Chapter 7 ; 8 Test – Flashcards
Unlock all answers in this set
Unlock answersquestion
A company's computer is classified as what account type: a. Expense b. Owner's Equity c. Fixed Asset d. Retained Earnings
answer
c. Fixed Asset
question
A corporation uses __________ as its Federal Tax ID number. a. the owner's social security number b. an EIN number c. business operating license number d. none of these
answer
b. an EIN number
question
An account period may be: a. One quarter b. One month c. One year d. All of these
answer
d. All of these
question
Examples of management reports for internal decision making include all of the following except: a. 1120S Report b. Cash Budget c. Cash Forecast d. Accounts Receivable Aging Summary
answer
a. 1120S Report
question
In the Easy Step Interview, you must identify: a. Type of Industry b. Company name c. Company address d. All of these
answer
d. All of these
question
Income tax reports in QuickBooks include all of the following except: a. Income Tax Preparation report b. Income Tax Detail report c. Income Tax Summary report d. Income Tax Mapping report
answer
d. Income Tax Mapping report
question
Providing information to external users' decision making is the purpose of which of the following? a. Management Reports b. Tax forms c. Financial statements d. Inventory reports
answer
c. Financial statements
question
Providing information to internal users' decision making is the purpose of which of the following? a. Management Reports b. Tax forms c. Financial statements d. Vendor list
answer
a. Management Reports
question
Sales are recorded under cash basis accounting when: a. The goods or services are provided regardless of whether the cash is collected from the customers b. The bookkeeper has time to record the transactions c. The cash is collected from the customers d. The costs are incurred to earn the revenue
answer
c. The cash is collected from the customers
question
Sole Proprietorships use __________ as its Federal Tax ID number. a. the owner's social security number b. an EIN number c. business operating license number d. none of these
answer
a. the owner's social security number
question
The Balance Sheet lists: a. Assets, Liabilities, and Owner's Equity b. Gains, Losses, and Net Income c. Operating, Investing, and Financing Activity d. Income, Expenses, and Liabilities
answer
a. Assets, Liabilities, and Owner's Equity
question
The Customer List contains information about: a. The quantity of non-inventory parts on hand b. The credit rating of the vendors c. Vendors from whom the company buys products and services d. Customer addresses, contacts and phone numbers
answer
d. Customer addresses, contacts and phone numbers
question
The Doing Business As name identifies a company for: a. Bank accounts b. Sales c. Patents d. None of these
answer
b. Sales
question
The Income Statement lists: a. Net Income and Owner's Equity b. Income and Expenses c. Assets and Liabilities d. Assets and Expenses
answer
b. Income and Expenses
question
The Legal Name identifies a company for: a. Advertising b. Sales c. Patents d. All of these
answer
c. Patents
question
The order of the steps in the accounting cycle includes: a. Adjusted trial balance, financial reports, adjusting entries, trial balance b. Adjusted trial balance, adjusting entries, financial reports, trial balance c. Trial balance, adjusting entries, adjusted trial balance, financial reports d. Trial balance, financial reports, adjusting entries, adjusted trial balance
answer
c. Trial balance, adjusting entries, adjusted trial balance, financial reports
question
The Profit & Loss Statement lists: a. Assets and Expenses b. Assets and Liabilities c. Net Income and Owner's Equity d. Income and Expenses
answer
d. Income and Expenses
question
The QuickBooks Setup window allows you to enter __________ information. a. Vendor b. Customer c. Banking d. All of these
answer
d. All of these
question
The Statement of Cash Flows lists: a. Operating, Investing, and Financing Activity b. Assets, Liabilities, and Owner's Equity c. Income, Expenses, and Liabilities d. Gains, Losses, and Net Income
answer
a. Operating, Investing, and Financing Activity
question
The steps to set up a new service company in QuickBooks with no employees are: a. Easy Step Interview > Customer List > Vendor List > Item List b. Setup Chart of Accounts > Easy Step Interview > Customer List > Vendor List > Item List c. Easy Step Interview > Customize Chart of Accounts > Customer List > Vendor List > Item List d. Easy Step Interview > Customer List > Vendor List > Item List > Customize Chart of Accounts
answer
c. Easy Step Interview > Customize Chart of Accounts > Customer List > Vendor List > Item List
question
The Trial Balance: a. Lists all the company's accounts and ending balances b. Is printed before and after making adjustments c. Verifies the accounting system balances d. All of these
answer
d. All of these
question
The Vendor List contains information about: a. Addresses, contacts and phone numbers of customers b. Addresses, contacts and phone numbers for suppliers c. Quantities and prices of items on hand d. All of these
answer
b. Addresses, contacts and phone numbers for suppliers
question
To complete company setup you must complete all of the following except: a. Add customers b. Add payroll forms c. Add products and services as items d. Add vendors
answer
b. Add payroll forms
question
To create a new company data file in QuickBooks, use the: a. Company menu ; New Company b. Company section of the Home page ; New Company c. File menu ; Open or Copy Company d. File menu ; New Company
answer
d. File menu ; New Company
question
To display account numbers in the chart of accounts choose: a. Edit ; Options b. Edit ; Preferences c. Company ; Financial d. Company ; Accounts
answer
b. Edit ; Preferences
question
To export reports to Excel: a. With the Report window open, click the Excel button b. With the Report window open, click the Export button c. With the Report window open, click the Print button d. All of these
answer
b. With the Report window open, click the Export button
question
To print the General Ledger: a. Select Chart of Accounts icon ; Print Report b. From the Company section of the Home page ; select Trial Balance icon c. Select Report Center ; Accountant ; Taxes, General Ledger d. Select Company Center ; Print General Ledger
answer
c. Select Report Center ; Accountant ; Taxes, General Ledger
question
To record adjusting journal entries in QuickBooks, select: a. Company Center, Journal Entry icon b. Accountant menu, Make General Journal Entries c. Banking section of the Home page, Journal Entry icon d. Company section of the Home page, Journal Entry icon
answer
b. Accountant menu, Make General Journal Entries
question
What information does the Balance Sheet provide? a. A summary of cash inflows and outflows over a specific time period b. A company's financial position on a specific date c. Sales and expenses for a specific time period d. None of these
answer
b. A company's financial position on a specific date
question
What is an asset? a. What is left after the liabilities are satisfied b. What a company owns c. What a company owes d. None of these
answer
b. What a company owns
question
What is owner's equity? a. What a company owes b. What is left after the liabilities are satisfied c. What a company owns d. None of these
answer
b. What is left after the liabilities are satisfied
question
What options do you have when adding the "People You Do Business With" section of the QuickBooks Setup Window: a. Importing from Outlook b. Importing from Yahoo or Gmail c. Pasting from Excel or entering manually d. All of these
answer
d. All of these
question
When setting up a new company, QuickBooks automatically creates: a. Chart of Accounts b. Vendor List c. Customer List d. None of these
answer
a. Chart of Accounts
question
Which icon does not appear in the Vendors section for service companies that do not sell inventory? a. Receive Inventory b. Pay Bills c. Enter Bills d. All of these
answer
a. Receive Inventory
question
Which of the following determines if the account appears classified properly on the balance sheet? a. Tax-Mapping Line b. Account Number c. Item Number d. None of these
answer
b. Account Number
question
Which one of the following classifications is found on the Statement of Cash Flows? a. Cash Flows from Financing Activities b. Cash Flows from Purchasing Activities c. Cash Flows from Owner's Activities d. Cash Flows from Selling Activities
answer
a. Cash Flows from Financing Activities
question
Which tax form would you select for a Corporation? a. Form 1120 b. Form 1120S c. Form 1065 d. Form 1040S
answer
a. Form 1120
question
Which tax form would you select for a Partnership? a. Form 1120 b. Form 1120S c. Form 1065 d. Form 1040S
answer
c. Form 1065
question
Which tax form would you select for a Subchapter S corporation? a. Form 1120 b. Form 1120S c. Form 1040 d. Form 1040S
answer
b. Form 1120S
