Deck 9: Accounting for a Service Company

Question 1

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

Answer 1

A

Question 2

To email an invoice, click the Email icon on the top of the Create Invoices window. Then:

A)Click the Vendor List
B)Select Customer List and Select Email Choices
C)Select Email Invoice if you use Yahoo only
D)Select Email Invoice>Yes> Click Choose Your Email Method

Answer 2

D

Question 3

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

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

Answer 3

D

Question 4

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 5

Credit sales are recorded using the _________ window.

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

Question 6

To record the payment of bills just 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 7

To record adjusting entries, use:

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

Question 8

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 9

To create a memorized transaction for a utility bill, first enter the transaction in QuickBooks, then click:

A)Transactions menu > Memorize
B)Enter Bills icon in the Vendors section of the Home Page> Memorize
C)Vendors menu of Home Page > Memorize
D)Lists menu >Vendors> Reminders

Question 10

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 of these

Question 11

To record a cash purchase, use the:

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

Question 12

Before making adjusting entries you must:

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

Question 13

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

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

Question 14

Deposits may be recorded using the:

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

Question 15

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 16

To record a purchase on account, use the:

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

Question 17

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 of these

Question 18

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

A)Depreciation
B)Utilities
C)Rent
D)All of these

Question 19

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 20

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 21

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 22

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 23

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

Question 24

The following are examples of possible memorized transactions except:

A)Rent payments
B)Utility bills
C)Special order for a customer
D)None of these

Question 25

QuickBooks automatically closes ________________ accounts to start each new accounting year with a $0 balance in all _______________ accounts.

A)temporary; permanent
B)temporary; temporary
C)permanent; permanent
D)permanent; temporary

Question 26

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 27

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