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163 Cards in this Set
- Front
- Back
QuickBooks Pro would be a good software programfor a company with 100 employees. True/False |
False
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Performing an activity within QuickBooks affectswhat happens behind the scenes in the program. True/False |
True
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It is not important to understand basicaccounting principles to be an efficient QuickBooks user. True/False |
False
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In the cash basis of accounting, you record theexpenses when they are accrued. True/False |
False
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A portable company file is larger in size than abackup file. True/False |
False
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You must store your QuickBooks company file onyour computer hard drive. True/False |
False
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To use a QuickBooks backup file, you mustrestore it first. True/False |
True
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All commands accessible on the Home page can befound through the menu bar as well. True/False |
True
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You can choose whether you want to display the icon bar in yourQuickBooks window. True/False |
True
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Maintenance releases are available forQuickBooks for a small fee. True/False |
False
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In which location should you NOT back up yourcompany file? |
A network drive where your main company file is stored
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In the event of data loss, what type of filehelps you recover any data entered after the last backup operation? - Transaction log -Backup -Portable company -Network |
Transaction log
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To use QuickBooks portable company files, whatmust you do first? - Restore the files -Replace the files -Reuse the files -Open the files |
Restore the files
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Which feature is a web-based resource that allows you to increase yourefficiency with QuickBooks? -QuickBooks Resource -QuickBooks Calendar -QuickBooks App Center -Connections |
QuickBooks App Center
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You should always set your QuickBooks start dateto be the first day you started your business. True/Fase |
False
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The five Ps teach you to plan your company wellinitially to avoid problems in the future. True/Fase |
True
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Express Start is a quick company setup methodthat only asks you for the basics. True/Fase |
True |
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The normal balance of an income account is adebit balance. True/Fase |
False |
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By default, liabilities are always listed firstin the Chart of Accounts. True/Fase |
False
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Preferences control the way you interact withthe QuickBooks program. True/Fase |
True
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You should create a separate QuickBooks companyfile for each tax return you file. True/Fase |
True |
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The Report Center allows you to view what areport will look like without having to produce it. True/Fase |
True |
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If you choose the Detailed Setup option, youwill be taken to the EasyStep Interview to create your company file. True/Fase |
True |
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You can create a new company file in multiusermode. True/Fase |
False |
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What is it called when you enter only the totalamounts of historical transactions, not individual, for a new company file? - Entering a summary journal entry -Entering a group transaction -Entering a manual entry -Entering an alternate transaction |
Entering a summary journal entry
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Which of the following accounts would show acredit normal balance? Auto Loan Prepaid Insurance Checking Rent Expense |
Auto Loan
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What does QuickBooks NOT do when you choose toclose the books? - Transfer the net income or net loss to Retained Earnings -Restrict access to transactions prior to the closing date by requiring a password -Allow you to clean up your data -Limit the number of reports you can run on prior-period data |
Limit the number of reports you can run on prior-period data
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Which task can you NOT complete in multiusermode? - Create an invoice -Enter a bill to be paid -Delete an account from the Chart of Accounts -Enter a new customer |
Delete an account from the Chart of Accounts
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A customer is a person or a company to whom orwhich you issue funds. True/False |
False
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You can delete a customer from the Customers& Jobs List as long as that customer hasn't been used in a transaction. True/False |
True
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When working with the company file for anon-profit organization, you should enter donors in the Other Names List. True/False |
False |
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If you want to invoice a customer for a service,the service must first be set up as an item. True/False |
True |
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When you use a sales receipt to bill a customer,Accounts Receivable is debited. True/False |
False |
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The Transaction tab of the history panel allowsyou to view information about the active transaction. True/False |
True |
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While you can enter vendors "on thefly" in the Enter Bills window, this is not an option when dealing withcustomers and the Create Invoices window. True/False |
False
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When you void a transaction, every trace of itis removed from behind the scenes, but evidence that the transaction existedremains in QuickBooks. True/False |
True |
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To use the QuickBooks Find feature, you mustknow the transaction date. True/False |
False
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If an invoice is entered but the ReceivePayments window is not used when the payment is deposited, your income will bedouble-stated. True/False |
True
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What account is debited when invoices are created? |
Accounts Receivable
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What type of account is the Undeposited Funds account? Asset Liability Equity Income |
Asset
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Which QuickBooks form would you use if acustomer is making a purchase on account? |
Create Invoices
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What type of information can you find using theQuickBooks Search feature? Forms/transactions Amounts and dates Menu commands All of the above |
Forms/transactions Amounts and dates Menu commands All of the above |
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In QuickBooks, subcontractors are considered vendors. True/False |
True |
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Vendors must be entered into the Vendors Listbefore you can enter a bill for them. True/False |
False |
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You can delete a vendor from the Vendor List aslong as it has been used fewer than ten times in transactions. True/False |
False |
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When you use the Enter Bills window inQuickBooks, you must specify a vendor. True/False |
True |
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The Pay Bills window shows all bills due inchronological order by due date. True/False |
True |
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You must use the Enter Bills and Pay Billsfeatures to account for expenses; you cannot just write a check. True/False |
False
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If you use the cash basis of accounting, youMUST use the Write Checks window (not the Enter Bills window) when paying bills. True/False |
False |
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QuickZoom allows you to quickly print a reportfor a single list record. True/False |
False |
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If you accidently merge two list entries, youcan choose to undo the action. True/False |
False |
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You only have to enter your income transactionsto create an accurate Profit & Loss report. True/False |
False |
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Which of these is NOT a graph that can becreated in QuickBooks? Budget vs. Actual Net Worth Assets and Liabilities Sales |
Budget vs. Actual Net Worth Assets and Liabilities Sales |
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When you pay a bill, what account is debited? Accounts Payable Checking Accounts Receivable Telephone Expense |
Accounts Payable
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Which of the following is NOT a list or databasetask performed within the Vendor List? Edit a vendor's information Create a new vendor Enter a bill for a vendor Delete a vendor |
Enter a bill for a vendor
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What will prevent you from deleting a vendorrecord from the Vendor List? - You have previously edited the vendor's information -You entered an account number for the vendor -You used the vendor in a transaction -All of the above |
You used the vendor in a transaction
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Payments received on an invoice that are held inUndeposited Funds automatically appear in the Checking register. True/False |
False |
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When you make a deposit to Checking, yourchecking account is credited. True/False |
False |
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In QuickBooks, Credit Card is a type of Bank account. True/False |
False |
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Only bank accounts have registers that detailall account transactions. True/False |
False |
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When you double-click a liability in the Chartof Accounts, a QuickReport is displayed. True/False |
False |
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Bank feeds allow you to save time from having totype in all your transactions, it helps you to maintain better accuracy in yourrecords, and also assists in cash flow management. True/False |
True |
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Reconciliation is the process of matching yourQuickBooks bank accounts to your bank statements. True/False |
True
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The Chart of Accounts is a list of just yourcompany's bank accounts. True/False |
False |
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A Reconciliation Discrepancy report helps youfind the transactions changed since your last reconciliation. True/False |
True |
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Reconciliation reports only display transactionscleared by the bank. True/False |
False |
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Which of the following is not a step in the bankfeeds set up process? Find Connect Process Link |
Process |
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What is the first thing to do if your cleared QuickBooks transactions and the bank statement don't balance during the reconciliation process? - Look for a transaction that is the same amount as the difference -Click the Unmark All button so you can start over -Go through all of the deposit transactions and make sure they are all checked -Review the payment transactions and make sure they are all the correct amounts |
Look for a transaction that is the same amount as the difference
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What window appears when you choose Banking > Make Deposits if there are funds in the Undeposited Funds account? Undeposited Funds Register Make Deposits Deposits in Wait Payments to Deposit |
Payments to Deposit |
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When you create a purchase order, Accounts Payable is debited. True/False |
False
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Non-posting accounts appear at the bottom of you Chart of Accounts. True/False |
True |
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QuickBooks Pro uses the Last-in, First out method of inventory valuation. True/False |
False |
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True/False |
True |
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the Inventory Valuation Detail report tells you which items you need to reorder. True/Fase |
False |
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To include sates tax on a sales form, you must set up the tax as an item. True/False |
True |
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True/False |
True |
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True/False |
False |
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To process an electronic customer payment, you should set up a new entry in the Payment Method List. True/False |
True |
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True/False |
False |
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In which case would QuickBooks NOT be a good tool for tracking inventory for a company? -The company sells one-of-a-kind antiques -The company sells approximately 75 items -The company uses the average cost method for inventory valuation -The company's items are purchased at wholesale and sold at retail cost |
The company sells one-of-a-kind antiques The company sells approximately 75 items
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To determine the value of your inventory by item, you would run the _____ report. -Sales by Item Summary -Inventory Valuation Detail -Inventory Valuation Summary |
Inventory Valuation Summary
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A discount for early payment on an invoice for $100 with terms of 2% 10 Net 30 would be _____. $10 $2 $4 $20 |
$2
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What type of account is Purchase Orders? |
Non-Posting
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Which account would you find on a balance sheet report? Payroll Liabilities Utilities Expense Sales Cost of Goods Sold |
Payroll Liabilities |
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When you memorize a transaction, QuickBooks always automatically enters it for you.
Answer: True False |
False
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Petty Cash is set up as an expense account in your Chart of Accounts.
Answer: True False |
False
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You can fund your Petty Cash account by holding cash back from a deposit.
Answer: True False |
True
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Depreciation allows a business to match income to expenses.
Answer: True False |
True
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A fixed asset is an example of a contra account.
Answer: True False |
False
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A Long Term Liability is a loan that will be paid off in less than a year.
Answer: True False |
False
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You can enter petty cash expenditures just as you enter checks.
Answer: True False |
True
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Budgets that you create in QuickBooks must be account-based.
Answer: True False |
True
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Which of the following is NOT a balance sheet account?
Answer: Bank Service Charge - Truck Loan -Owner's Equity -Prepaid Insurance |
Bank Service Charge
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Which of the following is an Other Current Asset account?
Answer: - Checking Land Money Market Prepaid Rent |
Prepaid Rent
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What type of accounts do you depreciate?
Answer: Long Term Liabilities - Fixed Assets -Equity Accounts -Other Current Assets |
Fixed Assets
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QuickBooks creates the _____ account for you so you have a working balance sheet account from the start.
Answer: Retained Earnings - Opening Balance Equity -Owner's Equity -Accounts Receivable |
Opening Balance Equity
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The majority of payroll mistakes are due to payroll items being set up incorrectly.
Answer: True False |
True
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You should enter your subcontractors in the Employee List.
Answer: True False |
False
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Only those transactions entered via QuickBooks' payroll features affect payroll reporting.
Answer: True False |
True
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You will not be able to set up your employees until after you set up employee defaults.
Answer: True False |
False
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Workers Compensation is a type of payroll item. |
True
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When you create paychecks, the Payroll Expense account is credited.
Answer: True False |
False
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When you want to pay the payroll liabilities while running full payroll in QuickBooks, you can just open a Write Checks window to make the payment.
Answer: True False |
False
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In QuickBooks, an employee is someone to whom you issue a W-2 or a 1099-MISC.
Answer: True False |
Answer: False |
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When you discover that an employee was overpaid, you should void the paycheck and create a new one with the correct amount. |
False
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Which of the following is NOT an example of a payroll item?
Answer: Federal Withholding - Hours Worked -Vacation Hourly -Health Insurance |
Hours worked
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When you create paychecks, what account is credited?
Answer: Checking - Payroll Expenses -Payroll Liabilities -Both A and C |
Both A and C
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In which account do you hold the taxes you withhold from your employees?
Answer: Sales Tax Payable - Payroll Liabilities -Checking -Payroll Assets |
Payroll liabilities
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Which payroll form do you provide to subcontractors at the end of the year?
Answer: W-2 Form 940 1099-MISC Form 1096 |
1099-MISC
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You can only create estimates for jobs, not for customers.
Answer: True False |
False
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If you choose to create a progress invoice, it must be for a percentage of all items. You cannot create one for selected items from the estimate.
Answer: True False |
False
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You can enter time data as either a single activity or on a weekly timesheet.
Answer: True False |
True
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When you pass on billable time to a customer, you select the cost for the time on the Expenses tab of the Choose Billable Time and Costs window.
Answer: True False |
False
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QuickBooks allows users to track outstanding estimates by utilizing a non-posting account.
Answer: True False |
True
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Unearned income refers to the funds you are holding in the Undeposited Funds account.
Answer: True False |
False
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When you receive funds for a gift certificate, you hold them in an Other Current Liability account.
Answer: True False |
True
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In QuickBooks, you can use the mileage tracking feature to track mileage to be reimbursed to employees for the use of their own cars.
Answer: True False |
False
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You should use the specific finance charge settings outlined in this book for your own company.
Answer: True False |
False
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The most common way to bill customers for finance charges is to create and send separate invoices.
Answer: True False |
False
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Which report would you produce to determine which job is most profitable?
Answer: Job Profitability Detail -Job Estimates vs. Actuals Summary -Time by Job Summary -Job Profitability Summary |
Job Profitability Summary
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Which of the following is NOT a step you need to take to conduct job costing in QuickBooks?
Answer: Enter all job revenues and expenses - Create an estimate for the job -Use QuickBooks reports to analyze job data -Set up your data in the Customers & Jobs List |
Create an estimate for the job
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To enter mileage for a vehicle in QuickBooks, you first need to _____.
Answer:- enter the current IRS mileage rate -add the vehicle in the Other Names list -create a new non-inventory item to the Item List -None of the above |
enter the current IRS mileage rate
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Which of the following is NOT something you need to set up to track customer deposits in QuickBooks?
Answer: An inventory-part item An Other Current Liability account An other charge item A payment item |
An inventory-part item
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Before you can use custom fields in reports, you must first set them up in the Item List.
Answer: True False |
False
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Formatting deals with the appearance of the report, not with the data contained within it.
Answer: True False |
True
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You can customize your own Word template to use with your QuickBooks data.
Answer: True False |
True
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Once you set your company's default report basis, you cannot change it on individual reports.
Answer: True False |
False
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You can filter out any accounts with a zero balance on a report.
Answer: True False |
False
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When you memorize a report, you are memorizing the formatting and the data contained in it.
Answer: True False |
False
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You can use a Customer & Vendor Profile List for a purpose other than that for which it was intended.
Answer: True False |
True
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You must create your own form template to display custom fields.
Answer: True False |
True
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You must memorize a report before you can process it with a batch of reports.
Answer: True False |
True
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To analyze your QuickBooks data more effectively, you may wish to export it to Microsoft Excel.
Answer: True False |
True
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When you memorize a report, which of the following attributes would NOT be the same each time you recall the report?
Answer: The company name in bold - The accounts displayed -The accounting basis of the report -The balance of one of the accounts on the report |
The balance of one of the accounts on the report
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The option to create letters from Word is accessible from which menu option?
Answer: File - Company -Customers -Reports |
Company
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For which type of item can a custom field be set up?
Answer: sales tax group -subtotal -service -sales tax item |
Service
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If you operate using the cash basis of accounting, which of the following accounts will you not need to display on your balance sheet?
Answer: Accounts Receivable - Prepaid Rent -Company Checking Account -American Express Credit Card |
Accounts Receivable
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Class tracking in QuickBooks should be used to track different types of customers.
Answer: True False |
False
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The accounting cycle is a series of steps that helps the business keep its accounting records properly during the fiscal period.
Answer: True False |
True
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The QuickBooks class feature should be used for multiple purposes within a company file.
Answer: True False |
False
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The QuickBooks Doc Center feature is a good tool for analyzing business transactions.
Answer: True False |
False
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You can set per-item price levels with all versions of QuickBooks.
Answer: True False |
False
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A Statement of Cash Flows essentially translates a company's data from accrual to cash basis.
Answer: True False |
True
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You would find company stock transactions in the operating section of the Statement of Cash Flows report.
Answer: True False |
False
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Once a price level is set and associated with a customer or job, it will automatically fill in for you in future transactions and cannot be changed.
Answer: True False |
False
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Classes are most efficiently used to _____.
Answer: track types of customers - track additional information for one purpose -assign accounts to customers -record information about one customer |
track additional information for one purpose
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Which report would you run to easily apply classes to unclassified transactions?
Answer: Profit & Loss by Class -Balance Sheet by Class -Class Change - Profit & Loss Unclassified |
Profit & Loss Unclassified
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Which of the following is NOT a question you would ask when analyzing your business transactions during the first step of the accounting cycle?
Answer: Which account is credited and for what amount? - What is the source document for the transaction? -Is each account increased or decreased? -What does the completed entry look like? |
What is the source document for the transaction?
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Which of the following is an activity that you would find in the Financing section of the Statement of Cash Flows report?
Answer: Dividends that are paid -Production costs -Assets that the company bought -Payroll costs |
Dividends that are paid
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An example of an adjusting entry is one that adjusts the value of a fixed asset.
Answer: True False |
True
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An Income Summary account is used to clear out permanent account balances.
Answer: True False |
False
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QuickBooks will not allow you to record a transaction where debits do not equal credits.
Answer: True False |
True
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QuickBooks provides a worksheet for you to work with as you prepare your financial statements.
Answer: True False |
False
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When you account for depreciation, the account Accumulated Depreciation is credited.
Answer: True False |
True
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A permanent account is one for which the ending balance for one fiscal period is the opening balance for the next.
Answer: True False |
True
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The Income Statement shows the balance of permanent accounts as of a certain date.
Answer: True False |
False
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Analyzing the Balance Sheet will allow you to calculate the gross margin percentage.
Answer: True False |
False
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If the balance in the Income Summary account is a debit, then your company has a net loss for the fiscal period.
Answer: True False |
True
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One of the advantages of closing the books in QuickBooks is that you can restrict access to prior period transactions by setting a password.
Answer: True False |
True
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What transaction could you NOT record as a general journal entry?
Answer: A transfer of funds between classes - A transfer of funds between income accounts -The recording of adjusting entries -A record of a sale to a specific customer |
A record of a sale to a specific customer
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An adjusting entry may allow you to complete which of the following transactions?
Answer: Enter a bill from a vendor - Record depreciation for a fiscal period -Create a sales receipt to record the daily sales -Record a deposit into the Checking account |
Record depreciation for a fiscal period
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Which report allows you to track every entry, modification, or deletion to transactions in your file?
Answer: Closing Date Exception Report - Post-Closing Trial Balance Report -Accountant's Copy Report -Audit Trail Report |
Audit Trail Report
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Which of the following does QuickBooks NOT do for you automatically at the end of the fiscal year?
Answer: Transfer net income or net loss to Retained Earnings - Ensure you start the new fiscal year with zero balances for the permanent accounts -Close out temporary accounts -Allow you to start the new fiscal year with a net income of zero |
Ensure you start the new fiscal year with zero balances for the permanent accounts
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