Question 1

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

Accepted Answer

The start date in QuickBooks is the date from which you begin entering your financial transactions into the software, marking the commencement of your financial tracking within the system.

Question 2

Once an employee is hired, you may not change the pay period from semi-monthly to monthly.

Accepted Answer

Employers can change the pay period, but they must comply with state laws regarding notice to employees and frequency of payments.

Question 3

You may add employees, customers, and vendors as part of the EasyStep Interview or you may add them in the appropriate center later.

Accepted Answer

In QuickBooks, you have the flexibility to add employees, customers, and vendors during the initial setup using the EasyStep Interview or you can choose to add them later directly in their respective centers (Employee Center, Customer Center, Vendor Center).

Question 4

Adjusting entries that must be made after the company set up are _____.

Accepted Answer

Adjusting entries that must be made after the company set up often include closing entries to transfer the balances of temporary accounts (like revenues, expenses, and dividends) to permanent accounts (like retained earnings or capital). This ensures that the income statement accounts start the next accounting period with zero balances. Both closing uncategorized income and expenses to capital are part of this process, making both A and B correct.

Question 5

During the EasyStep Interview, you enter the opening balances for all expense accounts.

Accepted Answer

During the EasyStep Interview in QuickBooks, you typically enter the opening balances for balance sheet accounts (like bank accounts, assets, liabilities, and equity) rather than for income statement accounts (such as expense accounts).

Question 6

Opening balances are added to _____accounts.

Accepted Answer

Opening balances are added to balance sheet accounts, which include assets, liabilities, and equity accounts, to carry forward the ending balance of a previous accounting period into the new period.

Question 7

Report formats may be customized permanently by_____ .

Accepted Answer

Changing Reports & Graphs preferences in QuickBooks allows users to customize how their reports look and behave, which can be saved for future use, effectively customizing the report formats permanently.

Question 8

Employee deductions for medical and dental insurance may be selected_____ .

Accepted Answer

During the QuickBooks Desktop Payroll Setup is when employee deductions for medical and dental insurance can be selected. This process allows employers to configure payroll settings, including deductions for benefits like medical and dental insurance.

Question 9

Select to display employee names by last name on the_____ .

Accepted Answer

The answer of Select to display employee names by last...

Question 10

You must select all preferences during the EasyStep Interview; any changes to the preferences selected must be made by redoing the Interview.

Accepted Answer

Preferences in QuickBooks can be changed after completing the EasyStep Interview by going to the Edit menu and selecting Preferences, without redoing the Interview.

Question 11

The QuickBooks Payroll Setup is accessed to tell QuickBooks to use Manual Calculations for withholding taxes for employee paychecks.

Accepted Answer

The answer of The QuickBooks Payroll Setup is accessed to...

Question 12

When adding an employee during the Payroll Setup, the federal and state withholding allowances must be the same.

Accepted Answer

Federal and state withholding allowances can differ because they are determined by separate tax forms (e.g., W-4 for federal and potentially different forms for state taxes), and employees' situations may vary between federal and state tax obligations.

Question 13

Permanently removing the date prepared and time prepared from a balance sheet heading is done the first time you complete a balance sheet.

Accepted Answer

The date prepared and time prepared are essential elements of a balance sheet heading, indicating when the financial statement was finalized. These elements are not permanently removed after the first completion but are updated for each reporting period to reflect the current preparation date.

Question 14

If the Chart of Accounts is created during the EasyStep Interview, Account names may still be changed after the Interview is finished.

Accepted Answer

Account names in the Chart of Accounts can be edited or changed after the EasyStep Interview is completed, allowing for customization and updates as needed.

Question 15

Accounts that are listed individually but are grouped together under a main account are called____ .

Accepted Answer

Subaccounts are individual accounts that are grouped under a main account, allowing for more detailed tracking and organization of financial transactions.

Question 16

The use of manual calculation of payroll is indicated in____ .

Accepted Answer

QuickBooks Help provides guidance and instructions for various tasks, including manual calculations of payroll, which might be necessary for troubleshooting or when setting up payroll for the first time.

Question 17

The Customer:Job list is also known as the____

Accepted Answer

The Customer:Job list in accounting software, such as QuickBooks, is used to track individual transactions for each customer, making it equivalent to the Accounts Receivable Subsidiary Ledger. This ledger details the amounts owed by each customer, aligning with the purpose of the Customer:Job list.

Question 18

When using the EasyStep Interview to set up income and expenses, QuickBooks creates accounts that are typically used for your type of business.

Accepted Answer

QuickBooks uses the information provided during the EasyStep Interview to create a set of income and expense accounts that are commonly used by businesses in your industry, making the setup process more streamlined and tailored to your specific business needs.

Question 19

Select_____ Preferences to indicate the account to use to pay the payroll.

Accepted Answer

The answer of Select_____ Preferences to indicate the account to...

Question 20

To begin the company creation using the QuickBooks Setup, click the ____.

Accepted Answer

The correct choice is "Detailed Start button" because in QuickBooks, when starting a new company file, you use the Detailed Start option to enter comprehensive information about your company.

Quiz 9: Creating a Company in Quickbooks