Computer Accounting with QuickBooks Online A Cloud Based Approach, 4th Edition Test Bank

Type:

Test Bank

Computer Accounting with Resource: QuickBooks Online A Cloud Based Approach Edition:

4th Edition

Author(s):

Carol Yacht Matthew Lowenkron

Student name:__________ 1) The Test Drive company is also known as: A) Craig’s Design and Landscaping Services.

B) The sample company.

C) Populated company data used in Chapter 1.

D) A way to practice using the QuickBooks Online (QBO) user interface.

E) All of the choices are correct.

2) The link between the user and the software is called the: A) Chart of Accounts.

B) General Ledger.

C) Navigation bar.

D) User interface.

E) All of the choices are correct.

3) To create transactions, use this icon: A) Apps.

B) Gear.

C) + New. D) Magnifying-glass.

E) All of the choices are correct.

4) To go to Account and settings, use this icon: A) Question mark.

B) Gear.

C) Plus.

D) Magnifying-glass.

E) All of the choices are correct.

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5) To see recent transactions, use this icon: A) Question mark.

B) Gear.

C) Plus.

D) Magnifying-glass.

E) None of the choices are correct.

6) QuickBooks Online updates: A) Automatically.

B) Never.

C) Every time you sign in and sign off.

D) At the end of the quarter.

E) All of the choices are correct.

7) When you sign out of the test drive, your data is: A) Saved.

B) Not saved.

C) Exports to Excel.

D) Saved as PDF file.

E) All of the choices are correct.

8) A complete list of a business’s accounts and their balances is called: A) Balance Sheet.

B) Income and expense accounts.

C) Trial Balance.

D) Chart of Accounts.

E) None of the choices are correct.

9) Accounts are used to classify transaction information for: A) Additional detail.

B) Trial Balance.

C) Reporting purposes.

D) Cost of Sales.

E) All of the choices are correct.

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10) This report lists transactions subtotaled by each account on the chart of accounts.

A) A/P Aging Summary.

B) Balance Sheet.

C) Profit and Loss.

D) Transaction Detail by Account.

E) All of the choices are correct.

11) A Chart of Accounts is a list of QBO’s reports. ⊚ true ⊚ false

12) Liability accounts usually start with the number 3000. ⊚ true ⊚ false

13) Subcategories for account classification are shown within the Type column on the Chart of

Accounts. ⊚ true ⊚ false

14) The balance sheet lists what you own (assets), what your debts are (liabilities), and what

you’ve invested (equity). ⊚ true ⊚ false

15) The Dashboard is the central place for getting an overview of the company. ⊚ true ⊚ false

16) Another name for the Profit and Loss report is the Income Statement. ⊚ true ⊚ false

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17) To access customers, vendors, chart of accounts, and reports, use Notifications. ⊚ true ⊚ false

18) Craig’s Design and Landscaping Services includes populated data such as accounts, balances,

customers, etc. ⊚ true ⊚ false

19) To sign into the test-drive, use a web browser. ⊚ true ⊚ false

20) Each time you start the test-drive, a new session begins. ⊚ true ⊚ false

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Answer Key Test name: Chapter 01 Test Bank 1) E 2) D 3) C 4) B 5) D 6) A 7) B 8) D 9) C 10) D 11) FALSE 12) FALSE 13) FALSE 14) TRUE 15) TRUE 16) TRUE 17) FALSE 18) TRUE 19) TRUE 20) TRUE

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Student name:__________ 1) Refers to software that is built, installed, delivered, and accessed entirely from remote web

servers.

A) Cloudware B) Software C) Hardware D) Google docs E) All of the answer choices are correct

2) The name of the company set up in Chapter 2 is: A) QuickBooks Online.

B) Cloudware.

C) Student Name Sales and Service.

D) Saas.

E) None of the answer choices are correct.

3) Another name for the Chart of Accounts is: A) Balance Sheet.

B) Trial Balance.

C) Account List.

D) Profit and Loss.

E) All of the answer choices are correct.

4) A list of all the changes that have been made to the company data and by whom.

A) Settings menu B) Navigation bar C) Business processes D) Audit log E) All of the answer choices are correct.

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5) To access QBO Plus, do this: A) Accept emailed invitation.

B) Create account.

C) Answer questions relevant to your company account.

D) Complete account and settings preferences.

E) All of the answer choices are correct.

6) Multi-factor authentication requires a: A) Vendor purchase.

B) Confirmation code.

C) Customer receipt.

D) Chart of Accounts.

E) None of the answer choices are correct.

7) This term refers to a business owner’s ability to regularly check fraud prevention procedures.

A) Business processes B) Generally accepted accounting principles C) Keyboard shortcuts D) Internal control E) All of the answer choices are correct

8) Each sign-in may be authenticated by: A) Manage users.

B) IP address.

C) Internal control.

D) Defaults.

E) None of the answer choices are correct.

9) Using a subscription model, this is a way of delivering applications over the Internet.

A) Software as a Service B) Windows computers C) Macintosh computers D) IP addresses E) All of the answer choices are correct

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10) When changes are made, this type of message may appear on QBO page(s): A) FYI B) Updates C) QBO blog and archive D) Create menu E) All of the answer choices are correct

11) Software as a service and cloud computing are alike. ⊚ true ⊚ false

12) When setting up your company, use a valid email address. ⊚ true ⊚ false

13) Each time you sign into QBO, the software is the most current version which means some of

the screens may change. ⊚ true ⊚ false

14) The Dashboard always includes updated messages. ⊚ true ⊚ false

15) QuickBooks Online automatically sets up default accounts. ⊚ true ⊚ false

16) View register accounts appear on the Profit & Loss report. ⊚ true ⊚ false

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17) The QBO Chart of Accounts automatically sets up the appropriate account numbers. ⊚ true ⊚ false

18) On the Chart of Accounts, the Run report accounts appear on the Balance Sheet. ⊚ true ⊚ false

19) Retained earnings is a View register account. ⊚ true ⊚ false

20) When batch edit is selected, the Chart of Accounts includes a number field so that numerous

account numbers can be added. ⊚ true ⊚ false

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Answer Key Test name: Chapter 02 Test Bank 1) A 2) C 3) C 4) D 5) E 6) B 7) D 8) B 9) A 10) B 11) TRUE 12) TRUE 13) TRUE 14) FALSE 15) TRUE 16) FALSE 17) FALSE 18) FALSE 19) FALSE 20) TRUE

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Student name:__________ 1) The month that the company, Student Name Sales and Service, starts is: A) October.

B) November.

C) December.

D) January.

E) None of the answer choices are correct.

2) In Chapter 3, to check that you are starting in the correct place in the data display the: A) Balance Sheet.

B) Trial Balance.

C) Transaction Register.

D) Account List.

E) None of the answer choices are correct.

3) The _________ shows deposits and checks.

A) Deposit activity B) Reports center C) Transaction register D) Expenses E) All of the answer choices are correct

4) After analyzing the transaction and typing the transaction date, complete this task: A) Display the Balance Sheet.

B) Select Run report.

C) Input transaction.

D) Refer to the account distribution.

E) All of the answer choices are correct.

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5) Use the _________ to record a journal entry.

A) Settings menu B) + New C) From the Gear icon, select vendors D) Select the Plus icon to show recent transactions E) All of the answer choices are correct

6) A transaction in which there are at least two parts—a debit and a credit—also called

distribution lines is a: A) Register.

B) Trial balance.

C) Journal entry.

D) Balance sheet.

E) None of the answer choices are correct.

7) What is the written evidence of a business transaction such as invoices, sales receipts, and

bank statements?

A) Journal entry B) Source documents C) Trial balance D) Activities E) None of the answer choices are correct

8) _________ are examples of checks, bills, and transfers.

A) Bank reconciliations B) Custom reports C) Specialized screens D) Profit and Loss statements E) All of the answer choices are correct

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9) In Chapter 3, when a check is issued, the account distribution is a: A) Debit Checking; credit an asset account.

B) Debit expense account; credit vendor.

C) Debit Accounts Receivable/Customer; credit Sales.

D) Debit expense account; credit Checking.

E) None of the answer choices are correct.

10) In Chapter 3, the account distribution for a sales receipt is: A) Debit Sales; credit Checking.

B) Debit Checking; credit Sales.

C) Debit Accounts Payable/vendor; credit Checking.

D) Debit Checking; credit Accounts Receivable.

E) None of the answer choices are correct.

11) When QBO updates, accounts may be added automatically to the chart of accounts. ⊚ true ⊚ false

12) Select Invoices for cash sales. ⊚ true ⊚ false

13) Sales receipts are included in the Customers list. ⊚ true ⊚ false

14) Funds can be transferred between Profit and Loss accounts but not Balance Sheet accounts. ⊚ true ⊚ false

15) To view your company's financial information, display transactions. ⊚ true ⊚ false

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16) You can look at the Journal to see all the transactions that were entered. ⊚ true ⊚ false

17) By default, each report shows data as of the current or today’s date. ⊚ true ⊚ false

18) To go beyond QBO’s customize report feature, save the recommended report as a PDF file. ⊚ true ⊚ false

19) The Profit and Loss statement shows the debit and credit balances of each account during a

period of time. ⊚ true ⊚ false

20) The Balance Sheet lists assets, liabilities, and equity. ⊚ true ⊚ false

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Answer Key Test name: Chapter 03 Test Bank 1) A 2) D 3) C 4) C 5) B 6) C 7) B 8) C 9) D 10) B 11) TRUE 12) FALSE 13) TRUE 14) FALSE 15) FALSE 16) TRUE 17) TRUE 18) FALSE 19) FALSE 20) TRUE

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Student name:__________ 1) The money a company owes to a supplier or vendor is called: A) Accounts payable.

B) Accounts receivable.

C) Sales.

D) Purchases.

E) None of the answer choices are correct.

2) The selection used to verify the checking account balance is: A) Run report.

B) Dashboard > Get things done.

C) View register.

D) Chart of accounts transactions.

E) None of the answer choices are correct.

3) The process of bringing the balance of the bank statement and balance of the checking

account into agreement is called: A) Accounts payable.

B) Accounts receivable.

C) Bank reconciliation.

D) Audit Log. E) All of the answer choices are correct.

4) When you open a company, the _________ appears by default.

A) Journal transactions.

B) Dashboard.

C) Transaction registers.

D) Account distributions.

E) All of the answer choices are correct.

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5) In QBO, an up-to-date record of inventory is maintained and tracked. This is called: A) Perpetual inventory.

B) Periodic inventory.

C) Sales and cost of goods sold.

D) Account payable.

E) None of the answer choices are correct.

6) A product that is purchased from vendors for sale to customers is called a/an: A) Account receivable.

B) Trial balance.

C) Activity transaction.

D) Inventory item.

E) All of the answer choices are correct.

7) When Student Name Sales and Service purchases and receives inventory, they are: A) Subtracted from inventory.

B) Added to inventory.

C) Added to customer accounts.

D) Subtracted from customer accounts.

E) All of the answer choices are correct.

8) A report that breaks the analysis into operating, investing, and financing activities is called: A) Trial Balance.

B) Profit and Loss.

C) Balance Sheet.

D) Statement of Cash Flows.

E) All of the answer choices are correct.

9) The account distribution for purchases of inventory on account is: A) Debit Checking and Merchandise Inventory; credit Accounts Receivable/customer.

B) Debit Merchandise Inventory and Accounts Receivable; credit Sales.

C) Debit Accounts Receivable/Customer; credit Accounts Payable/vendor.

D) Debit Merchandise Inventory; credit Accounts Payable/vendor.

E) None of the answer choices are correct.

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10) The account distribution for sales of inventory on account is: A) Debit Merchandise Inventory and Accounts Receivable; credit Cost of Goods Sold

and Sales.

B) Debit Accounts Receivable/customer and Cost of Goods Sold; credit Sales and Merchandise Inventory.

C) Debit Accounts Payable/vendor and Cost of Goods Sold; credit Accounts Receivable/customer and Checking.

D) None of the answer choices are correct.

11) The Balance Sheet shows the accounting equation. ⊚ true ⊚ false

12) Bills are entered to record an expense or purchase of assets. ⊚ true ⊚ false

13) Use products and services to enter consistent transaction descriptions, prices, and rates. ⊚ true ⊚ false

14) In Chapter 4, checking Expense and Sales transactions and the October 30th trial balance is

the starting point for your data. ⊚ true ⊚ false

15) Student Name Sales and Service receives bank statements at the end of the quarter. ⊚ true ⊚ false

16) Using the Bank Statement, go to the Journal to reconcile checking account activity. ⊚ true ⊚ false

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17) Before you reconcile, the check register balance does not include the bank’s service charge. ⊚ true ⊚ false

18) QBO organizes and monitors accounts payable. ⊚ true ⊚ false

19) When you enter bills for a vendor, Accounts Payable and the vendor are debited. ⊚ true ⊚ false

20) To display graphical data, select Reports > Audit Log. ⊚ true ⊚ false

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Answer Key Test name: Chapter 04 Test Bank 1) A 2) C 3) C 4) B 5) A 6) D 7) B 8) D 9) D 10) B 11) TRUE 12) TRUE 13) TRUE 14) TRUE 15) FALSE 16) FALSE 17) TRUE 18) TRUE 19) FALSE 20) FALSE

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Student name:__________ 1) This term identifies what customers owe your business: A) Suppliers.

B) Vendors.

C) Accounts payable.

D) Accounts receivable.

E) None of the answer choices are correct.

2) _________ are credit transactions from customers.

A) Transfer transactions B) Accounts receivable transactions C) Accounts payable transactions D) Chart of accounts transactions E) None of the answer choices are correct

3) Refunds for merchandise that is returned by a customer are called: A) Credit memos.

B) Purchases on account.

C) Sales on accounts.

D) Accounts payable transactions.

E) All of the answer choices are correct.

4) Another term for Account and Settings selections is: A) Trial Balance.

B) Sales.

C) Preferences.

D) Subscriber.

E) All of the answer choices are correct.

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5) On the Customers page, you can: A) View and update the customer list.

B) Add notes to a customer record.

C) Search and sort customers.

D) Create transactions or track transactions.

E) All of the answer choices are correct.

6) To start Chapter 5, what data should you check?

A) Data metrics and visualization B) Bank accounts C) Expense and sales transactions D) Trial Balance E) All of the answer choices are correct

7) To check that Customers is the preferred label, use this Account and settings selection: A) Expenses.

B) Advanced.

C) Vendors.

D) Sales.

E) All of the answer choices are correct.

8) To view the customers added in Chapter 5, go to: A) The trial balance.

B) Reports > Customer Contact List.

C) Accounting > Chart of Accounts.

D) Reports > Recommended Reports > Search for Journal.

E) None of the answer choices are correct.

9) To edit a customer record, use: A) Reconcile.

B) The bank register.

C) Accounts receivable reports.

D) Drill down.

E) All of the answer choices are correct.

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10) Use this page to record customer transactions on account: A) Invoice.

B) Bill.

C) Journal Entry.

D) Transfer E) None of the answer choices are correct.

11) A credit memo affects the customer’s balance. ⊚ true ⊚ false

12) Registers are a useful way to look at transactions and amounts associated with a particular

account. ⊚ true ⊚ false

13) To make sure your customer transactions and refunds have been recorded, display the

Accounts Payable A/P register. ⊚ true ⊚ false

14) Once you issue an invoice to a customer, that customer owes your business money. ⊚ true ⊚ false

15) A Bank Statement shows the checks and deposits that cleared the bank. ⊚ true ⊚ false

16) On invoices and other sales transactions, you select products or services which are associated

with income accounts. ⊚ true ⊚ false

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17) Distribution lines on a journal entry are also shown on the Statement of Cash Flows. ⊚ true ⊚ false

18) The A/R Register has the same balance as Account 201 Accounts Payable. ⊚ true ⊚ false

19) If all customer payments have been received, the A/R Aging Summary has a zero balance. ⊚ true ⊚ false

20) The Inventory Valuation Summary has the same balance as Account 101 Checking. ⊚ true ⊚ false

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Answer Key Test name: Chapter 05 Test Bank 1) D 2) B 3) A 4) C 5) E 6) E 7) B 8) B 9) D 10) A 11) TRUE 12) TRUE 13) FALSE 14) TRUE 15) TRUE 16) TRUE 17) FALSE 18) FALSE 19) TRUE 20) FALSE

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Student name:__________ 1) Before completing the work within Chapter 6, check your data with the following report: A) December 1 Trial Balance.

B) December 31 Trial Balance.

C) November 30 P&L. D) November 1 Balance Sheet.

E) None of the answer choices are correct.

2) The action of sending money in payment of a bill is called a/an: A) Activity.

B) Transaction.

C) Remittance.

D) General journal entry.

E) None of the answer choices are correct.

3) After analyzing each source document, record the appropriate _________ A) Transfer.

B) Transaction.

C) Trial balance.

D) Customized report.

E) None of the answer choices are correct.

4) Receiving payment from a customer is recorded in the following way: A) Customers page > select customer > Receive Payment.

B) Create menu + New > Receive Payment.

C) Receive payment from the Customers page or Create menu.

D) Gear icon > Account and Settings > Advanced.

E) None of the answer choices are correct.

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5) Who sends verification of credit card receipts?

A) Customers B) Vendors C) Clients D) Bank E) None of the answer choices are correct

6) In QBO, how are Credit Card Sales identified?

A) QBO defaults to Credit Card Sales B) As a vendor C) As a customer D) None E) All of the answer choices are correct

7) For Credit Card Sales, what selections are made?

A) Create menu + New > Sales Receipts.

B) Create menu + New > Credit Card Credit.

C) Gear > Account and Settings > Advanced.

D) Gear > Manage Users.

E) None of the answer choices are correct.

8) When one Network product is sold, the rate is: A) $30.00.

B) $50.00.

C) $150.00.

D) $300.00 E) None of the answer choices are correct.

9) One computer is sold for: A) $500.00.

B) $1,000.00.

C) $900.00.

D) $450.00.

E) None of the answer choices are correct.

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10) Identify the vendor who purchases Web servers.

A) eBiz. B) Any Time Deployment.

C) CloudZ Channel.

D) Computers 2 You. E) None of the answer choices are correct.

11) Sales receipts and remittances work together. ⊚ true ⊚ false

12) The vendor Conference Call purchases Webinars. ⊚ true ⊚ false

13) In Chapter 6, one of the customers is the Law Office of Williamson, Gallagher, and Katz. ⊚ true ⊚ false

14) The Transaction Register in Chapter 6 lists deposits. ⊚ true ⊚ false

15) On the Sales Receipt page, select the appropriate credit card name. ⊚ true ⊚ false

16) To see the Sales Tax Liability Report’s total, type the date range. ⊚ true ⊚ false

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17) The documents shown trigger transaction analysis for vendors, inventory, customers, cash,

and credit card sales. ⊚ true ⊚ false

18) When displaying the journal, it doesn’t matter if the current year is shown for each

transaction. ⊚ true ⊚ false

19) At the end of Chapter 6, the Transaction Detail by Account report is displayed from

December 2 to December 31. ⊚ true ⊚ false

20) The Customer Balance Summary shows the same balance as Account 105 Accounts

Receivable (A/R). ⊚ true ⊚ false

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Answer Key Test name: Chapter 06 Test Bank 1) A 2) C 3) B 4) C 5) D 6) C 7) A 8) B 9) B 10) C 11) FALSE 12) TRUE 13) TRUE 14) FALSE 15) TRUE 16) TRUE 17) TRUE 18) FALSE 19) TRUE 20) TRUE

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Student name:__________ 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 of the answer choices are correct.

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 of the answer choices are correct.

3) The accounts shown on the balance sheet are called: A) Permanent accounts.

B) Temporary accounts.

C) Transaction entries.

D) Customized accounts.

E) All of the answer choices are correct.

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.

E) All of the answer choices are correct.

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5) What checks are shown on Chapter 7’s transaction register?

A) B) C) D) E)

Expenses Sales Vendor payments Sales Tax Payments All of the answer choices are correct

6) A list report can be customized and exported using: A) The balance sheet.

B) A template.

C) Some apps.

D) Excel.

E) All of the answer choices are correct.

7) The purpose of an adjusting entry is a/an: A) Accurate Profit and Loss Statement and Balance Sheet.

B) Create menu (+ New) > Credit Card Credit.

C) Gear > Account and Settings > Advanced.

D) Gear > Manage Users.

E) None of the answer choices are correct.

8) The purpose of closing the books is to transfer: A) Drawing to Sales.

B) Cost of Goods Sold to Accounts Payable.

C) Checking to Accounts Receivable.

D) Net income to Retained Earnings.

E) None of the answer choices are correct.

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9) To edit an incorrect adjusting entry, do this: A) Export the October 1 trial balance to Excel, then save it as a PDF file.

B) Go to Reports > display the Balance Sheet > type the date range > drill down on the

incorrect account balance.

C) Display the December 31 Journal > drill down on the transaction > correct entry > Save and Close.

D) All of the answer choices are correct.

E) None of the answer choices are correct.

10) When does Student Name Sales and Service record adjusting entries?

A) Every month B) End of the quarter C) Weekly D) All of the answer choices are correct E) None of the answer choices are correct

11) On the Balance Sheet, the previous year’s Net Income amount is also the company’s profit. ⊚ true ⊚ false

12) Adjusting entries are recorded so that the financial statements reflect revenues that are earned

and expenses incurred. ⊚ true ⊚ false

13) When you close the books, income, cost of goods sold, and expense accounts are reset to

zero amounts. ⊚ true ⊚ false

14) To record adjusting entries, select Reports. ⊚ true ⊚ false

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

16) To see the appropriate report balances, type the date range. ⊚ true ⊚ false

17) A common characteristic of an adjusting entry is that it will include one Profit and Loss

Statement account and one Balance Sheet account. ⊚ true ⊚ false

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. ⊚ true ⊚ false

19) Excel files can be used to save reports as PDF files. ⊚ true ⊚ false

20) In Chapter 7, adjusting entries are dated December 31. ⊚ true ⊚ false

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Answer Key Test name: Chapter 07 Test Bank 1) C 2) D 3) A 4) B 5) D 6) D 7) A 8) D 9) C 10) B 11) TRUE 12) TRUE 13) TRUE 14) FALSE 15) FALSE 16) TRUE 17) TRUE 18) TRUE 19) TRUE 20) TRUE

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Student name:__________ 1) To record vendor payments, use these steps: A) + New > Credit Memo.

B) Vendors page > Make payment.

C) Gear > Manage Users.

D) Magnifying-glass icon > go to Recent Transactions.

E) None of the answer choices are correct.

2) Use this source document for issuing checks: A) Invoice.

B) Sales Receipts.

C) Credit card receipts.

D) Transaction register.

E) None of the answer choices are correct.

3) When recording Sales Receipts, use these steps: A) + New > Invoice.

B) + New > Receive Payment.

C) + New > Bill.

D) + New > Transfer E) None of the answer choices are correct.

4) When recording customer payments, use these steps: A) Customers > Vendors > Make payment.

B) + New > Sales Receipts.

C) Gear > Manage Users.

D) Customers > Receive payment.

E) None of the answer choices are correct.

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5) Vendor purchases on account are recorded on this page: A) Journal entry.

B) Invoice.

C) Bill.

D) Sales Receipt.

E) None of the answer choices are correct.

6) Sales on account to customers are recorded on this page: A) Journal entry.

B) Invoice.

C) Bill.

D) Sales Receipt.

E) None of the answer choices are correct.

7) What type of entries does the Journal report show?

A) Check B) Sales Receipt C) Bill D) Invoice E) All of the answer choices are correct.

8) What is difference between a Sales Receipt and an Invoice?

A) Sales Receipts include cash sales and credit card sales; Invoices are used to record

customer sales that are paid for later.

B) Sales Receipts are used for customer sales on account; Invoices are used for cash sales and credit card sales.

C) Sales Receipts and Invoices use the same QB Online selection – Bills.

D) Sales Receipts and Invoices use the same selection as vendor payments on account – Pay Bills.

E) None of the answer choices are correct.

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9) What is the reason for NOT using the Journal Entry or Bank Deposit pages for recording

sales?

A) B) C) D) E)

The sales account shows income from the Accounts Payable account.

Bank deposits only reflect income from Accounts Receivable.

Best practice is to record sales as a Transfer entry.

A bank deposit or journal entry will not appear on sales reports.

None of the answer choices are correct.

10) What is the sequence of steps to complete bank reconciliation?

A) Accounting > Reports > Recommended Reports > Journal Entry.

B) Gear > Audit Log > Account and Settings.

C) Accounting > Chart of Accounts > 101 Checking > Reconcile.

D) All of the answer choices are correct.

E) None of the answer choices are correct.

11) All transactions occurred during January of the year after fourth-quarter transactions

recorded in previous chapters. ⊚ true ⊚ false

12) To edit an account, go to Recent Transactions and drill down. ⊚ true ⊚ false

13) Vendor terms are Net 60. ⊚ true ⊚ false

14) QB Online tracks Accounts Receivable (A/R) by entering a bill, then paying the bill. ⊚ true ⊚ false

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15) Do not delete a check if the check number has been used or if the check was printed. ⊚ true ⊚ false

16) In QuickBooks you can void a check if it was lost in the mail or never cashed. ⊚ true ⊚ false

17) In QBO, tracking inventory is the default. ⊚ true ⊚ false

18) When inventory is purchased, Account 115 Merchandise Inventory is decreased. ⊚ true ⊚ false

19) The Accounts Payable Aging report shows the status of what you owe to vendors. ⊚ true ⊚ false

20) If the debits do not equal the credits, QBO will allow you to post the transaction. ⊚ true ⊚ false

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Answer Key Test name: Chapter 08 Test Bank 1) B 2) D 3) E 4) D 5) C 6) B 7) E 8) A 9) D 10) C 11) TRUE 12) TRUE 13) FALSE 14) FALSE 15) TRUE 16) TRUE 17) FALSE 18) FALSE 19) FALSE 20) FALSE

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Student name:__________ 1) The source documents shown in Chapter 9 include all of the following except: A) Memos.

B) Credit card sales.

C) Vendor purchases.

D) Common stock.

E) All of the answer choices are correct.

2) To make sure you are starting in the correct place in the data, display the: A) October 1 through December 31 Balance Sheet.

B) January 1 through January 31 Profit and Loss.

C) January 1 through January 31 Trial Balance.

D) Transaction register.

E) None of the answer choices are correct.

3) Student Name Sales and Service’s _________ includes an area for Credit Cards.

A) Bank Statement B) Trial Balance C) Profit and Loss Statement D) Statement of Cash Flows E) None of the answer choices are correct

4) When recording a credit card sale, select the following: A) Vendors.

B) Bill payments.

C) Type of credit card.

D) + New > Invoice.

E) None of the answer choices are correct.

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5) If you think an invoice needs to be changed, what report should you look at?

A) Balance Sheet B) Profit and Loss C) Statement of Cash Flows D) Audit Log E) All of the answer choices are correct

6) How can you check that the date and year used for entering transactions are correct?

A) Balance Sheet for February.

B) Display recent transactions.

C) Profit and Loss for January.

D) All of the answer choices are correct.

E) None of the answer choices are correct.

7) The balance in Account 101 Checking should be the same as the balance on the: A) Bank register.

B) Journal.

C) Transfer account.

D) None of the answer choices are correct.

E) All of the answer choices are correct.

8) Identify the report that summarizes the Chart of Accounts.

A) Trial Balance.

B) Summary reports such as A/R Aging.

C) Adjusting entry report.

D) Cash Flow forecast.

E) None of the answer choices are correct.

9) Which report shows you information on your income and expenses for a specific period?

A) Balance Sheet B) Comparative Budget report C) Money-in summary D) Profit and Loss E) None of the answer choices are correct

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10) If the Balance Sheet shows $75,000 in assets and $4,000 in liabilities, what is the company’s

equity?

A) B) C) D) E)

$71,000 $79,000 $81,000 $89,000 None of the answer choices are correct

11) To obtain information about your company’s liabilities, you should run the Profit and Loss

report. ⊚ true ⊚ false

12) Search for a QBO transaction by selecting + New. ⊚ true ⊚ false

13) Because QBO is in the cloud, you do not need to back up. ⊚ true ⊚ false

14) With an Internet connection, almost any browser can be used to work with QB Online. ⊚ true ⊚ false

15) For products sold for cash and credit cards used, link to Invoices. ⊚ true ⊚ false

16) For vendor payments, refer to the Memo source document. ⊚ true ⊚ false

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17) The sequence used to record entries is analyze source document, enter the date, and input

transaction. ⊚ true ⊚ false

18) The vendor used for the Loan Payable account is First Trust Bank. ⊚ true ⊚ false

19) You cannot drill down to transactions from the Recent Transactions links. ⊚ true ⊚ false

20) Student Name Sales and Service purchases Data storage from AmpleStore Inc. ⊚ true ⊚ false

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Answer Key Test name: Chapter 09 Test Bank 1) D 2) C 3) A 4) C 5) D 6) B 7) A 8) A 9) D 10) A 11) FALSE 12) FALSE 13) TRUE 14) TRUE 15) FALSE 16) TRUE 17) TRUE 18) TRUE 19) FALSE 20) TRUE

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Student name:__________ 1) In Chapter 10, use the _________ to reconcile Account 101 Checking.

A) Activity list B) Account and Settings C) Vendor purchases D) Bank statement E) None of the answer choices are correct

2) March 31 is the end of the: A) Fourth quarter.

B) Third quarter.

C) Second quarter.

D) First quarter.

E) None of the answer choices are correct.

3) The source documents in Chapter 10 include: A) Credit card sales.

B) Accounts payable transactions.

C) Accounts receivable transactions.

D) Checks.

E) All of the answer choices are correct.

4) At the end of March, adjustments for the following accounts are made except for: A) Rent expense.

B) Insurance expense.

C) Accumulated depreciation.

D) Checking account balance.

E) None of the answer choices are correct.

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5) What report do you run to display overdue bills?

A) Accounts Payable Aging B) Accounts Receivable Aging C) Open Bills D) Audit Log E) None of the answer choices are correct.

6) This report lists transactions subtotaled by each account on the chart of accounts: A) Statement of Cash Flows.

B) Balance Sheet.

C) Summary transaction report for a specific period.

D) Transaction Detail by Account.

E) None of the answer choices are correct.

7) This report breaks down every transaction during a period of time into debits and credits and

displays them chronologically: A) Customer balance summary.

B) Vendor balance summary.

C) Profit and Loss.

D) Journal.

E) All of the answer choices are correct.

8) This report summarizes key information such as quantity on hand, value, and average cost for

each item: A) A/R Aging Summary.

B) A/P Aging Summary.

C) Inventory Valuation Summary.

D) Adjusting entry report.

E) All of the answer choices are correct.

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9) Which report shows income, costs of goods sold, expenses, and net income for the three

months?

A) Profit and Loss by Month B) Balance Sheet’s percent of income C) Transaction Detail by Account D) Statement of Cash Flows E) None of the answer choices are correct

10) Which report shows unpaid invoices for the current period?

A) Balance Sheet B) A/P Summary C) A/R Summary D) Profit and Loss E) None of the answer choices are correct

11) On the Inventory Valuation Summary, the total asset value balance and Account 115

Merchandise Inventory balance are the same. ⊚ true ⊚ false

12) In Chapter 10 to calculate sales tax, you may need to click on the Based on location field. ⊚ true ⊚ false

13) Customers are people who purchase products and services from you. ⊚ true ⊚ false

14) Click on + New to add a transaction. ⊚ true ⊚ false

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15) QuickBooks Online cannot be accessed using a Mac computer. ⊚ true ⊚ false

16) When you sign in, QBO is up to date. ⊚ true ⊚ false

17) Sign out is included on the Gear lists. ⊚ true ⊚ false

18) At the end of Chapter 10, reports are exported to Excel. ⊚ true ⊚ false

19) The Sales overview includes income over time. ⊚ true ⊚ false

20) Both the Dashboard selection and the Navigation bar’s Expenses selection include the Chart

of Accounts. ⊚ true ⊚ false

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Answer Key Test name: Chapter 10 Test Bank 1) D 2) D 3) E 4) D 5) A 6) D 7) D 8) C 9) A 10) C 11) TRUE 12) TRUE 13) TRUE 14) TRUE 15) FALSE 16) TRUE 17) FALSE 18) TRUE 19) TRUE 20) FALSE

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Student name:__________ 1) Employee Information includes: A) Paycheck deductions.

B) Company bank account.

C) Quarterly state and federal tax filings.

D) Reports.

E) All of the answer choices are correct.

2) This information is available from your state or local tax agency.

A) State Unemployment Insurance Contribution Rate.

B) State Agency ID number.

C) Schedule for Tax Deposits.

D) Tax Payment information.

E) All of the answer choices are correct.

3) QBO includes _________ for paying taxes to federal and state agencies.

A) Internet links for filing payroll liabilities B) Monthly paychecks C) E-File D) None of the answer choices are correct E) All of the answer choices are correct

4) Form 940, Employee’s Annual Federal Unemployment shows: A) B) C) D) E)

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Payroll withholdings on each paycheck issued by the employer.

Unemployment taxes paid and due by the employer.

Assessment and surcharges.

Employer and employee federal income tax, Social Security, and Medicare.

None of the answer choices are correct.

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5) This form _________ shows a summary of the employer’s W-2 forms.

A) W-2, Wage and Tax Statement B) Form I-9, Employment Eligibility Verification C) W-4, Employee’s Withholding Certificate D) W-3, Transmittal of Wage and Tax Statements E) None

6) Student Name Sales and Service is located in this City and State: A) Los Angeles, California.

B) Milwaukee, Wisconsin.

C) Springfield, Illinois.

D) Tucson, Arizona.

E) None of the answer choices are correct.

7) Who is your payroll contact?

A) Student’s first and last name B) C) D) E)

Your professor Mr. and Mrs. John Smith Cindy Barber None of the answer choices are correct.

8) In Chapter 11, the name of the employee added is: A) Brice McClure.

B) Matt Lowe.

C) Student's first and last name.

D) None of the answer choices are correct.

E) All of the answer choices are correct.

9) In Chapter 11, the employee is paid: A) Weekly.

B) Semi-monthly.

C) Monthly.

D) Annually.

E) None of the answer choices are correct.

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10) In Chapter 11, the employee is paid with a/an: A) Electronic transfer to the bank.

B) Paper check.

C) In cash.

D) None of the answer choices are correct.

E) All of the answer choices are correct.

11) In Chapter 11, paychecks are issued on Monday. ⊚ true ⊚ false

12) Employees complete Form W-4. ⊚ true ⊚ false

13) Companies that owe a lot of payroll tax typically pay and file more frequently. ⊚ true ⊚ false

14) Employee withholdings that are collected within paychecks are filed by the employer. ⊚ true ⊚ false

15) It’s optional whether to submit federal tax deposit payments electronically. ⊚ true ⊚ false

16) The Core payroll app is free for 30 days. ⊚ true ⊚ false

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17) The most common default for paychecks is no deductions. ⊚ true ⊚ false

18) QBO automatically sets up default accounts for payroll liabilities and expenses. ⊚ true ⊚ false

19) Payroll liability accounts are classified as expenses. ⊚ true ⊚ false

20) In Chapter 11, Paycheck 1118 shows gross pay of $484.73. ⊚ true ⊚ false

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Answer Key Test name: Chapter 11 Test Bank 1) A 2) E 3) C 4) B 5) D 6) D 7) A 8) A 9) A 10) B 11) FALSE 12) TRUE 13) TRUE 14) TRUE 15) FALSE 16) TRUE 17) TRUE 18) TRUE 19) FALSE 20) FALSE

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Student name:__________ 1) The certification test is administered and paid to a/an: A) Online account.

B) Accounts payable account.

C) Third-party vendor.

D) Customer account.

E) None of the answer choices are correct.

2) To find the right apps for your business, search by: A) Name.

B) Keyword.

C) Job. D) Category.

E) All of the answer choices are correct.

3) QuickBooks updates include: A) Interface elements.

B) Accounting features.

C) User functions.

D) Specific company changes.

E) All of the answer choices are correct.

4) The cloud represents: A) Increased productivity.

B) Streamlined human resources.

C) Automated accounting.

D) Hassle-free security.

E) All of the answer choices are correct.

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5) Use your mobile device to: A) Enter transactions.

B) Record expenses.

C) Invoice customers.

D) Send reports anywhere.

E) All of the answer choices are correct.

6) The QBO Blog includes the following except: A) News and Thought Leadership.

B) What’s New in QBO. C) Accountant Advice and Customer Profiles.

D) Mobile Apps.

E) None of the answer choices are correct.

7) When using QBO, _________ are inevitable.

A) Updates B) Customized reports C) Templates D) Journal entries E) All of the answer choices are correct

8) The QBO Blog includes _________ A) Apps feature.

B) Customer profiles.

C) Sign in, go to Account and Settings.

D) Sign out, go to the Create menu.

E) All.

9) With the mobile app, you can: A) Create estimates.

B) Attach plans and contracts.

C) Send photos.

D) Email form for customers to sign.

E) All of the answer choices are correct.

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10) To confirm your QBO knowledge, do this: A) Pass the QBO Certified user test.

B) Save reports to Excel.

C) Customize the journal.

D) None of the answer choices are correct.

E) All of the answer choices are correct.

11) Instantly access QuickBooks data on your mobile device. ⊚ true ⊚ false

12) Install the Android app via Google Play. ⊚ true ⊚ false

13) iTunes can be used to install iPhone, iPad, and Apple Watch app. ⊚ true ⊚ false

14) The QBO Blog includes the latest information about the software. ⊚ true ⊚ false

15) You cannot use a mobile device to enter transactions, record expenses, invoice customers, or

send reports anywhere. ⊚ true ⊚ false

16) The QBO Blog changes regularly. ⊚ true ⊚ false

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17) QBO automatically backs up your data to the cloud and syncs across all your devices. ⊚ true ⊚ false

18) The QuickBooks app turns your phone’s camera into a receipt scanner. ⊚ true ⊚ false

19) The QB mobile app syncs customer invoices only. ⊚ true ⊚ false

20) Updates include user interface elements, accounting features, and user functions. ⊚ true ⊚ false

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Answer Key Test name: Chapter 12 Test Bank 1) C 2) E 3) E 4) E 5) E 6) D 7) A 8) B 9) E 10) A 11) TRUE 12) TRUE 13) TRUE 14) TRUE 15) FALSE 16) TRUE 17) TRUE 18) TRUE 19) FALSE 20) TRUE

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