Deck 10: QBO Reports

Question 1

In QBO,A/R Aging and A/P Aging Reports are prepared very similarly with the following process:

A)From the Navigation Bar select Reports and then the All Reports tab.Select either Manage Accounts Receivable or Manage Accounts Payable,then select either A/R Aging Summary or A/P Aging Summary.
B)From the Navigation Bar select Accounting and then the Management Reports tab.Select either Manage Accounts Receivable or Manage Accounts Payable,then select either A/R Aging Summary or A/P Aging Summary.
C)From the Navigation Bar select either Sales (A/R)or Expenses (A/P)and then the All Reports tab.Select either Manage Accounts Receivable or Manage Accounts Payable,then select either A/R Aging Summary or A/P Aging Summary.
D)From the Navigation Bar select Reports and then the All Reports tab.Select Accounting Reports,then select either A/R Aging Summary or A/P Aging Summary.

Answer 1

A

Question 2

What is NOT true regarding Tax forms?

A)The objective of the tax form is to provide information to federal and state tax authorities.
B)When preparing tax returns,a company uses the same rules as those used to prepare financial statements.
C)When preparing tax returns,a company uses different rules from those used to prepare financial statements.
D)Tax forms include: Federal and State income tax returns,Federal Payroll Forms and Federal Form 1099.

Answer 2

B

Question 3

Which of the following is false regarding the Balance Sheet?

A)On the Balance Sheet Assets are recorded at the Assets' fair market value on the date the Balance Sheet is prepared.
B)The Balance Sheet presents a company's financial position on a specific date and can be prepared at the end of a month,quarter or year.
C)The Balance Sheet is comprised of the following account types: Assets,Liabilities and Owners' Equity.
D)On the Balance Sheet Assets are what a company owns and Liabilities are what a company owes.

Answer 3

A

Question 4

All of the following statements are true about Owners' Equity except?

A)Owners' equity is also called net worth.
B)It is increased by net income and owners' contributions.
C)Owners' equity is found on both the Profit and Loss statement and the Balance Sheet.
D)It is decreased by owners' withdrawals or dividends,and net losses.

Question 5

What is the main objective of financial reporting?

A)To provide cash projections for future accounting periods.
B)To provide information to users for decision making.
C)To compare actual with budgeted results.
D)To ensure an owner has the information necessary to decide what distribution to take.

Question 6

In QBO,how are the Audit Log and the Transaction Journal similar and different?

A)Similar: Both reports can be used to track down journal entries to source documents. Different: The Transaction Journal lists every journal entry (debits and credits)entered in QBO and the Audit Log tracks all changes made to QBO records.
B)Similar: Both reports can be used to track down unauthorized changes made to the accounting records. Different: The Transaction Journal improves internal control by tracking unauthorized changes to accounting records,and the Audit Log tracks all transactions entered into QBO.
C)Similar: Both reports can be used to track down errors. Different: The Transaction Journal is useful if you have more than one QBO user,and the Audit Log tracks all changes made to our QBO records.
D)Similar: Both reports can be used to track down errors. Different: The Transaction Journal lists every journal entry (debits and credits)entered in QBO and the Audit Log tracks all changes made to QBO records.

Question 7

In QBO,management reports include the following:

A)Customer reports,Vendor reports,Profit and Loss reports,Transaction Journal,and the Audit Log.
B)Customer reports,Vendor reports,Inventory reports,Transaction Journal,and the Audit Log.
C)Customer reports,Vendor reports,Inventory reports,Trial Balance report,and the Audit Log.
D)Chart of Accounts,Trial Balance,Adjusted Trial Balance,Closing Trial Balance,and the Financial Statements.

Question 8

In QBO,in the Dashboard select Reports then the All Reports tab has a variety of different selections.What selection allows a user to view the financial statements?

A)Accountant Reports
B)Review Sales
C)Manage Accounts Receivable and Manage Accounts Payable
D)Business Overview

Question 9

What are the three main financial statements?

A)Profit and Loss,Balance Sheet and Statement of Cash Flows
B)Budget to Actual,Balance Sheet and Statement of Cash Flows
C)Profit and Loss,Trial Balance and Statement of Cash Flows
D)Profit and Loss,Balance Sheet and Adjusted Trial Balance

Question 10

What is NOT true regarding QBO reports?

A)QBO offers a limited number of reports to ensure its users are not overwhelmed with information they do not need.
B)Most QBO reports are accessed from the Navigation Bar.
C)QBO offers numerous reports to meet the needs of a wide array of users.
D)From the Navigation Bar,Dashboard can be selected which summarizes key financial information.

Question 11

Which two management reports in QBO are useful for planning purposes and assessing future profitability?

A)Accounts Receivable Aging and Accounts Payable Aging.
B)Income by Customer Summary,and Sales by Product/Service Summary.
C)Physical Inventory Worksheet and Transaction Journal.
D)Transaction Journal and Audit Log.

Question 12

The financial statements must be prepared in a specific order.What is that order and why do financial statements need to be prepared in that order?

A)Profit and Loss,Balance Sheet and Statement of Cash Flows.This order is required since the net income obtained from the Profit and Loss statement is used to increase owners' equity on the Balance Sheet.The Balance Sheet's updated accounts are needed to prepare the Statement of Cash Flows.
B)Balance Sheet,Profit and Loss and Statement of Cash Flows.This order is required since the total assets obtained from the Balance Sheet is used to increase revenue on the Profit and Loss.Net income is needed to prepare the Statement of Cash Flows.
C)Statement of Cash Flows,Profit and Loss,and Balance Sheet.This order is required since the cash obtained from the Statement of Cash Flows is used to increase revenue and the Profit and Loss statement.Updated accounts from the Profit and Loss statement are needed to prepare the Statement of Cash Flows.
D)Profit and Loss,Balance Sheet and Statement of Cash Flows.This order is required since the net income obtained from the Profit and Loss statement is used to increase assets on the Balance Sheet and the Balance Sheet's updated accounts are needed to prepare the Statement of Cash Flows.

Question 13

What is NOT true regarding the Trial Balance?

A)Trial Balances are prepared only after making adjustments (adjusting entries)since the account balances must be up to date to prepare a trial balance.
B)It is a listing of all of the company's accounts and the ending account balances; it is prepared both before and after making adjusting entries.
C)Its purpose is to verify account balances and ensure an accounting system balances.
D)To view a Trial Balance in QBO view All Reports in Reports and select Accounting Reports.

Question 14

In QBO,select the option that is NOT true regarding navigating QBO reports?

A)The dashboard can be customized by selecting Edit or drop-down arrows while viewing the financial dashboard.
B)A user can review reports that QBO recommends by selecting the Recommended tab in Reports.
C)To streamline finding reports a user can review the reports they run frequently by selecting the Frequently Run tab in Reports.
D)The All Reports tab in Reports is simply a list of all reports a company has available to them listed in alphabetical order.

Question 15

Management Reports are:

A)used by management and do not have to follow specified rules (i.e.GAAP or Internal Revenue Code).The reports are prepared as needed to provide management with information to make informed business decisions.
B)used by management and follow a specified set of rules (i.e.GAAP or Internal Revenue Code).The reports are prepared to ensure management can provide outside users with information to make informed decisions regarding their company.
C)used by management and do not follow specified rules (i.e.GAAP or Internal Revenue Code).The reports are prepared either monthly,quarterly or yearly to ensure management is reviewing financial data on a timely basis.
D)used by management and follow a specified set of rules (i.e.GAAP or Internal Revenue Code).The reports are prepared either monthly,quarterly or yearly to ensure management is reviewing financial data on a timely basis.

Question 16

On a Statement of Cash Flows,cash flows are grouped into the following three categories listed in the proper order:

A)Operating activities,Investing activities,and Financing activities.
B)Operating activities,Financing activities,and Investing activities.
C)Investing activities,Operating activities,and Financing activities.
D)Financing activities,Investing activities,and Operating activities.

Question 17

In QBO,how are the Open Purchase Orders report and the Physical Inventory Worksheet different?

A)Open Purchase Orders compares inventory on hand in QBO with what was ordered and the Physical Inventory Worksheet represents purchase orders that were received.
B)Open Purchase Orders represents purchase orders for items ordered but not yet received and Physical Inventory Worksheet compares inventory on hand in QBO with a confirmation of what was sent by our vendors.
C)Open Purchase Orders represent purchase orders for items ordered but not yet received and the Physical Inventory Worksheet compares inventory on hand in QBO with a physical count of goods.
D)Open Purchase Orders represent purchase orders for items ordered but not yet received and the Physical Inventory Worksheet compares inventory on hand in QBO with what is physically required to meet customer demands.

Question 18

In QBO,the three different financial statements are prepared very similarly using the following process:

A)From the Navigation Bar select Reports and then the All Reports tab.Select Business Overview,then select Profit and Loss,Balance Sheet,or Statement of Cash Flows.To customize enter Customize features using the Customization Bar and Save Customizations.The statement can also be exported to Excel or PDF.
B)From the Navigation Bar select Accounting and then the Reports tab.Select Business Overview,then select Profit and Loss,Balance Sheet,or Statement of Cash Flows.To customize export the file to enter Customize features using the Customization Bar and Save Customizations.The statement can also be exported to Excel or PDF.
C)From the Navigation Bar select Reports and then the All Reports tab.Select Business Overview,then select Profit and Loss,Balance Sheet,or Statement of Cash Flows.To customize export the statement to Excel or PDF.
D)From the Navigation Bar select Accounting and then the Reports tab.Select Business Overview,then select Profit and Loss,Balance Sheet,or Statement of Cash Flows.To customize export the statement to Excel or PDF.

Question 19

How are the Accounts Payable and Accounts Receivable Aging reports similar and how are they different?

A)Similar: Both reports summarize account balances by the age of the account. Different: One report summarizes how much our company sold on account and one summarizes how much our company has purchased on credit this accounting period.
B)Similar: Both reports summarize account balances by the age of the account. Different: One report summarizes amounts we owe our customers and one summarizes amounts our vendors owe us.
C)Similar: Both reports summarize account balances by the age of the account. Different: One report summarizes amounts owed to us from customers and one summarizes amounts due to our vendors.
D)Similar: Both reports summarize account balances by the age of the account. Different: One report summarizes amounts we need to finance to pay our debts and one summarizes amounts we need to provide as financing to our customers to pay their debts when due.

Question 20

What is FALSE regarding the adjusted trial balance?

A)The adjusted trial balance is prepared to view updated account balances after adjusting entries are made.
B)To view an Adjusted Trial Balance in QBO select the Adjusted Trial Balance in Accountant Reports.
C)The adjusted trial balance verifies that the accounting system still balances after the adjusting entries are made.
D)To view an Adjusted Trial Balance in QBO just run the Trial Balance report after adjusting entries have been entered.