CHAPTER 1 1) In which section of the Home Page would you look for the icon to access the Chart of Accounts? A) Vendor section B) Banking section C) Company section D) Customer section
2) Which of the following tasks cannot be completed in the Vendors section of the Home Page? A) Receive Payments B) Create Purchase Order C) Receive Inventory D) Enter Bill
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) Reports and Graphs D) Banking
4)
Ways to navigate QuickBooks include:
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A) Menus B) Icon Bar C) Home Page D) All the choices are correct
5)
Which of the following tasks can be completed in the Vendors section of the Home page? A) Create Invoices B) Create Estimates C) Write Checks D) Receive Payments
6)
The Chart of Accounts can be accessed in which of the following ways? A) Company section of the Home Page B) Company menu C) Report Center D) All the choices are correct
7) To change a company name in QuickBooks, select the following from 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
8)
Which of the following file types identifies a QuickBooks Backup file?
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A) QBM B) QBB C) <p>QBW </p> D) QBX
9) Which one of the following activities is associated with the Customers section of the Home Page? A) <p>Pay sales tax </p> B) <p>Enter bills </p> C) Create invoice D) Create purchase order
10)
The Home Page in QuickBooks consists of all the following sections except: A) Employee B) Preferences C) <p>Customer </p> D) Vendor
11)
Which of the following tasks is completed from the Banking section of the Home Page? A) Pay employees B) Write checks C) Enter bills D) Pay bills
12)
Accounting information is used to do all of the following except:
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A) Prepare financial statements for investors B) Prepare tax returns for the IRS C) Prepare reports for management D) Accounting information is used for all of the choices
13)
Most accounting systems consist of which of the following components: A) Input B) Processing C) Output D) All the choices are correct
14)
A QuickBooks QBB file: A) Can be opened and used by simply clicking on the QBB file B) Is a compressed file that must be restored as a QBW file before transactions can be
entered C) Is a compressed file that can be unzipped using any unzip software application D) All the choices are correct
15)
Which type of QuickBooks data file allows you to enter data and transactions? A) QBM B) QBB C) QBW D) QBX
16)
Which financial statement below summarizes the financial position of a company?
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A) Statement of Cash Flows B) Profit & Loss Statement C) Income Statement D) Balance Sheet
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
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
19)
Reports for managers can help to identify: A) Overdue customer accounts B) Least profitable product C) Most profitable product D) All the choices are correct
20) Which one of the following activities is not associated with the Employees section of the Home Page? Version 1
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A) Make Deposits B) Pay Payroll Liabilities C) Process Payroll Forms D) Enter Time
21)
Required:
List the 2 (two) main different types of QuickBooks files. What is the purpose of each file type?
22)
Required:
Name 2 (two) of the 5 sections on the QuickBooks Home Page and briefly describe what activities can be performed from those sections.
23)
Required:
Briefly explain the differences between a QuickBooks QBB file and a QBW file.
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Answer Key Test name: Chap 01_2021 1) C 2) A 3) C 4) D 5) C 6) D 7) B 8) B 9) C 10) B 11) B 12) D 13) D 14) B 15) C 16) D 17) D 18) A 19) D 20) A
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CHAPTER 2 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
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 the choices are correct
3)
Which account below is not an Expense account? A) Utilities B) Insurance C) Accounts Receivable D) Advertising
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
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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
6)
Which of the following is a temporary account? A) Building B) Utilities Expense C) Accounts Payable D) Accounts Receivable
7)
An example of a non-posting account is ________. A) Accounts Payable Account B) Purchase Orders Account C) Inventory Account D) Accounts Receivable Account
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
9)
What is the purpose of a non-posting account?
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A) To calculate income. B) To track information necessary for the accounting system. C) To calculate expenses. D) To identify owner’s equity.
10)
Which of the following is considered a permanent account? A) Income accounts B) Expense accounts C) Asset accounts D) None of the choices are correct
11)
A company’s office building is classified as what account type? A) Expense B) Owner’s Equity C) Fixed Asset D) Income
12)
Which of the following is not considered an asset account in QuickBooks? A) Inventory B) Rent Expense C) Accounts Receivable D) Office Furniture
13)
To re-sort the Chart of Accounts, first display the Chart of Accounts window, then:
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A) Click on the Company heading bar B) Click File > Sort C) Click Account > Re-sort List D) Right click > Sort by Name
14)
Balance Sheet accounts are also called: A) Permanent accounts B) Temporary accounts C) Equity accounts D) None of the choices are correct
15)
Income Statement accounts are also called: A) Equity accounts B) Permanent accounts C) Temporary accounts D) None of the choices are correct
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 the choices are correct
17)
The different types of business ownership are:
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A) Sole proprietorship B) Partnership C) Corporation D) All the choices are correct
18)
Which of the following accounts is an asset? A) Mortgage Payable B) Accounts Payable C) Checking D) Unearned Revenue
19)
Which of the following is a liability? A) The amount an owner withdraws from a company B) An amount a company owes C) A resource a company owns D) An amount an owner invests in the company
20)
Which of the following increases owner’s equity? A) Dividends B) Business losses C) Business expenses D) Business profits
21)
Required:
Briefly explain the difference between a permanent and a temporary account. Version 1
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22)
Required:
Briefly explain the purpose and benefits of limiting user access in QuickBooks, providing at least one example of the type of employee for which limiting user access might be appropriate.
23)
Required:
Briefly explain the purpose of account numbers as used in a Chart of Accounts. List three advantages of using account numbers.
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Answer Key Test name: Chap 02_2021 1) A 2) D 3) C 4) B 5) C 6) B 7) B 8) A 9) B 10) C 11) C 12) B 13) C 14) A 15) C 16) D 17) D 18) C 19) B 20) D
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CHAPTER 3 1)
QuickBooks lists include all of the following except: A) Customer List B) Item List C) Owner List D) Vendor List
2)
In QuickBooks, information about transactions can be entered in onscreen forms, such as: A) Profit and Loss report B) Invoice C) Owner List D) None of the choices are correct
3)
Which of the following transactions is considered a Customers and Sales transaction? A) Receive Payment B) Purchase Order C) Pay Bills D) Check
4)
Which of the following transactions is considered a Vendors and Expenses transaction? A) Invoice B) Receive Payment C) Enter Bills D) Make Deposit
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5)
QuickBooks lists include: A) Customer List B) Vendor List C) Item List D) All the choices are correct
6) All of the following are considered one of the four main categories of transactions in QuickBooks except? A) Customers B) Vendors C) Banking D) Owners
7)
Which of the following is considered a QuickBooks Banking transaction? A) Write checks B) Receive payments C) Enter bills D) Pay bills
8)
Which of the following is considered a Vendor transaction? A) Create invoices B) Create estimates C) Enter bills D) Receive payments
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9)
Which of the following is considered a Customer transaction? A) Pay sales tax B) Enter bills C) Create invoice D) Write checks
10)
The Item List can be accessed from which section of the Home Page? A) Banking B) Customers C) Vendors D) Company
11) Which of the following QuickBooks features can be used to save a transaction that will be re-used in the future? A) Saved reports B) Create icon C) Repeat transactions D) Memorized transactions
12)
To use a memorized transaction, select: A) Lists Menu > Memorized Transaction List B) Navigation Bar > Recurring Transaction List C) Company section of the Home Page > Saved Transactions D) All of the choices are correct
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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
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
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
16)
Customer transactions include which of the following?
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A) Write Checks B) Enter Bills C) Pay Bills D) Receive payments
17)
Vendor transactions include which of the following? A) Enter Credit Card Charges B) Enter Bills C) Make Deposits D) Receive Payments
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
19) that:
When a bill is entered using the Enter Bills window, QuickBooks records a journal entry
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
20)
When a bill is paid using the Pay Bills window, QuickBooks records a journal entry that:
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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
21)
In QuickBooks, how do you enter transaction information? A) Onscreen Journal and onscreen forms B) Onscreen Journal and QuickBooks reports C) Onscreen forms and QuickBooks reports D) None of the choices are correct
22) and:
A business transaction is an exchange that can occur between the QuickBooks company
A) Vendor B) Employee C) Customer D) All the choices are correct
23)
Required:
What are the three main parts or processes of QuickBooks SatNav?
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24)
Required:
List 4 main types of QuickBooks transactions.
25)
Required:
Discuss the two main ways of entering information into QuickBooks. Why are two different ways necessary for entering information? What are the advantages and disadvantages of each method?
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Answer Key Test name: Chap 03_2021 1) C 2) B 3) A 4) C 5) D 6) D 7) A 8) C 9) C 10) D 11) D 12) A 13) D 14) A 15) A 16) D 17) B 18) A 19) C 20) B 21) A 22) D
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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 the choices are correct
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 the choices are correct
23)
List management includes: A) Adding/deleting B) Merging C) Editing D) All the choices are correct
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
25)
What two restrictions on merging occur in QuickBooks?
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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
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