Question 1

A bill can be paid by check or credit card.

Accepted Answer

A bill can typically be paid using various payment methods, including both check and credit card, depending on the payee's accepted payment options.

Question 2

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

Accepted Answer

A Sales Receipt is prepared for cash sales because the transaction does not involve extending credit to the customer, hence no accounts receivable are created.

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.

Accepted Answer

QuickBooks Desktop allows users to customize report formats as a preference, and once set, it will automatically apply this custom format to reports generated from the Report Center or the Reports menu, enhancing consistency and efficiency in reporting.

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.

Accepted Answer

When a bank reconciliation is completed, any service charges or interest earned that were entered during the reconciliation process are typically recorded automatically in the checking account register to ensure the account balance is accurate.

Question 5

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

Accepted Answer

In QuickBooks Desktop, if a mistake was made on an invoice for a sale on account, the invoice can be directly edited to correct the error, as long as the accounting period in which the invoice was created has not been closed.

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.

Accepted Answer

QuickBooks Desktop has a Manage Sales Tax feature that tracks sales tax liability and assists users in preparing and making sales tax payments to the appropriate tax collecting agencies.

Question 7

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

Accepted Answer

If a customer is marked as taxable in a system that supports sales tax calculation, the system will automatically calculate and apply the appropriate sales tax to inventory items on an invoice based on the tax settings and rates configured in the system.

Question 8

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

Accepted Answer

In a sole proprietorship, the owner's withdrawals are recorded as draws against their equity, not as transactions with a vendor, since the owner is not considered a separate entity for these transactions.

Question 9

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

Accepted Answer

A purchase order is not automatically closed upon a partial receipt of merchandise; it typically remains open until the full order quantity has been received or the order is manually closed.

Question 10

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

Accepted Answer

QuickBooks Desktop does not automatically deduct credits before calculating sales discounts; users must manually apply credits to invoices.

Question 11

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

Accepted Answer

Purchase discounts are reductions in the amount owed to a supplier for goods or services purchased on credit and are typically recorded as a reduction of the cost of goods purchased, not as an expense.

Question 12

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

Accepted Answer

A commented report does not necessarily need to be saved before printing; it can be printed directly without saving.

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.

Accepted Answer

QuickBooks Desktop allows users to combine multiple tax liabilities into a single check when paying them to the same agency, rather than generating separate checks for each liability.

Question 14

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

Accepted Answer

The Payroll Liability Balances Report simply shows the amounts owed for payroll liabilities; it does not process or generate the checks for their payment.

Question 15

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

Accepted Answer

The start date in QuickBooks Desktop is the date from which you begin entering financial transactions into the software, marking the beginning of your financial records in the system.

Question 16

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

Accepted Answer

QuickBooks Desktop allows users to manually write checks and enter the transaction details into the software, in addition to printing checks directly from 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.

Accepted Answer

The Discount Info button on the Receive Payments window is used to apply discounts to invoices being paid, but clicking "Cancel" would not apply the discount; it would likely cancel the operation or close the window.

Question 18

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

Accepted Answer

The answer of To close the balances of the Uncategorized...

Question 19

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

Accepted Answer

A credit received for the return of merchandise can indeed be applied to reduce the amount owed on subsequent payments to the vendor, effectively using the credit to offset part of the payment due.

Question 20

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

Accepted Answer

The answer of A single order request can be prepared...

Quiz 10: Desktop Accounting System: Features and Functionality Overview