Computer accounting with quickbooks online a cloud based approach 1st edition yacht test bank

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Chapter 7 Test Bank: Analysis and Reports—End of Fourth Quarter and Year Computer Accounting with QuickBooks Online: A Cloud-Based Approach MULTIPLE CHOICE 1.

A period that the company uses for accounting purposes and preparing financial statements. a. First quarter. b. Fourth quarter. c. Fiscal year. d. End of year. e. None.

Answer: c (Fiscal year) Difficulty: Medium Page 231

2.

A software design that emphasizes separating the functions of a program into independent, interchangeable components is called: a. A user interface. b. The operating system. c. Web-delivered software. d. Modules. e. All Answer: d (Modules) Difficulty: Hard Page 248

3.

The accounts shown on the balance sheet are called: a. Permanent accounts. b. Temporary accounts. c. Transaction entries. d. Customized accounts. e. All. Answer: a (Permanent accounts) Difficulty: Medium Page 246

4.

Accounts that are closed as the end of the year are called: a. Permanent accounts. b. Temporary accounts. c. Balance sheet accounts. d. Trial balance accounts.

McGraw-Hill Education, Computer Accounting with QuickBooks Online: A Cloud-Based Approach Copyright © 2017 by McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGrawHill Education.

e. All. Answer: b (Temporary accounts) Difficulty: Medium Page: 246 5.

How do you access Company Settings? a. Plus sign for Settings menu. b. Magnifying-glass for search. c. Clock icon for Create menu. d. Gear icon/company name. e. All. Answer: d (Gear icon/company name) Difficulty: Easy Page: 253

6.

In QB Online, which of the following is a list? a. Subcontractors. b. Other names. c. Items. d. Chart of accounts. e. All. Answer: d (Chart of accounts) Difficulty: Hard Page: 236

7.

The purpose of an adjusting entry is a/an: a. Accurate Profit and Loss statement and Balance Sheet. b. Create menu (+) > Credit Card Credit. c. Gear > Account and Settings > Advanced. d. Gear > Manage Users. e. None.

Answer: a (Accurate Profit and Loss Statement and Balance Sheet) Difficulty: Medium Page 232

8.

The purpose of closing the books is to transfer: a. Drawing to Sales. b. Cost of Goods Sold to Accounts Payable.

McGraw-Hill Education, Computer Accounting with QuickBooks Online: A Cloud-Based Approach Copyright © 2017 by McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGrawHill Education.

c. Checking to Accounts Receivable. d. Net income to Retained Earnings e. None.

Answer: d (Net Income to Retailed Earnings) Difficulty: Medium Page 232 9.

Before completing work in Chapter 7, display the: a. Export the October 1 trial balance to Excel. b. Save the November 30 trial balance as a PDF file. c. October 1 through December 31 trial balance. d. All. e. None.

Answer: c (October 1 through December 31 trial balance) Difficulty: Easy Page: 233

10.

When does Cloud_Ware record adjusting entries? a. Every month. b. End of the quarter. c. Weekly. d. All. e. None.

Answer: b (End of the quarter) Difficulty: Medium Page: 234

TRUE/FALSE 11. Products and services can be used to represent different services or goods.

Answer: True 12. Adjusting entries are recorded so that the financial statements reflect revenues that are earned and expenses incurred.

Answer: True 13. When you close the books, income, cost of goods sold, and expense accounts are reset to zero amounts.

Answer: True.

14. Use the Settings menu (clock icon) to record journal entries.

McGraw-Hill Education, Computer Accounting with QuickBooks Online: A Cloud-Based Approach Copyright © 2017 by McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGrawHill Education.

Answer: False. (To record adjusting entries, use the create menu’s Journal Entry selection.)

15. To close the books, change the trial balance date to December 31 of the current year.

Answer: False (To close the books, change the Balance Sheet date to January 1 of the next year.)

16. To see the appropriate report balances, type the date range.

Answer: True 17. A common characteristic of an adjusting entry is that it will include one Profit and Loss statement account and one Balance Sheet account.

Answer: True 18. When the Balance Sheet’s date is changed to January 1 of the next year, the Retained Earnings account will show the previous year’s Net Income; and the Profit and Loss accounts will have zero balances.

Answer: True 19. Adjusting entries are recorded on the Invoice page.

Answer: False (Adjusting entries are recorded on the Journal Entry page.)

20. In Chapter 7, adjusting entries are dated December 31.

Answer: True

McGraw-Hill Education, Computer Accounting with QuickBooks Online: A Cloud-Based Approach Copyright © 2017 by McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGrawHill Education.