Deck 7: General Accounting and End-Of-Period Procedures: Merchandising Business

Question 1

The transfer of Office Supplies into Sales Supplies as a correcting entry will not require a change to the transfer of Net Income into Capital.

Answer 1

True

Question 2

QuickBooks uses the_____ method of inventory valuation

A)LIFO
B)average cost
C)FIFO
D)Actual Cost

Answer 2

average cost

Question 3

Reports prepared using the Report Center may not be customized and memorized.

Answer 3

False

Question 4

A withdrawal by an owner in a partnership reduces the owner's capital.

Question 5

Once an account has been used, the name cannot be changed.

Question 6

If reports are prepared as of January 31 of the current year, net income will appear in the_____ .

A)Profit & Loss Statement
B)Balance Sheet
C)both A and B
D)neither A nor B

Question 7

For owner withdrawals in a partnership, QuickBooks______ .

A)allows you to establish a separate account for each owner's withdrawals
B)requires that all owner withdrawals are combined within the same account
C)deducts the amount of withdrawals from the owners' investment account
D)does not allow owner withdrawals because each partner who works in the business earns a salary

Question 8

The report that proves debits equal credits is the______ .

A)Sales Graph
B)Balance Sheet
C)Profit & Loss Statement
D)Trial Balance

Question 9

After changing the Preferences for Reports, those changes will be used automatically when preparing multiple reports.

Question 10

Even though transactions are entered via business documents, QuickBooks keeps track of all transactions ______.

A)in a chart
B)in the master register
C)on a graph
D)in the Journal

Question 11

At the end of the year, QuickBooks transfers the net income into retained earnings/owners' equity.

Question 12

The keyboard shortcut to access the Chart of Accounts is______

A)Ctrl+C
B)Ctrl+O
C)Ctrl+A
D)Ctrl+E

Question 13

To print a reconciliation report that lists only totals, select______ .

A)none
B)summary
C)detailed
D)complete

Question 14

To print a Reconciliation Report that lists only totals, select______ .

A)none
B)summary
C)detail
D)complete

Question 15

The accounts that may be reconciled are______ .

A)income and expenses
B)cost of goods sold
C)all balance sheet accounts
D)both A and B above

Question 16

You must access the General Journal to close a period.

Question 17

When you have a partnership, each partner should have individual capital accounts.

Question 18

The Retained Earnings/Owners' Equity account should always be deleted.

Question 19

Reports prepared using the Report Center may not be customized and memorized.

Question 20

The_____ -basis of accounting matches income for the period against expenses for the period.

A)cash
B)credit
C)accrual
D)debit/credit

Question 21

The __________ proves that Assets = Liabilities + Owners' Equity.

Question 22

To close a period, a closing______ must be provided.

Question 23

When using the accrual-basis of accounting for the month of November, sales on account were $1,000.00 and the purchase of one year of insurance for $600.00 would result in the Profit & Loss report showing a___________

Question 24

To keep track of Fixed Assets, you prepare a ______.

Question 25

Changes to an inventory quantity are made by clicking the Inventory Activities icon on the QuickBooks ________.