Question 1

What is a liability?

Accepted Answer

A) Inventory 
B) An amount a company owes 
C) A resource a company owns 
D) None of these

Question 2

The Favorites menu allows you to:

Accepted Answer

A) Add websites that are useful to your business 
B) Customize up to 30 of your favorite QuickBooks menu items 
C) Add one favorite QuickBooks menu item 
D) None of these

Question 3

What is an asset?

Accepted Answer

A) Mortgage payable 
B) An amount a company owes 
C) A resource a company owns 
D) None of these

Question 4

Which account below is not an Expense account?

Accepted Answer

A) Utilities 
B) Rent 
C) Accounts Payable 
D) Advertising

Question 5

A Mortgage Payable account:

Accepted Answer

A) Has real estate as collateral 
B) Is identical to a Loan Payable account 
C) Is a type of Owner's Equity account 
D) None of these

Question 6

Balance Sheet accounts are also called:

Accepted Answer

A) equity accounts 
B) temporary accounts 
C) permanent accounts 
D) None of these

Question 7

To Re-sort the Chart of Accounts,first display the Chart of Accounts window,then:

Accepted Answer

A) Click on the Company heading bar 
B) Click Account > Re-sort List 
C) Click File > Sort 
D) Right click Sort by Name

Question 8

Which of the following is a temporary account?

Accepted Answer

A) Sales 
B) Inventory 
C) Accounts Payable 
D) Accounts Receivable

Question 9

Which QuickBooks version is designed for mid-sized businesses?

Accepted Answer

A) QuickBooks Pro 
B) QuickBooks Premier 
C) QuickBooks Accountant 
D) QuickBooks Enterprise Solutions

Exam 2: Time Value of Money