Question 1

The different types of business ownership are:

Accepted Answer

A) Sole proprietorship 
B) Partnership 
C) Corporation 
D) All the above
Short Answer Questions

Question 2

An example of a non-posting account is ________.

Accepted Answer

A) Employee Expense 
B) Inventory 
C) Purchase Orders Account 
D) Accounts Payable

Question 3

What is a liability?

Accepted Answer

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

Question 4

What is an asset?

Accepted Answer

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

Question 5

Non-posting accounts:

Accepted Answer

A) Track information required for the accounting system 
B) Do not appear on the Balance Sheet 
C) Do not appear on the Income Statement 
D) All the above

Question 6

Which of the following is not an income account?

Accepted Answer

A) Revenue 
B) Interest Revenue 
C) Rent Expense 
D) Gain on sale

Question 7

To add a new account to the Chart of Accounts:

Accepted Answer

A) From the Chart of Accounts window, select Account, New 
B) From the Company menu, select New Account 
C) From the Chart of Accounts menu, select New Account 
D) From the Lists menu, select New Account

Exam 2: Customizing Quickbooks and the Chart of Accounts