Deck 10: Accounting and Business Management FAQs

Question 1

A Delayed Charge is added to the customer's balance.

Answer 1

False

Question 2

Each product or service must be linked to an appropriate income account.

Answer 2

True

Question 3

A budget tracks income and expenses and may be helpful for use in making business decisions.

Answer 3

True

Question 4

QuickBooks Online automatically calculates and enters Purchase Discounts within Pay Bills if a Bill is eligible for an early payment discount.

Question 5

You must Turn on Payroll in order to access the Payroll Tax Center.

Question 6

You must have an email account before you can activate the QuickBooks Online Educational Trial Version.

Question 7

The Vendor Balance Summary report shows unpaid balances for vendors.

Question 8

A company logo can be added to the company file and will appear on the Home Page and on Business Forms.

Question 9

When you do not receive all the inventory items ordered, the items received are recorded and the Purchase Order is automatically closed.

Question 10

Cash is the only payment method accepted for a Cash Sale.

Question 11

Depreciation is recorded for the decrease in value of a fixed asset.

Question 12

A sale on account means that the sale was paid for at the time of purchase.

Question 13

Additional investments made by an owner may be cash or non-cash items.

Question 14

When entering an Inventory item on a Purchase Order, it is recorded on the Category Details tab.

Question 15

You may create Payroll Schedules in Payroll Settings.

Question 16

The total amount of a purchase order shows as an amount due in the vendor's register.

Question 17

The Gear icon may be used to access Lists in QuickBooks Online.

Question 18

A prepaid expense is an expense.

Question 19

When editing a paycheck, you may change anything shown in a rectangular box.

Question 20

A new product/service item cannot be added when creating a sales receipt.

Question 21

To pay sales tax, you click the Plus icon and Checks and then write the check.

Question 22

QuickBooks Online automatically calculates and inserts the 2% discount when paying for purchases from vendors.

Question 23

A complex password must be entered each time you access the Test Drive Company.

Question 24

QuickBooks Online uses the cash-basis of accounting by default.

Question 25

When a bill has been recorded, you should pay it using Pay Bills or by writing a check manually.

Question 26

An Expense transaction is recorded for Petty Cash purchases.

Question 27

You may prepare a budget for locations.

Question 28

You can add preferred invoice terms by editing Sales Settings.

Question 29

QuickBooks Online automatically transfers Net Income into Retained Earnings at the end of the year.

Question 30

Opening balances are imported for Customers, Vendors, and Liabilities.

Question 31

You cannot record an automatic loan payment when you reconcile a bank statement.

Question 32

Each Location of the business may use a different address and phone number.

Question 33

There are three distinct areas of information for each employee: Pay, Profile, and Employment.

Question 34

Classes are not allowed to use a descriptive name; such as, Store.

Question 35

When you have a budget, you cannot purchase office supplies if it is over the budgeted amount.

Question 36

An owner's withdrawal is recorded as a payroll expense.

Question 37

Reports are accessed by clicking the Gear button and are grouped into categories according to business functions.

Question 38

An invoice may be exported to Excel.

Question 39

Each time employees are paid, the company incurs Employer Payroll Taxes.

Question 40

A mouse is used to click on a keyboard shortcut.

Question 41

You can make a bill payment directly from the bill.

Question 42

The report shows details for each paycheck created and includes total wages, taxes withheld, and deductions.

A)Tax Liability
B)Payroll Summary
C)Employee Details
D)Payroll Billing Summary

Question 43

The Bill Payment List shows all the checks written to pay bills.

Question 44

When an invoice is it is removed from the customer's register.

A)Voided
B)Deleted
C)Edited
D)Paid

Question 45

The Chart of Accounts is accessed via the tab on the Left-Navigation Bar.

A)Reports
B)Transactions
C)Gear
D)Accounting

Question 46

You may access the Inventory Quantity Adjustment form by and clicking .

A)Clicking Plus icon, Inventory Qty Adjustment in the Other Column
B)Opening the item in the Products and Services List, Quantity
C)Clicking the drop-down list arrow in the item's Action column in the Products and Services List, Adjust Quantity
D)All the above

Question 47

When a customer returns an item from a sale on account, a(n) is completed.

A)Credit Memo
B)Return Receipt
C)Invoice
D)Sales Receipt

Question 48

A bank statement may .

A)show service charges or interest not yet recorded
B)be missing deposits in transit or outstanding checks
C)show automatic payments
D)All the above

Question 49

When you write a check to pay for a Bill that was recorded as a Bill, you .

A)Write a Check in QuickBooks Online
B)Handwrite a check
C)Use Pay Bills
D)Any of the above

Question 50

When a return is made for a Sales Receipt, a is completed.

A)Refund Receipt
B)Credit Memo
C)Sales Receipt Return
D)Voided Transaction

Question 51

An Unpaid Bills Detail shows you the outstanding balances for all customers that owe you money.

Question 52

Petty Cash transactions are recorded as a(n)

A)Expense
B)Transfer
C)Bill
D)Any of the above

Question 53

In the text, sales tax is charged on all inventory/product items.

Question 54

If the adjusting entry to transfer Net Income and Retained Earnings into the owner's capital account is made prior to the end of the year, the Balance Sheet shows .

A)Retained Earnings
B)Net Income
C)Both Net Income and Retained Earnings
D)None of the above because the Net Income and Retained Earnings have been transferred into capital

Question 55

Something that is paid for and will be used within one year is a(n)

A)Expense
B)Prepaid Expense
C)Bill
D)All the above

Question 56

To erase all information entered by QuickBooks during the activation of QuickBooks Online, you all information.

A)Edit
B)Purge
C)Transfer
D)Import

Question 57

QuickBooks Online Plus uses the method of inventory valuation.

A)FIFO
B)Average Cost
C)Declining Balance
D)Accelerated Use

Question 58

Cloud-Based Computing uses the Internet to provide program access.

Question 59

Changes made to an employee's pay rate will be effective .

A)For the Next Pay Period
B)Immediately
C)Next Year
D)Next Quarter

Question 60

A credit card purchase is recorded on a(n) form.

A)Invoice
B)Bill
C)Expense
D)Credit Card

Question 61

When recording the Journal entry for an NSF check, you include charges for .

A)Original Invoice
B)Bank and Company Fees for NSF Checks
C)Interest on the NSF Check
D)All the above

Question 62

Supported browsers for QuickBooks Online include .

A)Chrome
B)Internet Explorer
C)Firefox
D)All the above

Question 63

After you import the Chart of Accounts, you edit the and accounts to add Opening Balances and as of dates.

A)Asset and Liability
B)Asset and Income
C)Liability and Expense
D)Income and Expense

Question 64

Reports may be .

A)Printed
B)Exported to Excel
C)Emailed
D)All the above

Question 65

When payment is made at the time of sale, the transaction is recorded on a(n) .

A)Invoice
B)Payment Receipt
C)Sales Receipt
D)Refund Receipt

Question 66

After editing an invoice in a closed period, you record the change in income by editing the adjusting entry .

A)For the Closing Date
B)For transferring Net Income and Retained Earnings into the Capital account
C)You do not edit anything, you record another adjusting entry
D)Both A and B

Question 67

There are hundreds of external available that integrate and work with QuickBooks Online.

A)Commands
B)Tasks
C)Apps
D)All the above

Question 68

Petty Cash is funded by .

A)Writing a check in QuickBooks and cashing it at the bank
B)Making a withdrawal from checking at the bank and recording a Transfer of Funds
C)The owner putting money in the Petty Cash drawer
D)Either A or B

Question 69

If you create a budget with locations, prior entries are classified as .

A)Prior to Budget
B)Not Specified
C)Unknown
D)Unbudgeted

Question 70

If you donate a desk to Your Name's Beach Barkers, it is recorded in Your Name, Investment account and in .

A)Furniture: Original Cost
B)Checking
C)Store Supplies
D)Owner's Donations

Question 71

The Sales Tax Center includes .

A)Taxes Due this month
B)Upcoming Taxes Due
C)Access to Sales tax settings
D)All the above

Question 72

Transactions may be categorized based on and .

A)Location and Class
B)Settings and Class
C)Locations and Settings
D)Any of the above

Question 73

If inventory was damaged, you adjust the .

A)Inventory Starting Value
B)Item in a Journal Entry
C)Quantity
D)Budget

Question 74

If a bill payment amount does not match any of the bill amounts, QuickBooks Online applies it to .

A)The newest bill
B)The oldest bill
C)Splits the amount among all bills owed to the vendor
D)Vendor Credits

Question 75

The form used to verify the employment eligibility status for an employee is the form.

A)W-2
B)W-4
C)I-9
D)ED-44

Question 76

To change the quantity on hand for an inventory item, you .

A)Prepare an Inventory Valuation Detail report
B)Change the Opening Balance Invoice
C)Edit the item in the Products/Services List
D)Edit the Inventory Asset account

Question 77

When a customer qualifies for an early payment discount, the discount is recorded .

A)In the Sales Discount register
B)As a Journal entry
C)On a new Invoice
D)On the original Invoice

Question 78

When recording an early payment discount on inventory items, you use the account.

A)Purchases Discount
B)Merchandise Discount
C)Sales Discount
D)Discount Expense

Question 79

To see every transaction in Debit/Credit format, you prepare a report.

A)Customer Balance Detail
B)Transaction List
C)Trial Balance
D)Journal

Question 80

Payment Methods are created for .

A)Debit Cards
B)MasterCard
C)Visa
D)All the above