QuickBooks Practice Test

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Email *

Ways to navigate QuickBooks include: *

3 points

Menus

Icon Bar

Home Page

All of the choices are correct

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

3 points

QBM

QBB

QBW

QBX

Which of the following is a temporary account? *

3 points

Inventory

Rent Expense

Accounts Payable

Accounts Receivable

To add a new account to the Chart of Accounts: *

3 points

From the Chart of Accounts window, select Account > New

From the Company menu, select New Account

From the Home Page, select Account > New

From the Lists Menu, select New > Account

Which of the following is not a Customer transaction? *

3 points

Create Invoices

Create Estimates

Receive Inventory

Receive Payments

Double-entry accounting records exchanges in a transaction with debits and credits. Which of the following is recorded when a company purchases a computer and pays cash? *

3 points

The computer is recorded with a credit and the cash is recorded with a credit

The computer is recorded with a debit and the cash is recorded with a debit

The computer is recorded with a credit and the cash is recorded with a debit

The computer is recorded with a debit and the cash is recorded with a credit

Which of the following statements is true? *

3 points

To conserve resources, it is best if the owner uses one Checking account for both personal and business purposes

To maintain more consistent records, it is best if the owner maintains a separate personal Checking account, but both the owner's personal Checking and business Checking accounts are listed in the Chart of Accounts

To maintain separation between the personal and business accounting records, the owner's personal Checking account should not be used to pay bills for the business and should not be listed in the business' Chart of Accounts

None of the choices are correct

When reconciling a bank account, which one of the following is considered a timing difference (difference between the bank balance and the book balance)? *

3 points

Checks that have cleared the bank

Outstanding checks

Deposits recorded by the bank

Errors

Sales in QuickBooks can be recorded with all the following means of payment, except: *

3 points

Cash

Check

Credit Card

Purchase Order

To increase collections of payments, you can use all the following QuickBooks features, except: *

3 points

Accounts Receivable Aging Report

Customers with Open Invoices Report

Collections Report

Accounts Payable Aging Report

Vendor reports can be accessed in QuickBooks in all of the following ways except: *

3 points

Reports Center

Vendors Center

Reports Menu

All of the choices are correct

Which order of tasks is used when purchasing services? *

3 points

Enter Bills > Pay Bills

Enter Invoice > Write Check

Create Purchase Order > Receive Bill > Enter Bill > Pay Bills

Enter Invoice > Receive Payment > Make Deposit

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

3 points

Sell goods and bill customers; Invoice

Record inventory information; Inventory List

Record vendor information; Vendors List

Order goods; Purchase Order

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

3 points

A customer order to purchase goods

An order to purchase goods from a vendor

Services received but not yet paid

Cash purchases of supplies

The order of steps to process payroll is: *

3 points

Enter Time > Pay Employees > Pay Payroll Liabilities > Process Payroll Forms

Enter Time > Pay Employees > Process Payroll Forms > Print Payroll Report

Pay Employees > Process Payroll Forms > Pay Payroll Liabilities

Enter Time > Pay Payroll Liabilities > Process Payroll Forms > Print Liabilities

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

3 points

Employee Tracker

Stopwatch

Timesheet

QuickTime

To print the Adjusted Trial Balance, select: *

3 points

Reports Center > Accountant & Taxes

Company Center > Company & Financials

Reports Center > Company & Financials

Company Center > Accountant & Taxes

Prepaid items for which adjusting entries may be necessary include all of the following except: *

3 points

Prepaid insurance

Prepaid Rent

Unearned Revenue

Office Supplies

Examples of management reports for internal decision making include all of the following except: *

3 points

1120S Report

Cash Budget

Cash Forecast

Accounts Receivable Aging Summary

What is owner's equity? *

3 points

What a company owes

What remains after the liabilities are satisfied

What a company owns

None of the choices are correct

Which one of the following activities is not associated with the Employee section of the Home Page? *

3 points

Write Checks

Pay Payroll Liabilities

Process Payroll Forms

Enter Time

How do you access the screen to add a user and password? *

3 points

Company menu > Set Up Users and Passwords > Set Up Users

Edit menu > Preferences > Employees

Employees > Employee Center

Company menu > Company Information

When a customer deposit is recorded using the Make Deposits window, behind the screen QuickBooks converts the transactions into a journal entry that: *

3 points

Debits Checking account, Credits Undeposited Funds

Credits Checking account, Debits Undeposited Funds

Debits Checking account, Credits Accounts Receivable

Debits Accounts Receivable, Credits Checking account

The Enter Bills > Pay Bills (two-step) approach for paying bills must be used to pay which of the following? *

3 points

Rent Payments

Legal Services

Sales Taxes

None of the choices are correct

The journal entry behind the screen that QuickBooks creates when a customer's payment is received and recorded using the Receive Payment window includes: *

3 points

Debit Accounts Receivable; Credit Checking account

Debit Checking account; Credit Accounts Receivable

Debit Undeposited Funds account; Credit Accounts Receivable

Debit Accounts Receivable; Credit Undeposited Funds account

What QuickBooks activity comes next in this series of business activities (fill in the blank): Enter Bills > ________ *

3 points

Receive Payments

Pay Bills

Make Deposit

Enter Purchase Order

Vendor reports can be accessed in QuickBooks in all of the following ways except: *

3 points

Reports Center

Vendors Center

Reports Menu

All of the choices are correct

What QuickBooks activity comes next in this series of payroll activities (fill in the blank): Enter Time > Pay Employees > ________ > Process Payroll Forms *

3 points

Reconcile Payroll

Print Payroll Report

Pay Payroll Liabilities

None of the choices are correct

If a count of office supplies on hand reveal $1,000 of supplies unused at year-end and the Office Supplies on Hand account has a balance of $2500, the adjusting entry to bring the Office Supplies on Hand up to date at year-end should include: *

3 points

Debit Office Supplies on Hand $1,000, Credit Office Supplies Expense $1,000

Debit Office Supplies on Hand $1,500, Credit Office Supplies Expense $1,500

Debit Office Supplies Expense $1,000, Credit Office Supplies on Hand $1,000

Debit Office Supplies Expense $1,500, Credit Office Supplies on Hand $1,500

Cash inflows and outflows related to the company's primary business are categorized as cash flows from: *

3 points

Investing activities

Financing activities

Sales activities

Operating activities

If you want to invoice a customer for a service, the service must first be set up as an item.

2 points

True

False

Clear selection

QuickBooks will allow you to record a transaction where debits do not equal credits.

2 points

True

False

Clear selection

When you use the Enter Bills window in QuickBooks, you must specify a vendor.

2 points

True

False

Clear selection

You should create a separate QuickBooks company file for each tax return you file.

2 points

True

False

Clear selection

The Chart of Accounts is a list of just your company's bank accounts.

2 points

True

False

Clear selection

Submit

Clear form

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