Accounting for Entrepreneurs
Textbook Exam Questions
Course Introduction
Accounting for Entrepreneurs is designed to equip aspiring and current business owners with essential accounting knowledge and practical financial skills tailored to the dynamic needs of start-ups and small enterprises. The course covers foundational accounting concepts, financial statement analysis, budgeting, cash flow management, and compliance with regulatory requirements. Emphasis is placed on real-world applications such as evaluating business performance, managing resources, and making informed financial decisions. Through case studies and hands-on exercises, students learn how to use accounting information to drive strategic growth and sustainability for their entrepreneurial ventures.
Recommended Textbook
Computer Accounting with QuickBooks 2014 16th Edition by Donna Kay
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12 Chapters
332 Verified Questions
332 Flashcards
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Page 2
Chapter 1: Introduction to PFP
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Sample Questions
Q1) Which type of QuickBooks data file allows you to enter data and transactions?
A).QBM
B).QBB
C).QBX
D).QBW
Answer: D
Q2) The Home page in QuickBooks consists of all of the following sections except:
A)Employee
B)Lists
C)Customer
D)Vendor
Answer: B
Q3) Which icon is used to add a document on your computer into QuickBooks?
A)Docs icon
B)Customer icon
C)Vendor icon
D)All of these
Answer: A
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3
Chapter 2: Time Value of Money
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Sample Questions
Q1) Which of the following is not an income account?
A)Revenue
B)Interest Revenue
C)Rent Expense
D)Gain on sale
Answer: C
Q2) To Re-sort the Chart of Accounts,first display the Chart of Accounts window,then:
A)Click on the Company heading bar
B)Click Account > Re-sort List
C)Click File > Sort
D)Right click Sort by Name
Answer: B
Q3) Which QuickBooks version is designed for small businesses that have industry specific needs?
A)QuickBooks Pro
B)QuickBooks Premier
C)QuickBooks Accountant
D)QuickBooks Enterprise Solutions
Answer: B
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Page 4
Chapter 3: Beginning the Planning Process
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Sample Questions
Q1) When recording a bill,QuickBooks automatically:
A)Records an expense (credit)and the obligation to pay later (debit)
B)Records an expense (debit)and the obligation to pay later (credit)
C)Reduces the liability (debit)and the checking account (credit)
D)Reduces the liability (credit)and the checking account (debit)
Answer: B
Q2) According to your text,the best approach to keep track of petty cash is:
A)Don't use it,use credit only
B)Deposit the full amount of petty cash,then write a check for Petty Cash
C)Keep cash on hand off the books
D)None of these
Answer: B
Q3) How would you indicate that a payment is split between 2 or more accounts?
A)Use the notation "split" in your checking account
B)Skip it;it will be done automatically in QuickBooks
C)Note on your invoices only
D)None of these
Answer: A
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5
Chapter 4: Household Finance
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Sample Questions
Q1) When a credit sale is recorded on an invoice,QuickBooks records:
A)An increase to Sales and a decrease to Accounts Receivable
B)An increase to Sales and an increase to Accounts Payable
C)An increase to Sales and an increase to Accounts Receivable
D)A decrease to Sales and a decrease to Accounts Payable
Q2) When recording a payment from a customer,if the customer does not send the full amount:
A)Record the full amount as paid and make a note in the To Do List to follow up with the customer regarding the remainder of the payment
B)You can record the partial payment but must leave the funds in the Undeposited Funds account until receiving the full payment
C)You must wait until the customer pays the full amount to record the payment
D)Enter the amount received in the Amount field in the Customer Payment window
Q3) A Reminder Statement provides the following information,except:
A)Purchase Order details
B)Customer's previous account balance
C)Payments received from the customer
D)Customer's ending balance
Q4) Name 3 (three)reasons why a job for a customer might be "pending".
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Chapter 5: Financial Statements Analysis
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Sample Questions
Q1) The Open Purchase Orders Report gives information about:
A)Purchase Orders for items ordered but not yet received.
B)All Purchase Orders.
C)Purchase Orders from domestic companies only.
D)Purchase Orders from foreign companies only.
Q2) The Inventory Stock Status by Item report is used when:
A)Vendors offer a purchase discount on inventory items
B)A list is needed of the quantity of inventory on hand and on order
C)The computers go down
D)Inventory items are physically placed in the warehouse
Q3) Which report summarizes accounts payable balances by the age of the account?
A)Accounts Payable Aging Detail
B)Accounts Payable Aging Summary
C)Purchases by Vendor Summary
D)Purchases by Item Summary
Q4) What are Inventory Items,Non-inventory items,and Services? Provide examples.
Q5) Briefly describe how sales tax payments flow from customers to government entities.
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Chapter 6: Cash Flow Planning
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Sample Questions
Q1) Each year employees are sent Form ______ to summarize tax withholdings for the year.
A)1099
B)W-2
C)W-3
D)W-4
Q2) Which of the following is typically used to track time for a single activity?
A)Employee Tracker
B)Stopwatch
C)Timesheet
D)QuickTime
Q3) The payment to a stockholder who is not an employee of the company is a:
A)Dividend
B)Paycheck
C)Vendor payment
D)None of these
Q4) Name 3 (three)types of payroll liabilities and indicate who funds each one.
Q5) Briefly describe what the "Time by Job" project reports tell management.
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Chapter 7: Debt
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Sample Questions
Q1) What is the difference between the cash basis and the accrual basis?
Q2) Examples of management reports for internal decision making include all of the following except:
A)1120S Report
B)Cash Budget
C)Cash Forecast
D)Accounts Receivable Aging Summary
Q3) Sales are recorded under cash basis accounting when:
A)The goods or services are provided regardless of whether the cash is collected from the customers
B)The bookkeeper has time to record the transactions
C)The cash is collected from the customers
D)The costs are incurred to earn the revenue
Q4) What is an asset?
A)What is left after the liabilities are satisfied
B)What a company owns
C)What a company owes
D)None of these
Q5) Briefly explain 2 (two)differences between depreciation on a tax return and on a financial statement.
9
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Chapter 8: Non Financial Investments
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Sample Questions
Q1) The Customer List contains information about:
A)The quantity of non-inventory parts on hand
B)The credit rating of the vendors
C)Vendors from whom the company buys products and services
D)Customer addresses,contacts and phone numbers
Q2) Sole Proprietorships use __________ as its Federal Tax ID number.
A)the owner's social security number
B)an EIN number
C)business operating license number
D)none of these
Q3) Which tax form would you select for a Corporation?
A)Form 1120
B)Form 1120S
C)Form 1065
D)Form 1040S
Q4) The Doing Business As name identifies a company for:
A)Bank accounts
B)Sales
C)Patents
D)None of these
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Chapter 9: Financial Investments
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Sample Questions
Q1) Adjusting entries are used to:
A)Close temporary accounts at year end
B)Close permanent accounts at year-end
C)Bring account balances up to date at year end
D)All of these
Q2) To create a memorized transaction for a utility bill,first enter the transaction in QuickBooks,then click:
A)Transactions menu > Memorize
B)Enter Bills icon in the Vendors section of the Home Page > Memorize
C)Vendors menu of Home Page > Memorize
D)Lists menu > Vendors > Reminders
Q3) To record the payment of bills received from vendors,use the:
A)Pay Bills > Write Checks
B)Write Checks > Pay Bills
C)Enter Bills > Print Checks
D)Enter Bills > Pay Bills > Print Checks
Q4) Briefly explain how to record an owner's investment in their company.
Q5) Briefly explain the difference between a permanent and a temporary account.
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Chapter 10: Risk Management
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Sample Questions
Q1) To customize your settings for preferences such as estimates,time tracking,sales orders,choose Desktop View > _______.
A)Company Preferences
B)My Preferences
C)Color Preferences
D)Scheme Options
Q2) If the supplies on hand at the end of January totaled $200 and the Supplies on Hand account before adjustment is $900,what would be the adjustment at month-end?
A)Reduce supplies on hand by $700;increase supplies expense by $700
B)Increase supplies on hand by $900;reduce supplies expense by $900
C)Reduce supplies on hand by $200;increase supplies expense by $200
D)Increase supplies on hand by $200;reduce supplies expense by $200
Q3) When setting up an existing company in QuickBooks,which of the following opening adjustments require journal entries?
A)When accounts payable opening balances create Uncategorized Expenses
B)When the Customer List is created
C)When payroll entries are added
D)None of these
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Chapter 11: Other Insurance
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Sample Questions
Q1) Which order are payroll tasks are typically completed?
A)Enter Time > Process Payroll Forms > Pay Employees > Pay Payroll Liabilities
B)Enter Time > Pay Employees > Pay Payroll Liabilities > Process Payroll Forms
C)Enter Time > Pay Payroll Liabilities > Process Payroll Forms > Pay Employees
D)Enter Time > Pay Payroll Liabilities > Pay Employees > Process Payroll Forms
Q2) All of the following are payroll tax liabilities owed to outside agencies except:
A)Federal Income Taxes
B)Unemployment Taxes
C)Net Pay
D)State Income Taxes
Q3) To enable payroll:
A)From the Company menu > Employees > Add Payroll
B)From the Employee menu > Start Payroll
C)From the Edit menu > Preferences > Payroll and Employees
D)None of these
Q4) List 3 (three)types for payroll liabilities and who is responsible for funding them.
Q5) Briefly describe how you manually process payroll forms.
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Chapter 12: Retirement Planning
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Sample Questions
Q1) QuickBooks can export reports to all of the following types for files except:
A)Numbers Document
B)Excel Document
C)Comma Delimited
D)Adobe PDF
Q2) A credit card payment received against/on an open invoice would be recorded as:
A)Using the Statements icon in the Customers section of the Home page
B)Using the Receive Payments icon in the Customers section of the Home page
C)Using the Credit Card icon in the Banking section of the Home page
D)None of these
Q3) The Direct Write-off Method for bad debts:
A)Removes a customer's uncollectible account receivable and records a bad debt expense and is recorded at the time a specific customer's account becomes uncollectible
B)Complies with GAAP
C)Estimates bad debt expense and establishes an allowance or reserve for uncollectible
D)None of these
Q4) Briefly explain the allowance method for accounting for bad debts.
Q5) Briefly explain the direct write off method for accounting for bad debts.
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