Deck 2: Sales and Receivables: Service Business

Question 1

A Sales Item must be associated with an Income Account.

Answer 1

True

Question 2

Credit memos are prepared to record a reduction to a sale on account.

Answer 2

True

Question 3

In QuickBooks Desktop, error correction for a sale on account can be accomplished by editing the invoice.

Answer 3

True

Question 4

Undeposited Funds represents _____.

A)cash or checks received from customers but not yet deposited in the bank
B)all cash sales
C)the balance of the accounts receivable account
D)none of the above

Question 5

Changes to the chart of accounts may be made_____ .

A)at the beginning of a fiscal period
B)before the end of the fiscal year
C)at any time
D)once established, the chart of accounts may not be modified

Question 6

Checks received for cash sales are held in the Undeposited Funds account until the bank deposit is made.

Question 7

When you add a customer using Quick Add, you add_____.

A)complete information for a customer
B)only a customer's name
C)the customer's name, address, and telephone number
D)the customer's name and telephone number

Question 8

To enter a cash sale, a(n)____ is completed.

A)debit
B)invoice
C)sales receipt
D)bank deposit

Question 9

A customer's payment on account is immediately recorded in the checking account.

Question 10

An Accounts Receivable report summarizes sales by item.

Question 11

In QuickBooks all transactions must be entered using the traditional debit/credit method.

Question 12

_____allow(s) you to make a closer observation of transaction details and/or amounts.

A)Graphs
B)QuickZoom
C)Invoices
D)The Balance Sheet

Question 13

When a correction for a transaction is made, QuickBooks not only makes changes to the form used to record the transaction; it also changes all journal and account entries for the transaction to reflect the correction.

Question 14

To remove an invoice without a trace, it is_____ .

A)voided
B)deleted
C)blocked
D)reversed

Question 15

The report that shows each transaction in Debit/Credit format is the ____.

A)Trial Balance
B)Balance Sheet
C)Sales by Item Report
D)Journal

Question 16

Once transactions have been entered, modifications to a customer's account may be made only at the end of the fiscal year.

Question 17

The ____Report contains the balances of all the customers on account.

A)Customer Balance Summary
B)Customer Detail Summary
C)Customer Summary
D)Accounts Receivable Detail

Question 18

Once a transaction has been saved, it may not be deleted.

Question 19

To record a reduction to a sale on account, a(n)____ is completed.

A)Sales Receipt
B)Sale Reduction
C)Invoice with a negative amount
D)Credit Memo

Question 20

QuickBooks uses graphs to illustrate information about _____.

A)the chart of accounts
B)sales
C)the cash account
D)supplies

Question 21

QuickBooks records transactions on actual business forms.Sales on_____ account are recorded on_____ .

Question 22

When you_______ an invoice the amount is changed to 0.00.

Question 23

The keyboard shortcut to edit an account name is ______.

Question 24

The report that proves that debits equal credits is the ______.

Question 25

To verify the company being used in QuickBooks, you check the _____.