Deck 6: Vendors and Expenses

Question 1

What QuickBooks activity comes next in this series of business activities: Enter Bills > ________

A)Receive Payments
B)Pay Bills
C)Make Deposit
D)Enter Purchase Order

Answer 1

B

Question 2

QuickBooks considers all of the following to be vendors except:

A)Financial institutions such as banks
B)Suppliers of inventory and supplies
C)Tax agencies such as the IRS
D)Customers purchasing goods

Answer 2

D

Question 3

Which one of the following tasks is shown in the Vendors section of the Home Page?

A)Write Checks
B)Receive Payments
C)Enter Bills
D)Make Deposits

Answer 3

C

Question 4

Which QuickBooks window is used to record services received?

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

Question 5

When a bill is entered into QuickBooks using the Enter Bills window,QuickBooks:

A)Decreases an Expense account and increases the Accounts Payable account
B)Increases an Expense account and increases the Accounts Payable account
C)Increases the Accounts Receivable account and increases the Income account
D)Decreases the Accounts Receivable account and decreases Accounts Payable account

Question 6

Which one of the following reports helps track past due bills and bills that are due shortly?

A)Customer Aging Summary
B)Accounts Payable Aging Detail
C)Accounts Receivable Aging Summary
D)Vendor Aging Report

Question 7

When a bill is paid in QuickBooks using the Pay Bills window,QuickBooks:

A)Decreases an Expense account and decreases the Checking account
B)Increases an Expense account and increases the Accounts Payable account
C)Increases the Accounts Payable account and increases the Checking account
D)Decreases the Accounts Payable account and decreases the Checking account

Question 8

QuickBooks considers all of the following to be vendors except:

A)Leasing companies
B)Tax agencies such as the IRS
C)Utility companies
D)All the choices are correct

Question 9

Which order of tasks is used when purchasing services?

A)Enter Bills > Pay Bills
B)Enter Invoice > Write Check
C)Create Purchase Order > Receive Bill > Enter Bill > Pay Bills
D)Enter Invoice > Receive Payment > Make Deposit

Question 10

Which one of the following is not a vendor transaction?

A)Order goods
B)Receive inventory
C)Create sales receipt
D)Receive bills

Question 11

All the times below are when you can receive a bill except:

A)Before receiving a service
B)When submitting a purchase order
C)At the time of providing a service
D)After receiving a service

Question 12

Form 1099 is used to:

A)Report the amount paid to a vendor in compliance with IRS regulations
B)Report the amount received from customers in compliance with IRS regulations
C)Report the amount paid to employees in compliance with IRS regulations
D)None of the choices are correct

Question 13

To view journal entries that QuickBooks creates behind the screen when you are entering and paying bills,you would select:

A)Reports Center > Accountant & Taxes > Journal
B)Reports Center > Company & Financials > General Journal
C)Company Menu > Company & Financials > General Journal
D)Company Menu > Accountant & Taxes > Journal

Question 14

The Enter Bills window is used to record which one of the following transactions?

A)Services received but not yet paid
B)Owners' investment
C)Items sold to customers
D)Customer invoices created

Question 15

Which one of the following tasks is associated with the Vendors section of the Home Page?

A)Items & Services
B)Invoices
C)Receive Inventory
D)None of the choices are correct

Question 16

Which one of the following is a vendor transaction?

A)Make deposits
B)Pay bills
C)Receive customer payments
D)Sell products to customers

Question 17

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

A)Reports Center
B)Vendors Center
C)Reports Menu
D)All the choices are correct

Question 18

Which one of the following is a vendor transaction?

A)Create invoices
B)Receive payments
C)Sell products
D)Enter bills

Question 19

The journal entry behind the screen that QuickBooks creates when a bill is recorded using the Enter Bills window includes:

A)Debit Accounts Payable,Credit Checking account
B)Debit Checking account,Credit Accounts Payable
C)Debit Expense account,Credit Accounts Payable
D)Debit Accounts Payable,Credit Expense account

Question 20

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

A)Accounts Receivable Aging Detail
B)Accounts Payable Aging Summary
C)Purchases by Vendor Summary
D)Purchases by Item Summary

Question 21

Explain how recording the purchase of services versus the purchase of inventory items differs in QuickBooks.

Question 22

List 3 (three)different ways to access Vendor reports using QuickBooks.

Question 23

Briefly explain why it is important for a company to track accounts payable and how accounts payable reports can assist with tracking accounts payable.