question

Why would you hide or collapse sub accounts on a report?

answer

D.) To temporarily hide unnecessary details and hide parent accounts

question

What should you do after you click Save and Close on a Customer Credit Memo?

answer

D.) Choose between retained as an available credit, give a refund or apply to an invoice

question

Which of the following can be memorized in QuickBooks?

answer

A.) Checks

question

Which is NOT shown on the Payroll Summary Report in QuickBooks?

answer

A.) Information necessary to complete your state unemployment tax form

question

The bank notified you that a customer's check you deposited has bounced. The customer did not have sufficient funds to cover the check. What should you do?

answer

B.) Record a transaction to show the customer owes you the money and that the checking balance has decreased by that same amount.

question

Suppose you always want all reports to show a specific size and color, how do you set the standard or preference in QuickBooks so you don't have to customize each report?

answer

D.) Click the edit menu and select preferences then click the reports and graphs group to set your report preferences.

question

Suppose you want to restrict which users can access customer credit card numbers. How do you do this?

answer

B.) Give the user access to sales and accounts receivable but do not check the complete credit card numbers.

question

Which of the following is a possible reason for a bank reconciliation discrepancy?

answer

B.) The beginning balance calculated by QuickBooks does not match last months ending phase.

question

Which of the following statements is true regarding undeposited funds?

answer

D.) It is an account used to record payments before you make a deposit

question

Which accounts are affected when you enter Time in QuickBooks?

answer

D.) Accounts Receivable

question

Workers who require a W2 tax form at the end of the year should be added to which of the following lists?

answer

A.) Employees

question

If you have a customized report that you use each month,which feature lets you run the report with updated data each month?

answer

B.) Memorize Report

question

What is the primary reason for setting a closing date in QuickBooks?

answer

B.) To restrict users from deleting, editing or adding transactions to last year.

question

Your new employee earned an annual salary of $40,000. How do you enter this into QuickBooks?

answer

C.) Enter 40,000 in the payroll info window.

question

What steps must you complete to use the payroll center to pay payroll liabilities?

answer

C.) Set deposit frequencies

question

Name the section of the Balance Sheet.

answer

D.) Assets, Liabilities, and Equity

question

When you create a new company file, QuickBooks asks for your start date. What is the best definition of start date in QuickBooks?

answer

C.) The day you chose to start the new company file.

question

Which of the following statements is not true regarding entering and paying bills in QuickBooks?

answer

B.) If you enter the bills windows to record a bill, do not use the write checks window or check register to pay that same bill.

question

How do you use a different forms template when creating a new transaction? (i.e. Invoice)

answer

D.) Open the form, click the templates drop down list and select the appropriate form.

question

How do you change the report basis, accrual vs. cash for just one report?

answer

B.) Click the modify report button on the report and then choose accrual or cash on the display pad.

question

How would you track customer birth dates in QuickBooks?

answer

B.) Add a custom field to the customer list

question

How do you change text in the header/footer of a report?

answer

C.) Click the Modify Report button on the report and then change the header footer tab

question

Where can you see a thumbnail sample of each report in QuickBooks along with a description of what the report tells you?

answer

C.) Report Center

question

What transaction in QuickBooks should you use if your customer pays you when you provide the goods or services?

answer

A.) Sales Receipt

question

How can you ensure that invoice detail does not appear on a customer statement?

answer

A.) Uncheck the show invoice item detail on statement's box in the create statements window.

question

What is the purpose of backing up in QuickBooks?

answer

A.) To protect against data loss from file corruption or a hard file crash.

question

Which of the following is NOT true regarding merging entries?

answer

B.) QuickBooks allows you to merge an Expense account with an income account

question

When a transaction is changed, what information does the Audit Trail report provide?

answer

D.) All of the above

question

How do you add or delete columns on a report?

answer

C.) Click the modify report and on the display tab check or add or uncheck remove columns

question

When should you use the items tab on a bill or check?

answer

C.) When you purchase inventory parts

question

When you are setting up a service item, what happens if you select the box next to this "service is performed by a subcontractor or partner?

answer

A.) QuickBooks provides fields so you can track purchase and sales information for that item.

question

Which of the following statements is NOT true regarding single user and multi-user mode?

answer

B.) Only the administrator is allowed in the file when it is in single user mode.

question

Which of the form templates cannot be customized in QuickBooks?

answer

A.) Checks

question

The Product Information window shows you the version and release of QuickBooks you have along with other information about the company file. How do you access the Product Information window?

answer

D.) Press the F2 key

question

When should you set up a non-inventory item type?

answer

D.) All of the above

question

Which of the following statement is TRUE regarding items?

answer

C.) When you purchase or sell and item, the value of the purchase or sales flows to the account and therefore the financial statement you selected when you set up the item

question

Which report shows how much you owe for sales tax?

answer

C.) Sales Tax Liability

question

Which report is also known as an income statement and summarizes income and expenses for a month?

answer

A.) Profit and Loss Standard

question

When making your payroll tax deposit, how can you add IRS interest and/or penalties?

answer

C.) Recalculate the paycheck at a specific interest rate

question

Which of the following is a reason to create a new company file?

answer

C.) To start over when a company file has many errors that are beyond repair.

question

When you enter a purchase order for inventory, which accounts are affected?

answer

D.) None. Because purchase orders are non-posting transactions

question

After QuickBooks sets up a chart of accounts in the Easy Step Interview, which of the following is TRUE?

answer

B.) It is possible to add more accounts later.

question

Which of the following is TRUE regarding General Journal entries?

answer

A.) General Journal entries require a good understanding of debits and credits and should not be used by the non-accountants

question

Which of the following statements is TRUE regarding how you record a debit card transaction in QuickBooks?

answer

B.) Use the write checks window or Check Register and type debit in the check number field.

question

When can you delete a check from QuickBooks without voiding it?

answer

D.) You entered a check in QuickBooks but haven't printed it yet. You realized the purchase was actually made using a credit card. The check was never really used.

question

What tool do you use to move your logo to a form?

answer

C.) Layout Designer

question

What is the reason for not being able to delete a list entry?

answer

The entry has been used in a transaction.

question

How do you move list entries to a different location on the list? for example, customers.

answer

Click on the diamond to the left of the name and then drag the name up or down the list.

question

Assume that QuickBooks is now in single user mode. What does this mean?

answer

Only one user can access the data file

question

Which of the following statement is TRUE regarding vendor credit memos?

answer

Vendor credit memos increase what owe the vendor.

question

How can you ensure that the invoice detail appear on a customer statement?

answer

Turn on invoice detail in customer statement window.

question

Which of the following is a payroll service available in QuickBooks?

answer

D.) Assisted Payroll

question

How can you open a QuickBooks report in Microsoft Excel?

answer

B.) Click the Export button on the top of any QuickBooks report.

question

For each functional area of QuickBooks Pro and Premier, ie Sales Accounts, Accounts Receivable, Purchases, what levels of access can you grant to users?

answer

B.) You can prohibit access, grant full access or grant selective access; these levels apply to specific transactions in that area.

question

What is the Accountants' copy?

answer

C.) A copy of a company file that allows the accountant to review and make adjustments while you continue to work in QuickBooks.

question

Which of the following information CANNOT be set up during the Easy Step interview?

answer

C.) Trial balance opening balances

question

What 2 steps do you follow to track accounts payable in QuickBooks?

answer

A.) Enter bills, pay bills

question

Which of the following desktop (not online) edition of QuickBooks supports multi-user?

answer

C.) Premier and higher

question

Which is an example of when to use a non-inventory part?

answer

D.) When you buy and sell an item but don't need to track quantity on hand.

question

How do you hide subaccounts on a report?

answer

D.) Click the collapse button

question

Your company had to return some goods to a vendor. How do you record the vendor credit in QuickBooks?

answer

B.) Enter bill then click credit on top of the bill

question

What do you use to narrow the data QuickBooks displays on a report?

answer

Filter

question

Once the Easy Step Interview is complete, how do you change the company information for the business name, address, or phone number?

answer

Select Company, Company Information from the menu

question

What is the Undeposited Funds account in QuickBooks?

answer

D.) An account used to record payments before you make a deposit.

question

What is the end result of a payroll setup interview?

answer

QuickBooks has an accurate record of employees, earning deductions and payroll history and you are ready to create the first paycheck.

question

You finished entering all the transactions for last year, and just sent the file to the tax preparer. How do you ensure that no one accidently deletes or edits a transaction last year?

answer

Set the closing date and password in the accounting preferences in the company menu.

question

How do you identify the version and release of QuickBooks you have?

answer

Press the F2 button

question

When you set up a new employee, how do you add a payroll deduction such as medical insurance?

answer

In the new employee window, click the change tap drop down list and select employment info, then add info and then add the medical insurance payroll item below the additions deductions and company contributions.

question

There are two primary financial statements that summarize the chart of accounts. Which of the following is one of these reports?

answer

Balance sheet

question

When should you VOID instead of delete a check?

answer

You used the check number but it will never be cashed

question

How do you pay payroll liabilities in QuickBooks?

answer

Select payments you want to make form the pay schedule liabilities in the payroll center then click view pay

question

Which of the following is NOT a billing option when you prepare a progress report?

answer

Invoice for hours entered on time sheet

question

How do items affect the financial statement?

answer

When you purchase or sell an item the value of the on sale purchase flows to the account.

question

You accidently entered the same customer twice in the customer center with a slightly different spelling. How do you merge these entries?

answer

Edit the unwanted list entry, change the name you want to merge and click ok, then yes when prompted to merged.

question

How do you record debit card transactions in QuickBooks?

answer

Use the write checks window, enter the check and write debit in the check number field.

question

Which is a reason to NOT enter a general journal entry?

answer

To enter transactions in another way instead of using built in forms.

question

The bank notifies you that a customers' check you deposited has bounced. The customer does not have sufficient funds to cover the check. What should you NOT do?

answer

Delete the customer payment from the deposit

question

How do you display a group of reports?

answer

Click the reports menu then select process multiple reports button.

question

Which payroll services allows you to print state tax form?

answer

Basic payroll

question

How do you customize a report, i.e. change the information QuickBooks displays, change the title etc.

answer

Click the modify report button on the report

question

Which of the following elements on the invoice can you NOT customize?

answer

The amount of information you can type in each field

question

A list entry may be deleted only when...

answer

It has no balance; it has not been used and is not linked to anything that has been used

question

Your company provides their employees with sick/vacation hours. You need to track how many hours each employee currently has available, how many they add or accrue and you need to reduce their accrued hours when you pay them for sick or vacation time. How would you do this in QuickBooks?

answer

Click the vacation button on the employees on the employee setup to define how to accrue time and tell QuickBooks how many hours the employee is available. When you pay an employee for sick/vacation time, click the sick/vacation button and reduce those available hours.

question

When you send a QuickBooks report to Excel, which features allow you to choose what sections of the report to collapse?

answer

Auto outline

question

What is the purpose of an Audit Trail report?

answer

Track any changes and deletions to transactions and track which user makes the changes or the deletion.

question

Which of the following statement is TRUE regarding single user and multi user mode?

answer

To use QuickBooks in multi user mode each user must have the same version of QuickBooks on their computer to have access.

question

What can you do in the report center?

answer

Run most reports in QuickBooks

question

Which of the following transactions CANNOT be memorized?

answer

Bill payment

question

Which of the following can explain why the profit and loss shows a profit but the business owner does not have any money in the bank?

answer

This is the difference between item profitability and job profitability reporting.

question

The company file you are working on is a mess. You decided to start a new file. At the same time you want to keep all the lists and preferences and just delete the transactions. How do you do this?

answer

Click the File menu, choose utilities, clean up company data, then choose default transaction option

question

You have to set up an item for shipping. What item type should you have?

answer

Other charge

question

Your company sells unique items to every customer. They never sell the same service or product twice. What item should you set up in QuickBooks?

answer

Set up a generic item and edit the description and price each item.

question

You hired a subcontractor to work 40 hours per week. Which list should you add this person to?

answer

Vendors

question

When should you enter a customer credit memo?

answer

When customer returns a product that is damaged.

question

How do you make a column on a report wider?

answer

Click the diamond to the right of the column and drag it to the right.

question

When you run a profit and loss on the accrual basis what does QuickBooks include as income?

answer

All sales.

question

What is the quickest way to find an invoice from 6 months ago?

answer

Open an invoice and click the find button.

question

Which tool do you use to modify where QuickBooks displays elements on a printed form or template?

answer

Layout designer

question

How do you make an item on the item list inactive?

answer

Open the item list, click to select the appropriate item, then click the bottom left button and select make item inactive.

question

Suppose you work for a pet store and have to track the name of each customers' pet. How would you do this in QuickBooks?

answer

Edit custom field to customer data.

question

How do you record a debit card transaction in QuickBooks?

answer

Use the write check window for the check register but type debit in the check number field.

question

The computer that houses your QuickBooks data could crash. What should you do in QuickBooks to make sure you always have access to your data?

answer

Create a backup copy of your company files and store it separately from the computer

question

List entries may be deleted only when:

answer

There is no balance, it has not been used and is not linked to anything that has been used.

question

How do items affect the financial statement?

answer

When you purchase or sell an item the value of the purchase or sell flows to the account you selected when you set up the item

question

You sent a QuickBooks report to excel and made some changes. How do you import the change in excel back to Quickbooks?

answer

Use the import from excel wizard in QuickBooks

question

How do you customize a report? The example; change what information QuickBooks displays, change the title, etc.

answer

Click the customize report button on the report

question

How do you identify the version of QuickBooks that you have?

answer

Press the F2 key

question

Which is the quickest way in QuickBooks to find an invoice from 6 months ago?

answer

Open an invoice and click the find button

question

How do you hide sub accounts on the report?

answer

Hit the collapse button

question

Which of the following statements is true regarding single user and multi user mode?

answer

To use QuickBooks in multi user mode, each user must have the same version of QuickBooks on their computer to access the same company file

question

Which of the following could explain why a profit and loss show a profit, but the business owner doesn't have any money in the bank?

answer

This is the difference between cash and accrual reporting

question

You have to set up the item for shipping. What item type should you use?

answer

Other charge

question

When should you enter a customer credit memo?

answer

A customer returns a product that was damaged

question

How can you ensure that invoice details do not appear on a customer's statement?

answer

Uncheck the show invoice item detail on statement opinion in the credit create statement window

question

Which of the following elements on an invoice can you not customize?

answer

The amount of information, number of characters you type in each field

question

Your company just hired a contractor to work for 40 hours per week on a job. Which list should you add this person to?

answer

Vendors

question

For each functional area QuickBooks, pro and premier, example sales and accounts receivable, purchases, and accounts, etc.

answer

What level of access can you grant to use it?

question

Which of the following is not a billing option when you prepare a progress invoice?

answer

Invoice for hours entered on time sheet

question

Which list represents the payroll services you can add to QuickBooks?

answer

Basic calculates taxes and helps create a state and federal tax forms and assisted intuit handles payroll taxes and forms

question

Which of the following additions of QuickBooks supports multi users?

answer

All versions support multiusers

question

What can you do in the report center?

answer

Run most reports in QuickBooks

question

How can you open a QuickBooks report in Microsoft Excel?

answer

Click the excel button on the top of any QuickBooks report

question

Which two steps do you follow to track accounts payable in QuickBooks?

answer

Enter bills, pay bills

question

How do you display a group of reports?

answer

Click the reports menu and select print reports, and multi-reports

question

What is the Undeposited funds account in QuickBooks?

answer

An account used to record payments before you made a deposit

question

How do you make an item on the item list inactive?

answer

Open the item list, click to select the appropriate item then click the bottom left item button and select, make item inactive.

question

Your company supplies their employees with sick, vacation hours. You need to track how many hours that each employee currently has available, how many they earn, accrued hours when you pay them for sick or vacation time. How would you do this in QuickBooks?

answer

Follow these steps: Click the sick, vacation button in employees setup to define how to approve time and to tell QuickBooks how many hours the employee has available. Setup a sick, vacation wage item to pay employees for sick, vacation time

question

Which payroll service allows you to print state tax forms?

answer

Enhance payroll

question

Which of the following transactions cannot be memorized?

answer

Bill Payment

question

You have finished entering all the transactions for last year and just sent the file to the tax preparer. How do you ensure that no one accidently deletes, edits, or adds transactions to last year?

answer

Set a closing date and password in the accounting preferences or from the company menu

question

How do you make a column on a report wider?

answer

Click the diamond to the right side of the column and drag it to the right

question

How do you pay, payroll liability in QuickBooks?

answer

Select the payment you want to make form the pay scheduled liability/ select view pay.

question

What is the purpose of the audit trail report?

answer

Track any changes or deletions to transactions as well as track which users make the changes or deletions

question

You accidently entered a customer twice in the customer center with a slightly different spelling. How do you merge these two entries?

answer

Edit the unwanted list entry; change the name to match the name you want to merge into. Click ok, then click yes when prompted to merge names.

question

Your company had to return some goods to a vendor. How do you record the vendor credit in QuickBooks?

answer

Click enter bills then click credit on top of the bill

question

When you setup a new employee, how do you add a payroll deduction such as medical insurance?

answer

In the new edit employee window, click the change tap drop down window, select payroll and compensation information, then add the medical insurance payroll into the addition/deletion and company compensation section.

question

What is the end result of a payroll setup interview?

answer

QuickBooks has an accurate record of employees' earnings and deductions and payroll history and you are ready to create your first paycheck.

question

There are two primary financial statements that summarize the chart of accounts. Which of the following is one of these reports?

answer

Balance sheet

question

Once you have completed the sign up of a new company file, how do you change company information such as business name, address, or phone number?

answer

Select company information from the menu

question

Suppose you work for a pet store and have to track the name of each customer's pet. How would you do this in QuickBooks?

answer

Add a customer field to the customer list

question

The company file you are working on is a mess. You decided to start a new file. To save time, you want to keep all the lists and preferences and just delete the transactions. How do you do this?

answer

Click the file menu. Select utilities, condense data from the menu then chose the all transaction option.

question

Which is an example of when to use a non-inventory part?

answer

When you buy and sell an item but do not need to track quantity on hand information

question

Which of the following cannot be entered during the setup of a new company?

answer

Trial balance, open balance

question

When you enter profit and loss on the accrual basis, what does QuickBooks include as income?

answer

All sales

question

When should you void instead of delete a check?

answer

Use a check number but it will never be cashed

question

Your company sells unique items to every customer. They never sell the same product or service twice. What item should you setup in QuickBooks?

answer

Setup a generic item and edit the description and price and the time

question

Which of the following form templates cannot be customized in QuickBooks?

answer

Check

question

Which is not a good reason to enter a general journal entry?

answer

To avoid using the built in forms

question

The bank notifies you that a customer's check you have deposited has bounced. The customer did not have sufficient funds to cover the check. What should you not do?

answer

Delete the customer's payment from the deposit

question

How do you change the text in the header/footer report?

answer

Click the customize button on the report and then click the header/footer tab.

QuickBooks Study Guide Questions 1-150 (Parts 1-3) – Flashcards

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