TEST BANK forComputer Accounting with QuickBooks 2013 15th Edition. Donna Kay

Computer Accounting with QuickBooks 2013 15e Donna Kay (Test Bank All Chapters, 100% Original Verified, A+ Grade) Answers At The End Of Each Chapter

Chapter 01_Quick Tour of QuickBooks 1.

Which screen provides a summary of important company information?

A. Company Information B. Company Snapshot C. Home Page D. Company Center

2.

In QuickBooks, how do you can enter transaction information?

A. Onscreen forms and scanned images of transaction forms B. Onscreen forms and QuickBooks reports C. Onscreen Journal and scanned images of transaction forms D. Onscreen Journal and Onscreen Forms

3.

All of the following are one of the four main categories of transactions in QuickBooks except?

A. Chart of Accounts B. Customers C. Vendors D. Employees

4.

Which of the following tasks is completed from the Banking section of the Home page?

A. Enter credit card charges B. Pay employees C. Record bills paid D. Record payments received from customers.

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

6.

The Chart of Accounts can be accessed from which section of the Home page?

A. Customer B. Banking C. Vendor D. Company

7.

To change company information, such as the company name, you would use: A. Company section of the Home page B. Company Center C. Company Menu D. Company List

8.

Which of the following file types identifies a QuickBooks Portable file?

A. .QBM B. .QBB C. .QBX D. .QBW

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. Record refunds and credits D. Record inventory received

10. The Home page in QuickBooks consists of all the following sections except: A. Employee B. Lists C. Customer D. Vendor 11. The objective of an accounting information system, like QuickBooks, is to: A. Save company resources, like time and paper B. Use the computer for keeping accounting records C. Collect, summarize, and analyze data D. None of these 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 13. Your QuickBooks data can be stored in all the following ways except: A. Online B. Backup C. Portable File D. All of these to store QuickBooks data 14. A business transaction is an exchange between: A. Vendor B. Employee C. Customer D. All of these 15. Double-entry account records what is exchanged in a transaction (debits and credits). Which of the following is recorded when a company purchases (receives) a computer and pays (gives) cash?

A. The computer is recorded as a credit and the cash is recorded as a credit B. The computer is recorded as a debit and the cash is recorded as a debit C. The computer is recorded as a credit and the cash is recorded as a debit D. The computer is recorded as a debit and the cash is recorded as a credit 16. The onscreen form for ordering items from a vendor looks like the paper version of a: A. Purchase Order B. Invoice C. Check D. None of these 17. Which type of QuickBooks data file allows you to enter data and transactions?

A. .QBM B. .QBB C. .QBX D. .QBW

18. The QuickBooks file extension .QBM indicates the file is a: A. QuickBooks working file B. QuickBooks movable file C. QuickBooks Accountant's transfer file D. QuickBooks Accountant's working file 19. The QuickBooks file extension .QBA indicates the file is a: A. QuickBooks working file B. QuickBooks movable file C. QuickBooks Accountant's transfer file D. QuickBooks Accountant's working file 20. Which QuickBooks window allows you to add your name to the checking account?

A. Chart of Accounts B. Company Information C. Company Center D. Check Register 21. The Banking section of the Home Page includes which flow chart?

A. Payroll flowchart B. Bank Reconciliation flowchart C. Bill Pay flow chart D. None of these.

22. Which financial statement below summarizes the financial position of a company?

A. Statement of Cash Flows B. Profit & Loss Statement C. Balance Sheet D. Income Statement 23. Which financial statement below summarizes a company's earnings?

A. Statement of Cash Flows B. Profit & Loss Statement C. Balance Sheet D. Income Statement 24. 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. Income Statement 25. Management reports help identify: A. Overdue customer accounts B. Least profitable product C. Most profitable product D. All of these.

26. Which icon is used to add your own documents to QuickBooks?

A. Docs icon B. Customer icon C. Vendor icon D. All of these.

27. The Apps Center: A. Is only available in certain states B. Used only in service companies C. Used only in retail companies D. Organizes apps that will work with your QuickBooks software and data.

28. List the 3 (three) different type of QuickBooks files. What is the purpose of each file type?

29. Name 2 (two) of the 5 centers on the QuickBooks home screen and briefly describe what kind of activity flows through those centers:

Chapter 01_Quick Tour of QuickBooks Key 1.

Which screen provides a summary of important company information?

A. Company Information B. Company Snapshot C. Home Page D. Company Center

2.

In QuickBooks, how do you can enter transaction information?

A. Onscreen forms and scanned images of transaction forms

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B. Onscreen forms and QuickBooks reports C. Onscreen Journal and scanned images of transaction forms D. Onscreen Journal and Onscreen Forms Kay - Chapter 01 #2

3.

All of the following are one of the four main categories of transactions in QuickBooks except?

A. Chart of Accounts B. Customers C. Vendors D. Employees

4.

Which of the following tasks is completed from the Banking section of the Home page?

A. Enter credit card charges B. Pay employees C. Record bills paid D. Record payments received from customers.

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

6.

The Chart of Accounts can be accessed from which section of the Home page?

A. Customer B. Banking C. Vendor D. Company

7.

To change company information, such as the company name, you would use: A. Company section of the Home page B. Company Center C. Company Menu D. Company List

8.

Which of the following file types identifies a QuickBooks Portable file?

A. .QBM B. .QBB C. .QBX D. .QBW

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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. Record refunds and credits D. Record inventory received Kay - Chapter 01 #9

10.

The Home page in QuickBooks consists of all the following sections except: A. Employee B. Lists C. Customer D. Vendor Kay - Chapter 01 #10

11.

The objective of an accounting information system, like QuickBooks, is to: A. Save company resources, like time and paper B. Use the computer for keeping accounting records C. Collect, summarize, and analyze data D. None of these

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

13.

Your QuickBooks data can be stored in all the following ways except: A. Online B. Backup C. Portable File D. All of these to store QuickBooks data

14.

A business transaction is an exchange between: A. Vendor B. Employee C. Customer D. All of these

15.

Double-entry account records what is exchanged in a transaction (debits and credits). Which of the following is recorded when a company purchases (receives) a computer and pays (gives) cash?

A. The computer is recorded as a credit and the cash is recorded as a credit B. The computer is recorded as a debit and the cash is recorded as a debit C. The computer is recorded as a credit and the cash is recorded as a debit D. The computer is recorded as a debit and the cash is recorded as a credit

16.

The onscreen form for ordering items from a vendor looks like the paper version of a: A. Purchase Order B. Invoice C. Check D. None of these

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17.

Which type of QuickBooks data file allows you to enter data and transactions?

A. .QBM B. .QBB C. .QBX D. .QBW

18.

The QuickBooks file extension .QBM indicates the file is a: A. QuickBooks working file B. QuickBooks movable file C. QuickBooks Accountant's transfer file D. QuickBooks Accountant's working file

19.

The QuickBooks file extension .QBA indicates the file is a: A. QuickBooks working file B. QuickBooks movable file C. QuickBooks Accountant's transfer file D. QuickBooks Accountant's working file

20.

Which QuickBooks window allows you to add your name to the checking account?

A. Chart of Accounts B. Company Information C. Company Center D. Check Register

21.

The Banking section of the Home Page includes which flow chart?

A. Payroll flowchart B. Bank Reconciliation flowchart C. Bill Pay flow chart D. None of these.

22.

Which financial statement below summarizes the financial position of a company?

A. Statement of Cash Flows B. Profit & Loss Statement C. Balance Sheet D. Income Statement

23.

Which financial statement below summarizes a company's earnings?

A. Statement of Cash Flows B. Profit & Loss Statement C. Balance Sheet D. Income Statement

24.

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. Income Statement

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25.

Management reports help identify: A. Overdue customer accounts B. Least profitable product C. Most profitable product D. All of these.

26.

Which icon is used to add your own documents to QuickBooks?

A. Docs icon B. Customer icon C. Vendor icon D. All of these.

27.

The Apps Center: A. Is only available in certain states B. Used only in service companies C. Used only in retail companies D. Organizes apps that will work with your QuickBooks software and data.

28.

List the 3 (three) different type of QuickBooks files. What is the purpose of each file type?

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• QBW file - This is the regular company file that has a .QBW extension. It is a QuickBooks working file that is usually saved to the hard drive (C:) 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 memory stick, a CD drive or a network drive. Backup files are compressed files and used only if the working file (.QBW) file fails.

• QBM file - This is a QuickBooks movable file, also called a portable file. These files are compressed and are used to email or move a company file to another computer.

• QBX and .QBA - These are files used by accountants.

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29.

Name 2 (two) of the 5 centers on the QuickBooks home screen and briefly describe what kind of activity flows through those centers: • Vendors - pay bills, enter bills, create purchase orders, receive inventory, etc.

• Customers - create estimates, create invoices, record refunds and credits, record payments, etc.

• Employees - time entry, payroll, pay liabilities, etc.

• Banking - record deposits, check register, write checks, print checks, etc.

• Company - items and services, chart of accounts, etc.

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Chapter 01_Quick Tour of QuickBooks Summary Category # of Questions Kay - Chapter 01 29

Chapter 02_Customizing QuickBooks and the Chart of Accounts Student: ___________________________________________________________________________

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. Employees > Employee Center C. Edit menu > Preferences > Employees 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 of these

3.

Which account below is not an Expense account?

A. Utilities B. Rent C. Accounts Payable D. Advertising

4.

What are assets?

A. Resources that a company owns with future benefit B. Net worth of a company C. Amounts paid to owners D. Amounts owed to others and are future obligations

5.

The Income Statement: A. lists the accounts and account numbers B. lists a company's assets C. summarizes what a company owns and what it owes D. reports the results of a company's operations, listing income and expenses for a period of time

6.

Which of the following is a temporary account?

A. Sales B. Inventory C. Accounts Payable D. Accounts Receivable

7.

An example of a non-posting account is ________.

A. Employee Expense B. Inventory C. Purchase Orders Account D. Accounts Payable

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 Chart of Accounts menu, select New Account D. From the Lists menu, select New Account

9.

What is the purpose of a non-posting account?

A. To calculate income.

B. To track information necessary to the accounting information system.

C. To calculate expenses.

D. To identify owner's equity.

10. Which of the following is considered a permanent account?

A. Income Statement accounts B. Balance Sheet accounts C. All of these.

D. None of these.

11. How may you customize QuickBooks to fit your specific needs?

A. Make changes to the Chart of Accounts.

B. Purchase one of the various QuickBooks editions.

C. Enable security access to QuickBooks files.

D. All of these.

12. Which of the following is not an income account?

A. Revenue B. Interest Revenue C. Rent Expense D. Gain on sale 13. To sort the Chart of Accounts by account name: A. Click on the Name heading bar B. Click Account > Re-sort List C. Click File > Sort D. Right click Sort by Name 14. Which QuickBooks version is designed for small businesses without industry specific needs?

A. QuickBooks Pro B. QuickBooks Premier C. QuickBooks Accountant D. QuickBooks Enterprise Solutions 15. Which QuickBooks version is designed for small businesses that have industry specific needs?

A. QuickBooks Pro B. QuickBooks Premier C. QuickBooks Accountant D. QuickBooks Enterprise Solutions 16. Which QuickBooks version is designed for mid-sized businesses?

A. QuickBooks Pro B. QuickBooks Premier C. QuickBooks Accountant D. QuickBooks Enterprise Solutions 17. Balance Sheet accounts are also called: A. equity accounts B. temporary accounts C. permanent accounts D. None of these.

18. Income Statement accounts are also called: A. equity accounts B. temporary accounts C. permanent accounts D. None of these.

19. 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 these.

20. A Mortgage Payable account: A. Has real estate as collateral B. Is identical to a Loan Payable account C. Is a type of Owner's Equity account D. None of these.

21. How do you access the Statement of Cash Flows report?

A. Report Center icon > Banking B. Report Center icon > Company & Financial C. Report Center icon > Accountant & Taxes D. Company menu > Company Information 22. What is an asset?

A. Mortgage payable B. An amount a company owes C. A resource a company owns D. None of these.

23. What is a liability?

A. Inventory B. An amount a company owes C. A resource a company owns D. None of these.

24. Which of the following increases owner's equity?

A. Dividends B. Business losses C. Business expenses D. Business profits 25. The different types of business ownership are: A. Sole proprietorship B. Partnership C. Corporation D. All of these.

26. The Favorites menu allows you to: A. Add websites that are useful to your business B. Customize up to 30 of your favorite QuickBooks menu items C. Add one favorite QuickBooks menu item D. None of these.

27. What feature helps you to track tasks and due dates?

A. Control B. Calendar C. Charting D. All of these.

28. What does the QuickBooks Company Snapshot provide?

29. Briefly explain the purpose and benefits of using a password for QuickBooks access?

Chapter 02_Customizing QuickBooks and the Chart of Accounts Key 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. Employees > Employee Center C. Edit menu > Preferences > Employees 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 of these

3.

Which account below is not an Expense account?

A. Utilities B. Rent C. Accounts Payable D. Advertising

4.

What are assets?

A. Resources that a company owns with future benefit B. Net worth of a company C. Amounts paid to owners D. Amounts owed to others and are future obligations

5.

The Income Statement: A. lists the accounts and account numbers B. lists a company's assets C. summarizes what a company owns and what it owes D. reports the results of a company's operations, listing income and expenses for a period of time

6.

Which of the following is a temporary account?

A. Sales B. Inventory C. Accounts Payable D. Accounts Receivable

7.

An example of a non-posting account is ________.

A. Employee Expense B. Inventory C. Purchase Orders Account D. Accounts Payable

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 Chart of Accounts menu, select New Account D. From the Lists menu, select New Account

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9.

What is the purpose of a non-posting account?

A. To calculate income.

B. To track information necessary to the accounting information system.

C. To calculate expenses.

D. To identify owner's equity.

10.

Which of the following is considered a permanent account?

A. Income Statement accounts B. Balance Sheet accounts C. All of these.

D. None of these.

11.

How may you customize QuickBooks to fit your specific needs?

A. Make changes to the Chart of Accounts.

B. Purchase one of the various QuickBooks editions.

C. Enable security access to QuickBooks files.

D. All of these.

12.

Which of the following is not an income account?

A. Revenue B. Interest Revenue C. Rent Expense D. Gain on sale

13.

To sort the Chart of Accounts by account name: A. Click on the Name heading bar B. Click Account > Re-sort List C. Click File > Sort D. Right click Sort by Name

14.

Which QuickBooks version is designed for small businesses without industry specific needs?

A. QuickBooks Pro B. QuickBooks Premier C. QuickBooks Accountant D. QuickBooks Enterprise Solutions

15.

Which QuickBooks version is designed for small businesses that have industry specific needs?

A. QuickBooks Pro B. QuickBooks Premier C. QuickBooks Accountant D. QuickBooks Enterprise Solutions

16.

Which QuickBooks version is designed for mid-sized businesses?

A. QuickBooks Pro B. QuickBooks Premier C. QuickBooks Accountant D. QuickBooks Enterprise Solutions

17.

Balance Sheet accounts are also called: A. equity accounts B. temporary accounts C. permanent accounts D. None of these.

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18.

Income Statement accounts are also called: A. equity accounts B. temporary accounts C. permanent accounts D. None of these.

19.

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 these.

20.

A Mortgage Payable account: A. Has real estate as collateral B. Is identical to a Loan Payable account C. Is a type of Owner's Equity account D. None of these.

21.

How do you access the Statement of Cash Flows report?

A. Report Center icon > Banking B. Report Center icon > Company & Financial C. Report Center icon > Accountant & Taxes D. Company menu > Company Information

22.

What is an asset?

A. Mortgage payable B. An amount a company owes C. A resource a company owns D. None of these.

23.

What is a liability?

A. Inventory B. An amount a company owes C. A resource a company owns D. None of these.

24.

Which of the following increases owner's equity?

A. Dividends B. Business losses C. Business expenses D. Business profits

25.

The different types of business ownership are: A. Sole proprietorship B. Partnership C. Corporation D. All of these.

26.

The Favorites menu allows you to: A. Add websites that are useful to your business B. Customize up to 30 of your favorite QuickBooks menu items C. Add one favorite QuickBooks menu item D. None of these.

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27.

What feature helps you to track tasks and due dates?

A. Control B. Calendar C. Charting D. All of these.

28.

What does the QuickBooks Company Snapshot provide?

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The QuickBooks Company Snapshot provides a digital dashboard for your company. The Company Snapshot gives you an overview of key information for your company and allows you perform key tasks.

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29.

Briefly explain the purpose and benefits of using a password for QuickBooks access?

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.

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Chapter 02_Customizing QuickBooks and the Chart of Accounts Summary Category # of Questions Kay - Chapter 02 29

Chapter 03_Banking Student: ___________________________________________________________________________

1.

The Check Register: A. Lists all accounts and their account numbers B. Records payments and deposits to the Checking account C. Is located directly on the Company section of the Home page D. Keeps track of company deposits only

2.

All of the following tasks can be completed in the Banking section of the Home page except: A. Pay Employees B. Reconcile Accounts C. Print Checks D. Record Deposits

3.

The two-step approach for writing checks must be used to pay which of the following?

A. Rent Payments B. Legal Services C. Sales Taxes D. None of these.

4.

Examples of undeposited funds are: A. Interest earned on the Checking account B. Customer payments recorded as received but not yet deposited C. Bank service charges D. Owner's investment

5.

Which of the following steps will record a deposit?

A. Use the Make Deposits window.

B. Enter the information directly into the check register.

C. None of these.

D. All of these.

6.

The one-step approach (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 these

7.

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.

BTo 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.

CTo 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.

D. None of these.

8.

When deleting a check all of the following is true except: A. It is better to delete the check than void the check in order to erase all records of the transaction B. The deleted check no longer appears in the check register C. QuickBooks changes the amount deducted in the check register to zero D. All of these are true

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. Deposits recorded by the bank C. Outstanding checks D. Errors

10. When reconciling the bank statement using QuickBooks: A. Service charges are subtracted B. Interest earned is added C. All deposits listed on the bank statement are selected as cleared in the Reconcile window D. All of these.

11. When the balance of an asset account, like Checking, increases, it means that the account has been: A. Debited B. Credited C. Deposited D. None of these.

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 these.

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 A and C. 14. A business checking account may be used for which of the following purchases?

A. Furniture for the office B. Furniture for the owner's home C. Utility bills for the owner D. Owner's car payment 15. Which of the following icons appear in the Banking section of the Home page?

A. Receive Payments B. Enter Bills C. Write Checks D. Pay Bills 16. Which one of the following activities is associated with the Banking section of the Home page?

A. Enter credit card charges B. Select bills received to pay later C. Record finance charges D. Create invoices to bill customers 17. All the following are nonsales type of deposit except: A. Money received from a loan B. Payment from a customer C. Cash from investors D. Interest earned

18. The Customer section of the Home page is use to record which of the following transaction?

A. Customer payment B. Other income, such as rental income C. Interest earned D. Cash from investors 19. Documents that prove a transaction occurred are: A. Source documents B. Receipts C. Paid invoices D. All of these.

20. The one-step approach to bill paying: A. Pays the bill and then records the bill later B. Records a bill when receives and pays the bill later C. Records and pays a bill at the same time D. Is not supported by QuickBooks 21. When recording a bill, QuickBooks automatically: A. Records and expense (credit) and the obligation to pay later (debit) B. Records and 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) 22. When paying a bill, QuickBooks automatically: A. Records and expense (credit) and the obligation to pay later (debit) B. Records and 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) 23. One of the objectives of the bank reconciliation is: A. Pay bills B. Detect errors C. Insure the debits equal credits D. None of these.

24. 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 25. To print multiple checks at one time: A. Report Center > Banking > Checks B. Company menu > Banking > Checks C. Banking menu > Forms > Checks D. File menu > Print Forms > Checks 26. How would you indicate that a payment is split between 2 or more accounts?

A. Use the notation "split" in your checking account B. Skip it, it will be done automatically in QuickBooks C. Note on your invoices only D. None of these.

27. According to your text, the best approach to keep track of petty cash is: A. Don't use it, use credit only B. Deposit the full amount of petty cash, then write a check for Petty Cash C. Keep cash on hand off the books D. None of these.

28. Briefly describe the QuickBooks "drill-down" feature and how helps companies.

29. What are the 4 (four) types of bills that should not be paid using the One-Step Approach?

Chapter 03_Banking Key 1.

The Check Register: A. Lists all accounts and their account numbers B. Records payments and deposits to the Checking account C. Is located directly on the Company section of the Home page D. Keeps track of company deposits only

2.

All of the following tasks can be completed in the Banking section of the Home page except: A. Pay Employees B. Reconcile Accounts C. Print Checks D. Record Deposits

3.

The two-step approach for writing checks must be used to pay which of the following?

A. Rent Payments B. Legal Services C. Sales Taxes D. None of these.

4.

Examples of undeposited funds are: A. Interest earned on the Checking account B. Customer payments recorded as received but not yet deposited C. Bank service charges D. Owner's investment

5.

Which of the following steps will record a deposit?

A. Use the Make Deposits window.

B. Enter the information directly into the check register.

C. None of these.

D. All of these.

6.

The one-step approach (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 these

7.

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.

BTo 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.

CTo 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.

D. None of these.

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8.

When deleting a check all of the following is true except: A. It is better to delete the check than void the check in order to erase all records of the transaction B. The deleted check no longer appears in the check register C. QuickBooks changes the amount deducted in the check register to zero D. All of these are true

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. Deposits recorded by the bank C. Outstanding checks D. Errors

10.

When reconciling the bank statement using QuickBooks: A. Service charges are subtracted B. Interest earned is added C. All deposits listed on the bank statement are selected as cleared in the Reconcile window D. All of these.

11.

When the balance of an asset account, like Checking, increases, it means that the account has been: A. Debited B. Credited C. Deposited D. None of these.

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 these.

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 A and C.

14.

A business checking account may be used for which of the following purchases?

A. Furniture for the office B. Furniture for the owner's home C. Utility bills for the owner D. Owner's car payment

15.

Which of the following icons appear in the Banking section of the Home page?

A. Receive Payments B. Enter Bills C. Write Checks D. Pay Bills

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16.

Which one of the following activities is associated with the Banking section of the Home page?

A. Enter credit card charges B. Select bills received to pay later C. Record finance charges D. Create invoices to bill customers

17.

All the following are nonsales type of deposit except: A. Money received from a loan B. Payment from a customer C. Cash from investors D. Interest earned

18.

The Customer section of the Home page is use to record which of the following transaction?

A. Customer payment B. Other income, such as rental income C. Interest earned D. Cash from investors

19.

Documents that prove a transaction occurred are: A. Source documents B. Receipts C. Paid invoices D. All of these.

20.

The one-step approach to bill paying: A. Pays the bill and then records the bill later B. Records a bill when receives and pays the bill later C. Records and pays a bill at the same time D. Is not supported by QuickBooks

21.

When recording a bill, QuickBooks automatically: A. Records and expense (credit) and the obligation to pay later (debit) B. Records and 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)

22.

When paying a bill, QuickBooks automatically: A. Records and expense (credit) and the obligation to pay later (debit) B. Records and 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)

23.

One of the objectives of the bank reconciliation is: A. Pay bills B. Detect errors C. Insure the debits equal credits D. None of these.

24.

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

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25.

To print multiple checks at one time: A. Report Center > Banking > Checks B. Company menu > Banking > Checks C. Banking menu > Forms > Checks D. File menu > Print Forms > Checks

26.

How would you indicate that a payment is split between 2 or more accounts?

A. Use the notation "split" in your checking account B. Skip it, it will be done automatically in QuickBooks C. Note on your invoices only D. None of these.

27.

According to your text, the best approach to keep track of petty cash is: A. Don't use it, use credit only B. Deposit the full amount of petty cash, then write a check for Petty Cash C. Keep cash on hand off the books D. None of these.

28.

Briefly describe the QuickBooks "drill-down" feature and how helps companies.

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The drill down feature in QuickBooks is the ability to click on an item and be taken to the supporting detail. This can help a company understand what transactions make up a number or entry in their accounting records.

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29.

What are the 4 (four) types of bills that should not be paid using the One-Step Approach?

Paychecks to employees for wages and salaries; payroll taxes and liabilities; sales taxes; bills already entered in the Enter Bills window.

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Chapter 03_Banking Summary Category # of Questions Kay - Chapter 03 29

Chapter 04_Customers and Sales Student: ___________________________________________________________________________

1.

When recording a customer payment from a credit sale, select: A. Create Invoice > Customer Payment > Customer & Job Name B. Make Deposit C. Create Sales Receipt > Record Deposits D. Receive Payment > Customer & Job Name

2.

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

3.

The Customer List in QuickBooks can be accessed from all of the following except: A. Banking section of the Home page B. Customer section of the Home page C. Customer Menu D. Customer Center

4.

To record a credit sale, select: A. Create Purchase Order B. Sales Receipts C. Create Estimates D. None of these

5.

A Reminder Statement provides the following information, except: A. Purchase Order details B. Customer's previous account balance C. Payments received from the customer D. Customer's ending balance

6.

Credit card sales are: A. Recorded using a Create Invoices window B. Recorded in a Credit Card Sales window C. Recorded using the Create Sales Receipts window D. None of these

7.

Online billing allows you to: A. Sell goods over the internet B. Email invoices to customers C. Receive online payments from customers D. QuickBooks does not support online billing

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 Payable C. An increase to Sales and an increase to Accounts Receivable D. A decrease to Sales and a decrease to Accounts Payable

9.

All the reports below provide information about customer and job profitability, except: A. Customer Detail List B. Income by Customer Summary C. Income by Customer Detail D. Job Profitability Detail

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 the above.

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 12. To increase collections of payments, you can use all the following QuickBooks features, except: A. E-mail Invoices B. Customers with New Invoices Report C. Customers with Overdue Balances Report D. Reminder Statements 13. To print the Income by Customer report: A. Select Report Center, Customer & Sales B. Select Customer Center, Income by Customer C. Select Report Center, Company & Financials D. Select Company Center, Customer & Sales 14. Which one of the following activities is not shown in the Customer section of the Home page?

A. Make Deposit B. Receive Payments C. Create Estimates D. All of these.

15. To add a new job to the Customer List: A. Select Customer menu, Add Job B. Select Customer Center, New Customer & Job C. Select the Customer List icon from the Customer section of the Home page D. Select Report Center, add Customer 16. The Job Profitability Summary Report is accessed from the: A. Report Center B. Vendor Center C. Employee Center D. Company Center 17. To print the Aging of Accounts Receivable report: A. Select Customer Center, Customer & Receivables B. Select Company Center, Customer & Receivables C. Select Report Center, Company & Financials D. Select Report Center, Customer & Receivables

18. The Finance Charges icon allows you to: A. Re-calculate the correct payment when a discount is applied to a customer bill B. Re-calculate the correct payment when a bill is not paid to a vendor on time C. Add finance charges to customer bills when bills are not paid by the due date D. All of these.

19. The Refunds & Credits icon allows you to: A. Record a refund or credit to a vendor account for returned or damaged merchandise B. Record a refund or credit to a customer account for returned or damaged merchandise C. Prepare a billing statement for a customer D. All of these 20. The Customer List stores all the information listed below except: A. Sales tax rates B. Notes about a project/job C. Project/job estimate information D. Customer transaction information 21. When a customer is billed when the project/job reaches specified milestones, what type of billing does the company use?

A. Purchase Order billing B. Estimates C. Progress billing D. Normal (end-of-job) billing 22. Online bill pay allows you to: A. Sell goods over the internet B. Email invoices to customers C. Receive online payments from customers D. QuickBooks does not support online bill pay 23. When recording a payment from a customer, if the customer does not send the full amount: A Record the full amount as paid and make a note in the To Do List to follow up with the customer . regarding the remainder of the payment B. You can record the partial payment but must leave the funds in the Undeposited Funds account until receiving the full payment C. You must wait until the customer pays the full amount to record the payment D. Enter the amount received in the Amount field in the Customer Payment window 24. The Undeposited Funds account: A. Partial payments received from customers B. Holds funds received but not deposited in the bank C. Funds the company owes vendors D. Petty Cash funds 25. Which report provides information on customers who have overdue accounts?

A. Accounts Receivable Aging Summary B. Accounts Receivable Aging Detail C. Customers with Open Invoices D. Collections Report

26. Briefly explain the difference between creating a sales receipt and creating an invoice.

27. Name 3 (three) reasons why a job for a customer might be "pending".

Chapter 04_Customers and Sales Key 1.

When recording a customer payment from a credit sale, select: A. Create Invoice > Customer Payment > Customer & Job Name B. Make Deposit C. Create Sales Receipt > Record Deposits D. Receive Payment > Customer & Job Name

2.

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

3.

The Customer List in QuickBooks can be accessed from all of the following except: A. Banking section of the Home page B. Customer section of the Home page C. Customer Menu D. Customer Center

4.

To record a credit sale, select: A. Create Purchase Order B. Sales Receipts C. Create Estimates D. None of these

5.

A Reminder Statement provides the following information, except: A. Purchase Order details B. Customer's previous account balance C. Payments received from the customer D. Customer's ending balance

6.

Credit card sales are: A. Recorded using a Create Invoices window B. Recorded in a Credit Card Sales window C. Recorded using the Create Sales Receipts window

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7.

Online billing allows you to: A. Sell goods over the internet B. Email invoices to customers C. Receive online payments from customers D. QuickBooks does not support online billing

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 Payable C. An increase to Sales and an increase to Accounts Receivable D. A decrease to Sales and a decrease to Accounts Payable

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9.

All the reports below provide information about customer and job profitability, except: A. Customer Detail List B. Income by Customer Summary C. Income by Customer Detail D. Job Profitability Detail Kay - Chapter 04 #9

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 the above.

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

12.

To increase collections of payments, you can use all the following QuickBooks features, except: A. E-mail Invoices B. Customers with New Invoices Report C. Customers with Overdue Balances Report D. Reminder Statements

13.

To print the Income by Customer report: A. Select Report Center, Customer & Sales B. Select Customer Center, Income by Customer C. Select Report Center, Company & Financials D. Select Company Center, Customer & Sales

14.

Which one of the following activities is not shown in the Customer section of the Home page?

A. Make Deposit B. Receive Payments C. Create Estimates D. All of these.

15.

To add a new job to the Customer List: A. Select Customer menu, Add Job B. Select Customer Center, New Customer & Job C. Select the Customer List icon from the Customer section of the Home page D. Select Report Center, add Customer

16.

The Job Profitability Summary Report is accessed from the: A. Report Center

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B. Vendor Center C. Employee Center D. Company Center Kay - Chapter 04 #16

17.

To print the Aging of Accounts Receivable report: A. Select Customer Center, Customer & Receivables B. Select Company Center, Customer & Receivables C. Select Report Center, Company & Financials D. Select Report Center, Customer & Receivables

18.

The Finance Charges icon allows you to: A. Re-calculate the correct payment when a discount is applied to a customer bill B. Re-calculate the correct payment when a bill is not paid to a vendor on time C. Add finance charges to customer bills when bills are not paid by the due date D. All of these.

19.

The Refunds & Credits icon allows you to: A. Record a refund or credit to a vendor account for returned or damaged merchandise B. Record a refund or credit to a customer account for returned or damaged merchandise C. Prepare a billing statement for a customer D. All of these

20.

The Customer List stores all the information listed below except: A. Sales tax rates B. Notes about a project/job C. Project/job estimate information D. Customer transaction information

21.

When a customer is billed when the project/job reaches specified milestones, what type of billing does the company use?

A. Purchase Order billing B. Estimates C. Progress billing D. Normal (end-of-job) billing

22.

Online bill pay allows you to: A. Sell goods over the internet B. Email invoices to customers C. Receive online payments from customers D. QuickBooks does not support online bill pay

23.

When recording a payment from a customer, if the customer does not send the full amount: A Record the full amount as paid and make a note in the To Do List to follow up with the customer . regarding the remainder of the payment B. You can record the partial payment but must leave the funds in the Undeposited Funds account until receiving the full payment C. You must wait until the customer pays the full amount to record the payment D. Enter the amount received in the Amount field in the Customer Payment window

24.

The Undeposited Funds account: A. Partial payments received from customers B. Holds funds received but not deposited in the bank C. Funds the company owes vendors D. Petty Cash funds

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25.

Which report provides information on customers who have overdue accounts?

A. Accounts Receivable Aging Summary B. Accounts Receivable Aging Detail C. Customers with Open Invoices D. Collections Report

26.

Briefly explain the difference between creating a sales receipt and creating an invoice.

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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.

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27.

Name 3 (three) reasons why a job for a customer might be "pending".

A job might 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.

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Chapter 04_Customers and Sales Summary Category # of Questions Kay - Chapter 04 27

Chapter 05_Vendors, Purchases, and Inventory Student: ___________________________________________________________________________

1.

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 these.

2.

Which one of the following is a vendor transaction?

A. Make Deposits B. Receive Customer Payments C. Enter Bills D. Sell Goods to Customers

3.

How does QuickBooks categorize items?

A. Non-inventory items B. Inventory items C. Service items D. All of these.

4.

Which of the following activities and QuickBooks window used to record it as incorrect?

A. Sell goods and bill customers; Invoice B. Record inventory information; Inventory List C. Record vendor information; Vendor List D. Order goods; Purchase Order

5.

Which one of the following activities is not shown in the Vendor section of the Home page?

A. Write Checks B. Pay Sales Taxes C. Pay Bills D. Purchase Orders

6.

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

7.

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

8.

Which QuickBooks window is used to record services received?

A. Create Invoice B. Purchase Order C. Enter Bills D. Estimates

9.

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

10. Vendor reports can be accessed in QuickBooks in all of the following ways except: A. Report Center B. Vendor Center C. Report Menu D. All of these.

11. What QuickBooks activity comes next in the this string of business activities: Purchase Order > Receive Items > Enter Bills > ______ A. Receive Payments.

B. Pay Bills.

C. Deposit.

D. Vendor List.

12. What QuickBooks activity comes next in the this string of business activities: Invoice > Receive Payments > ______ A. Deposit.

B. Receive Payments.

C. Pay Bills.

D. Vendor List.

13. 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 14. 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 15. Which order of tasks is used when purchasing inventory?

A. Enter Bills; Pay Bills B. Enter Invoice; Write Check C. Purchase Order; Receive Bill; Pay Bills D. Purchase Requisition; Receive Inventory; Pay Bills 16. Which one of the following is a customer transaction?

A. Record Customer Information B. Receive Customer Payments C. Sell Goods to Customers D. All of these.

17. 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 customers D. Paid by the vendor 18. Form 1099 must be completed: A. For companies you paid $600 or more for services during the year B. And sent in with the sales taxes C. By the vendor D. None of these.

19. Which inventory costing method does QuickBooks use to track inventory?

A. First-in First-out B. First- in Last-out C. Weighted Average D. All of these.

20. 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 21. All the times below are when you can receive a bill except: A. When receiving a service B. When submitting a purchase order C. When receiving inventory D. After receiving inventory 22. Which window is used to pay sales taxes?

A. Create Invoice B. Write Checks C. Manage Sales Tax D. Enter Bills 23. Which report summarizes accounts payable balances by the age of the account?

A. Accounts Payable Aging Detail B. Accounts Payable Aging Summary C. Purchases by Vendor Summary D. Purchases by Item Summary 24. 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 25. The Purchase Orders window is used to record which one of the following transactions?

A. Cash purchases of supplies B. Services received but not yet paid C. An order to purchase goods from a vendor D. A customer order to purchase goods 26. Briefly describe how sales tax payments flow from customers to government entities.

27. What are Inventory Items, Non-inventory items, and Services? Provide examples.

Chapter 05_Vendors, Purchases, and Inventory Key 1.

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 these.

2.

Which one of the following is a vendor transaction?

A. Make Deposits B. Receive Customer Payments C. Enter Bills D. Sell Goods to Customers

3.

How does QuickBooks categorize items?

A. Non-inventory items B. Inventory items C. Service items D. All of these.

4.

Which of the following activities and QuickBooks window used to record it as incorrect?

A. Sell goods and bill customers; Invoice B. Record inventory information; Inventory List C. Record vendor information; Vendor List D. Order goods; Purchase Order

5.

Which one of the following activities is not shown in the Vendor section of the Home page?

A. Write Checks B. Pay Sales Taxes C. Pay Bills D. Purchase Orders

6.

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

7.

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

8.

Which QuickBooks window is used to record services received?

A. Create Invoice B. Purchase Order C. Enter Bills D. Estimates

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9.

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

10.

Vendor reports can be accessed in QuickBooks in all of the following ways except: A. Report Center

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B. Vendor Center C. Report Menu D. All of these.

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11.

What QuickBooks activity comes next in the this string of business activities: Purchase Order > Receive Items > Enter Bills > ______ A. Receive Payments.

B. Pay Bills.

C. Deposit.

D. Vendor List.

12.

What QuickBooks activity comes next in the this string of business activities: Invoice > Receive Payments > ______ A. Deposit.

B. Receive Payments.

C. Pay Bills.

D. Vendor List.

13.

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

14.

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

15.

Which order of tasks is used when purchasing inventory?

A. Enter Bills; Pay Bills B. Enter Invoice; Write Check C. Purchase Order; Receive Bill; Pay Bills D. Purchase Requisition; Receive Inventory; Pay Bills

16.

Which one of the following is a customer transaction?

A. Record Customer Information B. Receive Customer Payments C. Sell Goods to Customers D. All of these.

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17.

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 customers D. Paid by the vendor

18.

Form 1099 must be completed: A. For companies you paid $600 or more for services during the year B. And sent in with the sales taxes C. By the vendor D. None of these.

19.

Which inventory costing method does QuickBooks use to track inventory?

A. First-in First-out B. First- in Last-out C. Weighted Average D. All of these.

20.

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

21.

All the times below are when you can receive a bill except: A. When receiving a service B. When submitting a purchase order C. When receiving inventory D. After receiving inventory

22.

Which window is used to pay sales taxes?

A. Create Invoice B. Write Checks C. Manage Sales Tax D. Enter Bills

23.

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

A. Accounts Payable Aging Detail

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B. Accounts Payable Aging Summary C. Purchases by Vendor Summary D. Purchases by Item Summary Kay - Chapter 05 #23

24.

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 Kay - Chapter 05 #24

25.

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

A. Cash purchases of supplies B. Services received but not yet paid C. An order to purchase goods from a vendor D. A customer order to purchase goods

26.

Briefly describe how sales tax payments flow from customers to government entities.

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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.

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27.

What are Inventory Items, Non-inventory items, and Services? Provide examples.

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.

Service items can be services that are purchased or sold. For example, service items include: services you buy from vendors, such as cleaning services and services you sell to customers, such as installation labor.

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Chapter 05_Vendors, Purchases, and Inventory Summary Category # of Questions Kay - Chapter 05 27

Chapter 06_Employees and Payroll Student: ___________________________________________________________________________

1.

A company is required to withhold payroll taxes for: A. Employees B. Vendors C. Subcontractors D. All of these.

2.

All of the following automatically calculate payroll tax withholdings in QuickBooks except: A. Basic Payroll B. Assisted Payroll C. Enhanced Payroll D. All of these automatically calculate payroll tax withholdings

3.

To turn on QuickBooks time tracking feature, the following steps must be completed: A. Click QuickBooks Menu > Time Tracking B. Click Edit > Preferences > Time and Expenses > Time Tracking C. Click Employees > Payroll > Time Tracking D. Click Employees > Payroll and Employees > Time Tracking

4.

Each year employees are sent Form ______ to summarize tax withholdings for the year.

A. 1099 B. W-2 C. W-3 D. W-4

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

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

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 these.

8.

Which of the following is not a payroll report: A. Form W-2 B. Form 1065 C. Form 940 D. Form 941

9.

The following are payroll liabilities except A. Federal income taxes B. Unemployment taxes C. Sales taxes D. FICA

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

A. Employee Tracker B. Stopwatch C. Timesheet D. QuickTime 11. What QuickBooks activity comes next in this string of payroll activities: Enter Time > Pay Employees > ______ > Process Payroll Forms.

A. Reconcile Payroll B. Print Payroll Report C. Pay Payroll Liabilities D. None of these 12. When setting up a new employee where do you get their filing status and allowances information?

A. Form W-5 B. Form W-4 C. Form W-3 D. Form W-2 13. All of the following are QuickBooks Payroll Services, except: A. Basic B. Assisted C. Advanced D. Enhanced 14. When tracking time for subcontractors, which QuickBooks window is used to enter subcontractor information?

A. Vendor List B. Item List C. Payroll Setup D. Employee List 15. Which form summarizes payments made to subcontractors?

A. Form 940 B. Form 1065 C. Form 1099 D. W-4 16. In Chapter 6, paychecks were printed using: A. Voucher checks B. Standard checks only C. Register checks D. None of these 17. Which of the following activities and QuickBooks window used to record it as incorrect?

A. Enter time worked; Weekly Timesheet B. Pay payroll liabilities; Write Check C. Enter employee information; Employee List D. Pay payroll taxes; Pay Liabilities 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 these

19. To include a charge for labor on an invoice, labor as a service item must be recorded in the: A. Item List B. Vendor List C. Inventory List D. Employee List 20. The Payroll Center: A. Contains the employee list B. Manages payroll and tax information C. Is where employees enter time worked D. Is located in the Banking Center 21. Which of the following ways to track time is not supported by QuickBooks Pro and QuickBooks Premier?

A. Time Single Activity B. Weekly Timesheet C. Time clock D. Online Timesheets 22. Which of the following may be billed to a specific customer job?

A. Mileage B. Hours C. Expenses D. All of these.

23. The Payroll Center has the following sections except: A. Pay Employees B. Write Checks C. Pay Scheduled Liabilities D. File Tax Forms 24. What is purpose of Federal Form 490?

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.

25. What is the purpose of Federal Form 491?

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.

26. Name 3 (three) types of payroll liabilities and indicate who funds each one.

27. Briefly describe what the "Time by Job" project reports tell management.

Chapter 06_Employees and Payroll Key 1.

A company is required to withhold payroll taxes for: A. Employees B. Vendors C. Subcontractors D. All of these.

2.

All of the following automatically calculate payroll tax withholdings in QuickBooks except: A. Basic Payroll B. Assisted Payroll C. Enhanced Payroll D. All of these automatically calculate payroll tax withholdings

3.

To turn on QuickBooks time tracking feature, the following steps must be completed: A. Click QuickBooks Menu > Time Tracking B. Click Edit > Preferences > Time and Expenses > Time Tracking C. Click Employees > Payroll > Time Tracking D. Click Employees > Payroll and Employees > Time Tracking

4.

Each year employees are sent Form ______ to summarize tax withholdings for the year.

A. 1099 B. W-2 C. W-3 D. W-4

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

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

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 these.

8.

Which of the following is not a payroll report: A. Form W-2 B. Form 1065 C. Form 940 D. Form 941

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9.

The following are payroll liabilities except A. Federal income taxes B. Unemployment taxes C. Sales taxes D. FICA

10.

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

A. Employee Tracker B. Stopwatch C. Timesheet D. QuickTime

11.

What QuickBooks activity comes next in this string of payroll activities: Enter Time > Pay Employees > ______ > Process Payroll Forms.

A. Reconcile Payroll B. Print Payroll Report C. Pay Payroll Liabilities D. None of these

12.

When setting up a new employee where do you get their filing status and allowances information?

A. Form W-5 B. Form W-4 C. Form W-3 D. Form W-2

13.

All of the following are QuickBooks Payroll Services, except: A. Basic B. Assisted C. Advanced D. Enhanced

14.

When tracking time for subcontractors, which QuickBooks window is used to enter subcontractor information?

A. Vendor List B. Item List C. Payroll Setup D. Employee List

15.

Which form summarizes payments made to subcontractors?

A. Form 940 B. Form 1065 C. Form 1099 D. W-4

16.

In Chapter 6, paychecks were printed using: A. Voucher checks

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B. Standard checks only C. Register checks D. None of these Kay - Chapter 06 #16

17.

Which of the following activities and QuickBooks window used to record it as incorrect?

A. Enter time worked; Weekly Timesheet B. Pay payroll liabilities; Write Check C. Enter employee information; Employee List D. Pay payroll taxes; Pay Liabilities

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 these

19.

To include a charge for labor on an invoice, labor as a service item must be recorded in the: A. Item List B. Vendor List C. Inventory List D. Employee List

20.

The Payroll Center: A. Contains the employee list B. Manages payroll and tax information C. Is where employees enter time worked D. Is located in the Banking Center

21.

Which of the following ways to track time is not supported by QuickBooks Pro and QuickBooks Premier?

A. Time Single Activity B. Weekly Timesheet C. Time clock D. Online Timesheets

22.

Which of the following may be billed to a specific customer job?

A. Mileage B. Hours C. Expenses D. All of these.

23.

The Payroll Center has the following sections except: A. Pay Employees B. Write Checks C. Pay Scheduled Liabilities D. File Tax Forms

24.

What is purpose of Federal Form 490?

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.

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25.

What is the purpose of Federal Form 491?

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.

26.

Name 3 (three) types of payroll liabilities and indicate who funds each one.

Kay - Chapter 06 #25

Federal Income Tax - funded by the employee, State Income Tax - funded by employee, FICA funded by both the employee and employer, and Unemployment Taxes - funded by the employer.

Kay - Chapter 06 #26

27.

Briefly describe what the "Time by Job" project reports tell management.

These reports can help management by telling them how much time was worked on each job. Detail can also be given by category, by employee, or by service offered.

Kay - Chapter 06 #27

Chapter 06_Employees and Payroll Summary Category # of Questions Kay - Chapter 06 27

Chapter 07_Reports and Graphs Student: ___________________________________________________________________________

1.

What is an asset?

A. What is left after the liabilities are satisfied B. What a company owns C. What a company owes D. None of these.

2.

To record adjusting journal entries in QuickBooks, select: A. Company Center, Journal Entry icon B. Company 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

3.

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

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

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

6.

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

7.

The Income Statement lists: A. Net Income and Owner's Equity B. Income and Expenses C. Assets and Liabilities D. Assets and Expenses

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

9.

What is owner's equity?

A. What a company owes B. What is left after the liabilities are satisfied C. What a company owns D. None of these.

10. To print the General Ledger: A. Select Chart of Accounts icon > Print Report B. From the Company section of the Home page > select Trial Balance icon C. Select Report Center > Accountant & Taxes, General Ledger D. Select Company Center > Print General Ledger 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 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 these.

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 14. To export reports to Excel: A. With the Report window open, click the Excel button B. With the Report window open, click the Export button C. With the Report window open, click the Print button D. All of these 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 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 these.

17. An account period may be: A. One quarter B. One month C. One year D. All of these.

18. Providing information to external users' decision making is the purpose of which of the following?

A. Management Reports B. Tax forms C. Financial statements D. Inventory reports 19. Providing information to internal users' decision making is the purpose of which of the following?

A. Management Reports B. Tax forms C. Financial statements D. Vendor list

20. The Trial Balance: A. Lists all the company's accounts and ending balances B. Is printed before and after making adjustments C. Verifies the accounting system balances D. All of these.

21. The General Ledger: A. Is always provided to external users for decision making B. Provides the quickest way to communicate financial information C. Is a collection of all of the company's accounts and account activity D. None of these.

22. 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 23. 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 24. 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 25. 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 these.

26. Adjusting entries should be made ______________ preparing financial statements.

A. Before B. During C. After D. Never 27. 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 these.

28. Briefly explain 2 (two) differences between depreciation on a tax return and on a financial statement.

29. What is the difference between the cash basis and the accrual basis?

Chapter 07_Reports and Graphs Key 1.

What is an asset?

A. What is left after the liabilities are satisfied B. What a company owns C. What a company owes D. None of these.

2.

To record adjusting journal entries in QuickBooks, select: A. Company Center, Journal Entry icon B. Company 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

3.

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

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

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

6.

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

7.

The Income Statement lists: A. Net Income and Owner's Equity B. Income and Expenses C. Assets and Liabilities D. Assets and Expenses

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

Kay - Chapter 07 #1

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9.

What is owner's equity?

A. What a company owes B. What is left after the liabilities are satisfied C. What a company owns D. None of these.

10.

To print the General Ledger: A. Select Chart of Accounts icon > Print Report B. From the Company section of the Home page > select Trial Balance icon C. Select Report Center > Accountant & Taxes, General Ledger D. Select Company Center > Print General Ledger

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

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 these.

13.

The Statement of Cash Flows lists: A. Operating, Investing, and Financing Activity B. Assets, Liabilities, and Owner's Equity

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C. Income, Expenses, Liabilities D. Gains, Losses, and Net Income Kay - Chapter 07 #13

14.

To export reports to Excel: A. With the Report window open, click the Excel button B. With the Report window open, click the Export button C. With the Report window open, click the Print button D. All of these

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

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 these.

Kay - Chapter 07 #14

Kay - Chapter 07 #15

Kay - Chapter 07 #16

17.

An account period may be: A. One quarter B. One month C. One year D. All of these.

18.

Providing information to external users' decision making is the purpose of which of the following?

A. Management Reports B. Tax forms C. Financial statements D. Inventory reports

19.

Providing information to internal users' decision making is the purpose of which of the following?

A. Management Reports B. Tax forms C. Financial statements D. Vendor list

20.

The Trial Balance: A. Lists all the company's accounts and ending balances B. Is printed before and after making adjustments C. Verifies the accounting system balances D. All of these.

21.

The General Ledger: A. Is always provided to external users for decision making B. Provides the quickest way to communicate financial information C. Is a collection of all of the company's accounts and account activity D. None of these.

22.

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

23.

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

24.

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

Kay - Chapter 07 #17

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25.

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 these.

26.

Adjusting entries should be made ______________ preparing financial statements.

A. Before B. During C. After D. Never

27.

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 these.

28.

Briefly explain 2 (two) differences between depreciation on a tax return and on a financial statement.

Kay - Chapter 07 #25

Kay - Chapter 07 #26

Kay - Chapter 07 #27

On a tax return, depreciation is calculated using MACRS and follows the rules of the IRS. For financial statements, depreciation is calculated most often by the straight-line method and following the rules of GAAP. Kay - Chapter 07 #28

29.

What is the difference between the cash basis and the accrual basis?

Cash basis - A sale is recorded when cash is collected from the customer. Expenses are recorded when cash is paid.

Accrual basis - 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 Kay - Chapter 07 #29

Chapter 07_Reports and Graphs Summary Category # of Questions Kay - Chapter 07 29

Chapter 08_New Company Setup Student: ___________________________________________________________________________

1.

Which tax form would you select for a Subchapter S corporation?

A. Form 1120 B. Form 1120S C. Form 1040 D. Form 1040S

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 > Open or Copy Company D. File menu > New Company

3.

In the Easy Step Interview, you must identify: A. Type of Industry B. Company name C. Company address D. All of these.

4.

When setting up a new company, QuickBooks automatically creates: A. Chart of Accounts B. Vendor List C. Customer List D. None of these.

5.

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 > right-click > New C. From the Chart of Accounts window > Account > Edit Account D. From the Company menu > New Account

6.

The Doing Business As name identifies a company for: A. Bank accounts B. Sales C. Patents D. None of these.

7.

The Legal Name identifies a company for: A. Advertising B. Sales C. Patents D. All of these.

8.

Which icon does not appear in the Vendors section for service companies that do not sell inventory?

A. Receive Inventory B. Pay Bills C. Enter Bills D. All of these.

9.

The Vendor 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 these.

10. The Customer List contains information about: A. The quantity of non-inventory parts on hand B. The credit rating of the vendors C. Vendors from whom the company buys products and services D. Customer addresses, contacts and phone numbers 11. The Item List contains information about all of the following except: A. Service items B. Non-inventory items C. Inventory items D. All of these.

12. To display account numbers in the chart of accounts choose: A. Edit > Options B. Edit > Preferences C. Company > Financial D. Company > Accounts 13. A company's computer is classified as what account type: A. Expense B. Owner's Equity C. Fixed Asset D. Retained Earnings 14. The steps to set up a new service company in QuickBooks with no employees are: A. Easy Step Interview > Customer List > Vendor List > Item List B. Setup Chart of Accounts > Easy Step Interview > Customer List > Vendor List > Item List C. Easy Step Interview > Customize Chart of Accounts > Customer List > Vendor List > Item List D. Easy Step Interview > Customer List > Vendor List > Item List > Customize Chart of Accounts 15. To complete company setup you must complete all of the following except: A. Add customers B. Add payroll forms C. Add products and services as items D. Add vendors 16. Sole Proprietorships use __________ as its Federal Tax ID number.

A. The owner's social security number B. An EIN number C. Business operating license number D. None of these 17. A corporation uses __________ as its Federal Tax ID number.

A. The owner's social security number B. An EIN number C. Business operating license number D. None of these 18. The QuickBooks Setup window allows you to enter __________ information.

A. Vendor B. Customer C. Banking D. All of these 19. Which tax form would you select for a Partnership?

A. Form 1120 B. Form 1120S C. Form 1065 D. Form 1040S

20. Which tax form would you select for a Corporation?

A. Form 1120 B. Form 1120S C. Form 1065 D. Form 1040S 21. An account's tax line determines where QuickBooks lists the account balance on the: A. Income Statement B. Income Tax Summary Report C. Balance Sheet D. Statement of Cash Flows 22. QuickBooks allows you to import vendor, customer, and employee information from (Add People You Do Business With section of the QuickBooks Setup window): A. Yahoo B. Outlook C. Gmail D. All of these.

23. To customize QuickBooks after creating a company file you would: A. Enter additional company information B. Set QuickBooks preferences C. Customize the Chart of Accounts D. All of these.

24. QuickBooks creates a Chart of Accounts for your company based on: A. Company address B. Industry type C. Your Federal ID Tax number D. None of these.

25. Which of the following type of information is not entered during the Easy Step Interview?

A. Company organization (for example, LLC, LLP, S Corporation) B. Industry type C. Products and services the company sells D. QuickBooks company file password 26. Which feature allows you to make changes after company setup is completed?

A. Express start B. Go start C. Fast start D. None of these 27. Why should you customize the Chart of Accounts?

A. It's required B. To modify it for your specific business C. To make the system function D. None of these 28. Name 4 (four) accounts that would commonly be used for a service company and identify the account type for each.

29. List 3 (three) questions asked by the QuickBooks EasyStep Interview.

Chapter 08_New Company Setup Key 1.

Which tax form would you select for a Subchapter S corporation?

A. Form 1120 B. Form 1120S C. Form 1040 D. Form 1040S

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 > Open or Copy Company D. File menu > New Company

3.

In the Easy Step Interview, you must identify: A. Type of Industry B. Company name C. Company address D. All of these.

4.

When setting up a new company, QuickBooks automatically creates: A. Chart of Accounts B. Vendor List C. Customer List D. None of these.

5.

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 > right-click > New C. From the Chart of Accounts window > Account > Edit Account D. From the Company menu > New Account

6.

The Doing Business As name identifies a company for: A. Bank accounts B. Sales C. Patents D. None of these.

7.

The Legal Name identifies a company for: A. Advertising B. Sales C. Patents D. All of these.

8.

Which icon does not appear in the Vendors section for service companies that do not sell inventory?

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A. Receive Inventory B. Pay Bills C. Enter Bills D. All of these.

Kay - Chapter 08 #8

9.

The Vendor 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 these.

10.

The Customer List contains information about: A. The quantity of non-inventory parts on hand B. The credit rating of the vendors C. Vendors from whom the company buys products and services D. Customer addresses, contacts and phone numbers

11.

The Item List contains information about all of the following except: A. Service items B. Non-inventory items C. Inventory items D. All of these.

12.

To display account numbers in the chart of accounts choose: A. Edit > Options B. Edit > Preferences C. Company > Financial D. Company > Accounts

13.

A company's computer is classified as what account type: A. Expense B. Owner's Equity C. Fixed Asset D. Retained Earnings

14.

The steps to set up a new service company in QuickBooks with no employees are: A. Easy Step Interview > Customer List > Vendor List > Item List B. Setup Chart of Accounts > Easy Step Interview > Customer List > Vendor List > Item List C. Easy Step Interview > Customize Chart of Accounts > Customer List > Vendor List > Item List D. Easy Step Interview > Customer List > Vendor List > Item List > Customize Chart of Accounts

15.

To complete company setup you must complete all of the following except: A. Add customers B. Add payroll forms C. Add products and services as items D. Add vendors

16.

Sole Proprietorships use __________ as its Federal Tax ID number.

A. The owner's social security number B. An EIN number C. Business operating license number D. None of these

17.

A corporation uses __________ as its Federal Tax ID number.

A. The owner's social security number B. An EIN number C. Business operating license number D. None of these

Kay - Chapter 08 #9

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18.

The QuickBooks Setup window allows you to enter __________ information.

A. Vendor B. Customer C. Banking D. All of these

19.

Which tax form would you select for a Partnership?

A. Form 1120 B. Form 1120S C. Form 1065 D. Form 1040S

20.

Which tax form would you select for a Corporation?

A. Form 1120 B. Form 1120S C. Form 1065 D. Form 1040S

21.

An account's tax line determines where QuickBooks lists the account balance on the: A. Income Statement B. Income Tax Summary Report C. Balance Sheet D. Statement of Cash Flows

22.

QuickBooks allows you to import vendor, customer, and employee information from (Add People You Do Business With section of the QuickBooks Setup window): A. Yahoo B. Outlook C. Gmail D. All of these.

23.

To customize QuickBooks after creating a company file you would: A. Enter additional company information B. Set QuickBooks preferences C. Customize the Chart of Accounts D. All of these.

24.

QuickBooks creates a Chart of Accounts for your company based on: A. Company address B. Industry type C. Your Federal ID Tax number D. None of these.

25.

Which of the following type of information is not entered during the Easy Step Interview?

A. Company organization (for example, LLC, LLP, S Corporation) B. Industry type C. Products and services the company sells D. QuickBooks company file password

Kay - Chapter 08 #18

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26.

Which feature allows you to make changes after company setup is completed?

A. Express start B. Go start C. Fast start D. None of these

27.

Why should you customize the Chart of Accounts?

A. It's required B. To modify it for your specific business C. To make the system function D. None of these

28.

Name 4 (four) accounts that would commonly be used for a service company and identify the account type for each.

Kay - Chapter 08 #26

Kay - Chapter 08 #27

Advertising and Promotion - Expense, Owner's Equity - Equity, Rent Expense - Expense, and Furniture and Equipment - Fixed Asset Kay - Chapter 08 #28

29.

List 3 (three) questions asked by the QuickBooks EasyStep Interview.

"Do you accept credit cards?" "Do you charge sales tax?" and "Would you like to add an existing bank account?"

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Chapter 08_New Company Setup Summary Category # of Questions Kay - Chapter 08 29

Chapter 09_Accounting for a Service Company Student: ___________________________________________________________________________

1.

To record the payment of bills received from vendors, use the: A. Pay Bills > Write Checks B. Write Checks > Pay Bills C. Enter Bills > Print Checks D. Enter Bills > Pay Bills > Print Checks

2.

Credit sales are recorded using the _________ window.

A. Make Deposits B. Sales Receipts C. Create Invoices D. Receive Items

3.

To print the Trial Balance, select: A. Report Center > Accountant & Taxes B. Company Center > Company & Financials C. Report Center > Company & Financials D. Company Center > Accountant & Taxes

4.

To print the Balance Sheet, select: A. Company Center > Company & Financials B. Report Center > Company & Financials C. Report Center > Accountant & Taxes D. Company Center > Accountant & Taxes

5.

To record a credit purchase, use the: A. Purchase Order > Receive Payment > Deposit B. Invoice > Receive Payment > Deposit C. Enter Bills > Pay Bills D. Invoice > Enter Bills > Pay Bills

6.

To record a cash purchase, use the: A. Pay Bills B. Write Check C. Purchase Order D. None of these

7.

Items charged to a specific customer job can be transferred to the customer's invoice using: A. Item List B. Timesheet C. Stopwatch D. Time/Costs button

8.

To create a memorized transaction for a utility bill, in the Enter Bills window select: A. Transactions menu > Memorize B. Edit menu > Memorize Bill C. Vendors menu > Memorize Transactions D. Lists menu > Reminders

9.

Adjusting entries are used to: A. Close temporary accounts at year end B. Close permanent accounts at year-end C. Bring account balances up to date at year end D. All of these

10. 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 these 11. All of the following are examples of recurring transactions, except: A. Depreciation B. Utilities C. Rent D. All of these 12. When you record the receipt of a customer payment QuickBooks reduces _______ and increases ________.

A. Bank Account, Accounts Receivable B. Accounts Payable, Undeposited Funds C. Accounts Receivable, Undeposited Funds D. Accounts Receivable, Bank Account 13. Before making adjusting entries you must: A. Close permanent accounts B. Prepare the trial balance C. Close temporary accounts D. Print the balance sheet 14. Deposits may be recorded using the: A. Check Register window B. Write Checks window C. Reconcile window D. Print Checks window 15. To print multiple checks at one time, use: A. Banking menu > Write Checks > Print Checks B. Vendor menu > Print Forms > Print Checks C. File menu > Print Forms > Checks D. Banking menu > Print Forms > Checks 16. To record a sales transaction, use the: 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 17. When customer payments are recorded in the Receive Payments window, QuickBooks records: A. An increase in the Checking account B. An increase in Undeposited Funds account C. An increase in Accounts Receivable D. An increase in Sales 18. When customer payments are recorded, QuickBooks reduces the ________ balance.

A. Accounts Payable B. Accounts Receivable C. Undeposited Funds D. Checking

19. To record adjusting entries, use: A. Report menu > General Journal Entries B. Company menu > Make General Journal Entries C. Banking menu > Make General Journal Entries D. Accountant menu > Journal Entries 20. To print the entire Journal, select: A. Report Center > Accountant & Taxes > Journal B. Company Center > Company & Financials > Journal C. Report Center > Company & Financials > Journal D. Company Center > Accountant & Taxes > Journal 21. To print the General Ledger, select: A. Report Center > Company & Financials > General Ledger B. Company Center > Company & Financials > General Ledger C. Report Center > Accountant & Taxes > General Ledger D. Company Center > Accountant & Taxes > General Ledger 22. To remove accounts with zero balances from the General Ledger report, after generating the report, select: A. Modify Report > Filters > In use B. Modify Report > Display > Advanced > In use C. Modify Report > Display > In use D. Modify Report > Filters > Display > In use 23. To print the Profit & Loss report, select: A. Report Center > Company & Financials B. Report Center > Accountant & Taxes C. Company Center > Company & Financials D. Company Center > Accountant & Taxes 24. To print the Statement of Cash Flows, select: A. Report Center > Company & Financials B. Report Center > Accountant & Taxes C. Company Center > Company & Financials D. Company Center > Accountant & Taxes 25. The following are examples of possible memorized transactions except: A. Rent payments B. Utility bills C. Special order for a customer D. None of these 26. Briefly explain the difference between a permanent and a temporary account.

27. Briefly explain how to record an owner's investment in their company.

Chapter 09_Accounting for a Service Company Key 1.

To record the payment of bills received from vendors, use the: A. Pay Bills > Write Checks B. Write Checks > Pay Bills C. Enter Bills > Print Checks D. Enter Bills > Pay Bills > Print Checks

2.

Credit sales are recorded using the _________ window.

A. Make Deposits B. Sales Receipts C. Create Invoices D. Receive Items

3.

To print the Trial Balance, select: A. Report Center > Accountant & Taxes B. Company Center > Company & Financials C. Report Center > Company & Financials D. Company Center > Accountant & Taxes

4.

To print the Balance Sheet, select: A. Company Center > Company & Financials B. Report Center > Company & Financials C. Report Center > Accountant & Taxes D. Company Center > Accountant & Taxes

5.

To record a credit purchase, use the: A. Purchase Order > Receive Payment > Deposit B. Invoice > Receive Payment > Deposit C. Enter Bills > Pay Bills D. Invoice > Enter Bills > Pay Bills

6.

To record a cash purchase, use the: A. Pay Bills B. Write Check C. Purchase Order D. None of these

7.

Items charged to a specific customer job can be transferred to the customer's invoice using: A. Item List B. Timesheet C. Stopwatch D. Time/Costs button

8.

To create a memorized transaction for a utility bill, in the Enter Bills window select: A. Transactions menu > Memorize B. Edit menu > Memorize Bill C. Vendors menu > Memorize Transactions D. Lists menu > Reminders

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9.

Adjusting entries are used to: A. Close temporary accounts at year end B. Close permanent accounts at year-end C. Bring account balances up to date at year end D. All of these

10.

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 these

11.

All of the following are examples of recurring transactions, except: A. Depreciation B. Utilities C. Rent D. All of these

12.

When you record the receipt of a customer payment QuickBooks reduces _______ and increases ________.

A. Bank Account, Accounts Receivable B. Accounts Payable, Undeposited Funds C. Accounts Receivable, Undeposited Funds D. Accounts Receivable, Bank Account

13.

Before making adjusting entries you must: A. Close permanent accounts B. Prepare the trial balance C. Close temporary accounts D. Print the balance sheet

14.

Deposits may be recorded using the: A. Check Register window B. Write Checks window C. Reconcile window D. Print Checks window

15.

To print multiple checks at one time, use: A. Banking menu > Write Checks > Print Checks B. Vendor menu > Print Forms > Print Checks C. File menu > Print Forms > Checks D. Banking menu > Print Forms > Checks

16.

To record a sales transaction, use the: 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

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17.

When customer payments are recorded in the Receive Payments window, QuickBooks records: A. An increase in the Checking account B. An increase in Undeposited Funds account C. An increase in Accounts Receivable D. An increase in Sales

18.

When customer payments are recorded, QuickBooks reduces the ________ balance.

A. Accounts Payable B. Accounts Receivable C. Undeposited Funds D. Checking

19.

To record adjusting entries, use: A. Report menu > General Journal Entries B. Company menu > Make General Journal Entries C. Banking menu > Make General Journal Entries D. Accountant menu > Journal Entries

20.

To print the entire Journal, select: A. Report Center > Accountant & Taxes > Journal B. Company Center > Company & Financials > Journal C. Report Center > Company & Financials > Journal D. Company Center > Accountant & Taxes > Journal

21.

To print the General Ledger, select: A. Report Center > Company & Financials > General Ledger B. Company Center > Company & Financials > General Ledger C. Report Center > Accountant & Taxes > General Ledger D. Company Center > Accountant & Taxes > General Ledger

22.

To remove accounts with zero balances from the General Ledger report, after generating the report, select: A. Modify Report > Filters > In use B. Modify Report > Display > Advanced > In use C. Modify Report > Display > In use D. Modify Report > Filters > Display > In use

23.

To print the Profit & Loss report, select: A. Report Center > Company & Financials B. Report Center > Accountant & Taxes C. Company Center > Company & Financials D. Company Center > Accountant & Taxes

24.

To print the Statement of Cash Flows, select: A. Report Center > Company & Financials B. Report Center > Accountant & Taxes C. Company Center > Company & Financials D. Company Center > Accountant & Taxes

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25.

The following are examples of possible memorized transactions except: A. Rent payments B. Utility bills C. Special order for a customer D. None of these

26.

Briefly explain the difference between a permanent and a temporary account.

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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.

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27.

Briefly explain how to record an owner's investment in their company.

To record an owner's investment record the deposit, add the owner as the "received from" entity. The amount is then added to the checking account and the owner's equity account or the owners' Capital Stock account.

Kay - Chapter 09 #27

Chapter 09_Accounting for a Service Company Summary Category # of Questions Kay - Chapter 09 27

Chapter 10_Merchandising Corporation: Sales, Purchases, and Inventory Student: ___________________________________________________________________________

1.

After creating a new QuickBooks data file for an existing company and entering all the existing balances, use an opening adjustment 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 these

2.

A CPA firm is an example of a _________ company.

A. Service B. Retail Shop C. Manufacturing D. Product-based business

3.

When you place an order for items from a vendor, which one of the following QuickBooks forms would you use?

A. Create Invoice B. Purchase Order C. Receive Inventory D. None of these.

4.

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 these.

5.

Retail customers: A. Pay no sales tax B. Pay sales tax C. Pay a manufacturing tax D. Pay sales tax on labor only

6.

Inventory items received should be compared against: A. Purchase order B. Sales order C. Supplies inventory D. Sales receipt

7.

When recording the sale of a product, which account is decreased?

A. Inventory B. Accounts Receivable C. Notes Payable D. None of these.

8.

The purchasing cycle includes all of the following transactions except: A. Create a purchase order to order inventory B. Enter hours in the time sheet for stocking inventory.

C. Receive inventory items and record in the inventory account D. Enter bill in QuickBooks when bill is received

9.

When setting up an existing company in QuickBooks, which of the following opening adjustments require journal entries?

A. When accounts payable opening balances create Uncategorized Expenses.

B. When the Customer List is created.

C. When payroll entries are added.

D. None of these.

10. The Chart of Accounts: A. Verifies the accounting system is in balance B. Helps detect errors C. Lists all accounts D. All of these 11. To see the account numbers in the Chart of Accounts, choose: A. Edit > Preferences > Accounting > Company Preferences B. Edit > Preferences > Desktop View > Company Preferences C. Edit > Preferences > General > My Preferences D. Edit > Preferences > General > Company Preferences 12. To add an existing opening balance to a new account, choose: A. New Account > Opening Balance B. Account Options > Enter Opening Balance C. Account > Opening Balance D. Edit Account > Enter Opening Balance 13. The cost of the inventory items sold is tracked in what account: A. Items Sold B. Cost of Goods Sold C. Cost of Materials D. Inventory Sold 14. When using QuickBooks, your accounting system includes which of the following steps: A. Enter vendor list B. Record transactions C. Prepare reports D. All of these.

15. If the supplies on hand at the end of January totaled $200 and the Supplies on Hand account before adjustment is $900, what would be the adjustment at month-end?

A. Reduce supplies on hand by $700; increase supplies expense by $700 B. Increase supplies on hand by $900; reduce supplies expense by $900 C. Reduce supplies on hand by $200; increase supplies expense by $200 D. Increase supplies on hand by $200; reduce supplies expense by $200 16. To customize your QuickBooks color scheme, choose Desktop View > _______.

A. Company Preferences B. My Preferences C. Color Preferences D. Scheme Options 17. A grocery store is an example of a _________ company.

A. Service B. Retail C. Manufacturing D. Product-based business

18. When creating a new QuickBooks data file for an existing company, opening balances are added when you: A. Customize the Chart of Accounts B. Add vendors to the vendor list C. Add customers to the customer list D. Add inventory the item list 19. 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 20. 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 21. When creating a new QuickBooks data file for an existing company, QuickBooks automatically offsets inventory item balances with an entry to the: A. Uncategorized Expenses account B. Uncategorized Income account C. Opening Balance Equity account D. Capital Stock account 22. The purchasing transaction cycle for a merchandising company is: A. Create Purchase Order > Receive Inventory > Record Bill > Pay Bill > Print Check B. Create Invoice > Receive Payment > Record Deposits C. Create Purchase Order > Receive Payment > Record Deposits D. Create Invoice > Receive Inventory > Pay Bill > Record Deposits 23. The sales transaction cycle for a merchandising company is: A. Create Purchase Order > Receive Inventory > Record Bill > Pay Bill > Print Check B. Create Invoice > Receive Payment > Record Deposits C. Create Purchase Order > Receive Payment > Record Deposits D. Create Invoice > Receive Inventory > Pay Bill > Record Deposits 24. QuickBooks classifies the sales tax rate as a(n): A. Customer List item B. Vendor List item C. Item not stored in the accounting system D. Inventory item (Item List) 25. Wholesale customers: A. Pay no sales tax B. Pay sales tax C. Pay a manufacturing tax D. Pay sales tax on labor only

26. Briefly explain how the supplies on hand account is adjusted at the end of the period.

27. Name 2 (two) differences between accounting for a service company and a retail shop.

Chapter 10_Merchandising Corporation: Sales, Purchases, and Inventory Key 1.

After creating a new QuickBooks data file for an existing company and entering all the existing balances, use an opening adjustment 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 these

2.

A CPA firm is an example of a _________ company.

A. Service B. Retail Shop C. Manufacturing D. Product-based business

3.

When you place an order for items from a vendor, which one of the following QuickBooks forms would you use?

A. Create Invoice B. Purchase Order C. Receive Inventory D. None of these.

4.

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 these.

5.

Retail customers: A. Pay no sales tax B. Pay sales tax C. Pay a manufacturing tax D. Pay sales tax on labor only

6.

Inventory items received should be compared against: A. Purchase order B. Sales order C. Supplies inventory D. Sales receipt

7.

When recording the sale of a product, which account is decreased?

A. Inventory B. Accounts Receivable C. Notes Payable D. None of these.

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8.

The purchasing cycle includes all of the following transactions except: A. Create a purchase order to order inventory B. Enter hours in the time sheet for stocking inventory.

C. Receive inventory items and record in the inventory account D. Enter bill in QuickBooks when bill is received

9.

When setting up an existing company in QuickBooks, which of the following opening adjustments require journal entries?

A. When accounts payable opening balances create Uncategorized Expenses.

B. When the Customer List is created.

C. When payroll entries are added.

D. None of these.

10.

The Chart of Accounts: A. Verifies the accounting system is in balance B. Helps detect errors C. Lists all accounts D. All of these

11.

To see the account numbers in the Chart of Accounts, choose: A. Edit > Preferences > Accounting > Company Preferences B. Edit > Preferences > Desktop View > Company Preferences C. Edit > Preferences > General > My Preferences D. Edit > Preferences > General > Company Preferences

12.

To add an existing opening balance to a new account, choose: A. New Account > Opening Balance B. Account Options > Enter Opening Balance C. Account > Opening Balance D. Edit Account > Enter Opening Balance

13.

The cost of the inventory items sold is tracked in what account: A. Items Sold B. Cost of Goods Sold C. Cost of Materials D. Inventory Sold

14.

When using QuickBooks, your accounting system includes which of the following steps: A. Enter vendor list B. Record transactions C. Prepare reports D. All of these.

15.

If the supplies on hand at the end of January totaled $200 and the Supplies on Hand account before adjustment is $900, what would be the adjustment at month-end?

A. Reduce supplies on hand by $700; increase supplies expense by $700 B. Increase supplies on hand by $900; reduce supplies expense by $900 C. Reduce supplies on hand by $200; increase supplies expense by $200 D. Increase supplies on hand by $200; reduce supplies expense by $200

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16.

To customize your QuickBooks color scheme, choose Desktop View > _______.

A. Company Preferences B. My Preferences C. Color Preferences D. Scheme Options

17.

A grocery store is an example of a _________ company.

A. Service B. Retail C. Manufacturing D. Product-based business

18.

When creating a new QuickBooks data file for an existing company, opening balances are added when you: A. Customize the Chart of Accounts B. Add vendors to the vendor list C. Add customers to the customer list D. Add inventory the item list

19.

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

20.

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

21.

When creating a new QuickBooks data file for an existing company, QuickBooks automatically offsets inventory item balances with an entry to the: A. Uncategorized Expenses account B. Uncategorized Income account C. Opening Balance Equity account D. Capital Stock account

22.

The purchasing transaction cycle for a merchandising company is: A. Create Purchase Order > Receive Inventory > Record Bill > Pay Bill > Print Check B. Create Invoice > Receive Payment > Record Deposits C. Create Purchase Order > Receive Payment > Record Deposits D. Create Invoice > Receive Inventory > Pay Bill > Record Deposits

23.

The sales transaction cycle for a merchandising company is: A. Create Purchase Order > Receive Inventory > Record Bill > Pay Bill > Print Check B. Create Invoice > Receive Payment > Record Deposits C. Create Purchase Order > Receive Payment > Record Deposits D. Create Invoice > Receive Inventory > Pay Bill > Record Deposits

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24.

QuickBooks classifies the sales tax rate as a(n): A. Customer List item B. Vendor List item C. Item not stored in the accounting system D. Inventory item (Item List)

25.

Wholesale customers: A. Pay no sales tax B. Pay sales tax C. Pay a manufacturing tax D. Pay sales tax on labor only

26.

Briefly explain how the supplies on hand account is adjusted at the end of the period.

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

Kay - Chapter 10 #26

27.

Name 2 (two) differences between accounting for a service company and a retail shop.

A merchandising company tracks inventory and cost of goods sold, where a service company tracks services and hours per project. Also, the accounts in the chart of accounts vary, for example a service company uses the unearned revenue account and a retail shop uses the merchandise sales account.

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Chapter 10_Merchandising Corporation: Sales, Purchases, and Inventory Summary Category # of Questions Kay - Chapter 10 27

Chapter 11_Merchandising Corporation: Payroll Student: ___________________________________________________________________________

1.

To enable payroll: A. From the Company menu > Employees > Add Payroll B. From the Employee menu > Start Payroll C. From the Edit menu > Preferences > Payroll and Employees D. None of these.

2.

The steps in processing payroll include all of the following activities except: A. Write Checks B. Enter Time C. Print Checks D. Create Paychecks

3.

The employer must match which of the following taxes paid by an employee: A. Medicare B. Federal Unemployment C. State Income Tax Withholding D. The employer must match all of the above

4.

When creating paychecks using QuickBooks, you deduct withholdings from employees' pay for all of the following except: A. State income taxes B. Medicare C. City income taxes D. None of these.

5.

When creating a new account to record a new loan, enter the loan amount as: A. an opening balance B. investment C. income D. a separate transaction

6.

All of the following are payroll tax liabilities owed to outside agencies except: A. Federal Income Taxes B. Unemployment Taxes C. Net Pay D. State Income Taxes

7.

Which order are payroll tasks are typically completed?

A. Enter Time > Process Payroll Forms > Pay Employees > Pay Payroll Liabilities B. Enter Time > Pay Employees > Pay Payroll Liabilities > Process Payroll Forms C. Enter Time > Pay Payroll Liabilities > Process Payroll Forms > Pay Employees D. Enter Time > Pay Payroll Liabilities > Pay Employees > Process Payroll Forms

8.

You can obtain a copy of Circular E to use for payroll preparation from: A. The Employee section of the Home page B. The Employee Center of the Home page C. The QuickBooks website: www.quickbooks.com D. The IRS website: www.irs.gov

9.

The Payroll Summary report can be accessed from: A. The Employee section of the Home page B. The Reports Center > Employees & Payroll C. The Reports Center > Payroll Processing D. All of these.

10. Taxes are withheld from paychecks for: A. Employees B. Independent Contractors C. Owner's withdrawals D. All of these.

11. A short term loan to be repaid within one year is classified as a(n): A. Other Current Asset B. Other Current Liability C. Expense D. Owner's Due 12. The QuickBooks Tax Form Worksheets provide information to complete: A. Employee pay checks B. Sales tax forms C. Payroll tax forms D. The Income Statement 13. To view the payroll entry in the journal, go to Report Center > ________.

A. Customers and Jobs B. Company and Financial C. Accountant and Taxes D. None of these 14. Which one of the following payroll services automatically calculates the tax deductions?

A. QuickBooks Basic Payroll B. QuickBooks Assisted Payroll C. QuickBooks Enhanced Payroll D. All of these.

15. Which form is used to manually calculate tax withholdings and payroll taxes?

A. Form 490 B. Form 491 C. IRS Circular E D. None of these.

16. Which icon is not in the Employees section of the Home page when a company file is set to use manual payroll calculations?

A. Enter Time B. Pay Employees C. Pay Liabilities D. Payroll Forms 17. The QuickBooks Payroll Setup allows you to: A. Set employee defaults for information common to all employees B. Enter employee information C. Set the payment schedule for withholding payments D. All of these.

18. The day the check is prepared is the: A. Check Date B. Pay Period End Date C. The last day the employee works in the pay period D. The last day of the pay period 19. When standard checks are used for pay checks, paystubs are printed by selecting: A. Employee menu > Print Pay Stubs B. File menu > Print Forms > Pay Stubs C. Banking menu > Print Forms > Pay Stubs D. Company menu > Print Checks > Pay Stubs 20. Wages paid to an employee are recorded as: A. Payroll expense B. Payroll liabilities C. Payroll payable D. Payroll revenue 21. Withholdings from an employee paycheck are recorded as: A. Payroll expense B. Payroll liabilities C. Payroll payable D. Payroll revenue 22. Payroll taxes a company must pay are recorded as: A. Payroll expense B. Payroll liabilities C. Payroll payable D. Payroll revenue 23. Payroll liabilities are based on: A. Calendar months B. Pay period C. Check dates D. The company's fiscal year 24. The steps for manually processing payroll tax forms are: A. Click the Process Payroll Forms icon > Print the payroll tax forms B. Print management reports > Locate payroll tax forms > Transfer the amounts in the management reports to the tax forms C. Print financial statements > Locate payroll tax forms > Transfer the amounts in the financial statements to the tax forms D. Print payroll reports > Locate payroll tax forms > Transfer the amounts in the payroll reports to the tax forms 25. The Payroll Summary report: A. Summarizes the amounts paid to employees B. Summarizes the amounts paid in payroll taxes C. May be accessed using the Reports Center D. All of these.

26. Briefly describe how you manually process payroll forms:

27. List 3 (three) types for payroll liabilities and who is responsible for funding them.

Chapter 11_Merchandising Corporation: Payroll Key 1.

To enable payroll: A. From the Company menu > Employees > Add Payroll B. From the Employee menu > Start Payroll C. From the Edit menu > Preferences > Payroll and Employees D. None of these.

2.

The steps in processing payroll include all of the following activities except: A. Write Checks B. Enter Time C. Print Checks D. Create Paychecks

3.

The employer must match which of the following taxes paid by an employee: A. Medicare B. Federal Unemployment C. State Income Tax Withholding D. The employer must match all of the above

4.

When creating paychecks using QuickBooks, you deduct withholdings from employees' pay for all of the following except: A. State income taxes B. Medicare C. City income taxes D. None of these.

5.

When creating a new account to record a new loan, enter the loan amount as: A. an opening balance B. investment C. income D. a separate transaction

6.

All of the following are payroll tax liabilities owed to outside agencies except: A. Federal Income Taxes B. Unemployment Taxes C. Net Pay D. State Income Taxes

7.

Which order are payroll tasks are typically completed?

A. Enter Time > Process Payroll Forms > Pay Employees > Pay Payroll Liabilities B. Enter Time > Pay Employees > Pay Payroll Liabilities > Process Payroll Forms C. Enter Time > Pay Payroll Liabilities > Process Payroll Forms > Pay Employees D. Enter Time > Pay Payroll Liabilities > Pay Employees > Process Payroll Forms

8.

You can obtain a copy of Circular E to use for payroll preparation from: A. The Employee section of the Home page B. The Employee Center of the Home page C. The QuickBooks website: www.quickbooks.com D. The IRS website: www.irs.gov

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9.

The Payroll Summary report can be accessed from: A. The Employee section of the Home page B. The Reports Center > Employees & Payroll C. The Reports Center > Payroll Processing D. All of these.

10.

Taxes are withheld from paychecks for: A. Employees B. Independent Contractors C. Owner's withdrawals D. All of these.

11.

A short term loan to be repaid within one year is classified as a(n): A. Other Current Asset B. Other Current Liability C. Expense D. Owner's Due

12.

The QuickBooks Tax Form Worksheets provide information to complete: A. Employee pay checks B. Sales tax forms C. Payroll tax forms D. The Income Statement

13.

To view the payroll entry in the journal, go to Report Center > ________.

A. Customers and Jobs B. Company and Financial C. Accountant and Taxes D. None of these

14.

Which one of the following payroll services automatically calculates the tax deductions?

A. QuickBooks Basic Payroll B. QuickBooks Assisted Payroll C. QuickBooks Enhanced Payroll D. All of these.

15.

Which form is used to manually calculate tax withholdings and payroll taxes?

A. Form 490 B. Form 491 C. IRS Circular E D. None of these.

16.

Which icon is not in the Employees section of the Home page when a company file is set to use manual payroll calculations?

A. Enter Time B. Pay Employees C. Pay Liabilities D. Payroll Forms

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17.

The QuickBooks Payroll Setup allows you to: A. Set employee defaults for information common to all employees B. Enter employee information C. Set the payment schedule for withholding payments D. All of these.

18.

The day the check is prepared is the: A. Check Date B. Pay Period End Date C. The last day the employee works in the pay period D. The last day of the pay period

19.

When standard checks are used for pay checks, paystubs are printed by selecting: A. Employee menu > Print Pay Stubs B. File menu > Print Forms > Pay Stubs C. Banking menu > Print Forms > Pay Stubs D. Company menu > Print Checks > Pay Stubs

20.

Wages paid to an employee are recorded as: A. Payroll expense B. Payroll liabilities C. Payroll payable D. Payroll revenue

21.

Withholdings from an employee paycheck are recorded as: A. Payroll expense B. Payroll liabilities C. Payroll payable D. Payroll revenue

22.

Payroll taxes a company must pay are recorded as: A. Payroll expense B. Payroll liabilities C. Payroll payable D. Payroll revenue

23.

Payroll liabilities are based on: A. Calendar months B. Pay period C. Check dates D. The company's fiscal year

24.

The steps for manually processing payroll tax forms are: A. Click the Process Payroll Forms icon > Print the payroll tax forms B. Print management reports > Locate payroll tax forms > Transfer the amounts in the management reports to the tax forms C. Print financial statements > Locate payroll tax forms > Transfer the amounts in the financial statements to the tax forms D. Print payroll reports > Locate payroll tax forms > Transfer the amounts in the payroll reports to the tax forms

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25.

The Payroll Summary report: A. Summarizes the amounts paid to employees B. Summarizes the amounts paid in payroll taxes C. May be accessed using the Reports Center D. All of these.

26.

Briefly describe how you manually process payroll forms:

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To manually process payroll forms, print the appropriate payroll reports in QuickBooks, open the payroll tax forms form the IRS website, fill out the tax forms on screen using the information from the QuickBooks reports, print the completed payroll tax.

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27.

List 3 (three) types for payroll liabilities and who is responsible for funding them.

Federal Income Taxes - employee, State Income Taxes - employee, FICA (Medicare and Social Security) - both employee and employer, Unemployment Taxes - employer Kay - Chapter 11 #27

Chapter 11_Merchandising Corporation: Payroll Summary Category # of Questions Kay - Chapter 11 27

Chapter 12_ Advanced QuickBooks Features for Accountants Student: ___________________________________________________________________________

1.

To create a budget: A. From the Company Center, select Company & Financials, Budgets B. From the Company menu, select Planning & Budgets, Set Up Budgets C. From the Edit menu, select Preferences, Set Up Budgets D. From the Banking menu, select Planning & Budgets, Budgets

2.

To print a budget: A. From the Report Center, select Budgets B. From the Company Center, select Company & Financials, Budgets C. From the Report Center, select Company & Financials, Budgets D. From the Report Center, select Accountant & Taxes, Budgets

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 these.

4.

You would use which QuickBooks feature to prepare a bid for a potential customer?

A. Progress Billing B. Estimates C. Enter Bills D. Invoice

5.

Customer payments received on progress invoices are: A. Recorded using the Check Register B. Recorded using the Statement icon in the Customer 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 Customer section of the Home page

6.

A credit card payment received against/on an open invoice would be recorded as: A. Using the Statements icon in the Customer section of the Home page B. Using the Receive Payments icon in the Customer section of the Home page C. Using the Credit Card icon in the Banking section of the Home page D. None of these.

7.

The audit trail lists: A. All deleted transactions B. All changes to transactions C. User ID of person entering transactions D. All of these.

8.

To print an audit trail report: A. Select Report menu > Company & Financials > Audit Trail B. Select the Audit Trail icon in the Company Center C. Select Report Center > Accountant & Taxes > Audit Trail D. Select the Audit Trail report from the Company section of the Home page

9.

Which of the following file extensions identifies an accountant's copy file?

A. .QBX B. .QBW C. .QBB D. .QBM

10. When doing business in multiple currencies, QuickBooks allows you to: A. Apply currency conversions automatically B. Download the current currency exchange rates C. Specify your home currency D. All of these.

11. 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. Projects Billing D. Progress Billing 12. QuickBooks can export reports to all of the following types for files except: A. Numbers Document B. Excel Document C. Comma Delimited D. Adobe PDF 13. To write off a transaction that was charged a sales tax: A. use a journal entry to move the customer's balance (credit) to the Bad Debt Expense account (debit) B. use a journal entry to move the customer's balance (credit) to Allowance for Uncollectable Accounts (debit) C. use the Credit Memo window D. use the Receive Payments window (Discount Info button) 14. In QuickBooks, budget types include: A. Profit & Loss B. Balance Sheet C. All of these D. None of these.

15. Progress Invoicing is turned on by going to Edit > Preferences > ____________.

A. Jobs and Estimates B. Bills C. Sales and Customers D. Time and Expenses 16. Which of the following identifies a QuickBooks backup company file: A. .QBB B. .QBM C. .QBW D. .QBX 17. Which of the following identifies a QuickBooks portable company file: A. .QBB B. .QBM C. .QBW D. .QBX 18. To create estimates in QuickBooks, select: A. Edit menu > Preferences > Jobs and Estimates > Company Preferences B. Customer menu > Jobs > Estimates C. Company menu > Estimates > Preferences D. Company menu > Preferences > Estimates

19. To enable progressive billing, select: A. Customer menu > Jobs > Progressive Billing B. Company menu > Preferences > Progressive Billing C. Edit menu > Preferences > Jobs and Estimates > Company Preferences D. Company menu > Estimates > Preferences 20. To record a customer payment made at the time of purchase with a credit card, select: A. Create Invoice > Customer Payment > Customer Name Only B. Make Deposit C. Create Sales Receipt > Record Deposits D. Receive Payment > Customer & Job Name 21. When recording a customer payment from a credit sale with a credit card, select: A. Create Invoice > Customer Payment > Customer & Job Name B. Make Deposit C. Create Sales Receipt > Record Deposits D. Receive Payment > Customer & Job Name 22. 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 these.

23. The Direct Write-off Method for bad debts: A Removes a customer's uncollectible account receivable and records a bad debt expense and is recorded . at the time a specific customer's account becomes uncollectible B. Complies with GAAP C. Estimates bad debt expense and establishes an allowance or reserve for uncollectible D. None of these.

24. The Docs Icon: A. Is a subscription service provided by QuickBooks B. Enables you to organize your accounting and business documents within the QuickBooks software C. Allows you to attach an electronic version of a document to a QuickBooks transaction D. All of these.

25. The Client Data Review: A. Helps a merchandising company track inventory B. Helps an accountant find discrepancies between the financial statements and account balances C. Identifies payments and credits applied to bills D. All of these.

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

27. Briefly explain the allowance method for accounting for bad debts.

Chapter 12_ Advanced QuickBooks Features for Accountants Key 1.

To create a budget: A. From the Company Center, select Company & Financials, Budgets B. From the Company menu, select Planning & Budgets, Set Up Budgets C. From the Edit menu, select Preferences, Set Up Budgets D. From the Banking menu, select Planning & Budgets, Budgets

2.

To print a budget: A. From the Report Center, select Budgets B. From the Company Center, select Company & Financials, Budgets C. From the Report Center, select Company & Financials, Budgets D. From the Report Center, select Accountant & Taxes, Budgets

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 these.

4.

You would use which QuickBooks feature to prepare a bid for a potential customer?

A. Progress Billing B. Estimates C. Enter Bills D. Invoice

5.

Customer payments received on progress invoices are: A. Recorded using the Check Register B. Recorded using the Statement icon in the Customer 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 Customer section of the Home page

6.

A credit card payment received against/on an open invoice would be recorded as: A. Using the Statements icon in the Customer section of the Home page B. Using the Receive Payments icon in the Customer section of the Home page C. Using the Credit Card icon in the Banking section of the Home page D. None of these.

7.

The audit trail lists: A. All deleted transactions B. All changes to transactions C. User ID of person entering transactions D. All of these.

8.

To print an audit trail report: A. Select Report menu > Company & Financials > Audit Trail B. Select the Audit Trail icon in the Company Center C. Select Report Center > Accountant & Taxes > Audit Trail D. Select the Audit Trail report from the Company section of the Home page

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9.

Which of the following file extensions identifies an accountant's copy file?

A. .QBX B. .QBW C. .QBB D. .QBM

10.

When doing business in multiple currencies, QuickBooks allows you to: A. Apply currency conversions automatically B. Download the current currency exchange rates C. Specify your home currency D. All of these.

11.

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. Projects Billing D. Progress Billing

12.

QuickBooks can export reports to all of the following types for files except: A. Numbers Document B. Excel Document C. Comma Delimited D. Adobe PDF

13.

To write off a transaction that was charged a sales tax: A. use a journal entry to move the customer's balance (credit) to the Bad Debt Expense account (debit) B. use a journal entry to move the customer's balance (credit) to Allowance for Uncollectable Accounts (debit) C. use the Credit Memo window D. use the Receive Payments window (Discount Info button)

14.

In QuickBooks, budget types include: A. Profit & Loss B. Balance Sheet C. All of these D. None of these.

15.

Progress Invoicing is turned on by going to Edit > Preferences > ____________.

A. Jobs and Estimates B. Bills C. Sales and Customers D. Time and Expenses

16.

Which of the following identifies a QuickBooks backup company file: A. .QBB B. .QBM C. .QBW D. .QBX

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17.

Which of the following identifies a QuickBooks portable company file: A. .QBB B. .QBM C. .QBW D. .QBX

18.

To create estimates in QuickBooks, select: A. Edit menu > Preferences > Jobs and Estimates > Company Preferences B. Customer menu > Jobs > Estimates C. Company menu > Estimates > Preferences D. Company menu > Preferences > Estimates

19.

To enable progressive billing, select: A. Customer menu > Jobs > Progressive Billing B. Company menu > Preferences > Progressive Billing C. Edit menu > Preferences > Jobs and Estimates > Company Preferences D. Company menu > Estimates > Preferences

20.

To record a customer payment made at the time of purchase with a credit card, select: A. Create Invoice > Customer Payment > Customer Name Only B. Make Deposit C. Create Sales Receipt > Record Deposits D. Receive Payment > Customer & Job Name

21.

When recording a customer payment from a credit sale with a credit card, select: A. Create Invoice > Customer Payment > Customer & Job Name B. Make Deposit C. Create Sales Receipt > Record Deposits D. Receive Payment > Customer & Job Name

22.

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 these.

23.

The Direct Write-off Method for bad debts: A Removes a customer's uncollectible account receivable and records a bad debt expense and is . recorded at the time a specific customer's account becomes uncollectible B. Complies with GAAP C. Estimates bad debt expense and establishes an allowance or reserve for uncollectible D. None of these.

24.

The Docs Icon: A. Is a subscription service provided by QuickBooks B. Enables you to organize your accounting and business documents within the QuickBooks software C. Allows you to attach an electronic version of a document to a QuickBooks transaction D. All of these.

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25.

The Client Data Review: A. Helps a merchandising company track inventory B. Helps an accountant find discrepancies between the financial statements and account balances C. Identifies payments and credits applied to bills D. All of these.

26.

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

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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 taken off the accounts receivable and expensed.

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27.

Briefly explain the allowance method for accounting for bad debts.

The allowance method of account for bad debts estimates bad debt and establishes a reserve for possibly uncollectable accounts. Often, a percentage of sales is used.

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Chapter 12_ Advanced QuickBooks Features for Accountants Summary Category # of Questions Kay - Chapter 12 27