Deck 10: Desktop Accounting System: Features and Functionality Overview

Question 1

A bill can be paid by check or credit card.

Answer 1

True

Question 2

Because cash sales do not involve accounts receivable, a Sales Receipt is prepared.

Answer 2

True

Question 3

Once a report format has been customized as a QuickBooks Desktop preference, QuickBooks Desktop will automatically use the custom format for reports prepared in the Report Center or from the Reports menu.

Answer 3

True

Question 4

Anything entered as a service charge or interest earned on a bank reconciliation will be entered automatically in the checking account register when the reconciliation is complete.

Question 5

In QuickBooks Desktop, error correction for a sale on account can be accomplished by editing the invoice.

Question 6

QuickBooks Desktop keeps track of sales tax liability and will prepare the payment of sales taxes to the appropriate agency when using the Manage Sales Tax feature of the program.

Question 7

If a customer is marked taxable, sales tax will be calculated automatically for an inventory item on an invoice.

Question 8

In a sole proprietorship an owner's name is added to the Vendor list for recording withdrawals.

Question 9

A purchase order is closed automatically when a partial receipt of merchandise is recorded.

Question 10

When receiving a payment from a customer, QuickBooks Desktop automatically deducts any credits before calculating the sales discount.

Question 11

Since purchase discounts are a cost of doing business, they are categorized as an expense.

Question 12

A Commented report must be saved before it can be printed.

Question 13

If several taxes are owed to a single agency, QuickBooks Desktop generates a separate check to the agency for each tax liability item.

Question 14

Processing the Payroll Liability Balances Report does not generate the checks for payment of the liabilities.

Question 15

The start date is the date you select to begin tracking financial information for your company in QuickBooks Desktop.

Question 16

When using QuickBooks Desktop, all checks must be printed by the computer.

Question 17

The Discount Info button on the Receive Payments window allows discounts to be applied to invoices being paid by clicking Cancel.

Question 18

To close the balances of the Uncategorized Expenses and Uncategorized Income accounts, you record a clearing transaction.

Question 19

A credit received from a vendor for the return of merchandise can be applied to a payment to the vendor.

Question 20

A single order request can be prepared and sent to several vendors.

Question 21

If a customer issues a check that is returned marked NSF, you may charge the customer the amount of the penalty charges you impose.

Question 22

As with other accounting programs, QuickBooks Desktop requires a formal closing to be performed at the end of each year.

Question 23

When a Sales Order has been prepared for a customer, the invoice should be created directly from the Sales Order.

Question 24

The Accountant's Copy of the company file is used to record day-to-day business transactions.

Question 25

The Subtotal account calculates the sales discount.

Question 26

When a correction for a transaction is made, QuickBooks Desktop changes the form used to record the transaction; all journal entries, and all account entries for the transaction.

Question 27

At the end of the fiscal year, QuickBooks Desktop transfers the net income into the Owner's Equity account and allows you to protect the data for the year by entering a closing date.

Question 28

QuickBooks Desktop prevents the deletion of an account once it has been used even if it simply contains an opening or an existing balance.

Question 29

Rather than use a traditional Purchases Journal to record transactions using debits and credits and special columns, QuickBooks Desktop uses an invoice to record sales transactions for accounts receivable in the Accounts Receivable Register.

Question 30

The total of the Vendor list/Accounts Payable ledger will match the total of the Accounts Payable account in the Chart of Accounts/General ledger.

Question 31

QuickBooks Desktop automatically applies payments received from customers on account to the most current invoice.

Question 32

You can enter payroll deductions manually when processing the payroll.

Question 33

A Sales Item List stores information about everything you purchase.

Question 34

A logo may be added to the Insights page.

Question 35

QuickBooks Desktop icons appear beneath the title bar and have a list of drop-down menus.

Question 36

In QuickBooks Desktop, the Journal is called the book of final entry.

Question 37

You may use the View menu to change from a Left Icon Bar to a Top Icon Bar.

Question 38

If a salaried employee uses vacation pay, QuickBooks Desktop will automatically distribute the correct amount of earnings to Vacation Salary once the number of vacation hours has been entered.

Question 39

At the end of the year, a closing entry to transfer the owner withdrawals from the drawing account to the capital account needs to be made.

Question 40

The accrual method of accounting matches the income of the period with the cash received for sales.

Question 41

In order to customize a(n)_______ , you must duplicate it.

A)Purchase Order
B)Sales Receipt
C)Invoice
D)All of the above

Question 42

Undeposited Funds represents __________.

A)cash sales
B)cash or checks received from customers but not yet deposited in the bank
C)the balance of the accounts receivable account
D)income earned in a previous year

Question 43

When a bill is deleted,_______ .

A)the amount is changed to 0.00
B)the word Deleted appears as the Memo
C)it is removed without a trace
D)a bill cannot be deleted

Question 44

The Vendor List can also be called the_______ .

A)Sales Journal
B)Purchases Journal
C)Accounts Payable Ledger
D)Payables schedule

Question 45

To create a new company, you use the______ .

A)File Menu
B)QuickBooks Desktop Company Preferences screen
C)Activities Menu
D)any of the above

Question 46

The amount of the sale when paid by debit and credit cards is placed into the Undeposited Funds account.When the actual bank deposit is made, the amount is deposited into the checking or bank account.

Question 47

QuickGraphs allows information to be viewed from both a sales standpoint and from an accounts receivable perspective.

Question 48

QuickMath displays______ .

A)a calculator
B)adding machine tape
C)a calculator with adding machine tape
D)none of the above

Question 49

To display employee names by last name, make the selection on the________ .

A)Payroll & Employees Preferences
B)Employee List
C)Employee Center
D)any of the above

Question 50

If you change the minimum quantity for an item, it becomes effective____________ .

A)as soon as outstanding purchase orders are received
B)the beginning of next month
C)immediately
D)the beginning of the next fiscal year

Question 51

When payroll liabilities to be paid have been selected, QuickBooks Desktop will_______ .

A)create a separate check for each liability
B)consolidate liabilities paid and create one check for each vendor
C)automatically process a Payroll Liabilities report
D)prepare any tax return forms necessary

Question 52

QuickBooks Desktop uses ________to value the inventory.

A)LIFO
B)FIFO
C)the gross profit method
D)the average cost method

Question 53

The Item List stores information for _______.

A)Purchase Orders for each item on order
B)items marked to reorder
C)each item a company sells
D)both A and B

Question 54

The account type for Merchandise Discounts should be ________.

A)income
B)cost of goods sold
C)expense
D)asset

Question 55

Customer information may be changed by editing the Chart of Accounts.

Question 56

A credit card sale is treated exactly like a________ .

A)cash sale
B)sale on account until reimbursement is received from a bank
C)sale on account
D)bank deposit

Question 57

Receipt of purchase order items is never recorded before the bill arrives.

Question 58

When recording a bill, you can _____so the same transaction is entered when recording the bill next month.

A)customize My Preferences for Bills
B)memorize a report
C)memorize a transaction
D)All of the above

Question 59

If Include Inactive is selected, inactive accounts will appear in the Chart of Accounts.

Question 60

To begin the company creation using the EasyStep Interview, click the_______ .

A)Start Interview button
B)Begin button
C)Convert Data button
D)Detailed Start button

Question 61

A customer may be added while preparing an invoice using_____-- .

A)QuickAdd
B)Setup
C)Add New
D)any of the above

Question 62

The report that proves assets = liabilities + owner's equity is the ________.

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

Question 63

QuickBooks Desktop uses graphs to illustrate information about _______.

A)the chart of accounts
B)sales
C)the cash account
D)supplies

Question 64

If an order is received with a bill but is incomplete, QuickBooks Desktop will______ .

A)record the bill for the full amount ordered
B)close the purchase order
C)not allow the bill to be prepared until all the merchandise is received
D)record the bill only for the amount received

Question 65

You may add individual information for vendors in the ______.

A)Accounts Payable Register
B)Chart of Accounts
C)Vendor Center
D)all of the above

Question 66

When entering a bill, typing the first letter(s) of a vendor's name on the vendor line_______ .

A)enters the vendor's name on the line if it is in the Vendors list
B)takes you to the vendor's account in the Vendor Center
C)displays the Transaction Info tab for the vendor
D)Indicates you want to type the vendor name completely

Question 67

When items ordered are received without a bill, you record the receipt________ .

A)on a bill
B)on an item receipt form
C)on the original purchase order
D)in the journal

Question 68

When adding a new employee after the Payroll Setup has been completed, you use the______- .

A)Employee Center
B)Employee File
C)Employee Roster
D)Employee Record

Question 69

When recording a cash sale, QuickBooks Desktop puts the money from the cash sale into the_____ until you record a deposit to a bank account.

A)Sales Ledger
B)Receipts file
C)Undeposited Funds account
D)Accounts Receivable Ledger

Question 70

Pay stub information may be printed_________ .

A)only at the end of the year
B)only when there is a voided check
C)only as an individual employee report
D)as part of a voucher check

Question 71

A paycheck differs from a regular check because______ .

A)changes are not allowed
B)it lists accounts and amounts at the bottom of the screen
C)it provides a Payroll Summary and an option to view Paycheck Detail at the bottom of the screen
D)once created, it may not be voided or deleted

Question 72

You may access QuickMath when preparing a journal entry, by pressing the________ key.

A)=
B)&
C)$
D)@

Question 73

With the Customer Balance Summary Report on the screen, it is possible to view an individual customer's information by using _________.

A)QuickReport
B)QuickZoom
C)QuickGraph
D)QuickSummary

Question 74

A backup file _________.

A)is a duplicate of the company data
B)is prepared in case of emergencies or errors
C)is restored to a .qbw file for use
D)all of the above

Question 75

If a customer has a balance for an amount owed and a return is made, a credit memo is prepared and______ .

A)a refund check is issued
B)the amount of the return may be applied to the invoice for the original sale
C)the customer determines whether to apply the amount to the invoice for the sale or get a refund check
D)any of the above

Question 76

To verify the name of the open company, look at______ .

A)the Icon bar
B)QuickBooks Navigator
C)the Menu bar
D)the Title bar

Question 77

If the adjusting entry to transfer net income/owner's equity into the owner's capital account is made prior to the end of the year, the Balance Sheet shows _______.

A)Owner's Equity
B)Net Income
C)both Net Income and Owner's Equity
D)none of the above because the income/earnings has been transferred into capital

Question 78

In accrual basis accounting, insurance is a(n)_____ until it is used.

A)expense
B)asset
C)liability
D)cost of goods sold

Question 79

Report formats may be customized_______ .

A)by clicking My Company icon
B)by customizing the business form
C)by changing Reports & Graphs Preferences
D)by selecting Customize in the Reports Center

Question 80

Entries for bank collections for a loan payment______ .

A)are automatically recorded at the completion of the bank reconciliation
B)must be recorded after the bank reconciliation is complete
C)should be recorded on the first of the month
D)should be recorded while reconciling the bank statement