Question 1

What is the purpose of a non-posting account?

Accepted Answer

A) To calculate income. 
B) To track information necessary for the accounting system. 
C) To calculate expenses. 
D) To identify owner's equity. 
A) To calculate income. 
B) To track information necessary for the accounting system. 
C) To calculate expenses. 
D) To identify owner's equity. B

Question 2

Balance Sheet accounts are also called:

Accepted Answer

A) Permanent accounts 
B) Temporary accounts 
C) Equity accounts 
D) None of the choices are correct 
A) Permanent accounts 
B) Temporary accounts 
C) Equity accounts 
D) None of the choices are correct A

Question 3

Briefly explain the purpose of account numbers as used in a Chart of Accounts. List three advantages of using account numbers.

Accepted Answer

Account numbers serve the purpose of uniquely identifying specific accounts. Each account is assigned a unique number for the Chart of Accounts. Advantages of using account numbers for a Chart of Accounts include: 
1. Each account can be uniquely identified,avoiding duplicate,repetitive accounts that have slightly differently spellings. 
2. When entering transactions,accounts numbers can be used to save time. 
3. Account numbers can be used as a coding system so the account number also identifies the type of account.

Question 4

Which of the following is a temporary account?

Accepted Answer

A) Inventory 
B) Advertising Expense 
C) Accounts Payable 
D) Accounts Receivable 
A) Inventory 
B) Advertising Expense 
C) Accounts Payable 
D) Accounts Receivable

Question 5

Which account below is not an Expense account?

Accepted Answer

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

Question 6

What does the Chart of Accounts list?

Accepted Answer

A) Assets,liabilities and owner's equity accounts 
B) Income and expense accounts 
C) Owner's contributions 
D) All of the choices are correct 
A) Assets,liabilities and owner's equity accounts 
B) Income and expense accounts 
C) Owner's contributions 
D) All of the choices are correct

Question 7

Non-posting accounts:

Accepted Answer

A) Track information required for the accounting system 
B) Do not appear on the Balance Sheet 
C) Do not appear on the Income Statement 
D) All of the choices are correct 
A) Track information required for the accounting system 
B) Do not appear on the Balance Sheet 
C) Do not appear on the Income Statement 
D) All of the choices are correct

Question 8

Which of the following is an asset?

Accepted Answer

A) Mortgage Payable 
B) Accounts Payable 
C) Inventory 
D) Unearned Revenue 
A) Mortgage Payable 
B) Accounts Payable 
C) Inventory 
D) Unearned Revenue

Question 9

Which of the following is not considered an income account in QuickBooks?

Accepted Answer

A) Sales 
B) Rent Expense 
C) Interest Revenue 
D) Gain on sale 
A) Sales 
B) Rent Expense 
C) Interest Revenue 
D) Gain on sale

Question 10

Which of the following is a liability?

Accepted Answer

A) Accounts Receivable 
B) An amount a company owes 
C) A resource a company owns 
D) Dividends 
A) Accounts Receivable 
B) An amount a company owes 
C) A resource a company owns 
D) Dividends

Question 11

The Income Statement:

Accepted Answer

A) Lists the accounts and account numbers 
B) Lists a company's assets 
C) Summarizes the results of a company's operations,listing income and expenses 
D) Summarizes what a company owns and what it owes 
A) Lists the accounts and account numbers 
B) Lists a company's assets 
C) Summarizes the results of a company's operations,listing income and expenses 
D) Summarizes what a company owns and what it owes

Question 12

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

Accepted Answer

Passwords are important to help restrict

Question 13

What are assets?

Accepted Answer

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

Question 14

An example of a non-posting account is ________.

Accepted Answer

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

Question 15

To add a new account to the Chart of Accounts:

Accepted Answer

A) From the Chart of Accounts window,select Account > New 
B) From the Company menu,select New Account 
C) From the Home Page,select Account > New 
D) From the Lists Menu,select New > Account 
A) From the Chart of Accounts window,select Account > New 
B) From the Company menu,select New Account 
C) From the Home Page,select Account > New 
D) From the Lists Menu,select New > Account

Question 16

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

Accepted Answer

Temporary accounts (revenues,expenses,an

Question 17

To re-sort the Chart of Accounts,first display the Chart of Accounts window,then:

Accepted Answer

A) Click on the Company heading bar 
B) Click File > Sort 
C) Click Account > Re-sort List 
D) Right click > Sort by Name 
A) Click on the Company heading bar 
B) Click File > Sort 
C) Click Account > Re-sort List 
D) Right click > Sort by Name

Question 18

The different types of business ownership are:

Accepted Answer

A) Sole proprietorship 
B) Partnership 
C) Corporation 
D) All of the choices are correct 
A) Sole proprietorship 
B) Partnership 
C) Corporation 
D) All of the choices are correct

Question 19

Which of the following is considered a permanent account?

Accepted Answer

A) Income Statement accounts 
B) Balance Sheet accounts 
C) All the choices are correct 
D) None of the choices are correct 
A) Income Statement accounts 
B) Balance Sheet accounts 
C) All the choices are correct 
D) None of the choices are correct

Question 20

A company's office furniture is classified as what account type:

Accepted Answer

A) Expense 
B) Owner's Equity 
C) Fixed Asset 
D) Retained Earnings 
A) Expense 
B) Owner's Equity 
C) Fixed Asset 
D) Retained Earnings

What is the purpose of a non-posting account?

Balance Sheet accounts are also called:

Briefly explain the purpose of account numbers as used in a Chart of Accounts. List three advantages of using account numbers.

Which of the following is a temporary account?

Which account below is not an Expense account?

What does the Chart of Accounts list?

Non-posting accounts:

Which of the following is an asset?

Which of the following is not considered an income account in QuickBooks?

Which of the following is a liability?

The Income Statement:

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

What are assets?

An example of a non-posting account is ________.

To add a new account to the Chart of Accounts:

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

To re-sort the Chart of Accounts,first display the Chart of Accounts window,then:

The different types of business ownership are:

Which of the following is considered a permanent account?

A company's office furniture is classified as what account type:

Navigation and Settings

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Vendors and Expenses

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Exam 2: Chart of Accounts

What is the purpose of a non-posting account?

Balance Sheet accounts are also called:

Briefly explain the purpose of account numbers as used in a Chart of Accounts. List three advantages of using account numbers.

Which of the following is a temporary account?

Which account below is not an Expense account?

What does the Chart of Accounts list?

Non-posting accounts:

Which of the following is an asset?

Which of the following is not considered an income account in QuickBooks?

Which of the following is a liability?

The Income Statement:

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

What are assets?

An example of a non-posting account is ________.

To add a new account to the Chart of Accounts:

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

To re-sort the Chart of Accounts,first display the Chart of Accounts window,then:

The different types of business ownership are:

Which of the following is considered a permanent account?

A company's office furniture is classified as what account type:

Navigation and Settings

Transactions

Banking

Customers and Sales

Vendors and Expenses

Inventory

Employees and Payroll

Adjustments

Reports

Service Company

Merchandise Company

Features for Accountants

Desktop Versus Quickbooks Online

Review Guide

Filters