question

How do you edit a collections letter?

answer

Choose COMPANY> PREPARE LETTERS WITH ENVELOPES> CUSTOMIZE LETTER TEMPLATES.

question

What does the term \"Double-Entry Accounting\" mean?

answer

There are always at least two accounts involved in every financial transaction.

question

You suspect that someone has changed a transaction. What report should you run?

answer

AUDIT TRAIL REPORT ~!~ ~!~ ~!~ The audit trail shows you transactions that have been added, changed, and deleted. It also shows you the original transaction and who changed the transaction, as well as the exact date and time.

question

Which form should you use to enter petty cash expenditures?

answer

WRITE CHECKS or use CHECK REGISTER ~!~ ~!~ ~!~ Make sure the bank account is a Petty Cash account that you set up (not your actual checking account).

question

How do you set up QuickBooks to automatically use discounts and credits?

answer

Choose EDIT> PREFERENCES> BILLS> COMPANY PREFENCES, and then select to automatically use discounts or credits.

question

When reconciling your bank account in QuickBooks, what must the beginning balance match?

answer

It should always match the opening balance on the paper bank statement.

question

What methods for purchasing can be recorded using the WRITE CHECKS window?

answer

(ALL OF THESE) Debit Card Purchase Petty Cass Purchase ATM Withdrawl

question

How do you create a memorized group of reports?

answer

Open the MEMORIZED REPORT LIST and then click MEMORIZED REPORT> NEW GROUP.

question

If you set up and track Sales Tax in QuickBooks, which category of reports contains Sales Tax reports?

answer

VENDORS and PAYABLES ~!~ ~!~ ~!~ Although the taxes are based on sales, you owe the money, so it is a payable. From this category you can run the Sales Tax Liability Report.

question

How do you move columns on a report?

answer

Move your cursor over the column heading, and when it becomes a hand, click and drag the column to the desired posistion.

question

What happens if you click \"Collapse\" on a report?

answer

QuickBooks hides Subaccounts and only shows Parent Accounts ~!~ ~!~ ~!~ Use this feature to hide unnecessary detail if you are preparing a report for someone who just wants the \"Big\" picture and none of the detail contained in Subaccounts.

question

When you send a QuickBooks report to Excel, which feature allows you to have a drop-down list for each column to allow filtering?

answer

AUTO FILTER ~!~ ~!~ ~!~ To do this, open a reportand click Export. Then click the Advanced Tab. Below \"Turn on the following features for this report,\" select Auto Filtering.

question

When should you use a Sales Receipt in QuickBooks?

answer

To record a customer payment at the time of sale.

question

You received 5 customer payments in the mail. At the bank you deposit the 5 checks as one deposit. When you record the 5 seperate payments in QuickBooks, how do you show that the 5 checks were actually 1 deposit?

answer

When you use the RECEIVE PAYMENTS window, QuickBooks doesn't deposit the money in your checking account. After you record the 5 payments, click RECORD DEPOSITS and select the 5 checks.

question

Which report answers the question \"What transactions make up the current balance I owe each Vendor?\"

answer

VENDOR BALANCE DETAIL ~!~ ~!~ ~!~ For each Vendor, QuickBooks lists the transactions that contribute to (or make up) what you owe.

question

What happens if you double-click on a diamond on a report column? - QuickBooks opens a detailed report about just that column. - QuickBooks automatically adjusts the column width to fit the data in the column. - QuickBooks hides the column. - None of the above.

answer

NONE OF THE ABOVE ~!~ ~!~ ~!~ If you click on the diamond to the right of the column, you can drag it to the the right to make it bigger, or to the left to make it smaller. If you drag it to the left past the column to the left, QuickBooks hides the column completely.

question

You have customized and then memorized a report. What does QuickBooks save when memorizing a report?

answer

REPORT HEADER, FILTERS, AND COLUMNS BUT NOT THE ACTUAL TRANSACTIONS. ~!~ ~!~ ~!~ This means each time you run the report, QuickBooks automatically updates the information based on the new, edited, and deleted transactions. You can memorize a report you want to see each month with updated information.

question

What is the easiest way to organize your memorized reports?

answer

Create a report group.

question

How do you display or print a batch/group of reports quickly?

answer

Choose REPORTS> PROCESS MULTIPLE REPORTS ~!~ ~!~ ~!~ You can choose from All Reports or you can select a specific group.

question

You've just been hired by a bakery that sells delicious cup cakes. When they buy ingredients, they use Expense tab and assign the costs to a Cost Of Goods Sold account. You need to set up an item for cakes. What item should you use?

answer

NON-INVENTORY PART ~!~ ~!~ ~!~ Use a Non-Inventory Part when you sell (or buy) an item but don't need to keep track of the quantity on hand.

question

What account (on the Chart Of Accounts) is affected when you sell an item?

answer

The account you selected when you set up the item.

question

Suppose you own a company that repairs bicycles. What item type should you use for \"Bicycle Repair\"?

answer

SERVICE

question

During the Advanced Setup, you can turn on and off which features in the EastStep Interview?

answer

(ALL OF THESE) Sales Taxes Inventory Progress Invoicing

question

What happens to the inventory asset account when you enter a purchase order for inventory?

answer

No accounts are affected.

question

Suppose you have a subcontractor who receives a 1990 from your company. Which list should you add them to?

answer

Vendor List

question

Which report should you use to help you complete the state unemployment tax form?

answer

Employee State Taxes Detail

question

Which of the following Payroll Services are available with QuickBooks? - Basic - Enhanced - Assisted - All of the Above

answer

ALL OF THE ABOVE ~!~ ~!~ ~!~ If you work for a company or own a business, it's important to understand your choices for running payroll.

question

How do you track sick or vacation time in QuickBooks?

answer

(ALL OF THESE) 1) When you set up an employee, define how QuickBooks should accrue time. 2) Set up a sick or vacation wage item. 3) Pay an employee with a sick or vacation wage item.

question

When you set up a new Payroll Item using EZ setup Wizard, which is not a choice?

answer

City / Local Taxes

question

What are the first two steps to set up payroll in QuickBooks?

answer

1) Sign up for payroll service. 2) Complete Payroll Setup Interview.

question

How do you restore a company file from a backup copy?

answer

Choose FILE> OPEN OR RESTORE COMPANY. Select RESTORE A BACKUP COPY and click NEXT.Choose LOCAL or ONLINE BACKUP and click NEXT. Select the file to restore and click OPEN. Choose where to restore the file to and click SAVE.

question

If you choose to remove transactions as of a specific date from the \"Condense Data\" window, what does QuickBooks do?

answer

Removes all transactions while leaving lists, preferences, and service subscriptions intact.

question

What happens when you press F2 in QuickBooks?

answer

QuickBooks opens the Product Information window which includes version and company file information.

question

When you start a company or are hired as a bookkeeper, it is important to know which edition of QuickBooks you are using. What are the major QuickBooks editions?

answer

QuickBooks Online, QuickBooks Pro, QuickBooks Premier, and QuickBooks Enterprise Solutions.

question

When would you enter a journal entry?

answer

To correct errors, For year-end adjustments, and To enter depreciation.

question

You successfully reconciled the checking account last month. This month, when you begin to reconcile the same account, you notice that the beginning balance calculated by QuickBooks is different from the beginning balance according to the bank. How can this happen?

answer

Someone changed or deleted a cleared transaction.

question

What is the purpose of the Chart of Accounts?

answer

It is how you categorize financial transactions.

question

What is equity?

answer

Assets - Liabilities

question

How can you stop yourself and others from deleting, editing, or adding transactions in a closed period?

answer

Set a closing date.

question

What are the main sections of the Profit & Loss?

answer

Income, Cost of Goods Sold, and Expenses.

question

How do you customize QuickBooks by changing the color scheme and adding or removing icons from the home page?

answer

Choose EDIT> PREFERENCES> DESKTOP VIEW.

question

How do you set up multiple users in QuickBooks Pro or Premier?

answer

Choose COMPANY> SET UP USERS AND PASSWORDS> SET USERS.

question

You don't like a form (For example, an invoice) looks when you print it. How can you change it?

answer

Click CUSTOMIZE at the top of the form.

question

Suppose you customized an invoice in QuickBooks. You really like how it looks and want your estimates to look similar. How do you do this?

answer

Choose LIST> TEMPLATES. Select the form you want to duplicate then click the TEMPLATES button and select DUPLICATE. Then select the type of template you want to create the same look, in this case, estimates.

question

You need to enter the same transactions each month (for example, an insurance payment). How can you automate this process in QuickBooks?

answer

While the transaction in on the screen, choose EDIT> MEMORIZE CHECK (or the name of the transaction).

question

Can you delete a list entry (for example, an item)?

answer

BOTH OF THESE Yes, if the list entry is not used in any transactions or is not part of another list entry (for example, a group item). No, if the list entry is used in any transactions or is part of another list entry (for example, a group item).

question

What keyboard shortcut allows you to see a total for all four names lists?

answer

F2

question

How do you combine or merge two list entries?

answer

Rename the unwanted list entry to match the name of the list entry you want to merge into.

question

When you invoice for time and costs, where does QuickBooks get the billable time or costs?

answer

From billable time entered on timesheets and/or billable costs entered on checks and bills. ~!~ ~!~ ~!~ When you enter an expense, item, or time and also assign that line to a Customer: Job, QuickBooks displays a billable checkmark. You can uncheck this if you don't want to invoice for the cost.

question

What is the purpose of Progress Invoicing?

answer

To invoice from an estimate in increments.

question

What transaction should you enter if a customer returns a damaged product or, in the case of service, complains so much you decide to offer a refund?

answer

CREDIT MEMO ~!~ ~!~ ~!~ On the Home Page, click Refunds and Credits. This decreases the amount owed by the customer and reverses the sale.

question

When you create a statement and select \"All open transactions as of statement date,\" what does QuickBooks show on the statement?

answer

Open Transactions as of the statement date.

question

What do you need to record in QuickBooks when a customer's check bounces (the customer had a non-sufficient funds, NSF)?

answer

(ALL OF THESE) 1) There is less money in the checking account 2) The customer owes you for the amount of the check (and optionally a bounced check fee). 3) The NSF fee the bank charged you.

question

What are the 2 main Financial Statements you can run from the \"Company and Financial\" category of reports?

answer

BALANCE SHEET and PROFIT & LOSS. ~!~ ~!~ ~!~ The Profit and Loss is also known as the Income Statement.

question

Which of the following statements in true concerning items? - You can use one item to represent different services or goods. - Items allow you to track your sales in more detail without cluttering your Chart of Accounts or Profit & Loss. - To create an invoice, you must use an Item.

answer

(ALL OF THESE) 1) You can use one item to represent different services or goods. 2) Items allow you to track your sales in more detail without cluttering your Chart of Accounts or Profit & Loss. 3) To create an invoice, you must use an Item.

question

What are other benefits of using items?

answer

(ALL OF THESE) 1) You can track the actual quantity of goods or services you sell. 2) They can save you time by automatically entering a description and price on forms. 3) They allow you to track a lot of detail without cluttering your Chart of Accounts.

question

Which of the following is NOT an item type?

answer

Income ~!~ ~!~ ~!~ Income is an Account type.

question

You notice that when you print an invoice, the information in a field is cut off (that is, it doesn't fit). How can you fix this?

answer

Use the Layout Designer to make the field wider. ~!~ ~!~ ~!~ However, you cannot increase the number of characters QuickBooks allows in that field.

question

Which of these functions can only be performed by the Administrator? - Merge entries on lists - Add new users and change their access privileges - Memorize custom reports - Back up the data file

answer

ADD NEW USERS AND CHANGE THEIR ACCESS PRIVILEGES ~!~ ~!~ ~!~ Even a user set up as an External Accountant can't add or edit users.

question

Suppose you have to track a specific piece of information about your customers that QuickBooks does NOT track. What is the best way to do this?

answer

Edit a customer and click the \"Additional Info\" tab. Click Define Fields to create a Custom Field to track anything you want. ~!~ ~!~ ~!~ You can modify list reports to display this field/information. You can also customize forms to display this field/information.

question

When entering a journal entry, what happens if the debits don't equal the credits?

answer

QuickBooks will not allow you to record the transactions.

question

How do you switch to Multi-User Mode?

answer

Choose FILE> SWITCH to MULTI-USER MODE from the menu.

question

Which of the following is NOT a backup option in QuickBooks? - Manually back up the file. - Automatically back up data file when closing QuickBooks. - Schedule an unattended backup. - All of the above are QuickBooks backup options.

answer

ALL OF THE ABOVE ARE QuickBooks BACKUP OPTIONS.

question

What happens when you QuickZoom on a number in a report?

answer

QuickBooks shows more detail about the number on the report. ~!~ ~!~ ~!~ On a summary report, QuickZoom displays a list of transactions that makes up that number. On a report that lists transactions, QuickZoom opens the actual transaction.

question

During the Advanced Setup, how do you setup a new account that is not on the default list of accounts during the EasyStep Interview?

answer

You can't add accounts that are not on the QuickBooks default list. Finish the interview and add the accounts directly to the chart of accounts.

question

When printing paychecks, what is the preferred check style to give an employee a paystub?

answer

VOUCHER ~!~ ~!~ ~!~ This style prints one check per page. The check on top and the voucher contains information regarding earnings, taxes, and payroll.

question

What must you deposit frequencies for the taxes or deductions your company has to pay (Payroll Liabilities)?

answer

So that the Payroll Liabilities show up in the Pay Scheduled Liabilities list in the Payroll Center

question

When you set up a new Payroll Item using the EZ setup wizard, which is not a choice? - Compensation - Retirement Benefits - City/Local Taxes - Insurance Benefits

answer

CITY / LOCAL TAXES

question

When should you create an invoice in QuickBooks?

answer

When a customer purchases goods or services but does not pay you at the time of the sale.

question

What options do you have after you create a credit memo in QuickBooks?

answer

(ALL OF THESE) 1) Retain as an available credit. 2) Give a Refund. 3) Apply to an invoice.

question

When should you use a Sales Receipt in QuickBooks?

answer

To record a customer payment at the time of sale.

question

How do you track accounts payable in QuickBooks?

answer

Enter a bill and then use the Pay Bills window. ~!~ ~!~ ~!~ If you enter a bill, you MUST use the Pay Bills window to pay the bill.

question

What transaction/form do you begin with to enter a vendor credit?

answer

ENTER BILL ~!~ ~!~ ~!~ Open the Enter Bills window and select the Credit in the top left part of the form. This turns the Bill into a Vendor Credit, which reduces the amount you owe the vendor.

question

What is a reason to use the Items tab when entering a bill?

answer

To assign a cost to a job or purchase inventory.

question

When should you NEVER delete a check?

answer

You printed a check, and the check number has been used.

question

What is one way that QuickBooks uses the Account type?

answer

To identify where the account appears on the financial statements.

question

What item type should you use for inventory that you assemble from other items and then sell?

answer

Inventory Assembly

question

How do you set up QuickBooks to automatically use discounts and credits?

answer

Choose EDIT> PREFERENCES> BILLS> COMPANY PREFERENCES, and then select to automatically use discounts or credits.

question

How do you use Write Checks to pay Payroll Liabilities so your reports are accurate?

answer

You can't

question

When setting up a new employee, what is important about the Payroll Info Tab?

answer

Whatever you enter/see in this window affects each paycheck, unless you change the information on the paycheck itself.

question

What is the maximum number of names that can be included on the Names lists in QuickBooks Pro or Premier?

answer

14,500 ~!~ ~!~ ~!~ You can have as many names as you want in QuickBooks Enterprise Solutions.

question

What is the purpose of subaccounts?

answer

Track finances in more detail by grouping accounts in a logical fashion and showing a subtotal for those accounts.

question

How do you move columns on a report?

answer

Move your cursor over the column heading, and when it becomes a hand, click and drag the column to the desired position.

question

You've customized an invoice and are ready to use it, but when you open the invoice, QuickBooks displays the default Intuit Invoice. How do you change it?

answer

On the Invoice, click the TEMPLATE drop-down arrow and select your customized invoice.

question

If the computer that houses your QuickBooks data crashes, what should you do?

answer

Restore a back up copy of you company file. ~!~ ~!~ ~!~ QuickBooks suggests you back up your company file daily, monthly, and at the end of the year, Restore one of these files to have access to your data.

question

Why would you restore a date file from the back up file?

answer

(ALL OF THESE) 1) You wish to review the company data as it stood at an earlier date. 2) The company data file on your hard drive is damaged and cannot be used. 3) Your computer crashed. You reloaded QuickBooks, and now you are ready to open the company file.

question

What can you do in the Reports & Graphs Preferences (Edit>Preferences) ?

answer

(ALL OF THESE) 1) Change the summary basis (Accrual or Cash) for all reports. 2) Change Format options like font, color, and size. 3) Set which date to use for aging reports.

question

When you run Financial Statements in QuickBooks, what bookkeeping basis can you sue to view the report?

answer

(ALL OF THESE) 1) Cash Basis 2) Accrual Basis 3) You can switch the bookkeeping basis if you want.

question

When would you use the Expenses tab on a payroll liability check?

answer

To enter late fees / penalties or interest.

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