Question 1

When a returned item has been paid for, a Credit Memo is recorded.

Accepted Answer

A) True 
 B)False  False

Question 2

In the text, California Sales Taxes are charged on sold.

Accepted Answer

A)  Inventory Items 
B)  Service Items 
C)  Sales Discounts 
D)  All of the above A

Question 3

In the text, sales tax is charged on all inventory/product items.

Accepted Answer

A) True 
 B)False  True

Question 4

The FIFO method of inventory valuation uses .

Accepted Answer

A)  Average Cost 
B)  Last in, First out 
C)  First in, First out 
D)  First in, Last out

Question 5

Credit Cards must be entered as a(n) before they may be accepted in a transaction.

Accepted Answer

A)  Product/Service Item 
B)  Account 
C)  Payment Method 
D)  Company Setting

Question 6

A company logo can be added to the company file and will appear on the Home Page and on Business Forms.

Accepted Answer

A) True 
 B)False

Question 7

QBO shows the Discount after Sales Taxes.

Accepted Answer

A) True 
 B)False

Question 8

In the text, Venice is categorized as a .

Accepted Answer

A)  Location 
B)  Class 
C)  Main Office 
D)  Both A and B

Question 9

When recording an NSF check, you include charges for .

Accepted Answer

A)  Original Invoice 
B)  Bank Fees 
C)  Company Fees for NSF Checks 
D)  All of the above

Question 10

The Customer Balance Summary report lists the unpaid invoices for each customer.

Accepted Answer

A) True 
 B)False

Exam 6: Sales and Receivables: Product and Service Items

When a returned item has been paid for, a Credit Memo is recorded.