Deck 9: Accounting for a Service Company

Question 1

Adjusting entries are used to:

A)Close temporary accounts at year end
B)Close permanent accounts at year-end
C)Bring account balances up to date at year end
D)All the above

Answer 1

C

Question 2

When customer payments are recorded in the Receive Payments window, QuickBooks records:

A)An increase in the Checking account.
B)An increase in Undeposited Funds account.
C)An increase in Accounts Receivable.
D)An increase in Sales

Answer 2

B

Question 3

To record a credit purchase, use the:

A)Purchase Order > Receive Payment > Deposit
B)Invoice > Receive Payment > Deposit
C)Enter Bills > Pay Bills
D)Invoice > Enter Bills > Pay Bills

Answer 3

C

Question 4

Deposits may be recorded using the:

A)Check Register window
B)Write Checks window
C)Reconcile window
D)Print Checks window

Question 5

To record a cash purchase, use the:

A)Pay Bills
B)Write Check
C)Purchase Order
D)None of the above

Question 6

Credit sales are recorded using the _________ window.

A)Make Deposits
B)Sales Receipts
C)Create Invoices
D)Receive Items

Question 7

Items charged to a specific customer job can be transferred to the customer's invoice using:

A)Item List
B)Timesheet
C)Stopwatch
D)Time/Costs button

Question 8

To print multiple checks at one time, use:

A)Banking menu > Write Checks > Print Checks
B)Vendor menu > Print Forms > Print Checks
C)File menu > Print Forms > Checks
D)Banking menu > Print Forms > Checks

Question 9

To print the entire Journal, select:

A)Report Center > Accountant & Taxes > Journal
B)Company Center > Company & Financials > Journal
C)Report Center > Company & Financials > Journal
D)Company Center > Accountant & Taxes > Journal

Question 10

To record the payment of bills received from vendors, use the:

A)Pay Bills > Write Checks
B)Write Checks > Pay Bills
C)Enter Bills > Print Checks
D)Enter Bills > Pay Bills > Print Checks

Question 11

To record a sales transaction, use the:

A)Create Purchase Order > Receive Payment > Make Deposit
B)Create Invoices > Receive Payment > Make Deposits
C)Create Invoices > Create Sales Receipts > Make Deposits
D)Receive Payment > Create Sales Receipts > Make Deposits

Question 12

To record adjusting entries, use:

A)Report menu > General Journal Entries.
B)Company menu > Make General Journal Entries.
C)Banking menu > Make General Journal Entries
D)Accountant menu > Journal Entries

Question 13

When closing the accounting period you:

A)Close temporary accounts at year end
B)Bring account balances up to date at year end
C)Close permanent accounts at year-end
D)All the above

Question 14

Before making adjusting entries you must:

A)Close permanent accounts
B)Print the trial balance
C)Close temporary accounts
D)Print the balance sheet

Question 15

To print the Trial Balance, select:

A)Report Center > Accountant & Taxes
B)Company Center > Company & Financials
C)Report Center > Company & Financials
D)Company Center > Accountant & Taxes

Question 16

When you record the receipt of a customer payment QuickBooks reduces _______ and increases ________.

A)Bank Account, Accounts Receivable
B)Accounts Payable, Undeposited Funds
C)Accounts Receivable, Undeposited Funds
D)Accounts Receivable, Bank Account

Question 17

To create a memorized transaction for a utility bill, in the Enter Bills window select:

A)Transactions menu > Memorize
B)Edit menu > Memorize Bill
C)Vendors menu > Memorize Transactions
D)Lists menu > Reminders

Question 18

To print the Balance Sheet, select:

A)Company Center > Company & Financials
B)Report Center > Company & Financials
C)Report Center > Accountant & Taxes
D)Company Center > Accountant & Taxes

Question 19

When customer payments are recorded, QuickBooks reduces the ________ balance.

A)Accounts Payable.
B)Accounts Receivable.
C)Undeposited Funds.
D)Checking

Question 20

All of the following are examples of recurring transactions, except:

A)Depreciation
B)Utilities
C)Rent
D)All of the above

Question 21

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

Question 22

Briefly explain how to record an owner's investment in their company.

Question 23

To print the Statement of Cash Flows, select:

A)Report Center > Company & Financials
B)Report Center > Accountant & Taxes
C)Company Center > Company & Financials
D)Company Center > Accountant & Taxes

Question 24

To print the General Ledger, select:

A)Report Center > Company & Financials > General Ledger
B)Company Center > Company & Financials > General Ledger
C)Report Center > Accountant & Taxes > General Ledger
D)Company Center > Accountant & Taxes > General Ledger

Question 25

To print the Profit & Loss report, select:

A)Report Center > Company & Financials
B)Report Center > Accountant & Taxes
C)Company Center > Company & Financials
D)Company Center > Accountant & Taxes

Question 26

The following are examples of possible memorized transactions except:

A)Rent payments
B)Utility bills
C)Special order for a customer
D)None of the above
Short Answer Questions

Question 27

To remove accounts with zero balances from the General Ledger report, after generating the report, select:

A)Modify Report > Filters > In use
B)Modify Report > Display > Advanced > In use
C)Modify Report > Display > In use
D)Modify Report > Filters > Display > In use