Sales C) Accounts Receivable(correct) D) Accounts Payable

9 All of the following are examples of adjusting entries made at the end of an acc ounting period except: A) Recording depreciation expense for a computer for the year B) Recording a cash sale(correct) C) Recording the amount of unused supplies on hand at year-end D) Recording depreciation expense for equipment for the year

10 Fixed assets may be added to the Fixed Assets List using the Enter Bills window or: A) By making a general journal entry B) In the Chart of Accounts C) By using Item List > Item > New D) By using Lists > Fixed Asset Item List(correct) 1 Which type of corporation uses the Form 1065 and Schedule K-1? A) Sole Proprietorship B) Partnership(correct) C) C Corporation D) S Corporation

2 When creating a QuickBooks file for an existing company, any opening balance ent ered in customer accounts receivable is automatically offset by an entry in the: A) Uncategorized Expense account B) Uncategorized Income account(correct) C) Opening Balance Equity account D) Capital Stock account

3 When creating a QuickBooks file for an existing company, any opening balance ent ered in vendor accounts payable is automatically offset by an entry in the: A) Uncategorized Expense account(correct) B)

Uncategorized Income account C) Opening Balance Equity account D) Capital Stock account

4 When setting up an existing company in QuickBooks, an opening adjustment transfe rs balance in the Opening Balance Equity account to the: A) Uncategorized Expense account B) Uncategorized Income account C) Capital Stock account(correct) D) None of the above

5 In QuickBooks, which two accounts are needed when recording the purchase of equi pment that will last for more than one accounting period? A) Accumulated Depreciation Equipment; Equipment Expense B) Equipment Expense; Equipment Cost C) Supplies on Hand; Equipment Expense D) Equipment Cost; Accumulated Depreciation Equipment(correct)

6 Sales Tax Payable is recorded in which type account? A) Income B) Expense C) Liability(correct) D) Owner's Equity

7 Wholesale customers: A) Pay sales tax B) Pay no sales tax(correct) C) Pay a manufacturing tax D) Pay sales tax on labor only

8 When recording the sale of a product, which account is increased? A) Cost of Goods Sold(correct) B) Inventory C) Notes Payable D) Accounts Payable

9 Sales tax rate information is entered in the _________ window. A) Employee List B) Customer List C) Vendor List D) Item List(correct)

10 When recording the receipt of an item and the quantity received differs from the quantity ordered: A) Change the quantity using the Enter Bills window B) Change the quantity on the Create Items Receipts window(correct) C) Wait until all of the items are received to record them D) Change the quantity on the Purchase Order 1 A loan that is to be paid within one year is classified as a: A) Long-term Liability B) Current Asset C) Other Current Liability(correct) D) None of the above

2 QuickBooks offers all of the following payroll services except: A) QuickBooks Basic Payroll Service B) QuickBooks Enhanced Payroll Service

C) QuickBooks Assisted Payroll Service D) QuickBooks Manual Payroll Service(correct)

3 To enable QuickBooks payroll for The Paint Palette: A) Click Edit > Preferences > Payroll and Employees > Company Preferences(correct) B) Click Vendors > Preferences > Payroll and Employees > Company Preferences C) Click Employees > Preferences > Payroll and Employees > Company Preferences D) Click Banking > Preferences > Payroll and Employees > Company Preferences

4 The employer must match which one of the following taxes paid by an employee? A) State Income B) Medicare(correct) C) Federal Income D) Federal Unemployment

5 Which one of the following items is not needed when calculating employee net pay ? A) Extra Withholdings B) Federal Unemployment Withholding C) Filing Status(correct) D) Number of Allowances

6 The steps for creating paychecks using QuickBooks are: A) Review/Create Paychecks, Enter Payroll Information, Print Paychecks B) Enter Payroll Information, Review/Create Paychecks, Print/Distribute Paychecks(c orrect) C) Review Paychecks, Enter Payroll Information, Distribute Paychecks D) None of the above

7 All of the following are payroll liabilities owed to outside agencies except: A) Net Pay(correct) B) Federal Income taxes C) State Income taxes D) Unemployment taxes

8 The following taxes are reported on form 941 except: A) FICA-Medicare (employer and employee) B) State income taxes withheld from the employee paychecks(correct) C) Federal income taxes withheld from the employee paychecks D) FICA-Social Security (employer and employee)

9 For small businesses, when is Form 941 filed with the IRS? A) Weekly B) Quarterly(correct) C) Annually D) Monthly

10 Net Pay is equal to: A) Gross pay minus deductions for federal and state income taxes and unemployment t axes B) Gross pay minus federal and state income taxes, but not FICA taxes C) Gross pay plus deductions for FICA taxes and federal and state income taxes D) Gross pay minus deductions for FICA taxes and federal and state income taxes(cor rect) 1 The owner of a sole proprietorship files ________ attached to Form 1040 to repor t income and tax deductions for the business. A) Form 1120 B)

Schedule C(correct) C) Schedule D D) Schedule K

2 When preparing bids for customer jobs, you would print the following: A) Progress Billing Report B) Chart of Accounts and Vendor List C) Estimates(correct) D) General Journal and General Ledger

3 To record a payment by credit card, use the same process as recording a payment by: A) Check(correct) B) Cash C) All the above D) None of the above

4 In order to prepare year-end adjustments, you would provide your accountant a co py of your QuickBooks Company files using: A) Accountant's Copy (.QBX file)(correct) B) Year-End file (.QBY file) C) Backup file (.QBB file) D) Working file (.QBW file)

5 To plan for future business expansion, you may want to develop a(n) ________ in QuickBooks. A) Payroll Liabilities Report B) Net Worth Graph C) Income Tax Preparation Report D) Budget Report(correct)

6 To record a write-off of an uncollectable accounts receivable in QuickBooks, you could do any of the following except: A) Make a journal entry to remove the customer's accounts receivable B) Select Edit and then delete the uncollectable customer invoice(correct) C) Use the Credit Memo window D) Use the Receive Payments window

7 Progress Invoicing is used when: A) A business undertakes a job that lasts a long period of time and needs to bill c ustomers as the job progresses(correct) B) A business purchases from an outside vendor and needs a longer period of time to pay the purchase invoice C) Customers have a bad credit rating D) Estimates are used

8 When doing business in multiple currencies, QuickBooks allows you to: A) Associate a currency with a vendor B) Specify the currencies to accept C) Associate a currency with a customer D) All the above(correct)

9 When saving reports as a file to a disk, QuickBooks permits you to select from a ll of the following file formats except: A) Spreadsheet file B) ASCII file C) Tab delimited file D) All the above(correct)

10

The Audit Trail feature permits you to track what type of changes made to QuickB ooks record? A) Additions B) Modifications C) Deletions D) All the above(correct)

1 QuickBooks is used to maintain business accounting records for t he following purpose(s): A)

Keep records of transactions with customers, ven

B)

Keep track of supplies, materials, and inventory

C)

Prepare accurate payroll to keep employees happy

dors, and employees. purchased from vendors. . D) Use financial records to prepare tax returns and financial reports and to make business decisions. E) All of the above.(correct) 2

To verify the name of the open company, look at: A) the menu bar B) the title bar(correct) C) the icon bar D) QuickBooks Navigator E) None of the above

3 ware are:

The four different ways to navigate QuickBooks 2003 soft A)

Menu Bar, Icon Bar, Shortcut List, Navigators.(c

orrect)

4 unctional areas:

B) Mouse, Cursor Keys, Function Keys. C) Click, Drag, Drop. D) Windows, Icons, Text Boxes. E) None of the above. The Navigation Bar is divided into the following major f

A) Customers, Vendors, Employees. B) Customers, Vendors, Banking. C) Customers, Vendors, Employees, Banking(correct) D) Transactions, Tools, Reports, Info & Support. E) Business Services, Reports, Info & Support 5 Tasks related to Customers that are listed on the Naviga tor Bar and shown as Icons in the Customer Navigator are: A) Transfer Funds. B) Enter Bills. C) Invoices(correct) D) All of the above.

6 mpany is called:

E) Only A and C above. A list of all the accounts and accounts numbers for a co

A) B) C) D) E) 7

Trial Balance Chart of Accountsv(correct) Journal Financial Statements Accounts Receivable

The File drop-down menu lists the following tasks: A) Chart of Accounts, Item List, Vendor List. B) Company Information, Change Your Password. C) Back Up, Restore, Print, Exit.(correct) D) All of the above. E) None of the above.

8

QuickBooks Navigators A) are icons shown in a row beneath the menu bar B) appears above the menu bar C) appear at the bottom of the screen D) are frequently used windows that provide fast ac cess to areas of QuickBooks(correct) E) are the only way to navigate in QuickBooks 9 s Navigators?

Deposits can be made in which of the following QuickBook A) B) C) D) E)

10

Customers Company Banking Reports Both A and C.(correct)

The Back Up task is used to: A) Save your data automatically to the hard drive a

s you work. B)

Provide an audit trail for all your transactions

. C) Create a printout of your work D) Create a copy of your work to be restored in cas e your data is lost or you need it on another computer.(correct) E) Use up as many diskettes as possible. 1

Accounts can be categorized into the following groups: A) Balance Sheet, Profit and Loss, Non-Posting.(cor

rect) B) C) D) E)

Balance Balance Assets, None of

Sheet, Profit and Loss. Sheet, Profit and Loss, Owner s Equity. Liabilities, Owner s Equity. the above.