TEST BANK for Computer Accounting with QuickBooks 2018, 18th Edition. Donna Kay

Computer Accounting with QuickBooks 2018, 18e Donna Kay (Test Bank All Chapters, 100% Original Verified, A+ Grade) Ch 12 and 14 Are Missing Computer Accounting with QuickBooks 2018 (Kay) Chapter 1 QuickBooks Quick Tour: Navigation and Settings 1) In the Company section of the Home Page, you can: A) Pay bills B) Record deposits C) View the Chart of Accounts D) Enter invoices Answer: C Difficulty: 2 Medium Learning Objective: 01-06 QuickBooks Home Page Accessibility: Keyboard Navigation Gradable: automatic 2) In QuickBooks, how do you enter transaction information?

A) Onscreen forms and QuickBooks reports B) Onscreen Journal and QuickBooks reports C) Onscreen Journal and onscreen forms D) None of the choices are correct Answer: C Difficulty: 2 Medium Learning Objective: 01-01 Install QuickBooks Accessibility: Keyboard Navigation Gradable: automatic 3) All of the following are one of the four main categories of transactions in QuickBooks except?

A) Customers and sales B) Vendors and expenses C) Chart of Accounts D) Banking Answer: C Difficulty: 2 Medium Learning Objective: 01-06 QuickBooks Home Page Accessibility: Keyboard Navigation Gradable: automatic

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4) Ways to navigate QuickBooks include: A) Menus B) Icon Bar C) Home Page D) All of the choices are correct Answer: D Difficulty: 1 Easy Learning Objective: 01-05 QuickBooks Navigation Accessibility: Keyboard Navigation Gradable: automatic 5) Which of the following tasks can be completed in the Vendor section of the Home page?

A) Create Invoices B) Create Estimates C) Receive Inventory D) Receive Payments Answer: C Difficulty: 1 Easy Learning Objective: 01-05 QuickBooks Navigation Accessibility: Keyboard Navigation Gradable: automatic 6) The Chart of Accounts can be accessed from which section of the Home page?

A) Customer B) Banking C) Company D) Vendor Answer: C Difficulty: 1 Easy Learning Objective: 01-05 QuickBooks Navigation Accessibility: Keyboard Navigation Gradable: automatic

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7) To change a company name in QuickBooks, select the following from the My Shortcuts on the Navigation (Icon) Bar: A) Company > Preferences B) My Company > Edit C) Home > Edit > Preferences D) None of the choices are correct Answer: B Difficulty: 1 Easy Learning Objective: 01-03 Restore a QuickBooks File Accessibility: Keyboard Navigation Gradable: automatic 8) Which of the following file types identifies a QuickBooks Backup file?

A) QBM B) QBW C) QBB D) QBX Answer: C Difficulty: 1 Easy Learning Objective: 01-12 Restore QuickBooks File Options Accessibility: Keyboard Navigation Gradable: automatic 9) Which one of the following activities is associated with the Customer section of the Home page?

A) Pay sales tax B) Enter bills C) Create invoices D) Record inventory received Answer: C Difficulty: 1 Easy Learning Objective: 01-05 QuickBooks Navigation Accessibility: Keyboard Navigation Gradable: automatic

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10) The Home page in QuickBooks consists of all the following sections except: A) Employee B) Lists C) Customer D) Vendor Answer: B Difficulty: 1 Easy Learning Objective: 01-05 QuickBooks Navigation Accessibility: Keyboard Navigation Gradable: automatic 11) Which of the following tasks is completed from the Banking section of the Home Page?

A) Pay employees B) Record deposits C) Enter bills D) Record payments received from customers Answer: B Difficulty: 2 Medium Learning Objective: 01-06 QuickBooks Home Page Accessibility: Keyboard Navigation Gradable: automatic 12) Accounting information is used to do all of the following except: A) Prepare financial statements for investors B) Prepare tax returns for the IRS C) Prepare reports for management D) Prepare meeting minutes for the board of directors Answer: D Difficulty: 2 Medium Accessibility: Keyboard Navigation Gradable: automatic 13) Most accounting systems consist of which of the following components: A) Input B) Processing C) Output D) All of the choices are correct Answer: D Difficulty: 1 Easy Learning Objective: 01-14 Accounting Essentials: Accounting Systems Accessibility: Keyboard Navigation Gradable: automatic 4 Copyright © 2019 McGraw-Hill Education. All rights reserved.

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14) A business transaction is an exchange between the QuickBooks company and: A) Vendor B) Employee C) Customer D) All of the choices are correct Answer: D Difficulty: 1 Easy Accessibility: Keyboard Navigation Gradable: automatic 15) Which type of QuickBooks data file allows you to enter data and transactions?

A) QBM B) QBB C) QBW D) QBX Answer: C Difficulty: 2 Medium Learning Objective: 01-12 Restore QuickBooks File Options; 01-11 Back Up QuickBooks Files Accessibility: Keyboard Navigation Gradable: automatic 16) Which financial statement below summarizes the financial position of a company?

A) Statement of Cash Flows B) Profit & Loss Statement C) Income Statement D) Balance Sheet Answer: D Difficulty: 1 Easy Learning Objective: 01-09 QuickBooks Reports Accessibility: Keyboard Navigation Gradable: automatic 17) Which financial statement below summarizes a company's earnings?

A) Statement of Cash Flows B) Cash Flow Forecast C) Balance Sheet D) Profit & Loss Statement Answer: D Difficulty: 1 Easy Learning Objective: 01-09 QuickBooks Reports Accessibility: Keyboard Navigation Gradable: automatic 5 Copyright © 2019 McGraw-Hill Education. All rights reserved.

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18) Which financial statement below summarizes a company's cash inflow and outflow?

A) Statement of Cash Flows B) Profit & Loss Statement C) Balance Sheet D) Cash Flow Forecast Answer: A Difficulty: 1 Easy Learning Objective: 01-09 QuickBooks Reports Accessibility: Keyboard Navigation Gradable: automatic 19) Reports for managers can help to identify: A) Overdue customer accounts B) Least profitable product C) Most profitable product D) All of the choices are correct Answer: D Difficulty: 1 Easy Learning Objective: 01-09 QuickBooks Reports Accessibility: Keyboard Navigation Gradable: automatic 20) Which one of the following activities is not associated with the Employee section of the Home Page?

A) Write Checks B) Pay Payroll Liabilities C) Process Payroll Forms D) Enter Time Answer: A Difficulty: 2 Medium Learning Objective: 01-06 QuickBooks Home Page Accessibility: Keyboard Navigation Gradable: automatic

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21) List the 2 (two) different type of QuickBooks files. What is the purpose of each file type?

Answer: QuickBooks file types include: ● QBW file - This is the company file that has a .QBW extension. It is a QuickBooks working file that is usually saved to the hard drive of your computer. ● QBB file - This is a QuickBooks backup file. You can save a backup file to the hard drive or to other media, such as USB drive or a network drive. Backup files are compressed files and used only if the working file (.QBW) file fails.

Difficulty: 2 Medium Learning Objective: 01-05 QuickBooks Navigation Accessibility: Keyboard Navigation Gradable: manual 22) Name 2 (two) of the 5 sections on the QuickBooks Home Page and briefly describe what activities can be performed from those sections.

Answer: The five sections of the Home Page are: ● Vendors - pay bills, enter bills, create purchase orders, receive inventory. ● Customers - create estimates, create invoices, record refunds and credits, receive payments. ● Employees - Enter time, pay employees, pay payroll liabilities, process payroll forms. ● Banking - Record deposits, write checks, view check register, reconcile bank statements, print checks. ● Company - View Items and Services List, view Chart of Accounts.

Difficulty: 2 Medium Learning Objective: 01-06 QuickBooks Home Page Accessibility: Keyboard Navigation Gradable: manual

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Computer Accounting with QuickBooks 2018 (Kay) Chapter 2 QuickBooks Chart of Accounts 1) How do you access the screen to add a user and password?

A) Company menu > Set Up Users and Passwords > Set Up Users B) Edit menu > Preferences > Employees C) Employees > Employee Center D) Company menu > Company Information Answer: A Difficulty: 2 Medium Learning Objective: 02-09 Quickbooks Password protection Accessibility: Keyboard Navigation Gradable: automatic 2) What does the Chart of Accounts list?

A) Assets, liabilities and owner's equity accounts B) Income and expense accounts C) Owner's contributions D) All of the choices are correct Answer: D Difficulty: 1 Easy Learning Objective: 02-03 Customizing Chart of Accounts (COA) Accessibility: Keyboard Navigation Gradable: automatic 3) Which account below is not an Expense account?

A) Utilities B) Rent C) Accounts Receivable D) Advertising Answer: C Difficulty: 1 Easy Learning Objective: 02-03 Customizing Chart of Accounts (COA) Accessibility: Keyboard Navigation Gradable: automatic

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4) What are assets?

A) Net worth of a company B) Resources that a company owns with future benefit C) Amounts paid to owners D) Amounts owed to others and are future obligations Answer: B Difficulty: 1 Easy Learning Objective: 02-03 Customizing Chart of Accounts (COA) Accessibility: Keyboard Navigation Gradable: automatic 5) The Income Statement: A) lists the accounts and account numbers B) lists a company's assets C) Summarizes the results of a company's operations, listing income and expenses D) Summarizes what a company owns and what it owes Answer: C Difficulty: 1 Easy Learning Objective: 02-03 Customizing Chart of Accounts (COA) Accessibility: Keyboard Navigation Gradable: automatic 6) Which of the following is a temporary account?

A) Inventory B) Rent Expense C) Accounts Payable D) Accounts Receivable Answer: B Difficulty: 1 Easy Learning Objective: 02-03 Customizing Chart of Accounts (COA) Accessibility: Keyboard Navigation Gradable: automatic 7) An example of a non-posting account is ________.

A) Employee Expense Account B) Purchase Orders Account C) Inventory Account D) Accounts Payable Account Answer: B Difficulty: 1 Easy Learning Objective: 02-03 Customizing Chart of Accounts (COA) Accessibility: Keyboard Navigation Gradable: automatic 2 Copyright © 2019 McGraw-Hill Education. All rights reserved.

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8) To add a new account to the Chart of Accounts: A) From the Chart of Accounts window, select Account > New B) From the Company menu, select New Account C) From the Home Page, select Account > New D) From the Lists Menu, select New > Account Answer: A Difficulty: 2 Medium Learning Objective: 02-05 Add New Accounts Accessibility: Keyboard Navigation Gradable: automatic 9) What is the purpose of a non-posting account?

A) To calculate income.

B) To track information necessary for the accounting system.

C) To calculate expenses.

D) To identify owner's equity.

Answer: B Difficulty: 2 Medium Learning Objective: 02-03 Customizing Chart of Accounts (COA) Accessibility: Keyboard Navigation Gradable: automatic 10) Which of the following is considered a permanent account?

A) Income Statement accounts B) Balance Sheet accounts C) All these D) None of the choices are correct Answer: B Difficulty: 2 Medium Learning Objective: 02-03 Customizing Chart of Accounts (COA) Accessibility: Keyboard Navigation Gradable: automatic

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11) A company's computer is classified as what account type: A) Expense B) Owner's Equity C) Fixed Asset D) Retained Earnings Answer: C Difficulty: 1 Easy Learning Objective: 02-11 Accounting Essentials: Chart of Accounts Accessibility: Keyboard Navigation Gradable: automatic 12) Which of the following is not an income account?

A) Sales B) Insurance Expense C) Interest Revenue D) Gain on sale Answer: B Difficulty: 1 Easy Learning Objective: 02-03 Customizing Chart of Accounts (COA) Accessibility: Keyboard Navigation Gradable: automatic 13) To re-sort the Chart of Accounts, first display the Chart of Accounts window, then: A) Click on the Company heading bar B) Click File > Sort C) Click Account > Re-sort List D) Right click > Sort by Name Answer: C Difficulty: 2 Medium Learning Objective: 02-04 Display Chart of Accounts (COA) Accessibility: Keyboard Navigation Gradable: automatic 14) Balance Sheet accounts are also called: A) Permanent accounts B) Temporary accounts C) Equity accounts D) None of the choices are correct Answer: A Difficulty: 1 Easy Learning Objective: 02-03 Customizing Chart of Accounts (COA) Accessibility: Keyboard Navigation Gradable: automatic 4 Copyright © 2019 McGraw-Hill Education. All rights reserved.

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15) Income Statement accounts are also called: A) Equity accounts B) Permanent accounts C) Temporary accounts D) None of the choices are correct Answer: C Difficulty: 1 Easy Learning Objective: 02-03 Customizing Chart of Accounts (COA) Accessibility: Keyboard Navigation Gradable: automatic 16) Non-posting accounts: A) Track information required for the accounting system B) Do not appear on the Balance Sheet C) Do not appear on the Income Statement D) All of the choices are correct Answer: D Difficulty: 2 Medium Learning Objective: 02-03 Customizing Chart of Accounts (COA) Accessibility: Keyboard Navigation Gradable: automatic 17) The different types of business ownership are: A) Sole proprietorship B) Partnership C) Corporation D) All of the choices are correct Answer: D Difficulty: 1 Easy Learning Objective: 02-11 Accounting Essentials: Chart of Accounts Accessibility: Keyboard Navigation Gradable: automatic

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18) Which of the following is an asset?

A) Mortgage payable B) Accounts Payable C) Accounts Receivable D) Unearned Revenue Answer: C Difficulty: 1 Easy Learning Objective: 02-03 Customizing Chart of Accounts (COA) Accessibility: Keyboard Navigation Gradable: automatic 19) Which of the following is a liability?

A) Inventory B) An amount a company owes C) A resource a company owns D) Dividends Answer: C Difficulty: 1 Easy Learning Objective: 02-03 Customizing Chart of Accounts (COA) Accessibility: Keyboard Navigation Gradable: automatic 20) Which of the following increases owner's equity?

A) Dividends B) Business losses C) Business expenses D) Business profits Answer: D Difficulty: 2 Medium Learning Objective: 02-03 Customizing Chart of Accounts (COA) Accessibility: Keyboard Navigation Gradable: automatic 21) Briefly explain the difference between a permanent and a temporary account.

Answer: Temporary accounts (revenues, expenses, and withdrawals or dividends) hold information for a particular accounting period. They are closed to zero at the end of the period.

Permanent accounts retain their balances throughout the operation of the company.

Difficulty: 2 Medium Learning Objective: 02-11 Accounting Essentials: Chart of Accounts Accessibility: Keyboard Navigation Gradable: manual

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22) Briefly explain the purpose and benefits of using a password for QuickBooks access.

Answer: Passwords are important to help restrict access to accounting information stored in QuickBooks. Passwords can help keep people out of the system completely or only out of certain areas. Companies can protect themselves from unnecessary risk with passwords by protecting sensitive information and using them as an internal control.

Difficulty: 2 Medium Accessibility: Keyboard Navigation Gradable: manual

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Computer Accounting with QuickBooks 2018 (Kay) Chapter 3 QuickBooks Transactions 1) QuickBooks lists include all of the following except: A) Customer List B) Item List C) Owner List D) Vendor List Answer: C Difficulty: 1 Easy Learning Objective: 03-03 QuickBooks Lists Accessibility: Keyboard Navigation Gradable: automatic 2) In QuickBooks, information about transactions can be entered in onscreen forms, such as: A) Check B) Invoice C) Purchase Order D) All of the choices are correct Answer: D Difficulty: 1 Easy Learning Objective: 03-04 How Do We Enter Transactions in QuickBooks?

Accessibility: Keyboard Navigation Gradable: automatic 3) Which of the following transactions is considered a Customers and Sales transaction?

A) Invoice B) Purchase Order C) Pay Bills D) Check Answer: A Difficulty: 2 Medium Learning Objective: 03-07 Customer and Sales Transactions Accessibility: Keyboard Navigation

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4) Which of the following transactions is considered a Vendors and Expenses transaction?

A) Invoice B) Receive Payment C) Pay Bills D) Make Deposit Answer: C Difficulty: 2 Medium Learning Objective: 03-08 Vendor and Expense Transactions Accessibility: Keyboard Navigation 5) QuickBooks lists include: A) Customer List B) Vendor List C) Item List D) All of the choices are correct Answer: D Difficulty: 1 Easy Learning Objective: 03-03 QuickBooks Lists Accessibility: Keyboard Navigation 6) All of the following are one of the four main categories of transactions in QuickBooks except?

A) Customers B) Vendors C) Banking D) Owners Answer: D Difficulty: 1 Easy Learning Objective: 03-05 What Are The Different Types of Transactions?

Accessibility: Keyboard Navigation 7) Which of the following is a Banking transaction?

A) Make deposit B) Pay employees C) Enter bills D) Record payments received from customers Answer: A Difficulty: 2 Medium Learning Objective: 03-06 Banking and Credit Card Transactions Accessibility: Keyboard Navigation

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8) Which of the following is a Vendor transaction?

A) Create Invoices B) Create Estimates C) Receive Inventory D) Receive Payments Answer: C Difficulty: 2 Medium Learning Objective: 03-08 Vendor and Expense Transactions Accessibility: Keyboard Navigation 9) Which of the following is a Customer transaction?

A) Pay sales tax B) Enter bills C) Create invoice D) Record inventory received Answer: C Difficulty: 2 Medium Learning Objective: 03-07 Customer and Sales Transactions Accessibility: Keyboard Navigation 10) The Item List can be accessed from which section of the Home Page?

A) Banking B) Customers C) Vendors D) Company Answer: D Difficulty: 2 Medium Learning Objective: 03-03 QuickBooks Lists Accessibility: Keyboard Navigation 11) Which of the following QuickBooks features can be used to save a transaction that will be re-used in the future?

A) Saved transactions B) Create icon C) Repeat transactions D) Memorized transactions Answer: D Difficulty: 2 Medium Learning Objective: 03-11 Memorized Transactions Accessibility: Keyboard Navigation

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12) To use a memorized transaction, select: A) Select Lists Menu > Memorized Transaction List B) Select Navigation Bar > Recurring Transaction List C) Select Company section of the Home Page > Saved Transactions D) None of the choices are correct Answer: A Difficulty: 3 Hard Learning Objective: 03-11 Memorized Transactions Accessibility: Keyboard Navigation 13) Double-entry accounting records exchanges in a transaction with debits and credits. Which of the following is recorded when a company purchases a computer and pays cash?

A) The computer is recorded with a credit and the cash is recorded with a credit B) The computer is recorded with a debit and the cash is recorded with a debit C) The computer is recorded with a credit and the cash is recorded with a debit D) The computer is recorded with a debit and the cash is recorded with a credit Answer: D Difficulty: 2 Medium Learning Objective: 03-13 Accounting Essentials: Double-Entry Accounting Accessibility: Keyboard Navigation 14) The onscreen form for recording bills received is accessed from which section of the Home Page: A) Vendors B) Customers C) Employees D) Banking Answer: A Difficulty: 2 Medium Learning Objective: 03-08 Vendor and Expense Transactions Accessibility: Keyboard Navigation 15) The Banking section of the Home Page includes which of the following banking transactions?

A) Write Checks B) Enter Bills C) Pay Bills D) Receive Payments Answer: A Difficulty: 2 Medium Learning Objective: 03-06 Banking and Credit Card Transactions Accessibility: Keyboard Navigation 4 Copyright © 2019 McGraw-Hill Education. All rights reserved.

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16) Customer transactions include which of the following?

A) Write Checks B) Enter Bills C) Pay Bills D) Receive Payments Answer: D Difficulty: 2 Medium Learning Objective: 03-07 Customer and Sales Transactions Accessibility: Keyboard Navigation 17) Vendor transactions include which of the following?

A) Write Checks B) Enter Bills C) Make Deposits D) Receive Payments Answer: B Difficulty: 2 Medium Learning Objective: 03-08 Vendor and Expense Transactions Accessibility: Keyboard Navigation 18) When a customer deposit is recorded using the Make Deposits window, behind the screen QuickBooks converts the transactions into a journal entry that: A) Debits Checking account, Credits Undeposited Funds B) Credits Checking account, Debits Undeposited Funds C) Debits Checking account, Credits Accounts Receivable D) Debits Accounts Receivable, Credits Checking account Answer: A Difficulty: 3 Hard Learning Objective: 03-07 Customer and Sales Transactions Accessibility: Keyboard Navigation 19) When a bill is entered using the Enter Bills window, QuickBooks records a journal entry that: A) Debits Checking account, Credits Expense account B) Credits Expense account, Debits Checking account C) Debits Expense account, Credits Accounts Payable D) Debits Accounts Payable, Credits Checking account Answer: C Difficulty: 3 Hard Learning Objective: 03-08 Vendor and Expense Transactions Accessibility: Keyboard Navigation

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20) When a bill is paid using the Pay Bills window, QuickBooks records a journal entry that: A) Debits Checking account, Credits Undeposited Funds B) Credits Checking account, Debits Accounts Payable C) Debits Expense account, Credits Accounts Payable D) Debits Accounts Receivable, Credits Checking account Answer: B Difficulty: 3 Hard Learning Objective: 03-08 Vendor and Expense Transactions Accessibility: Keyboard Navigation 21) What are the three parts or processes of QuickBooks SatNav? Answer: QuickBooks SatNav divides QuickBooks into three main processes 1. QuickBooks Settings. This includes Company Settings when setting up a new QuickBooks company and the Company Chart of Accounts.

2. QuickBooks Transactions. This includes recording transactions in QuickBooks. Transaction types can be categorized as Banking, Customers and Sales, Vendors and Expenses, and Employees and Payroll. In basic terms, recording transactions involves recording money in and money out.

3. QuickBooks Reports. QuickBooks reports are the output of the system, such as commonly used financial statements of Balance Sheet, Income Statement, and Statement of Cash Flows.

Difficulty: 2 Medium Learning Objective: 03-01 QuickBooks SatNav Accessibility: Keyboard Navigation 22) List 4 main types of QuickBooks transactions.

Answer: The 4 main types of QuickBooks transactions are: ● Banking and credit card transactions ● Customers and sales transactions ● Vendors and expenses transactions ● Employees and payroll transactions Difficulty: 2 Medium Learning Objective: 03-05 What Are The Different Types of Transactions?

Accessibility: Keyboard Navigation

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Computer Accounting with QuickBooks 2018 (Kay) Chapter 4 Banking 1) The Check Register: A) Lists all accounts and their account numbers B) Is located directly on the Company section of the Home page C) Keeps track of company deposits only D) Records payments and deposits to the Checking account Answer: D Difficulty: 1 Easy Learning Objective: 04-04 Check Register Accessibility: Keyboard Navigation Gradable: automatic 2) All of the following tasks can be completed in the Banking section of the Home page except: A) Pay Employees B) Reconcile Checking accounts C) Write checks D) Record Deposits Answer: A Difficulty: 1 Easy Learning Objective: 04-05 Make Deposits; 04-07 Write Checks; 04-09 Reconcile Bank Statements Accessibility: Keyboard Navigation Gradable: automatic 3) The Enter Bills > Pay Bills (two-step) approach for paying bills must be used to pay which of the following?

A) Rent Payments B) Legal Services C) Sales Taxes D) None of the choices are correct Answer: C Difficulty: 2 Medium Learning Objective: 04-07 Write Checks Accessibility: Keyboard Navigation Gradable: automatic

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4) Examples of undeposited funds are: A) Interest earned on the Checking account B) Bank service charges C) Customer payments recorded as received but not yet deposited D) Owner's investment Answer: C Difficulty: 2 Medium Learning Objective: 04-05 Make Deposits Accessibility: Keyboard Navigation Gradable: automatic 5) Which of the following statements is true?

A) To conserve resources, it is best if the owner uses one Checking account for both personal and business purposes B) To maintain more consistent records, it is best if the owner maintains a separate personal Checking account, but both the owner's personal Checking and business Checking accounts are listed in the Chart of Accounts C) To maintain separation between the personal and business accounting records, the owner's personal Checking account should not be used to pay bills for the business and should not be listed in the business' Chart of Accounts D) None of the choices are correct Answer: C Difficulty: 2 Medium Learning Objective: 04-04 Check Register Accessibility: Keyboard Navigation Gradable: automatic 6) The Write Checks window can be used to pay which of the following: A) Sales taxes B) Bills entered in the Enter Bills window C) Payroll checks D) None of the choices are correct Answer: D Difficulty: 2 Medium Learning Objective: 04-07 Write Checks Accessibility: Keyboard Navigation Gradable: automatic

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7) In the Check Register, the term "split" indicates the payment is split between two or more: A) Purchase orders B) Invoices C) Checks D) Accounts Answer: D Difficulty: 2 Medium Learning Objective: 04-03 Banking Navigation Accessibility: Keyboard Navigation Gradable: automatic 8) When deleting a check all of the following is true except: A) The deleted check no longer appears in the check register B) It is better to delete the check than void the check in order to erase all records of the transaction C) QuickBooks changes the amount deducted in the check register to zero D) All of the choices are correct Answer: B Difficulty: 2 Medium Learning Objective: 04-07 Write Checks Accessibility: Keyboard Navigation Gradable: automatic 9) When reconciling a bank account, which one of the following is considered a timing difference (difference between the bank balance and the book balance)?

A) Checks that have cleared the bank B) Outstanding checks C) Deposits recorded by the bank D) Errors Answer: B Difficulty: 3 Hard Learning Objective: 04-09 Reconcile Bank Statements Accessibility: Keyboard Navigation Gradable: automatic

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10) When reconciling the bank statement using QuickBooks: A) Service charges are added B) Interest earned is subtracted C) All deposits listed on the bank statement are selected as cleared in the Reconcile window D) All of the choices are correct Answer: C Difficulty: 3 Hard Learning Objective: 04-09 Reconcile Bank Statements Accessibility: Keyboard Navigation Gradable: automatic 11) When the balance of an asset account, like Checking, increases, it means that the account has been: A) Credited B) Debited C) Reconciled D) None of the choices are correct Answer: B Difficulty: 3 Hard Learning Objective: 04-08 Print Journal Accessibility: Keyboard Navigation Gradable: automatic 12) When the balance of an equity account, like Capital Stock, increases, it means that the account has been: A) Debited B) Credited C) Deposited D) None of the choices are correct Answer: B Difficulty: 3 Hard Learning Objective: 04-08 Print Journal Accessibility: Keyboard Navigation Gradable: automatic

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13) Timing differences discovered when reconciling the bank statement that the bank has not recorded yet, include: A) Deposits in transit B) Interest earned C) Outstanding checks D) Both deposits in transit and outstanding checks Answer: D Difficulty: 3 Hard Learning Objective: 04-09 Reconcile Bank Statements Accessibility: Keyboard Navigation Gradable: automatic 14) A business Checking account may be used for which of the following purchases?

A) Furniture for the owner's home B) Furniture for the office C) Utility bills for the owner D) Owner's car payment Answer: B Difficulty: 1 Easy Learning Objective: 04-04 Check Register Accessibility: Keyboard Navigation Gradable: automatic 15) Which of the following icons appear in the Banking section of the Home page?

A) Receive Payments B) Enter Bills C) Make Deposits D) Pay Bills Answer: C Difficulty: 1 Easy Learning Objective: 04-04 Check Register; 04-05 Make Deposits; 04-07 Write Checks; 04-09 Reconcile Bank Statements Accessibility: Keyboard Navigation Gradable: automatic

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16) The Write Checks approach to bill paying: A) Pays the bill and then records the bill later B) Records a bill when received and pays the bill later C) Records and pays a bill at the same time D) Is not supported by QuickBooks Answer: C Difficulty: 2 Medium Learning Objective: 04-07 Write Checks Accessibility: Keyboard Navigation Gradable: automatic 17) 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 Difficulty: 2 Medium Learning Objective: 04-07 Write Checks Accessibility: Keyboard Navigation Gradable: automatic 18) When paying 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: C Difficulty: 2 Medium Learning Objective: 04-07 Write Checks Accessibility: Keyboard Navigation Gradable: automatic 19) One of the objectives of the bank reconciliation is: A) Pay bills B) Detect errors C) Insure the debits equal credits D) None of the choices are correct Answer: B Difficulty: 1 Easy Learning Objective: 04-09 Reconcile Bank Statements Accessibility: Keyboard Navigation Gradable: automatic 6 Copyright © 2019 McGraw-Hill Education. All rights reserved.

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20) A Check Register is a record of all transactions affecting the ________.

A) Payroll account B) Petty cash account C) Checking account D) Taxes payable account Answer: C Difficulty: 1 Easy Learning Objective: 04-04 Check Register Accessibility: Keyboard Navigation Gradable: automatic 21) Briefly describe the QuickBooks drill-down feature and its advantages.

Answer: The drill down feature in QuickBooks is the ability to click on an item and be taken to the supporting source document and detail, such as an Invoice or Check. This feature can assist a company in tracking transactions and resolving errors.

Difficulty: 2 Medium Learning Objective: 04-04 Check Register; 04-05 Make Deposits; 04-07 Write Checks Accessibility: Keyboard Navigation Gradable: manual 22) List 4 (four) types of bills that should not be paid using the Write Checks window.

Answer: Types of bills that should not be paid using the Write Checks window include: ● Paychecks to employees for wages and salaries ● Payroll taxes and liabilities ● Sales taxes ● Bills already entered in the Enter Bills window Difficulty: 3 Hard Learning Objective: 04-07 Write Checks Accessibility: Keyboard Navigation Gradable: manual

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Computer Accounting with QuickBooks 2018 (Kay) Chapter 5 Customers and Sales 1) To record a customer sale on account, select: A) Create Purchase Order B) Sales Receipts C) Create Estimates D) Create Invoices Answer: D Difficulty: 1 Easy Learning Objective: 05-07 Customer Invoices Accessibility: Keyboard Navigation Gradable: automatic 2) When recording a customer payment from a credit sale, select: A) Create Invoice > Customer Payment > Customer & Job Name B) Receive Payment > Customer & Job Name C) Make Deposit > Customer & Job Name D) Create Sales Receipt > Record Deposits Answer: B Difficulty: 2 Medium Learning Objective: 05-07 Customer Invoices Accessibility: Keyboard Navigation Gradable: automatic 3) When recording a customer payment from a cash sale, select: A) Create Invoice > Customer Payment > Customer Name Only B) Make Deposit C) Create Sales Receipt > Record Deposits D) Receive Payment > Customer & Job Name Answer: C Difficulty: 2 Medium Learning Objective: 05-06 Customer Sales Receipts Accessibility: Keyboard Navigation Gradable: automatic

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4) The Customers List in QuickBooks can be accessed from all of the following except: A) Vendor section of the Home Page B) Customers section of the Home Page C) Customers Menu D) Customers Center Answer: A Difficulty: 1 Easy Learning Objective: 05-04 Customer List Accessibility: Keyboard Navigation Gradable: automatic 5) To record a sales transaction, use: A) Create Purchase Order > Receive Payment > Make Deposit B) Create Invoices > Receive Payment > Make Deposits C) Create Invoices > Create Sales Receipts > Make Deposits D) Receive Payment > Create Sales Receipts > Make Deposits Answer: B Difficulty: 2 Medium Learning Objective: 05-07 Customer Invoices Accessibility: Keyboard Navigation Gradable: automatic 6) Credit sales to customers are: A) Recorded using the Enter Bills window B) Recorded in a Credit Card Sales window C) Recorded using the Create Sales Receipts window D) Recorded using a Create Invoices window Answer: D Difficulty: 1 Easy Learning Objective: 05-07 Customer Invoices Accessibility: Keyboard Navigation Gradable: automatic

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7) What QuickBooks activity comes next in the this series of business activities: Create Invoice > Receive Payments > ________ A) Make Deposit B) Create Sales Receipts C) Pay Bills D) Receive Undeposited Funds Answer: A Difficulty: 1 Easy Learning Objective: 05-07 Customer Invoices Accessibility: Keyboard Navigation Gradable: automatic 8) 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 Receivable C) An increase to Sales and an increase to Accounts Payable D) A decrease to Sales and a decrease to Accounts Payable Answer: B Difficulty: 3 Hard Learning Objective: 05-07 Customer Invoices Accessibility: Keyboard Navigation Gradable: automatic 9) All the reports below provide information about customer and job profitability, except: A) Job Profitability Detail B) Income by Customer Summary C) Income by Customer Detail D) Customer Detail List Answer: D Difficulty: 2 Medium Learning Objective: 05-08 Customer Reports Accessibility: Keyboard Navigation Gradable: automatic

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10) Which report provides information to help in tracking accounts receivable?

A) Customers with Open Invoices B) Accounts Receivable Aging Summary C) Collections Reports D) All of the choices are correct Answer: D Difficulty: 2 Medium Learning Objective: 05-08 Customer Reports Accessibility: Keyboard Navigation Gradable: automatic 11) Sales in QuickBooks can be recorded with all the following means of payment, except: A) Cash B) Check C) Credit Card D) Purchase Order Answer: D Difficulty: 1 Easy Learning Objective: 05-05 Recording Sales Transactions Accessibility: Keyboard Navigation Gradable: automatic 12) To increase collections of payments, you can use all the following QuickBooks features, except: A) Accounts Receivable Aging Report B) Customers with Open Invoices Report C) Collections Report D) Accounts Payable Aging Report Answer: D Difficulty: 2 Medium Learning Objective: 05-08 Customer Reports Accessibility: Keyboard Navigation Gradable: automatic

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13) To create the Income by Customer Summary report: A) Select Reports Center > Customer & Sales B) Select Customers Center > Income by Customer C) Select Company Center > Customers & Sales D) Select Reports Center > Company & Financials Answer: D Difficulty: 2 Medium Learning Objective: 05-08 Customer Reports Accessibility: Keyboard Navigation Gradable: automatic 14) Which one of the following activities is not shown in the Customers section of the Home Page?

A) Receive Payments B) Make Deposit C) Create Invoices D) Create Sales Receipts Answer: B Difficulty: 2 Medium Learning Objective: 05-03 Customer Navigation Accessibility: Keyboard Navigation Gradable: automatic 15) To add a new job to the Customers List: A) Select Customers Menu > Click Add Job B) Select Customers Center window > Click New Customer & Job C) Select the Customers List icon from the Customers section of the Home Page D) Select Reports Center > Add Customer Answer: B Difficulty: 2 Medium Learning Objective: 05-04 Customer List Accessibility: Keyboard Navigation Gradable: automatic

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16) The Job Profitability Summary Report is accessed from the: A) Reports Center B) Vendor Center C) Employee Center D) Company Center Answer: A Difficulty: 2 Medium Learning Objective: 05-08 Customer Reports Accessibility: Keyboard Navigation Gradable: automatic 17) To create the Aging of Accounts Receivable report: A) Select Customers Center > Customers & Receivables B) Select Company Center > Customers & Receivables C) Select Reports Center > Customers & Receivables D) Select Reports Center > Company & Financials Answer: C Difficulty: 2 Medium Learning Objective: 05-08 Customer Reports Accessibility: Keyboard Navigation Gradable: automatic 18) The Undeposited Funds account contains: A) Only partial payments received from customers B) Funds received from customers but not deposited in the bank C) Funds the company owes vendors D) Petty Cash funds Answer: B Difficulty: 3 Hard Learning Objective: 05-07 Customer Invoices Accessibility: Keyboard Navigation Gradable: automatic 19) When an invoice is created in QuickBooks using the Create Invoices window, QuickBooks: A) Decreases a Sales account and decreases the Checking account B) Increases a Sales account and increases the Accounts Receivable account C) Increases the Accounts Receivable account and increases the Checking account D) Decreases the Accounts Payable account and increases the Checking account Answer: B Difficulty: 3 Hard Learning Objective: 05-07 Customer Invoices Accessibility: Keyboard Navigation Gradable: automatic 6 Copyright © 2019 McGraw-Hill Education. All rights reserved.

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20) The journal entry behind the screen that QuickBooks creates when a customer's payment is received and recorded using the Receive Payment window includes: A) Debit Accounts Receivable; Credit Checking account B) Debit Checking account; Credit Accounts Receivable C) Debit Undeposited Funds account; Credit Accounts Receivable D) Debit Accounts Receivable; Credit Undeposited Funds account Answer: C Difficulty: 3 Hard Learning Objective: 05-07 Customer Invoices Accessibility: Keyboard Navigation Gradable: automatic 21) Briefly explain the difference between creating a sales receipt and creating an invoice.

Answer: Creating a sales receipt is used when a customer pays for their goods or services at the time goods or services are provided. This is typically called a cash sale. Creating an invoice is used when the customer will pay at a later date after the goods or services are provided and will be recorded in the Receive Payment window. This is typically called a credit sale.

Difficulty: 2 Medium Learning Objective: 05-06 Customer Sales Receipts; 05-07 Customer Invoices Accessibility: Keyboard Navigation Gradable: manual 22) Name 3 (three) reasons why a job for a customer might be pending.

Answer: A job can be pending because it is waiting on another condition to be met such as delivery of required parts, the contract is created but not signed, or to record customer charges as work is being performed but before final billing.

Difficulty: 3 Hard Learning Objective: 05-07 Customer Invoices Accessibility: Keyboard Navigation Gradable: manual

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Computer Accounting with QuickBooks 2018 (Kay) Chapter 6 Vendors and Expenses 1) QuickBooks considers all of the following to be vendors except: A) Leasing companies B) Suppliers of inventory and supplies C) Tax agencies such as the IRS D) Customers purchasing goods Answer: D Learning Objective: 06-04 Vendor List Accessibility: Keyboard Navigation Gradable: automatic 2) QuickBooks considers all of the following to be vendors except: A) Financial institutions such as banks B) Tax agencies such as the IRS C) Utility companies D) All of the choices are correct Answer: D Learning Objective: 06-04 Vendor List Accessibility: Keyboard Navigation Gradable: automatic 3) Which one of the following is a vendor transaction?

A) Make deposits B) Enter bills C) Receive customer payments D) Sell products to customers Answer: B Learning Objective: 06-05 Vendor Transactions Accessibility: Keyboard Navigation Gradable: automatic 4) Which one of the following is not a vendor transaction?

A) Order goods B) Receive inventory C) Create invoice D) Receive bills Answer: C Learning Objective: 06-05 Vendor Transactions Accessibility: Keyboard Navigation Gradable: automatic 1 Copyright © 2019 McGraw-Hill Education. All rights reserved.

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5) Which one of the following tasks is shown in the Vendors section of the Home Page?

A) Write Checks B) Receive Payments C) Pay Bills D) Make Deposits Answer: C Learning Objective: 06-03 Vendor Navigation Accessibility: Keyboard Navigation Gradable: automatic 6) The Enter Bills window is used to record which one of the following transactions?

A) Services received but not yet paid B) Owners' investment C) Items sold to customers D) Customer invoices created Answer: A Learning Objective: 06-06 Enter Bills Accessibility: Keyboard Navigation Gradable: automatic 7) Which one of the following tasks is associated with the Vendors section of the Home Page?

A) Items & Services B) Invoices C) Enter Bills D) None of the choices are correct Answer: C Learning Objective: 06-03 Vendor Navigation Accessibility: Keyboard Navigation Gradable: automatic 8) Which QuickBooks window is used to record services received?

A) Create Invoice B) Purchase Order C) Estimates D) Enter Bills Answer: D Learning Objective: 06-06 Enter Bills Accessibility: Keyboard Navigation Gradable: automatic

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9) Which report summarizes accounts payable balances by the age of the account?

A) Accounts Receivable Aging Detail B) Accounts Payable Aging Summary C) Purchases by Vendor Summary D) Purchases by Item Summary Answer: B Learning Objective: 06-08 Vendor Reports Accessibility: Keyboard Navigation Gradable: automatic 10) 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 C) Accounts Receivable Aging Summary D) Vendor Aging Report Answer: B Learning Objective: 06-08 Vendor Reports Accessibility: Keyboard Navigation Gradable: automatic 11) Vendor reports can be accessed in QuickBooks in all of the following ways except: A) Reports Center B) Vendors Center C) Reports Menu D) All of the choices are correct Answer: D Learning Objective: 06-08 Vendor Reports Accessibility: Keyboard Navigation Gradable: automatic 12) Which order of tasks is used when purchasing services?

A) Enter Bills > Pay Bills B) Enter Invoice > Write Check C) Create Purchase Order > Receive Bill > Enter Bill > Pay Bills D) Enter Invoice > Receive Payment > Make Deposit Answer: A Learning Objective: 06-03 Vendor Navigation; 06-05 Vendor Transactions Accessibility: Keyboard Navigation Gradable: automatic

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13) What QuickBooks activity comes next in this series of business activities: Enter Bills > ________ A) Receive Payments B) Pay Bills C) Make Deposit D) Enter Purchase Order Answer: B Learning Objective: 06-03 Vendor Navigation; 06-05 Vendor Transactions Accessibility: Keyboard Navigation Gradable: automatic 14) When a bill is entered into QuickBooks using the Enter Bills window, QuickBooks: A) Decreases an Expense account and increases the Accounts Payable account B) Increases an Expense account and increases the Accounts Payable account C) Increases the Accounts Receivable account and increases an the Income account D) Decreases the Accounts Receivable account and decreases Accounts Payable account Answer: B Learning Objective: 06-06 Enter Bills Accessibility: Keyboard Navigation Gradable: automatic 15) When a bill is paid in QuickBooks using the Pay Bills window, QuickBooks: A) Decreases an Expense account and decreases the Checking account B) Increases an Expense account and increases the Accounts Payable account C) Increases the Accounts Payable account and increases the Checking account D) Decreases the Accounts Payable account and decreases the Checking account Answer: D Learning Objective: 06-07 Pay Bills Accessibility: Keyboard Navigation Gradable: automatic 16) Form 1099 is used to: A) Report the amount paid to a vendor in compliance with IRS regulations B) Report the amount received from customers in compliance with IRS regulations C) Report the amount paid to employees in compliance with IRS regulations D) None of the choices are correct Answer: A Learning Objective: 06-10 Accounting Essentials: Vendors Transactions, Accounts Payable, and 1099s Accessibility: Keyboard Navigation Gradable: automatic 4 Copyright © 2019 McGraw-Hill Education. All rights reserved.

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17) All the times below are when you can receive a bill except: A) Before receiving a service B) When submitting a purchase order C) At the time of providing a service D) After receiving a service Answer: C Learning Objective: 06-06 Enter Bills Accessibility: Keyboard Navigation Gradable: automatic 18) Which one of the following is a vendor transaction?

A) Create invoices B) Receive payments C) Sell products D) Enter bills Answer: D Learning Objective: 06-05 Vendor Transactions Accessibility: Keyboard Navigation Gradable: automatic 19) To view journal entries that QuickBooks creates behind the screen when you are entering and paying bills, you would select: A) Reports Center > Accountant & Taxes > Journal B) Reports Center > Company & Financials > General Journal C) Company Menu > Company & Financials > General Journal D) Company Menu > Accountant & Taxes > Journal Answer: A Learning Objective: 06-07 Pay Bills Accessibility: Keyboard Navigation Gradable: automatic 20) The journal entry behind the screen that QuickBooks creates when a bill is recorded using the Enter Bills window includes: A) Debit Accounts Payable, Credit Checking account B) Debit Checking account, Credit Accounts Payable C) Debit Expense account, Credit Accounts Payable D) Debit Accounts Payable, Credit Expense account Answer: C Learning Objective: 06-06 Enter Bills Accessibility: Keyboard Navigation Gradable: automatic

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21) Briefly explain why it is important for a company to track accounts payable and how accounts payable reports can assist with tracking accounts payable.

Answer: In order to make certain that a company pays its bills when due to maintain favorable credit, it is important a company track accounts payable. Accounts Payable reports provide information to track amounts owed vendors. An Accounts Payable Aging report summarizes accounts payable balances by the age of the account. This report helps to track how much is owed vendors and when amounts are due, including the age of past due bills.

Learning Objective: 06-08 Vendor Reports Accessibility: Keyboard Navigation Gradable: manual 22) Explain how recording the purchase of services versus the purchase of inventory items differs in QuickBooks.

Answer: When using QuickBooks, services purchased are recorded using Enter Bills > Pay Bills. After a bill is entered for a service, the bills is paid when due.

When using QuickBooks, inventory purchased is recorded using Enter Purchase Orders > Receive Inventory > Enter Bills Against Inventory > Pay Bills.

Learning Objective: 06-05 Vendor Transactions Accessibility: Keyboard Navigation Gradable: manual

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Computer Accounting with QuickBooks 2018 (Kay) Chapter 7 Inventory 1) How does QuickBooks categorize items?

A) Non-inventory items B) Inventory items C) Service items D) All of the choices are correct Answer: D Difficulty: 1 Easy Learning Objective: 07-05 Items & Services List Accessibility: Keyboard Navigation Gradable: automatic 2) Which of the following activities and QuickBooks window used to record it is incorrect?

A) Sell goods and bill customers; Invoice B) Record inventory information; Inventory List C) Record vendor information; Vendors List D) Order goods; Purchase Order Answer: B Difficulty: 2 Medium Learning Objective: 07-04 Vendor Navigation Accessibility: Keyboard Navigation Gradable: automatic 3) Which one of the following activities is not shown in the Vendors section of the Home page?

A) Write Checks B) Pay Sales Taxes C) Pay Bills D) Purchase Orders Answer: A Difficulty: 1 Easy Learning Objective: 07-04 Vendor Navigation Accessibility: Keyboard Navigation Gradable: automatic

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4) Which one of the following is usually classified as an inventory item?

A) Goods purchased for resale to customers B) Items purchased and the quantity on hand does not need to be tracked C) Items purchased and used by the company such as office supplies D) Items purchased for a specific customer job Answer: A Difficulty: 2 Medium Learning Objective: 07-05 Items & Services List Accessibility: Keyboard Navigation Gradable: automatic 5) Which of the following reports is typically used when counting inventory on hand?

A) Inventory Valuation Summary B) Inventory Valuation Detail C) Inventory Stock Status by Item D) Physical Inventory Worksheet Answer: D Difficulty: 1 Easy Learning Objective: 07-12 Vendor Reports Accessibility: Keyboard Navigation Gradable: automatic 6) 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 Answer: B Difficulty: 2 Medium Learning Objective: 07-12 Vendor Reports Accessibility: Keyboard Navigation Gradable: automatic 7) Vendor reports can be accessed in QuickBooks in all of the following ways except: A) Reports Center B) Vendors Center C) Reports Menu D) All of the choices are correct Answer: D Difficulty: 1 Easy Learning Objective: 07-12 Vendor Reports Accessibility: Keyboard Navigation Gradable: automatic 2 Copyright © 2019 McGraw-Hill Education. All rights reserved.

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8) What QuickBooks activity comes next in this series of business activities: Purchase Order > Receive Items > Enter Bills > ________ A) Receive Payments B) Pay Bills C) Deposit D) Vendors List Answer: B Difficulty: 1 Easy Learning Objective: 07-04 Vendor Navigation; 07-12 Vendor Reports Accessibility: Keyboard Navigation Gradable: automatic 9) What QuickBooks activity comes next in this series of business activities: Invoice > Receive Payments > ________ A) Make Deposit B) Receive Payments C) Pay Bills D) Vendors List Answer: A Difficulty: 1 Easy Learning Objective: 07-04 Vendor Navigation Accessibility: Keyboard Navigation Gradable: automatic 10) If you received inventory without a bill, once the bill has arrived you could do all of the following, except: A) Enter the bill against the inventory already recorded B) Enter the inventory and then enter the bill separately C) Enter the bill and wait for the inventory to arrive D) Enter the inventory and bill at the same time Answer: C Difficulty: 2 Medium Learning Objective: 07-08 Receive Inventory; 07-09 Enter Bills Against Inventory Accessibility: Keyboard Navigation Gradable: automatic

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11) The Purchase Orders window is used to record which one of the following transactions?

A) A customer order to purchase goods B) An order to purchase goods from a vendor C) Services received but not yet paid D) Cash purchases of supplies Answer: B Difficulty: 1 Easy Learning Objective: 07-07 Create Purchase Orders Accessibility: Keyboard Navigation Gradable: automatic 12) Which order of tasks is used when purchasing inventory?

A) Enter Bills > Pay Bills B) Enter Invoice > Write Check C) Purchase Order > Receive Items > Receive Bill > Pay Bills D) Purchase Requisition > Receive Inventory > Pay Bills Answer: C Difficulty: 1 Easy Learning Objective: 07-04 Vendor Navigation Accessibility: Keyboard Navigation Gradable: automatic 13) Sales taxes are: A) Charged on sales to other retailers B) Charged on retail sales to customers C) Paid by the retailer on sales to vendors D) Paid by the vendor Answer: B Difficulty: 2 Medium Learning Objective: 07-11 Pay Sales Tax; 07-05 Items & Services List Accessibility: Keyboard Navigation Gradable: automatic 14) 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.

Answer: A Difficulty: 2 Medium Learning Objective: 07-12 Vendor Reports Accessibility: Keyboard Navigation Gradable: automatic 4 Copyright © 2019 McGraw-Hill Education. All rights reserved.

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15) A non-inventory item is: A) Goods purchased for resale to customers B) An item purchased for a specific customer job C) A service purchased from a vendor D) A service sold to a vendor Answer: B Difficulty: 2 Medium Learning Objective: 07-05 Items & Services List Accessibility: Keyboard Navigation Gradable: automatic 16) Which window is used to pay sales taxes?

A) Create Invoice B) Write Checks C) Manage Sales Tax D) Enter Bills Answer: C Difficulty: 1 Easy Learning Objective: 07-11 Pay Sales Tax Accessibility: Keyboard Navigation Gradable: automatic 17) Which report provides information on items ordered but not received?

A) Accounts Payable Aging Detail B) Accounts Payable Aging Summary C) Open Purchase Orders Report D) Physical Inventory Worksheet Answer: C Difficulty: 2 Medium Learning Objective: 07-12 Vendor Reports Accessibility: Keyboard Navigation Gradable: automatic 18) Which one of the following is not a vendor transaction?

A) Receive inventory B) Make deposits C) Order inventory D) Receive bills Answer: B Difficulty: 1 Easy Learning Objective: 07-03 Vendor and Customer Transactions Accessibility: Keyboard Navigation Gradable: automatic 5 Copyright © 2019 McGraw-Hill Education. All rights reserved.

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19) Recording a purchase of inventory using QuickBooks involves all the following steps except: A) Create purchase order to order items from vendor B) Receive item and record as inventory C) Create invoice order to bill customers for purchases D) Receive bill and record obligation to pay vendor later Answer: C Difficulty: 2 Medium Learning Objective: 07-04 Vendor Navigation Accessibility: Keyboard Navigation Gradable: automatic 20) The Physical Inventory Worksheet is used when: A) inventory items are physically placed in the warehouse B) the computer system goes down C) taking a physical count of inventory on hand D) All of the choices are correct Answer: C Difficulty: 2 Medium Learning Objective: 07-12 Vendor Reports Accessibility: Keyboard Navigation Gradable: automatic 21) Briefly describe how sales tax payments flow from customers to government entities.

Answer: Customers pay sales tax to companies based on the amount and type of items sold.

The amounts are tracked by companies and then paid to governmental entities.

Difficulty: 3 Hard Learning Objective: 07-11 Pay Sales Tax Accessibility: Keyboard Navigation Gradable: manual

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22) Describe the three types of items: Inventory items, Non-inventory items, and Services.

Provide examples of each.

Answer: Inventory items are goods that a business purchases, holds as inventory, and then resells to customers. For example, Rock Castle would hold these types of items in its inventory: doors, door knobs, plywood, etc.

Non-inventory items are purchases for a specific job, for example a custom countertop; items purchases and used by the company instead of resold to customers, for example, copy paper, pens, and coffee; and items purchased and resold to customer but the quantity does not need to be tracked, for example, Rock Castle might include roofing nails in this category.

Difficulty: 3 Hard Learning Objective: 07-05 Items & Services List Accessibility: Keyboard Navigation Gradable: manual

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Computer Accounting with QuickBooks 2018 (Kay) Chapter 8 Employees and Payroll 1) Each year employees are sent Form ________ to summarize gross wages and tax withholdings for the year.

A) 1099 B) W-2 C) W-3 D) W-4 Answer: B Difficulty: 2 Medium Learning Objective: 08-10 File Payroll Tax Forms Accessibility: Keyboard Navigation Gradable: automatic 2) A company is required to withhold payroll taxes for: A) Employees B) Vendors C) Subcontractors D) All of the choices are correct Answer: A Difficulty: 1 Easy Learning Objective: 08-14 Accounting Essentials: Payroll Liabilities and Payroll Taxes Accessibility: Keyboard Navigation Gradable: automatic 3) All of the following automatically calculate payroll tax withholdings in QuickBooks except: A) Basic Payroll B) Assisted Payroll C) Enhanced Payroll D) All of the choices automatically calculate payroll tax withholdings Answer: D Difficulty: 2 Medium Learning Objective: 08-08 Pay Employees Accessibility: Keyboard Navigation Gradable: automatic

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4) To turn on QuickBooks time tracking feature, the following steps must be completed: A) Select QuickBooks Menu > Time Tracking B) Select Edit > Preferences > Time and Expenses > Time Tracking C) Select Employees > Payroll > Time Tracking D) Select Employees > Payroll and Employees > Time Tracking Answer: B Difficulty: 3 Hard Learning Objective: 08-04 Payroll Setup Accessibility: Keyboard Navigation Gradable: automatic 5) The order of steps to process payroll is: A) Enter Time > Pay Employees > Pay Payroll Liabilities > Process Payroll Forms B) Enter Time > Pay Employees > Process Payroll Forms > Print Payroll Report C) Pay Employees > Process Payroll Forms > Pay Payroll Liabilities D) Enter Time > Pay Payroll Liabilities > Process Payroll Forms > Print Liabilities Report Answer: A Difficulty: 2 Medium Learning Objective: 08-06 Employee Navigation and Payroll Processing Accessibility: Keyboard Navigation Gradable: automatic 6) In QuickBooks, time data is listed on customer invoices using the: A) Timesheet icon B) Pay Sales Taxes icon C) Pay Employees button D) Time/Costs button Answer: D Difficulty: 1 Easy Learning Objective: 08-11 Transfer Time to Sales Invoices Accessibility: Keyboard Navigation Gradable: automatic

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7) Which one of the following is paid by both the employee and company?

A) Federal income taxes B) State income taxes C) FICA D) All of the choices are correct Answer: C Difficulty: 2 Medium Learning Objective: 08-08 Pay Employees; 08-09 Pay Payroll Liabilities; 08-10 File Payroll Tax Forms Accessibility: Keyboard Navigation Gradable: automatic 8) Which of the following is not a payroll report: A) Form W-2 B) Form 1065 C) Form 940 D) Form 941 Answer: B Difficulty: 2 Medium Learning Objective: 08-10 File Payroll Tax Forms; 08-12 Payroll Reports Accessibility: Keyboard Navigation Gradable: automatic 9) The following are payroll liabilities except: A) Federal income taxes B) Unemployment taxes C) Sales taxes D) FICA Answer: C Difficulty: 2 Medium Learning Objective: 08-09 Pay Payroll Liabilities Accessibility: Keyboard Navigation Gradable: automatic

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10) Which of the following is typically used to track time for a single activity?

A) Employee Tracker B) Stopwatch C) Timesheet D) QuickTime Answer: B Difficulty: 1 Easy Learning Objective: 08-07 Enter Time Accessibility: Keyboard Navigation Gradable: automatic 11) What QuickBooks activity comes next in this series of payroll activities: Enter Time > Pay Employees > ________ > Process Payroll Forms A) Reconcile Payroll B) Print Payroll Report C) Pay Payroll Liabilities D) None of the choices are correct Answer: C Difficulty: 1 Easy Learning Objective: 08-06 Employee Navigation and Payroll Processing Accessibility: Keyboard Navigation Gradable: automatic 12) When setting up a new employee where do you get their filing status and allowances information?

A) Form W-9 B) Form W-4 C) Form W-3 D) Form W-2 Answer: B Difficulty: 1 Easy Learning Objective: 08-10 File Payroll Tax Forms Accessibility: Keyboard Navigation Gradable: automatic

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13) The Payroll Center has the following sections except: A) Pay Employees B) Write Checks C) Pay Scheduled Liabilities D) File Tax Forms Answer: B Difficulty: 2 Medium Learning Objective: 08-08 Pay Employees Accessibility: Keyboard Navigation Gradable: automatic 14) When tracking time for subcontractors, which QuickBooks window is used to enter subcontractor information?

A) Vendors List B) Item List C) Payroll Setup D) Employee List Answer: A Difficulty: 2 Medium Learning Objective: 08-04 Payroll Setup; 08-05 Employee List Accessibility: Keyboard Navigation Gradable: automatic 15) Which form summarizes payments made to subcontractors?

A) Form 940 B) Form 1065 C) Form 1099 D) W-4 Answer: C Difficulty: 2 Medium Learning Objective: 08-04 Payroll Setup; 08-10 File Payroll Tax Forms Accessibility: Keyboard Navigation Gradable: automatic

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16) Which of the following ways to track time is not supported by QuickBooks?

A) Time Single Activity B) Weekly Timesheet C) Time clock D) Online Timesheets Answer: C Difficulty: 1 Easy Learning Objective: 08-07 Enter Time Accessibility: Keyboard Navigation Gradable: automatic 17) Which of the following may be billed to a specific customer job?

A) Mileage B) Hours C) Expenses D) All of the choices are correct Answer: D Difficulty: 2 Medium Learning Objective: 08-11 Transfer Time to Sales Invoices Accessibility: Keyboard Navigation Gradable: automatic 18) An individual's status determines how to record payment to that individual. Which of the following status and payment method is incorrect?

A) Vendor; Bill B) Employee; Payroll C) Stockholder; Dividend D) None of the choices are correct Answer: D Difficulty: 2 Medium Learning Objective: 08-04 Payroll Setup Accessibility: Keyboard Navigation Gradable: automatic

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19) What is purpose of Federal Form 940?

A) Summarize the amount of unemployment tax paid and due by the company B) Summarize the amount of federal income tax, Social Security, and Medicare withheld from employee paychecks for the quarter C) Summarize the amount of federal income tax, Social Security, and Medicare withheld from employee paychecks for the year D) Summarize of all your W-2 forms Answer: A Difficulty: 3 Hard Learning Objective: 08-10 File Payroll Tax Forms Accessibility: Keyboard Navigation Gradable: automatic 20) What is the purpose of Federal Form 941?

A) Summarize the amount of unemployment tax paid and due by the company B) Summarize the amount of federal income tax, Social Security, and Medicare withheld from employee paychecks for the quarter C) Summarize the amount of federal income tax, Social Security, and Medicare withheld from employee paychecks for the year D) Summarize of all your W-2 forms Answer: B Difficulty: 3 Hard Learning Objective: 08-10 File Payroll Tax Forms Accessibility: Keyboard Navigation Gradable: automatic 21) Name 3 (three) types of payroll liabilities and indicate who funds each one.

Answer: Different types of payroll liabilities include: ● Federal Income Tax — funded by the employee ● State Income Tax — funded by employee ● FICA — funded by both the employee and employer ● Unemployment Taxes — funded by the employer Difficulty: 3 Hard Learning Objective: 08-09 Pay Payroll Liabilities Accessibility: Keyboard Navigation Gradable: manual

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22) Briefly describe what the Time by Job report tells management.

Answer: The Time by Job report can assist management by revealing how much time was worked on each job. Detail can also be provided by category, by employee, or by service offered.

Difficulty: 3 Hard Learning Objective: 08-12 Payroll Reports Accessibility: Keyboard Navigation Gradable: manual

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Computer Accounting with QuickBooks 2018 (Kay) Chapter 9 QuickBooks Adjustments 1) The order of the steps in the accounting cycle includes: A) Adjusted Trial Balance, financial reports, adjusting entries, Trial Balance B) Adjusted Trial Balance, adjusting entries, financial reports, Trial Balance C) Trial Balance, adjusting entries, Adjusted Trial Balance, financial reports D) Trial Balance, financial reports, adjusting entries, Adjusted Trial Balance Answer: C Difficulty: 1 Easy Learning Objective: 09-03 Accounting Cycle Accessibility: Keyboard Navigation Gradable: automatic 2) What is an asset?

A) What remains after the liabilities are satisfied B) What a company owes C) What a company owns D) What a company has after expenses are removed Answer: C Difficulty: 1 Easy Learning Objective: 09-08 Prepaid Items: Related Expense and Asset Accounts Accessibility: Keyboard Navigation Gradable: automatic 3) To record adjusting journal entries in QuickBooks, select: A) Company Center > Journal Entry icon B) Accountant Menu > Make General Journal Entries C) Banking section of the Home Page > Journal Entry icon D) Company section of the Home Page > Journal Entry icon Answer: B Difficulty: 2 Medium Learning Objective: 09-06 Using QuickBooks To Make Adjusting Entries Accessibility: Keyboard Navigation Gradable: automatic

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4) 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 Answer: C Difficulty: 2 Medium Learning Objective: 09-07 Types of Adjusting Entries Accessibility: Keyboard Navigation Gradable: automatic 5) An accounting period may be: A) One quarter B) One month C) One year D) All of the choices are correct Answer: D Difficulty: 1 Easy Learning Objective: 09-03 Accounting Cycle Accessibility: Keyboard Navigation Gradable: automatic 6) The Trial Balance: A) Lists all the company's accounts and ending balances B) Is prepared before and after making adjustments C) Verifies the accounting system balances D) All of the choices are correct Answer: D Difficulty: 1 Easy Learning Objective: 09-03 Accounting Cycle; 09-04 Trial Balance Accessibility: Keyboard Navigation Gradable: automatic

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7) Adjusting entries should be made ________ preparing financial statements: A) Before B) During C) After D) Never Answer: A Difficulty: 1 Easy Learning Objective: 09-05 Adjusting Entries Accessibility: Keyboard Navigation Gradable: automatic 8) Unearned revenue occurs when: A) Customers pay after receiving a service B) Customers pay in advance of receiving a service C) Customers default and do not pay you what is owed D) All of the choices are correct Answer: B Difficulty: 2 Medium Learning Objective: 09-09 Unearned Items: Related Revenue and Liability Accounts Accessibility: Keyboard Navigation Gradable: automatic 9) To record adjusting entries, use: A) Reports Menu > General Journal Entries B) Accountant Menu > Make General Journal Entries C) Banking Menu > Make General Journal Entries D) Home > Journal Entries Answer: B Difficulty: 2 Medium Learning Objective: 09-06 Using QuickBooks To Make Adjusting Entries Accessibility: Keyboard Navigation Gradable: automatic 10) Before making adjusting entries you should: A) Close permanent accounts B) Prepare a Trial Balance C) Close temporary accounts D) Prepare a balance sheet Answer: B Difficulty: 1 Easy Learning Objective: 09-03 Accounting Cycle Accessibility: Keyboard Navigation Gradable: automatic 3 Copyright © 2019 McGraw-Hill Education. All rights reserved.

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11) 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 the choices are correct Answer: C Difficulty: 1 Easy Learning Objective: 09-05 Adjusting Entries Accessibility: Keyboard Navigation Gradable: automatic 12) To prepare the Trial Balance, select: A) Reports Center > Accountant & Taxes B) Company Center > Company & Financials C) Reports Center > Company & Financials D) Company Center > Accountant & Taxes Answer: A Difficulty: 2 Medium Learning Objective: 09-04 Trial Balance Accessibility: Keyboard Navigation Gradable: automatic 13) To print the Adjusted Trial Balance, select: A) Reports Center > Accountant & Taxes B) Company Center > Company & Financials C) Reports Center > Company & Financials D) Company Center > Accountant & Taxes Answer: A Difficulty: 2 Medium Learning Objective: 09-04 Trial Balance Accessibility: Keyboard Navigation Gradable: automatic

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14) Types of adjusting entries include all of the following except: A) Prepaid Items B) Accrued Revenues C) Accrued Expenses D) Accrued Cash Answer: D Difficulty: 2 Medium Learning Objective: 09-07 Types of Adjusting Entries Accessibility: Keyboard Navigation Gradable: automatic 15) Prepaid items for which adjusting entries may be necessary include all of the following except: A) Prepaid insurance B) Prepaid Rent C) Unearned Revenue D) Office Supplies Answer: C Difficulty: 2 Medium Learning Objective: 09-08 Prepaid Items: Related Expense and Asset Accounts Accessibility: Keyboard Navigation Gradable: automatic 16) If a count of office supplies on hand reveal $1,000 of supplies unused at year-end and the Office Supplies on Hand account has a balance of $2500, the adjusting entry to bring the Office Supplies on Hand up to date at year-end should include: A) Debit Office Supplies on Hand $1,000, Credit Office Supplies Expense $1,000 B) Debit Office Supplies on Hand $1,500, Credit Office Supplies Expense $1,500 C) Debit Office Supplies Expense $1,000, Credit Office Supplies on Hand $1,000 D) Debit Office Supplies Expense $1,500, Credit Office Supplies on Hand $1,500 Answer: D Difficulty: 3 Hard Learning Objective: 09-08 Prepaid Items: Related Expense and Asset Accounts Accessibility: Keyboard Navigation Gradable: automatic

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17) Adjusting entries for unearned items typically include which of the following related types of accounts: A) Revenue and Liability accounts B) Revenue and Asset accounts C) Expense and Liability accounts D) Expense and Asset accounts Answer: A Difficulty: 2 Medium Learning Objective: 09-09 Unearned Items: Related Revenue and Liability Accounts Accessibility: Keyboard Navigation Gradable: automatic 18) Adjusting entries for prepaid items typically include which of the following related types of accounts: A) Revenue and Liability accounts B) Revenue and Asset accounts C) Expense and Liability accounts D) Expense and Asset accounts Answer: D Difficulty: 2 Medium Learning Objective: 09-08 Prepaid Items: Related Expense and Asset Accounts Accessibility: Keyboard Navigation Gradable: automatic 19) Adjusting entries for accrued expenses typically include which of the following related types of accounts: A) Revenue and Liability accounts B) Revenue and Asset accounts C) Expense and Liability accounts D) Expense and Asset accounts Answer: C Difficulty: 2 Medium Learning Objective: 09-10 Accrued Expenses: Related Expense and Liability Accounts Accessibility: Keyboard Navigation Gradable: automatic

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20) Adjusting entries for accrued revenues typically include which of the following related types of accounts: A) Revenue and Liability accounts B) Revenue and Asset accounts C) Expense and Liability accounts D) Expense and Asset accounts Answer: B Difficulty: 2 Medium Learning Objective: 09-11 Accrued Revenues: Related Revenue and Asset Accounts Accessibility: Keyboard Navigation Gradable: automatic 21) Briefly explain 2 (two) differences between depreciation on a tax return and on a financial statement.

Answer: On a tax return, depreciation is calculated following the rules of the IRS. For financial statements, depreciation is calculated most often by the straight-line method and following the rules of generally accepted accounting principles.

Difficulty: 2 Medium Learning Objective: 09-07 Types of Adjusting Entries Accessibility: Keyboard Navigation Gradable: manual 22) What is the difference between the cash basis and the accrual basis?

Answer: When the cash basis is used, a sale is recorded when cash is received from the customer. Expenses are recorded when cash is paid.

When the accrual basis is used, sales are recorded when the good or service is provided regardless of when the cash is collected from the customer. Expenses are recorded when the cost is incurred or expires, even if the expense has not been paid.

Difficulty: 3 Hard Learning Objective: 09-07 Types of Adjusting Entries Accessibility: Keyboard Navigation Gradable: manual

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Computer Accounting with QuickBooks 2018 (Kay) Chapter 10 QuickBooks Reports 1) To prepare the Balance Sheet, select: A) Company Center > Company & Financials B) Reports Center > Company & Financials C) Reports Center > Accountant & Taxes D) Company Center > Accountant & Taxes Answer: B Difficulty: 2 Medium Learning Objective: 10-08 Financial Statements Accessibility: Keyboard Navigation Gradable: automatic 2) To prepare the Profit & Loss report, select: A) Reports Center > Company & Financials B) Reports Center > Accountant & Taxes C) Company Center > Company & Financials D) Company Center > Accountant & Taxes Answer: A Difficulty: 2 Medium Learning Objective: 10-08 Financial Statements Accessibility: Keyboard Navigation Gradable: automatic 3) To prepare the Statement of Cash Flows, select: A) Reports Center > Company & Financials B) Reports Center > Accountant & Taxes C) Company Center > Company & Financials D) Company Center > Accountant & Taxes Answer: A Difficulty: 2 Medium Learning Objective: 10-08 Financial Statements Accessibility: Keyboard Navigation Gradable: automatic

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4) 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 Answer: A Difficulty: 2 Medium Learning Objective: 10-10 Management Reports Accessibility: Keyboard Navigation Gradable: automatic 5) Income tax reports in QuickBooks include all of the following except: A) Income Tax Preparation report B) Income Tax Detail report C) Income Tax Summary report D) Income Tax Mapping report Answer: D Difficulty: 2 Medium Learning Objective: 10-09 Tax Reports Accessibility: Keyboard Navigation Gradable: automatic 6) To prepare the entire Journal, select: A) Reports Center > Accountant & Taxes > Journal B) Company Center > Company & Financials > Journal C) Reports Center > Company & Financials > Journal D) Company Center > Accountant & Taxes > Journal Answer: A Difficulty: 2 Medium Learning Objective: 10-08 Financial Statements Accessibility: Keyboard Navigation Gradable: automatic

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7) The Income Statement lists: A) Net Income and Owner's Equity B) Income and Expenses C) Assets and Liabilities D) Assets and Expenses Answer: B Difficulty: 1 Easy Learning Objective: 10-08 Financial Statements Accessibility: Keyboard Navigation Gradable: automatic 8) Which one of the following classifications is found on the Statement of Cash Flows?

A) Cash Flows from Financing Activities B) Cash Flows from Purchasing Activities C) Cash Flows from Owner's Activities D) Cash Flows from Selling Activities Answer: A Difficulty: 1 Easy Learning Objective: 10-08 Financial Statements Accessibility: Keyboard Navigation Gradable: automatic 9) What is owner's equity?

A) What a company owes B) What remains after the liabilities are satisfied C) What a company owns D) None of the choices are correct Answer: B Difficulty: 1 Easy Learning Objective: 10-08 Financial Statements Accessibility: Keyboard Navigation Gradable: automatic

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10) Cash inflows and outflows to and from investors and creditors are categorized as cash flows from: A) Investing activities B) Financing activities C) Sales activities D) Operating activities Answer: B Difficulty: 2 Medium Learning Objective: 10-08 Financial Statements Accessibility: Keyboard Navigation Gradable: automatic 11) The Profit & Loss Statement lists: A) Assets and Expenses B) Assets and Liabilities C) Net Income and Owner's Equity D) Income and Expenses Answer: D Difficulty: 1 Easy Learning Objective: 10-08 Financial Statements Accessibility: Keyboard Navigation Gradable: automatic 12) What information does the Balance Sheet provide?

A) A summary of cash inflows and outflows over a specific time period B) A company's financial position on a specific date C) Sales and expenses for a specific time period D) None of the choices are correct Answer: B Difficulty: 1 Easy Learning Objective: 10-08 Financial Statements Accessibility: Keyboard Navigation Gradable: automatic

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13) The Statement of Cash Flows lists: A) Operating, Investing, and Financing Activity B) Assets, Liabilities, and Owner's Equity C) Income, Expenses, Liabilities D) Gains, Losses, and Net Income Answer: A Difficulty: 1 Easy Learning Objective: 10-08 Financial Statements Accessibility: Keyboard Navigation Gradable: automatic 14) The Income Tax Preparation report: A) Summarizes income and expenses that should be listed on a business income tax return B) Lists the assigned tax line for each account C) Provides detailed information about the income and expenses D) All of the choices are correct Answer: B Difficulty: 2 Medium Learning Objective: 10-10 Management Reports; 10-09 Tax Reports; 10-08 Financial Statements; 10-04 Trial Balance; 10-05 Adjusting Entries; 10-06 Adjusted Trial Balance; 10-12 Back Up QuickBooks Files Accessibility: Keyboard Navigation Gradable: automatic 15) The Balance Sheet lists: A) Assets, Liabilities, and Owner's Equity B) Gains, Losses, and Net Income C) Operating, Investing, and Financing Activity D) Income, Expenses, Liabilities Answer: A Difficulty: 1 Easy Learning Objective: 10-08 Financial Statements Accessibility: Keyboard Navigation Gradable: automatic

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16) Which of the following determines if the account appears classified properly on the balance sheet?

A) Tax-Mapping Line B) Account Number C) Item Number D) None of the choices are correct Answer: B Difficulty: 2 Medium Learning Objective: 10-08 Financial Statements Accessibility: Keyboard Navigation Gradable: automatic 17) Providing information to external users for decision making is the purpose of which of the following?

A) Management reports B) Tax forms C) Financial statements D) Inventory reports Answer: C Difficulty: 1 Easy Learning Objective: 10-08 Financial Statements; 10-05 Adjusting Entries Accessibility: Keyboard Navigation Gradable: automatic 18) Providing information to internal users for decision making is the purpose of which of the following?

A) Management reports B) Tax forms C) Financial statements D) Vendors list Answer: A Difficulty: 1 Easy Learning Objective: 10-08 Financial Statements Accessibility: Keyboard Navigation Gradable: automatic

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19) Cash inflows and outflows related to the company's primary business are categorized as cash flows from: A) Investing activities B) Financing activities C) Sales activities D) Operating activities Answer: D Difficulty: 1 Easy Learning Objective: 10-10 Management Reports Accessibility: Keyboard Navigation Gradable: automatic 20) Cash inflows and outflows related to acquisition and disposal of long-term assets are categorized as cash flows from: A) Investing activities B) Financing activities C) Sales activities D) Operating activities Answer: A Difficulty: 2 Medium Learning Objective: 10-04 Trial Balance; 10-06 Adjusted Trial Balance Accessibility: Keyboard Navigation Gradable: automatic 21) List 3 (three) main types of financial reports and briefly explain the differences of each of the types of reports.

Answer: Three main types of financial reports are: ● Financial statements. The primary purpose of financial statements is to provide information to creditors and owners for decision making. ● Tax reports. Tax reports are used when preparing tax forms for filing with the appropriate tax agencies. ● Management reports. These reports are used by management of a company to make decisions related to the company's operations.

Difficulty: 2 Medium Learning Objective: 10-10 Management Reports; 10-09 Tax Reports; 10-08 Financial Statements Accessibility: Keyboard Navigation Gradable: manual

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22) What is the primary objective of providing reports to users?

Answer: The primary objective of providing reports is to provide users of the reports with information for decision making. Different users require different types of information for different decision-making purposes. For example, financial statements provide information to creditors to make decisions regarding extending credit to a company. Managers require financial reports to make decisions regarding the operations of the company.

Difficulty: 2 Medium Learning Objective: 10-08 Financial Statements Accessibility: Keyboard Navigation Gradable: manual

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Computer Accounting with QuickBooks 2018 (Kay) Chapter 11 QuickBooks Service Company 1) Which tax form would you select for a Subchapter S corporation?

A) Form 1120 B) Form 1120S C) Form 1040 D) Form 1040S Answer: B Difficulty: 2 Medium Learning Objective: 11-03 Create New Company Accessibility: Keyboard Navigation Gradable: automatic 2) To create a new company data file in QuickBooks, use the: A) Company Menu > New Company B) Company section of the Home Page > New Company C) File Menu > New Company D) File Menu > Open or Copy Company Answer: C Difficulty: 2 Medium Learning Objective: 11-03 Create New Company Accessibility: Keyboard Navigation Gradable: automatic 3) When setting up a new company, QuickBooks automatically creates: A) Customers List B) Vendors List C) Chart of Accounts D) None of the choices are correct Answer: C Difficulty: 2 Medium Learning Objective: 11-03 Create New Company; 11-10 Customize Chart of Accounts Accessibility: Keyboard Navigation Gradable: automatic

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4) To edit an account in the Chart of Accounts: A) From the Company Center > Edit Chart of Accounts B) From the Chart of Accounts window > Account > Edit Account C) From the Chart of Accounts window > Account > New Account D) From the Company Menu > New Account Answer: B Difficulty: 2 Medium Learning Objective: 11-10 Customize Chart of Accounts Accessibility: Keyboard Navigation Gradable: automatic 5) Which icon does not appear in the Vendors section for service companies that do not sell inventory?

A) Purchase Orders B) Pay Bills C) Enter Bills D) All of the choices are correct Answer: A Difficulty: 2 Medium Learning Objective: 11-09 Customize QuickBooks Accessibility: Keyboard Navigation Gradable: automatic 6) To display account numbers in the Chart of Accounts, select: A) Edit > Options B) Company > Preferences C) Edit > Preferences D) Company > Accounts Answer: C Difficulty: 2 Medium Learning Objective: 11-10 Customize Chart of Accounts Accessibility: Keyboard Navigation Gradable: automatic

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7) The Vendors List contains information about: A) Addresses, contacts and phone numbers of customers B) Addresses, contacts and phone numbers for suppliers C) Quantities and prices of items on hand D) All of the choices are correct Answer: B Difficulty: 2 Medium Learning Objective: 11-06 Add The Products and Services You Sell Accessibility: Keyboard Navigation Gradable: automatic 8) The Customers 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 Answer: D Difficulty: 2 Medium Learning Objective: 11-06 Add The Products and Services You Sell Accessibility: Keyboard Navigation Gradable: automatic 9) Which tax form would you select for a Partnership?

A) Form 1120 B) Form 1120S C) Form 1065 D) Form 1040S Answer: C Difficulty: 2 Medium Learning Objective: 11-03 Create New Company Accessibility: Keyboard Navigation Gradable: automatic 10) Which tax form would you select for a Corporation?

A) Form 1120 B) Form 1120S C) Form 1065 D) Form 1040S Answer: A Difficulty: 2 Medium Learning Objective: 11-03 Create New Company Accessibility: Keyboard Navigation Gradable: automatic 3 Copyright © 2019 McGraw-Hill Education. All rights reserved.

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11) An account's tax line determines where QuickBooks lists the account balances on the: A) Income Statement B) Statement of Cash Flows C) Income Tax Summary Report D) Balance Sheet Answer: C Difficulty: 2 Medium Learning Objective: 11-10 Customize Chart of Accounts Accessibility: Keyboard Navigation Gradable: automatic 12) QuickBooks creates a Chart of Accounts for your company based on: A) Fiscal or calendar year B) Industry type C) Federal ID Tax number D) Company address Answer: B Difficulty: 2 Medium Learning Objective: 11-03 Create New Company; 11-10 Customize Chart of Accounts Accessibility: Keyboard Navigation Gradable: automatic 13) When customer payments are recorded in the Receive Payments window, QuickBooks records: A) An increase in the Checking account B) An increase in Sales C) An increase in Accounts Receivable D) An increase in Undeposited Funds account Answer: D Difficulty: 2 Medium Learning Objective: 11-13 Customer and Sales Transactions Accessibility: Keyboard Navigation Gradable: automatic

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14) When customer payments are received and recorded, QuickBooks reduces the ________ account balance.

A) Accounts Receivable B) Accounts Payable C) Undeposited Funds D) Checking Answer: A Difficulty: 2 Medium Learning Objective: 11-03 Create New Company Accessibility: Keyboard Navigation Gradable: automatic 15) The following are examples of possible memorized transactions except: A) Rent payments B) Special order for a customer C) Utility bills D) Depreciation Answer: B Difficulty: 2 Medium Learning Objective: 11-02 New QuickBooks Service Company Accessibility: Keyboard Navigation Gradable: automatic 16) When closing the accounting period you: A) Close temporary accounts at year end B) Bring account balances up to date at year end C) Close permanent accounts at year-end D) All of the choices are correct Answer: A Difficulty: 2 Medium Learning Objective: 11-16 Close the Accounting Period Accessibility: Keyboard Navigation Gradable: automatic

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17) QuickBooks automatically closes ________ accounts to start each new accounting year with a $0 balance in all ________ accounts.

A) temporary; permanent B) temporary; temporary C) permanent; permanent D) permanent; temporary Answer: B Difficulty: 2 Medium Learning Objective: 11-16 Close the Accounting Period Accessibility: Keyboard Navigation Gradable: automatic 18) Sales on account are recorded using the ________ window.

A) Make Deposits B) Sales Receipts C) Create Invoices D) Receive Items Answer: C Difficulty: 2 Medium Learning Objective: 11-13 Customer and Sales Transactions Accessibility: Keyboard Navigation Gradable: automatic 19) To record receiving a bill for services to be paid at a later time, use the following: A) Purchase Order > Receive Payment > Deposit B) Invoice > Receive Payment > Deposit C) Enter Bills > Pay Bills D) Invoice > Enter Bills > Pay Bills Answer: C Difficulty: 2 Medium Learning Objective: 11-12 Vendor and Expense Transactions Accessibility: Keyboard Navigation Gradable: automatic

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20) To record a sales transaction, use the following: A) Create Purchase Order > Receive Payment > Make Deposit B) Create Invoices > Receive Payment > Make Deposits C) Create Invoices > Create Sales Receipts > Make Deposits D) Receive Payment > Create Sales Receipts > Make Deposits Answer: B Difficulty: 2 Medium Learning Objective: 11-13 Customer and Sales Transactions Accessibility: Keyboard Navigation Gradable: automatic 21) Name at least 4 (four) types of transactions that could be entered in QuickBooks for a service company.

Answer: Type of transactions entered into QuickBooks for a service company could include the following: ● Banking and Credit Card transactions ● Vendors and Expenses transactions ● Customers and Sales transactions ● Employees and Payroll transactions ● Other transactions Difficulty: 2 Medium Learning Objective: 11-13 Customer and Sales Transactions; 11-12 Vendor and Expense Transactions Accessibility: Keyboard Navigation Gradable: manual 22) List 3 (three) questions asked by the QuickBooks EasyStep Interview.

Answer: Questions asked by the QuickBooks EasyStep Interview include: ● Do you accept credit cards? ● Do you charge sales tax? ● Would you like to add an existing bank account? ● Do you track time?

Difficulty: 2 Medium Learning Objective: 11-03 Create New Company Accessibility: Keyboard Navigation Gradable: manual

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Computer Accounting with QuickBooks 2018 (Kay) Chapter 13 QuickBooks Merchandise Company 1) Retail customers: A) Pay no sales tax B) Pay sales tax C) Pay a manufacturing tax D) Pay sales tax on labor only Answer: B Difficulty: 1 Easy Learning Objective: 13-06 Customer, Vendor, and Item Lists Accessibility: Keyboard Navigation Gradable: automatic 2) After creating a new QuickBooks data file for an existing company and entering all the existing balances, use an opening adjusting entry to move the balance in the ________ account to the Capital Stock account.

A) Uncategorized Expenses B) Uncategorized Income C) Opening Balance Equity D) None of the choices are correct Answer: C Difficulty: 2 Medium Learning Objective: 13-08 QuickBooks Opening Adjustments Accessibility: Keyboard Navigation Gradable: automatic 3) Identify which of the following opening adjusting entries should be used when setting up in QuickBooks an existing company with opening balances: A) Debit: Capital Stock, Credit: Opening Balance Equity B) Debit: Opening Balance Equity, Credit: Capital Stock C) Debit: Accounts Receivable, Credit: Capital Stock D) Debit: Accounts Payable, Credit: Opening Balance Equity Answer: B Difficulty: 3 Hard Learning Objective: 13-08 QuickBooks Opening Adjustments Accessibility: Keyboard Navigation Gradable: automatic

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4) A law firm is an example of a ________ company.

A) Service B) Retail Shop C) Manufacturing D) Product-based business Answer: A Difficulty: 1 Easy Learning Objective: 13-02 New QuickBooks Merchandising Company Accessibility: Keyboard Navigation Gradable: automatic 5) An accounting firm is an example of a ________ company.

A) Service B) Retail Shop C) Manufacturing D) Product-based business Answer: A Difficulty: 1 Easy Learning Objective: 13-02 New QuickBooks Merchandising Company Accessibility: Keyboard Navigation Gradable: automatic 6) When you place an order for items from a vendor, which one of the following QuickBooks forms would you use?

A) Create Invoice B) Receive Inventory C) Purchase Order D) None of the choices are correct Answer: C Difficulty: 2 Medium Learning Objective: 13-09 Vendor and Expense Transactions Accessibility: Keyboard Navigation Gradable: automatic

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7) When using QuickBooks, sales tax is: A) Calculated manually for each item sold B) Calculated for all items that are listed on an invoice C) Calculated automatically by QuickBooks for items flagged as taxable D) All of the choices are correct Answer: C Difficulty: 2 Medium Learning Objective: 13-06 Customer, Vendor, and Item Lists; 13-10 Customers and Sales Transactions Accessibility: Keyboard Navigation Gradable: automatic 8) The Sales Tax Rate appears on which of the QuickBooks lists?

A) Customers List B) Vendors List C) Item List D) Account List Answer: C Difficulty: 2 Medium Learning Objective: 13-06 Customer, Vendor, and Item Lists Accessibility: Keyboard Navigation Gradable: automatic 9) Inventory items received should be compared against: A) Sales order B) Purchase order C) Supplies inventory D) Sales receipt Answer: B Difficulty: 2 Medium Learning Objective: 13-09 Vendor and Expense Transactions Accessibility: Keyboard Navigation Gradable: automatic

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10) When recording the sale of a product, which account is increased?

A) Inventory B) Accounts Receivable C) Notes Payable D) None of the choices are correct Answer: B Difficulty: 3 Hard Learning Objective: 13-10 Customers and Sales Transactions Accessibility: Keyboard Navigation Gradable: automatic 11) The purchasing cycle includes all of the following transactions except: A) Create a purchase order to order inventory B) Receive inventory items and record in the inventory account C) Enter hours in the time sheet for stocking inventory D) Enter bill in QuickBooks when bill is received Answer: C Difficulty: 2 Medium Learning Objective: 13-09 Vendor and Expense Transactions Accessibility: Keyboard Navigation Gradable: automatic 12) To view account numbers in the Chart of Accounts, select: A) Edit > Preferences > General > Company Preferences B) Edit > Preferences > Desktop View > Company Preferences C) Edit > Preferences > General > My Preferences D) Edit > Preferences > Accounting > Company Preferences Answer: D Difficulty: 2 Medium Learning Objective: 13-07 Customize Chart of Accounts Accessibility: Keyboard Navigation Gradable: automatic 13) To add an existing opening balance to a new account, select: A) New Account > Opening Balance B) Account Options > Enter Opening Balance C) Account > Opening Balance D) Edit Account > Enter Opening Balance Answer: D Difficulty: 2 Medium Learning Objective: 13-07 Customize Chart of Accounts Accessibility: Keyboard Navigation Gradable: automatic 4 Copyright © 2019 McGraw-Hill Education. All rights reserved.

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14) The cost of the inventory items sold is tracked in what account: A) Items Sold B) Materials Cost C) Cost of Goods Sold D) Inventory Sold Answer: C Difficulty: 2 Medium Learning Objective: 13-09 Vendor and Expense Transactions Accessibility: Keyboard Navigation Gradable: automatic 15) If the supplies on hand at the end of January totaled $300 and the Supplies on Hand account before adjustment is $900, what should be the adjustment at month-end?

A) Increase supplies on hand by $900; reduce supplies expense by $900 B) Reduce supplies on hand by $600; increase supplies expense by $600 C) Reduce supplies on hand by $300; increase supplies expense by $300 D) Increase supplies on hand by $300; reduce supplies expense by $300 Answer: B Difficulty: 3 Hard Learning Objective: 13-11 Adjusting Entries Accessibility: Keyboard Navigation Gradable: automatic 16) A toy store is an example of a ________ company.

A) Service B) Retail C) Manufacturing D) Product-based business Answer: B Difficulty: 1 Easy Learning Objective: 13-02 New QuickBooks Merchandising Company Accessibility: Keyboard Navigation Gradable: automatic

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17) When creating a new QuickBooks data file for an existing company, QuickBooks automatically offsets accounts receivable balances with an entry to the: A) Uncategorized Expenses account B) Uncategorized Income account C) Opening Balance Equity account D) Capital Stock account Answer: B Difficulty: 3 Hard Learning Objective: 13-08 QuickBooks Opening Adjustments Accessibility: Keyboard Navigation Gradable: automatic 18) When creating a new QuickBooks data file for an existing company, QuickBooks automatically offsets accounts payable balances with an entry to the: A) Uncategorized Expenses account B) Uncategorized Income account C) Opening Balance Equity account D) Capital Stock account Answer: A Difficulty: 3 Hard Learning Objective: 13-08 QuickBooks Opening Adjustments Accessibility: Keyboard Navigation Gradable: automatic 19) The purchasing cycle for a merchandising company consists of: A) Create Purchase Order > Receive Payment > Make Deposits B) Create Purchase Order > Receive Inventory > Enter Bill > Pay Bill C) Create Invoice > Receive Payment > Record Deposits D) Create Invoice > Receive Inventory > Pay Bill > Record Deposits Answer: B Difficulty: 2 Medium Learning Objective: 13-09 Vendor and Expense Transactions Accessibility: Keyboard Navigation Gradable: automatic

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20) The sales cycle for a merchandising company consists of: A) Create Purchase Order > Receive Inventory > Enter Bill > Pay Bill B) Create Purchase Order > Receive Payment > Make Deposits C) Create Invoice > Receive Payment > Make Deposits D) Create Invoice > Receive Inventory > Pay Bill > Make Deposits Answer: C Difficulty: 2 Medium Learning Objective: 13-10 Customers and Sales Transactions Accessibility: Keyboard Navigation Gradable: automatic 21) Briefly explain how the supplies on hand account is adjusted at the end of the period.

Answer: The supplies on hand account is an asset account because the supplies have future benefit. At the end of the period, a count is done to determine what supplies were used and what supplies still remain on hand. Then, an adjusting entry is created for the amount of the supplies used during the period as a supply expense.

Difficulty: 2 Medium Learning Objective: 13-11 Adjusting Entries Accessibility: Keyboard Navigation Gradable: manual 22) Name 2 (two) differences between accounting for a service company and a retail shop.

Answer: Differences between a service company and a merchandising company (retail shop) could include the following: ● A merchandising company tracks inventory and cost of goods sold, while a service company tracks services and hours per project. ● The accounts in the Chart of Accounts can vary for a service company versus a merchandising company. For example, a retail shop uses the Inventory account while typically a service company does not. ● A merchandising company must collect and account for sales taxes payable. Typically, a service company does not collect sales taxes on services.

Difficulty: 2 Medium Learning Objective: 13-06 Customer, Vendor, and Item Lists; 13-08 QuickBooks Opening Adjustments; 13-02 New QuickBooks Merchandising Company; 13-09 Vendor and Expense Transactions; 13-10 Customers and Sales Transactions; 13-07 Customize Chart of Accounts; 1311 Adjusting Entries; 13-01 QuickBooks SatNav; 13-03 Create New Company; 13-04 Add Bank Account; 13-05 Customize QuickBooks Preference; 13-12 Financial Reports; 13-13 Back Up QuickBooks Files Accessibility: Keyboard Navigation Gradable: manual

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Computer Accounting with QuickBooks 2018 (Kay) Chapter 15 Advanced QuickBooks Features for Accountants 1) To create a budget: A) From the Company Center, select Company & Financials > Budgets B) From the Edit Menu, select Preferences > Set Up Budgets C) From the Company Menu, select Planning & Budgeting > Set Up Budgets D) From the Banking Menu, select Planning & Budgets > Budgets Answer: C Difficulty: 2 Medium Learning Objective: 15-03 Budgets Accessibility: Keyboard Navigation Gradable: automatic 2) To print a budget: A) From the Company Center, select Company & Financials > Budgets B) From the Reports Center, select Budgets & Forecasts > Budget Overview C) From the Reports Center, select Company & Financials > Budgets D) From the Reports Center, select Accountant & Taxes > Budgets Answer: B Difficulty: 2 Medium Learning Objective: 15-03 Budgets Accessibility: Keyboard Navigation Gradable: automatic 3) When creating a budget in QuickBooks, you can: A) Create a budget that increases each monthly amount by a specific percentage B) Create a budget from previous year's actual data C) Create a budget from scratch D) All of the choices are correct Answer: D Difficulty: 1 Easy Learning Objective: 15-03 Budgets Accessibility: Keyboard Navigation Gradable: automatic

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4) Which QuickBooks feature would you use to prepare a bid for a potential customer?

A) Progress Billing B) Enter Bills C) Estimates D) Invoice Answer: C Difficulty: 1 Easy Learning Objective: 15-04 Estimates Accessibility: Keyboard Navigation Gradable: automatic 5) Customer payments received on progress invoices are: A) Recorded using the Check Register B) Recorded using the Statement icon in the Customers section of the Home Page C) Recorded in the same manner as customer payments for standard invoices D) Recorded using the Progress Invoices icon in the Customers section of the Home Page Answer: C Difficulty: 2 Medium Learning Objective: 15-05 Progress Billing Accessibility: Keyboard Navigation Gradable: automatic 6) A credit card payment received against/on an open invoice would be recorded using the: A) Statements icon in the Customers section of the Home Page B) Invoices icon in the Customers section of the Home Page C) Receive Payments icon in the Customers section of the Home Page D) Credit Card icon in the Banking section of the Home Page Answer: C Difficulty: 2 Medium Learning Objective: 15-06 Credit Card Sales Accessibility: Keyboard Navigation Gradable: automatic 7) The audit trail lists: A) All deleted transactions B) All changes to transactions C) User ID of person entering transactions D) All of the choices are correct Answer: D Difficulty: 1 Easy Learning Objective: 15-08 Audit Trail Accessibility: Keyboard Navigation Gradable: automatic 2 Copyright © 2019 McGraw-Hill Education. All rights reserved.

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8) To create an audit trail report: A) Select Reports Center > Accountant & Taxes > Audit Trail B) Select Reports Menu > Company & Financials > Audit Trail C) Select the Audit Trail icon in the Company Center D) Select the Audit Trail report from the Company section of the Home Page Answer: A Difficulty: 2 Medium Learning Objective: 15-08 Audit Trail Accessibility: Keyboard Navigation Gradable: automatic 9) The audit trail can improve which of the following?

A) Bad debt expense B) Progress invoicing C) Creating estimates D) Internal control Answer: D Difficulty: 2 Medium Learning Objective: 15-08 Audit Trail Accessibility: Keyboard Navigation Gradable: automatic 10) When exporting the Audit Trail report to Excel, which of the following can be used to perform further analysis?

A) Excel Autofilter B) Word tables C) QuickBooks fast format D) All of the choices are correct Answer: A Difficulty: 2 Medium Learning Objective: 15-08 Audit Trail Accessibility: Keyboard Navigation Gradable: automatic

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11) After displaying the QuickBooks Audit Trail report, the report can be exported to Excel using the Autofilter by selecting: A) Excel button > Create new worksheet > Replace an existing worksheet > Advanced tab > Auto Filtering B) Excel button > Advanced > Auto Filter C) Export > Auto Filtering D) None of the choices are correct Answer: A Difficulty: 3 Hard Learning Objective: 15-08 Audit Trail Accessibility: Keyboard Navigation Gradable: automatic 12) For long-term projects that are to be billed as each stage of the project is complete, the QuickBooks ________ feature should be used.

A) Progressive Projects B) Long Term Projects C) Progress Billing D) Projects Billing Answer: C Difficulty: 2 Medium Learning Objective: 15-05 Progress Billing Accessibility: Keyboard Navigation Gradable: automatic 13) To write off a transaction that was charged a sales tax, use: A) A journal entry to move the customer's balance (credit) to the Bad Debt Expense account (debit) B) A journal entry to move the customer's balance (credit) to Allowance for Uncollectible Accounts (debit) C) The Receive Payments window (Discount Info button) D) The Credit Memo window Answer: C Difficulty: 3 Hard Learning Objective: 15-07 Bad Debts Accessibility: Keyboard Navigation Gradable: automatic

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14) In QuickBooks, budget types include: A) Profit & Loss B) Balance Sheet C) All of the choices are correct D) None of the choices are correct Answer: C Difficulty: 1 Easy Learning Objective: 15-03 Budgets Accessibility: Keyboard Navigation Gradable: automatic 15) Progress Invoicing is turned on by going to Edit > Preferences > ________ A) Bills B) Jobs and Estimates C) Sales and Customers D) Time and Expenses Answer: B Difficulty: 2 Medium Learning Objective: 15-05 Progress Billing Accessibility: Keyboard Navigation Gradable: automatic 16) If the Estimates icon does not appear on your screen in QuickBooks, select: A) Edit Menu > Preferences > Jobs and Estimates > Company Preferences B) Customers Menu > Jobs > Estimates C) Company Menu > Estimates > Preferences D) Company Menu > Preferences > Estimates Answer: A Difficulty: 2 Medium Learning Objective: 15-04 Estimates Accessibility: Keyboard Navigation Gradable: automatic 17) To enable progress billing, select: A) Customers Menu > Jobs > Progressive Billing B) Edit Menu > Preferences > Jobs and Estimates > Company Preferences C) Company Menu > Preferences > Progressive Billing D) Company Menu > Estimates > Preferences Answer: B Difficulty: 2 Medium Learning Objective: 15-05 Progress Billing Accessibility: Keyboard Navigation Gradable: automatic 5 Copyright © 2019 McGraw-Hill Education. All rights reserved.

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18) When recording a customer credit card payment on account using QuickBooks, select: A) Create Invoice > Customer Payment > Customer & Job Name B) Create Sales Receipt > Record Deposits C) Receive Payment > Select Customer & Job Name > Select Payment Method and enter credit card information D) Make Deposit > Select Customer & Job Name > Select Payment Method and enter credit card information Answer: C Difficulty: 3 Hard Learning Objective: 15-06 Credit Card Sales Accessibility: Keyboard Navigation Gradable: automatic 19) The Allowance Method for bad debts: A) Should be used if uncollectible accounts have a material effect on the company's financial statements used by investors and creditors B) Complies with GAAP C) Estimates bad debt expense and establishes an allowance or reserve for uncollectible D) All of the choices are correct Answer: D Difficulty: 1 Easy Learning Objective: 15-12 Accounting Essentials: Bad Debts Accessibility: Keyboard Navigation Gradable: automatic 20) The Direct Write-off Method for bad debts: A) Complies with GAAP B) 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 C) Estimates bad debt expense and establishes an allowance or reserve for uncollectible D) None of the choices are correct Answer: B Difficulty: 1 Easy Learning Objective: 15-12 Accounting Essentials: Bad Debts Accessibility: Keyboard Navigation Gradable: automatic

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21) Briefly explain the direct write off method for accounting for bad debts.

Answer: The direct write of method of accounting for bad debts writes off bad debt once it is apparent the customer is not going to pay. The amount due is removed from accounts receivable and expensed.

Difficulty: 2 Medium Learning Objective: 15-12 Accounting Essentials: Bad Debts Accessibility: Keyboard Navigation Gradable: manual 22) Briefly explain the allowance method for accounting for bad debts.

Answer: The allowance method of accounting for bad debts estimates bad debts and establishes a reserve for possible uncollectible accounts. Often, a percentage of sales is used.

Difficulty: 2 Medium Learning Objective: 15-12 Accounting Essentials: Bad Debts Accessibility: Keyboard Navigation Gradable: manual

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Computer Accounting with QuickBooks 2018 (Kay) Chapter 16 QuickBooks Desktop Versus QuickBooks Online 1) Which of the following accountant versions can be used with QuickBooks Online?

A) QuickBooks Desktop Accountant B) QuickBooks Pro Accountant C) QuickBooks Online Accountant D) QuickBooks Enterprise Accountant Answer: C Difficulty: 1 Easy Learning Objective: 16-04 What Are My QuickBooks Accountant Options?

Accessibility: Keyboard Navigation Gradable: automatic 2) Which of the following accountant versions can be used with QuickBooks Desktop?

A) QuickBooks Desktop Accountant B) QuickBooks Pro Accountant C) QuickBooks Online Accountant D) QuickBooks Enterprise Accountant Answer: A Difficulty: 1 Easy Learning Objective: 16-04 What Are My QuickBooks Accountant Options?

Accessibility: Keyboard Navigation Gradable: automatic 3) Which one of the following QuickBooks versions changes on an ongoing basis with changes rolled out throughout the year?

A) QuickBooks Desktop B) QuickBooks Pro C) QuickBooks Online D) QuickBooks Enterprise Answer: C Difficulty: 2 Medium Learning Objective: 16-03 What Are My QuickBooks User Options?

Accessibility: Keyboard Navigation Gradable: automatic

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4) Which one of the following Accountant versions changes on an ongoing basis with changes rolled out throughout the year?

A) QuickBooks Desktop Accountant B) QuickBooks Pro Accountant C) QuickBooks Online Accountant D) QuickBooks Enterprise Accountant Answer: C Difficulty: 2 Medium Learning Objective: 16-04 What Are My QuickBooks Accountant Options?

Accessibility: Keyboard Navigation Gradable: automatic 5) Which one of the following QuickBooks versions are issued new once a year?

A) QuickBooks Online B) QuickBooks Online Accountant C) QuickBooks Online Plus D) QuickBooks Desktop Answer: D Difficulty: 2 Medium Learning Objective: 16-03 What Are My QuickBooks User Options?

Accessibility: Keyboard Navigation Gradable: automatic 6) Accountants often provide financial services to multiple clients. Which two of the following are QuickBooks options for clients?

A) QuickBooks Online Accountant B) QuickBooks Desktop Accountant C) QuickBooks Pro D) QuickBooks Enterprise Answer: C, D Difficulty: 1 Easy Learning Objective: 16-03 What Are My QuickBooks User Options?

Accessibility: Keyboard Navigation Gradable: automatic

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7) Accountants often provide financial services to multiple clients. Which two of the following are QuickBooks options for clients?

A) QuickBooks Pro B) QuickBooks Premier C) QuickBooks Online Accountant D) QuickBooks Desktop Accountant Answer: A, B Difficulty: 1 Easy Learning Objective: 16-03 What Are My QuickBooks User Options?

Accessibility: Keyboard Navigation Gradable: automatic 8) Advantages of using QuickBooks Desktop versus QuickBooks Online include the following: A) Anytime, anywhere access through a browser B) Additional features, functionality, and versions for specific industries C) Ability for accountant to access client QuickBooks using a browser D) None of the choices are correct Answer: B Difficulty: 2 Medium Learning Objective: 16-03 What Are My QuickBooks User Options?

Accessibility: Keyboard Navigation Gradable: automatic 9) Advantages of using QuickBooks Online versus QuickBooks Desktop include the following: A) Anytime, anywhere access through a browser B) Additional features, functionality, and versions for specific industries C) User control over backups and access to backup data files D) None of the choices are correct Answer: A Difficulty: 2 Medium Learning Objective: 16-03 What Are My QuickBooks User Options?

Accessibility: Keyboard Navigation Gradable: automatic

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10) Which of the following QuickBooks is designed for mid-size companies: A) QuickBooks Online B) QuickBooks Pro C) QuickBooks Premier D) QuickBooks Enterprise Answer: D Difficulty: 1 Easy Learning Objective: 16-03 What Are My QuickBooks User Options?

Accessibility: Keyboard Navigation Gradable: automatic 11) Briefly describe a process that accountants can use to assist clients in moving from one QuickBooks Desktop version to the new version with minimal disruption to accountant and client business processes.

Answer: A proactive approach that some accountants use is to move all their clients to the next edition of QuickBooks at the same time. For example, after the 2018 QuickBooks edition is released in fall of 2017 and the accounting firm has thoroughly tested the new edition, the firm moves all clients to QuickBooks 2018 on January 1, 2018. This approach permits the accounting firm to test the new software for possible issues, install updates, and create workarounds before moving clients to the new edition. Since many clients are on a calendar year starting January 1, this timeline permits a nice cutoff. Also, this approach streamlines firm operations since now all clients and the firm are in sync, using the same version of QuickBooks.

If clients start moving to the new edition as soon as it is released, clients may encounter unexpected issues that the accounting firm has not had time to thoroughly investigate and resolve. Some firms even provide training for clients as they transition them to the new version, summarizing differences and new features to proactively prepare clients for what to expect. This can minimize client errors in working with the new version and save the firm from unexpected disruptions and surprises.

Difficulty: 2 Medium Learning Objective: 16-02 How Can Our Accounting Firm Streamline Our QuickBooks Consulting?

Accessibility: Keyboard Navigation Gradable: manual

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12) Briefly describe which version of QuickBooks an accountant must use based on the version of QuickBooks the client is using.

Answer: Which option the accountant chooses, QuickBooks Online Accountant or QuickBooks Desktop Accountant, is typically dictated by client use because QuickBooks Desktop files are not compatible with QuickBooks Online. For example, if all the accounting firm's clients use QuickBooks Desktop software, then the accounting firm would use QuickBooks Accountant Desktop version. If the clients use QuickBooks Online, then the accountant would need to use QuickBooks Online Accountant.

Difficulty: 2 Medium Learning Objective: 16-04 What Are My QuickBooks Accountant Options?

Accessibility: Keyboard Navigation Gradable: manual

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Computer Accounting with QuickBooks 2018 (Kay) Chapter 17 Quick Review Guide 1) You are setting up a new company using the Easy Step Interview. Which items of company information must you enter: A) Company address B) Company Tax ID number C) Employee information D) Company name Answer: D Difficulty: 2 Medium Learning Objective: 17-01 QuickBooks Setup Accessibility: Keyboard Navigation Gradable: automatic 2) In completing the Easy Step Interview, which start date do you use?

A) The current date B) The date the company formed C) The date you begin using QuickBooks to keep track of the company's finances D) The first date in the current fiscal year Answer: C Difficulty: 2 Medium Learning Objective: 17-01 QuickBooks Setup Accessibility: Keyboard Navigation Gradable: automatic 3) How can you backup data in QuickBooks?

A) You should never backup data.

B) Data can be backed up manually, automatically or scheduled.

C) Only the administrator can back up data.

D) All of the choices are correct.

Answer: B Difficulty: 1 Easy Learning Objective: 17-02 QuickBooks Utilities and General Product Knowledge Accessibility: Keyboard Navigation Gradable: automatic

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4) If you see diamonds on lists, what does this indicate?

A) You can't move the item on the list.

B) There are secure transactions affecting this item.

C) This item cannot be changed.

D) The diamond can be clicked to move the item to a different place on the list.

Answer: D Difficulty: 2 Medium Learning Objective: 17-03 List Management Accessibility: Keyboard Navigation Gradable: automatic 5) How many names can be placed on the Names List in QuickBooks Pro? A) unlimited B) 4,500 C) 14,500 D) 25,000 Answer: C Difficulty: 2 Medium Learning Objective: 17-03 List Management Accessibility: Keyboard Navigation Gradable: automatic 6) Once a company is set up, how can the name and address be edited?

A) Go to Accountant Menu > Client Data Review B) Choose Edit company information C) Go to Company Menu > My Company > Edit D) Go to Edit Menu > Preferences > General Answer: C Difficulty: 2 Medium Learning Objective: 17-02 QuickBooks Utilities and General Product Knowledge Accessibility: Keyboard Navigation Gradable: automatic 7) What type of inventory requires assembly from other items before sale?

A) Inventory Assembly B) Inventory Group C) Inventory Parts and Supplies D) Non-inventory Assembly Answer: A Difficulty: 2 Medium Learning Objective: 17-04 Items Accessibility: Keyboard Navigation Gradable: automatic 2 Copyright © 2019 McGraw-Hill Education. All rights reserved.

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8) When a customer pays cash at the time of sale, what do you record?

A) A sales receipt B) An invoice C) A purchase order D) A thank you note Answer: A Difficulty: 2 Medium Learning Objective: 17-05 Sales (Customer Transactions) Accessibility: Keyboard Navigation Gradable: automatic 9) When a customer purchases goods or services but does not pay at the point of sale, what do you record?

A) An invoice B) A purchase order C) A reminder D) None of the choices are correct Answer: A Difficulty: 2 Medium Learning Objective: 17-05 Sales (Customer Transactions) Accessibility: Keyboard Navigation Gradable: automatic 10) What are items used for?

A) An item can be used to create an invoice.

B) An item can help to track your sales in detail.

C) An item can represent various goods or services.

D) All of the choices are correct.

Answer: D Difficulty: 1 Easy Learning Objective: 17-06 Purchases (Vendor Transactions) Accessibility: Keyboard Navigation Gradable: automatic

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11) If you need to enter a vendor credit, where do you begin?

A) Customers List B) Employees List C) Enter bill D) Banking center Answer: C Difficulty: 2 Medium Learning Objective: 17-06 Purchases (Vendor Transactions) Accessibility: Keyboard Navigation Gradable: automatic 12) The Pay bills window can be used to: A) Keep track of accounts payable B) Keep track of inventory C) Keep track of non-inventory items D) Keep track of your outstanding checks Answer: A Difficulty: 2 Medium Learning Objective: 17-06 Purchases (Vendor Transactions) Accessibility: Keyboard Navigation Gradable: automatic 13) Which type of paycheck style do employees typically prefer?

A) Wallet B) Electronic C) Deluxe D) Voucher Answer: D Difficulty: 1 Easy Learning Objective: 17-07 Payroll (Employee Transactions) Accessibility: Keyboard Navigation Gradable: automatic

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14) If you open the Memorized Report List and then click Memorized Report > New Group, what are you creating?

A) A list of memorized files B) A memorized group of reports that are useful to your business C) Information needed by the IRS on a quarterly basis D) Item Lists Answer: B Difficulty: 2 Medium Learning Objective: 17-08 Reports Accessibility: Keyboard Navigation Gradable: automatic 15) Subaccounts: A) Help to show various account groups in one separate section B) Help to keep track of finances by grouping and subtotaling categories C) Improves efficiency in your system D) Do not exist in QuickBooks Answer: B Difficulty: 2 Medium Learning Objective: 17-09 Basic Accounting Accessibility: Keyboard Navigation Gradable: automatic 16) Where do you find the Balance Sheet and Profit and Loss statements?

A) Accounting reports B) Employee reports C) Company and Financial D) Other reports Answer: C Difficulty: 2 Medium Learning Objective: 17-09 Basic Accounting Accessibility: Keyboard Navigation Gradable: automatic

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17) QuickBooks uses which basis of bookkeeping?

A) Accrual B) Cash C) Both accrual and cash D) Neither accrual nor cash Answer: C Difficulty: 1 Easy Learning Objective: 17-09 Basic Accounting Accessibility: Keyboard Navigation Gradable: automatic 18) Where do you key in information about a new employee?

A) Company preferences B) Must be keyed in each fiscal year in the employee preferences tab C) In the Home Page D) Payroll Info tab Answer: D Difficulty: 1 Easy Learning Objective: 17-07 Payroll (Employee Transactions) Accessibility: Keyboard Navigation Gradable: automatic 19) What does Edit > Memorize Check permit you to do?

A) Change your preferences B) Automate the same transaction each month C) Ensure you do not overdraw your account as it prevents you from paying bills if the balance does not cover the check D) None of the choices are correct Answer: B Difficulty: 1 Easy Learning Objective: 17-10 Customization/Saving Time and Shortcuts Accessibility: Keyboard Navigation Gradable: automatic

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20) The layout designer allows you to: A) Change the background of your home screen B) Change the design and location of items on your invoice C) Only change one item per fiscal period D) Change from cash to accrual basis of accounting Answer: B Difficulty: 3 Hard Learning Objective: 17-10 Customization/Saving Time and Shortcuts Accessibility: Keyboard Navigation Gradable: automatic 21) How do you handle the case when a customer's check is returned for non-sufficient funds?

A) Record it in purchases journal B) Make an entry to record the money owed and an equal decrease in cash C) Write it off as an uncollectible account D) All of the choices are correct Answer: B Difficulty: 3 Hard Learning Objective: 17-05 Sales (Customer Transactions) Accessibility: Keyboard Navigation Gradable: automatic 22) How much do you charge a delinquent customer who "bounces" a check payable to you?

A) The amount of the invoice B) The amount of the NSF fee C) Additional fees (if any) D) All of the choices are correct Answer: D Difficulty: 3 Hard Learning Objective: 17-05 Sales (Customer Transactions) Accessibility: Keyboard Navigation Gradable: automatic 23) List management includes: A) Adding/deleting B) Merging C) Editing D) All of the choices are correct Answer: D Difficulty: 1 Easy Learning Objective: 17-03 List Management Accessibility: Keyboard Navigation Gradable: automatic 7 Copyright © 2019 McGraw-Hill Education. All rights reserved.

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24) The two types of statements in QuickBooks are: A) Open Transaction and Closed Transaction B) Open Transaction and Activity Based C) Open Transaction and Limited Transaction D) Customer Based and Confidential Answer: B Difficulty: 3 Hard Learning Objective: 17-05 Sales (Customer Transactions) Accessibility: Keyboard Navigation Gradable: automatic 25) What two restrictions on merging occur in QuickBooks?

A) Names or different types of accounts B) Accounts on different financial statements or negative balances C) Accounts with credits or Contra Accounts D) None of the choices are correct Answer: A Difficulty: 3 Hard Learning Objective: 17-03 List Management Accessibility: Keyboard Navigation Gradable: automatic

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