Deck 10: Payment Methods, Inventory, Reports, and More

Question 1

Cash is the only payment method accepted for a Cash Sale.

Answer 1

False

Question 2

When you do not receive all of the inventory items ordered, you prepare a Purchase Order for the amount on backorder.

Answer 2

True

Question 3

A sale on account means that the sale was paid for with a credit card.

Answer 3

False

Question 4

You must have an email account before you can activate the QuickBooks Online Educational Trial Version.

Question 5

The Gear icon may be used to access Lists in QuickBooks Online.

Question 6

Cloud-based computing uses the Internet to provide program access.

Question 7

A new product/service item cannot be added when creating a sales receipt.

Question 8

You can make a bill payment directly from the bill.

Question 9

The total amount of a purchase order shows as an amount due in the vendor's register.

Question 10

The Vendor Balance Summary report shows unpaid balances for vendors.

Question 11

Reports are accessed by clicking the Gear button and are grouped into categories according to business functions.

Question 12

A budget tracks income and expenses and may be helpful for use in making business decisions.

Question 13

A company logo can be added to the company file and will appear on the Home Page and on Business Forms.

Question 14

Each product or service must be linked to an appropriate income account.

Question 15

A Delayed Charge is added to the customer's balance.

Question 16

You must pay a monthly fee to access the Test Drive Company.

Question 17

QuickBooks Online uses the cash-basis of accounting by default.

Question 18

You must Turn on Payroll in order to access the Payroll Tax Center.

Question 19

You may create Payroll Schedules in Payroll Settings.

Question 20

Additional investments made by an owner may be cash or non-cash items.

Question 21

QuickBooks Online shows the Sales Discount after Sales Taxes.

Question 22

After adding an inventory item and preparing a purchase order, you will have an Inventory Start Value for the item.

Question 23

When a bill has been recorded, you may pay it using Pay Bills or by writing a check manually.

Question 24

There are three distinct areas of information for each employee: Pay, Profile, and Employment.

Question 25

You cannot record an automatic loan payment when you reconcile a bank statement.

Question 26

Each Location of the business may use a different address and phone number.

Question 27

An owner's withdrawal is recorded as a payroll expense.

Question 28

Depreciation is recorded for the decrease in value of a fixed asset.

Question 29

The mouse is used to click on a keyboard shortcut.

Question 30

QuickBooks Online automatically calculates and inserts the 2% discount when paying for purchases from vendors.

Question 31

When you have a budget, you cannot purchase office supplies if it is over the budgeted amount.

Question 32

Classes are not allowed to use a descriptive name; such as, Store.

Question 33

Each time employees are paid, the company incurs Employer Payroll Taxes.

Question 34

When editing a paycheck, you may change anything shown in a rectangular box.

Question 35

Opening balances are only imported for Customers, Vendors, and Liabilities.

Question 36

To pay sales tax, you click the Plus icon and Checks and then write the check.

Question 37

You may prepare a budget for locations.

Question 38

An invoice may be exported to Excel.

Question 39

An Expense transaction is recorded for Petty Cash purchases.

Question 40

A prepaid expense is an asset.

Question 41

QuickBooks Online automatically transfers Net Income into Retained Earnings at the end of the year.

Question 42

QuickBooks Online Plus uses the method of inventory valuation.

A)FIFO
B)Average Cost
C)Declining Balance
D)Accelerated Use

Question 43

To erase all information entered by QuickBooks during the activation of QuickBooks Online, you all information.

A)Edit
B)Purge
C)Transfer
D)Import

Question 44

When you write a check to pay for a Bill that was recorded as a Bill, you .

A)Write a Check in QuickBooks Online
B)Handwrite a check
C)Use Pay Bills
D)Any of the above

Question 45

The Bill Payment List shows all of the checks written to pay bills.

Question 46

You may access the Inventory Quantity Adjustment form by and clicking .

A)Clicking Plus icon, Inventory Qty Adjustment in the Other column
B)Opening the item in the Products and Services List, Quantity
C)Clicking the drop-down list arrow in the item's Action column in the Products and Services List, Adjust Quantity
D)All of the above

Question 47

If the adjusting entry to transfer Net Income and Retained Earnings into the owner's capital account is made prior to the end of the year, the Balance Sheet shows .

A)Retained Earnings
B)Net Income
C)Both Net Income and Retained Earnings
D)None of the above because the Net Income and Retained Earnings have been transferred into capital

Question 48

When payment is made at the time of sale, the transaction is recorded on a(n) .

A)Invoice
B)Payment Receipt
C)Sales Receipt
D)Refund Receipt

Question 49

When an invoice is it is removed from the customer's register.

A)Voided
B)Deleted
C)Edited
D)Paid

Question 50

Changes made to an employee's pay rate will be effective .

A)For the Next Pay Period
B)Immediately
C)Next Year
D)Next Quarter

Question 51

A credit card purchase is recorded on a(n) form.

A)Invoice
B)Bill
C)Expense
D)Credit Card

Question 52

When a return is made for a Sales Receipt, a is completed.

A)Refund Receipt
B)Credit Memo
C)Sales Receipt Return
D)Voided Transaction

Question 53

A bank statement may .

A)show service charges or interest not yet recorded
B)be missing deposits in transit or outstanding checks
C)show automatic payments
D)all of the above

Question 54

You can add preferred invoice terms by editing Sales Settings.

Question 55

In the text, sales tax is charged on all inventory/product items.

Question 56

When recording an early payment discount on inventory items, you use the account.

A)Purchases Discount
B)Merchandise Discount
C)Sales Discount
D)Discount Expense

Question 57

Something that is paid for and will be used within one year is a(n)

A)Expense
B)Prepaid Expense
C)Bill
D)All of the above

Question 58

When a customer returns an item from a sale on account, a(n) is completed.

A)Credit Memo
B)Return Receipt
C)Invoice
D)Sales Receipt

Question 59

A Customer Balance Summary Report shows you the balances for all customers who owe you money.

Question 60

If a bill payment amount does not match any of the bill amounts, QuickBooks Online applies it to .

A)The newest bill
B)The oldest bill
C)Splits the amount among all bills owed to the vendor
D)Vendor Credits

Question 61

If inventory was damaged you adjust the .

A)Inventory Starting Value
B)Item in a Journal Entry
C)Quantity
D)Budget

Question 62

Payment Methods are created for .

A)Debit Cards
B)MasterCard
C)Visa
D)All of the above

Question 63

The Sales Tax Center must be set up to include .

A)Sales Tax Rates
B)Name of the Sales Tax
C)Agency collecting Sales Tax
D)All of the above

Question 64

The report that proves Assets = Liabilities + Owner's Equity is the .

A)Trial Balance
B)Income Statement
C)Profit & Loss Report
D)Balance Sheet

Question 65

The Chart of Accounts is accessed via the .

A)Transactions or Accounting tab on the Left-Navigation Bar
B)Gear icon
C)Plus (Create) icon
D)Either A or B

Question 66

The report shows details for each paycheck created and includes total wages, taxes withheld, and deductions.

A)Tax Liability
B)Payroll Summary
C)Employee Details
D)Payroll Billing Summary

Question 67

To pay for small expenses using cash, you use the account.

A)Cash
B)Transfer
C)Petty Cash
D)Undeposited Funds

Question 68

Petty Cash is funded by .

A)Writing a check in QuickBooks and cashing it at the bank
B)Making a withdrawal from checking at the bank and recording a Transfer of Funds
C)The owner putting money in the Petty Cash drawer
D)Either A or B

Question 69

Supported browsers for QuickBooks Online include .

A)Chrome
B)Internet Explorer
C)Firefox
D)All of the above

Question 70

When recording an NSF check, you include charges for .

A)Original Invoice
B)Bank Fees
C)Company Fees for NSF Checks
D)All of the above

Question 71

If you create a budget with locations, prior entries are classified as .

A)Prior to Budget
B)Not Specified
C)Unknown
D)Unbudgeted

Question 72

After editing an invoice in a closed period, you record the change in income by editing the adjusting entry.

A)For the Closing Date
B)For transferring Net Income and Retained Earnings into the Capital account
C)You do not edit anything, you record another adjusting entry
D)Both A and B

Question 73

There are hundreds of external available that integrate and work with QuickBooks Online.

A)Commands
B)Tasks
C)Apps
D)All of the above

Question 74

After you import the Chart of Accounts, you edit the and accounts to add Opening Balances and as of dates.

A)Asset and Liability
B)Asset and Income
C)Liability and Expense
D)Income and Expense

Question 75

When a customer qualifies for an early payment discount, the discount is recorded .

A)In the Sales Discount register
B)As a Journal entry
C)On a new Invoice
D)On the original Invoice

Question 76

To add a Company Logo, you import it into the Company Name section of .

A)Products and Services
B)Account and Settings
C)Custom Forms
D)All of the above

Question 77

An employee's withholding allowances are entered on the form.

A)W-2
B)W-4
C)I-9
D)All of the above

Question 78

Transactions may be categorized based on and .

A)Location and Class
B)Settings and Class
C)Locations and Settings
D)Any of the above

Question 79

Reports may be .

A)Printed
B)Exported to Excel
C)Emailed
D)All of the above

Question 80

If you donate a desk to Your Name's Beach Barkers, it is recorded in Your Name, Investment account and in .

A)Furniture: Original Cost
B)Checking
C)Store Supplies
D)Owner's Donations