Deck 4: Vendors and Inventory

Question 1

The money a company owes to a supplier or vendor is called:

A)Accounts payable.
B)Accounts receivable.
C)Sales.
D)Purchases.
E)None.

Answer 1

A

Question 2

The process of bringing the balance of the bank statement and balance of the checking account into agreement is called:

A)Accounts payable.
B)Accounts receivable.
C)Bank reconciliation.
D)Audit Log.
E)All.

Answer 2

C

Question 3

QBO organizes and monitors accounts payable.

Answer 3

True

Question 4

When QB Cloud purchases and receives inventory, they are:

A)Subtracted from inventory.
B)Added to inventory.
C)Added to customer accounts.
D)Subtracted from customer accounts.
E)All.

Question 5

Cash basis accounting means you count income or expenses as soon as you invoice or receive a bill and before you actually receive or pay money.

Question 6

The account distribution for sales of inventory on account is:

A)Debit Merchandise Inventory and Accounts Receivable; credit Cost of Goods Sold and Sales.
B)Debit Accounts Receivable/customer and Cost of Goods Sold; credit Sales and Merchandise Inventory.
C)Debit Accounts Payable/vendor and Cost of Goods Sold; credit Accounts Receivable/customer and Checking.
D)None.

Question 7

A report that breaks the analysis into operating, investing, and financial activities is called:

A)Trial Balance.
B)Profit and Loss.
C)Balance Sheet.
D)Statement of Cash Flows.
E)All.

Question 8

Using the Bank Statement, go to the Journal to reconcile checking account activity.

Question 9

QB Cloud receives bank statements at the end of the quarter.

Question 10

When you enter bills for a vendor, Accounts Payable and the vendor are debited.

Question 11

____________________________________report economic information about the business.

A)Journal transactions.
B)Financial statements.
C)Transaction registers.
D)Account distributions.
E)All.

Question 12

In QBO, an up-to-date record of inventory is maintained and tracked.This is called:

A)Perpetual inventory.
B)Periodic inventory.
C)Sales and cost of goods sold.
D)Account payable and customer accounts.
E)None

Question 13

_______________________________________are purchases on account from vendors.

A)Transfer transactions.
B)Accounts receivable transactions.
C)Accounts payable transactions.
D)Chart of accounts transactions.
E)None.

Question 14

The Balance Sheet shows the accounting equation.

Question 15

Use products and services to enter consistent transaction descriptions, prices and rates.

Question 16

The account distribution for purchases of inventory on account is:

A)Debit Checking and Merchandise Inventory; credit Accounts Receivable/customer.
B)Debit Merchandise Inventory and Accounts Receivable; credit Sales.
C)Debit Accounts Receivable/Customer; credit Accounts Payable/vendor.
D)Debit Merchandise Inventory; credit Accounts Payable/vendor.
E)None.

Question 17

In Chapter 4, checking Expense and Sales transactions and the October 30^th trial balance is the starting point for your data.

Question 18

A product that is purchased from vendors for sale to customers is called a/an:

A)Account receivable.
B)Trial balance.
C)Activity transaction.
D)Inventory item.
E)All.

Question 19

Before you reconcile, the check register balance does not include the bank's service charge.

Question 20

Bills are entered to record an expense or purchase of assets.