Question 1

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

Accepted Answer

A) True 
 B)False  False

Question 2

The types of accounts that may be reconciled are .

Accepted Answer

A)   Assets
B)   Liabilities
C)   Equity
D)   All of the above D

Question 3

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

Accepted Answer

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

Question 4

Where do you record the 2% discount for early payment of a bill?

Accepted Answer

A)   Enter it on the bill
B)   Prepare a Vendor Credit
C)   Change the amount of the bill payment check
D)   Any of the above

Question 5

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

Accepted Answer

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

Question 6

A Fixed Asset is something that you will own for .

Accepted Answer

A)   Less than a year
B)   The life of the business
C)   More than a year
D)   All of the above

Question 7

The report gives you complete information regarding salary and wages, tax information, deductions, and vacation/sick leave for each employee.

Accepted Answer

A)   Employee Details
B)   Employee Obligations
C)   Paycheck List
D)   Payroll Details

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

Which of the following would not be a prepaid expense?

Accepted Answer

A)   Equipment Rental for a day
B)   Insurance for six months
C)   Office Supplies to have on hand
D)   None of the above

Question 10

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

Accepted Answer

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

Question 11

You can make a bill payment directly from the bill.

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

A Customer Balance Summary Report shows you the balances for all customers who owe you money.

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

Opening Balances for Inventory Items that were added without preparing a purchase order or bill are entered into .

Accepted Answer

A)   Opening Balance Equity
B)   Inventory Assets
C)   Your Name, Investment
D)   Both A and B

Question 17

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

Accepted Answer

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

Question 18

Petty Cash is funded by .

Accepted Answer

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 19

If inventory was damaged you adjust the .

Accepted Answer

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

Question 20

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 .

Accepted Answer

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

Exam 10: Appendix a Create a Company Using Quickbooks Desktop

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

The types of accounts that may be reconciled are .

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

Where do you record the 2% discount for early payment of a bill?

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

A Fixed Asset is something that you will own for .

The report gives you complete information regarding salary and wages, tax information, deductions, and vacation/sick leave for each employee.

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

Which of the following would not be a prepaid expense?

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

You can make a bill payment directly from the bill.

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

A Customer Balance Summary Report shows you the balances for all customers who owe you money.

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

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

Opening Balances for Inventory Items that were added without preparing a purchase order or bill are entered into .

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

Petty Cash is funded by .

If inventory was damaged you adjust the .

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 .