Computer Accounting with QuickBooks 2014 16e Donna Kay (Test Bank All Chapters, 100% Original Verified, A+ Grade) Answers At The End Of Each Chapter Chapter 01 1.
Which screen provides a summary of important company information? A. Company Information B. Company Snapshot C. Home Page D. Company Center
2.
In QuickBooks, how do you can enter transaction information? A. Onscreen forms and scanned images of transaction forms B. Onscreen forms and QuickBooks reports C. Onscreen Journal and scanned images of transaction forms D. Onscreen Journal and Onscreen Forms
3.
All of the following are one of the four main categories of transactions in QuickBooks except? A. Chart of Accounts B. Customers C. Vendors D. Employees
4.
Which of the following tasks is completed from the Banking section of the Home page? A. Enter credit card charges B. Pay employees C. Record bills paid D. Record payments received from customers.
5.
Which of the following tasks can be completed in the Vendor section of the Home page? A. Create Invoices B. Create Estimates C. Receive Inventory D. Receive Payments
6.
The Chart of Accounts can be accessed from which section of the Home page? A. Customer B. Banking C. Vendor D. Company
7.
To change a company name in QuickBooks, select the following from the Menu Bar: A. Company > Preferences B. Home > Edit > Preferences C. Company > My Company > Edit D. None of these
8.
Which of the following file types identifies a QuickBooks Portable file? A. .QBM B. .QBB C. .QBX D. .QBW
9.
Which one of the following activities is associated with the Customer section of the Home page? A. Pay sales tax B. Enter bills C. Record refunds and credits D. Record inventory received
10. The Home page in QuickBooks consists of all of the following sections except: A. Employee B. Lists C. Customer D. Vendor 11. The objective of an accounting information system, like QuickBooks, is to: A. Save company resources, like time and paper B. Use the computer for keeping accounting records C. Collect, summarize, and analyze data D. None of these 12. Accounting information is used to do all of the following except: A. Prepare financial statements for investors B. Prepare tax returns for the IRS C. Prepare reports for management D. Prepare meeting minutes for the board of directors 13. Your QuickBooks data can be stored in all of the following ways except: A. Online B. Backup C. Portable File D. All of these store QuickBooks data 14. A business transaction is an exchange between: A. Vendor B. Employee C. Customer D. All of these 15. Double-entry account records what is exchanged in a transaction (debits and credits). Which of the following is recorded when a company purchases (receives) a computer and pays (gives) cash? A. The computer is recorded as a credit and the cash is recorded as a credit B. The computer is recorded as a debit and the cash is recorded as a debit C. The computer is recorded as a credit and the cash is recorded as a debit D. The computer is recorded as a debit and the cash is recorded as a credit 16. The onscreen form for ordering items from a vendor looks like the paper version of a: A. Purchase Order B. Invoice C. Check D. None of these 17. Which type of QuickBooks data file allows you to enter data and transactions? A. .QBM B. .QBB C. .QBX D. .QBW 18. The QuickBooks file extension .QBM indicates the file is a: A. QuickBooks working file B. QuickBooks movable file C. QuickBooks Accountant's transfer file D. QuickBooks Accountant's working file
19. The QuickBooks file extension .QBA indicates the file is a: A. QuickBooks working file B. QuickBooks movable file C. QuickBooks Accountant's transfer file D. QuickBooks Accountant's working file 20. Which QuickBooks window allows you to add your name to the checking account? A. Chart of Accounts B. Company Information C. Company Center D. Check Register 21. The Banking section of the Home Page includes which flow chart? A. Payroll flowchart B. Bank Reconciliation flowchart C. Bill Pay flow chart D. None of these 22. Which financial statement below summarizes the financial position of a company? A. Statement of Cash Flows B. Profit & Loss Statement C. Balance Sheet D. Income Statement 23. Which financial statement below summarizes a company's earnings? A. Statement of Cash Flows B. Profit & Loss Statement C. Balance Sheet D. Income Statement 24. Which financial statement below summarizes a company's cash inflow and outflow? A. Statement of Cash Flows B. Profit & Loss Statement C. Balance Sheet D. Income Statement 25. Management reports help identify: A. Overdue customer accounts B. Least profitable product C. Most profitable product D. All of these. 26. Which icon is used to add a document on your computer into QuickBooks? A. Docs icon B. Customer icon C. Vendor icon D. All of these 27. List the 3 (three) different type of QuickBooks files. What is the purpose of each file type?
28. Name 2 (two) of the 5 centers on the QuickBooks home screen and briefly describe what kind of activity flows through those centers:
Chapter 01 Key 1.
Which screen provides a summary of important company information? A. Company Information B. Company Snapshot C. Home Page D. Company Center Accessibility: Keyboard Navigation Kay - Chapter 01 #1
2.
In QuickBooks, how do you can enter transaction information? A. Onscreen forms and scanned images of transaction forms B. Onscreen forms and QuickBooks reports C. Onscreen Journal and scanned images of transaction forms D. Onscreen Journal and Onscreen Forms Accessibility: Keyboard Navigation Kay - Chapter 01 #2
3.
All of the following are one of the four main categories of transactions in QuickBooks except? A. Chart of Accounts B. Customers C. Vendors D. Employees Accessibility: Keyboard Navigation Kay - Chapter 01 #3
4.
Which of the following tasks is completed from the Banking section of the Home page? A. Enter credit card charges B. Pay employees C. Record bills paid D. Record payments received from customers. Accessibility: Keyboard Navigation Kay - Chapter 01 #4
5.
Which of the following tasks can be completed in the Vendor section of the Home page? A. Create Invoices B. Create Estimates C. Receive Inventory D. Receive Payments Accessibility: Keyboard Navigation Kay - Chapter 01 #5
6.
The Chart of Accounts can be accessed from which section of the Home page? A. Customer B. Banking C. Vendor D. Company Accessibility: Keyboard Navigation Kay - Chapter 01 #6
7.
To change a company name in QuickBooks, select the following from the Menu Bar: A. Company > Preferences B. Home > Edit > Preferences C. Company > My Company > Edit D. None of these Accessibility: Keyboard Navigation Kay - Chapter 01 #7
8.
Which of the following file types identifies a QuickBooks Portable file? A. .QBM B. .QBB C. .QBX D. .QBW Accessibility: Keyboard Navigation Kay - Chapter 01 #8
9.
Which one of the following activities is associated with the Customer section of the Home page? A. Pay sales tax B. Enter bills C. Record refunds and credits D. Record inventory received Accessibility: Keyboard Navigation Kay - Chapter 01 #9
10.
The Home page in QuickBooks consists of all of the following sections except: A. Employee B. Lists C. Customer D. Vendor Accessibility: Keyboard Navigation Kay - Chapter 01 #10
11.
The objective of an accounting information system, like QuickBooks, is to: A. Save company resources, like time and paper B. Use the computer for keeping accounting records C. Collect, summarize, and analyze data D. None of these Accessibility: Keyboard Navigation Kay - Chapter 01 #11
12.
Accounting information is used to do all of the following except: A. Prepare financial statements for investors B. Prepare tax returns for the IRS C. Prepare reports for management D. Prepare meeting minutes for the board of directors Accessibility: Keyboard Navigation Kay - Chapter 01 #12
13.
Your QuickBooks data can be stored in all of the following ways except: A. Online B. Backup C. Portable File D. All of these store QuickBooks data Accessibility: Keyboard Navigation Kay - Chapter 01 #13
14.
A business transaction is an exchange between: A. Vendor B. Employee C. Customer D. All of these Accessibility: Keyboard Navigation Kay - Chapter 01 #14
15.
Double-entry account records what is exchanged in a transaction (debits and credits). Which of the following is recorded when a company purchases (receives) a computer and pays (gives) cash? A. The computer is recorded as a credit and the cash is recorded as a credit B. The computer is recorded as a debit and the cash is recorded as a debit C. The computer is recorded as a credit and the cash is recorded as a debit D. The computer is recorded as a debit and the cash is recorded as a credit Accessibility: Keyboard Navigation Kay - Chapter 01 #15
16.
The onscreen form for ordering items from a vendor looks like the paper version of a: A. Purchase Order B. Invoice C. Check D. None of these Accessibility: Keyboard Navigation Kay - Chapter 01 #16
17.
Which type of QuickBooks data file allows you to enter data and transactions? A. .QBM B. .QBB C. .QBX D. .QBW Accessibility: Keyboard Navigation Kay - Chapter 01 #17
18.
The QuickBooks file extension .QBM indicates the file is a: A. QuickBooks working file B. QuickBooks movable file C. QuickBooks Accountant's transfer file D. QuickBooks Accountant's working file Accessibility: Keyboard Navigation Kay - Chapter 01 #18
19.
The QuickBooks file extension .QBA indicates the file is a: A. QuickBooks working file B. QuickBooks movable file C. QuickBooks Accountant's transfer file D. QuickBooks Accountant's working file Accessibility: Keyboard Navigation Kay - Chapter 01 #19
20.
Which QuickBooks window allows you to add your name to the checking account? A. Chart of Accounts B. Company Information C. Company Center D. Check Register Accessibility: Keyboard Navigation Kay - Chapter 01 #20
21.
The Banking section of the Home Page includes which flow chart? A. Payroll flowchart B. Bank Reconciliation flowchart C. Bill Pay flow chart D. None of these Accessibility: Keyboard Navigation Kay - Chapter 01 #21
22.
Which financial statement below summarizes the financial position of a company? A. Statement of Cash Flows B. Profit & Loss Statement C. Balance Sheet D. Income Statement Accessibility: Keyboard Navigation Kay - Chapter 01 #22
23.
Which financial statement below summarizes a company's earnings? A. Statement of Cash Flows B. Profit & Loss Statement C. Balance Sheet D. Income Statement Accessibility: Keyboard Navigation Kay - Chapter 01 #23
24.
Which financial statement below summarizes a company's cash inflow and outflow? A. Statement of Cash Flows B. Profit & Loss Statement C. Balance Sheet D. Income Statement Accessibility: Keyboard Navigation Kay - Chapter 01 #24
25.
Management reports help identify: A. Overdue customer accounts B. Least profitable product C. Most profitable product D. All of these. Accessibility: Keyboard Navigation Kay - Chapter 01 #25
26.
Which icon is used to add a document on your computer into QuickBooks? A. Docs icon B. Customer icon C. Vendor icon D. All of these Accessibility: Keyboard Navigation Kay - Chapter 01 #26
27.
List the 3 (three) different type of QuickBooks files. What is the purpose of each file type? The three QuickBooks file types are: • .QBW file - This is the regular company file that has a .QBW extension. It is a QuickBooks working file that is usually saved to the hard drive (C:) of your computer. • .QBB file - This is a QuickBooks backup file. You can save a backup file to the hard drive or to other media such as USB drive or memory stick, a CD drive or a network drive. Backup files are compressed files and used only if the working file (.QBW) file fails. • .QBM file - This is a QuickBooks movable file, also called a portable file. These files are compressed and are used to email or move a company file to another computer. • .QBX and .QBA - These are files used by accountants. Kay - Chapter 01 #27
28.
Name 2 (two) of the 5 centers on the QuickBooks home screen and briefly describe what kind of activity flows through those centers: The five centers are: • Vendors - pay bills, enter bills, create purchase orders, receive inventory, etc. • Customers - create estimates, create invoices, record refunds and credits, record payments, etc. • Employees - time entry, payroll, pay liabilities, etc. • Banking - record deposits, check register, write checks, print checks, etc. • Company - items and services, chart of accounts, etc. Kay - Chapter 01 #28
Chapter 01 Summary Category Accessibility: Keyboard Navigation Kay - Chapter 01
# of Questions 26 28
Chapter 02 Student: ___________________________________________________________________________
1.
How do you access the screen to add a user and password? A. Company menu > Set Up Users and Passwords > Set Up Users B. Employees > Employee Center C. Edit menu > Preferences > Employees D. Company menu > Company Information
2.
What does the Chart of Accounts list? A. Assets, liabilities and owner's equity accounts B. Income and expense accounts C. Owner's contributions D. All of these
3.
Which account below is not an Expense account? A. Utilities B. Rent C. Accounts Payable D. Advertising
4.
What are assets? A. Resources that a company owns with future benefit B. Net worth of a company C. Amounts paid to owners D. Amounts owed to others and are future obligations
5.
The Income Statement: A. lists the accounts and account numbers B. lists a company's assets C. summarizes what a company owns and what it owes D. reports the results of a company's operations, listing income and expenses for a period of time
6.
Which of the following is a temporary account? A. Sales B. Inventory C. Accounts Payable D. Accounts Receivable
7.
An example of a non-posting account is ________. A. Employee Expense B. Inventory C. Purchase Orders Account D. Accounts Payable
8.
To add a new account to the Chart of Accounts: A. Display the Chart of Accounts, select Account, New B. From the Company menu, select New Account C. From the Home page, select New Account D. From the Lists menu, select New Account
9.
What is the purpose of a non-posting account? A. To calculate income. B. To track information necessary to the accounting information system. C. To calculate expenses. D. To identify owner's equity.
26. Briefly explain how the supplies on hand account is adjusted at the end of the period.
27. Name 2 (two) differences between accounting for a service company and a retail shop.
Chapter 10 Key 1.
After creating a new QuickBooks data file for an existing company and entering all the existing balances, use an opening adjustment to move the balance in the _________ account to the Capital Stock account. A. Uncategorized Expenses B. Uncategorized Income C. Opening Balance Equity D. None of these Accessibility: Keyboard Navigation Kay - Chapter 10 #1
2.
A law firm is an example of a _________ company. A. Service B. Retail Shop C. Manufacturing D. Product-based business Accessibility: Keyboard Navigation Kay - Chapter 10 #2
3.
When you place an order for items from a vendor, which one of the following QuickBooks forms would you use? A. Create Invoice B. Purchase Order C. Receive Inventory D. None of these Accessibility: Keyboard Navigation Kay - Chapter 10 #3
4.
When using QuickBooks, sales tax is: A. Calculated manually for each item sold B. Calculated for all items that are listed on an invoice C. Calculated automatically by QuickBooks for items flagged as taxable D. All of these Accessibility: Keyboard Navigation Kay - Chapter 10 #4
5.
Retail customers: A. Pay no sales tax B. Pay sales tax C. Pay a manufacturing tax D. Pay sales tax on labor only Accessibility: Keyboard Navigation Kay - Chapter 10 #5
6.
Inventory items received should be compared against: A. Purchase order B. Sales order C. Supplies inventory D. Sales receipt Accessibility: Keyboard Navigation Kay - Chapter 10 #6
7.
When recording the sale of a product, which account is decreased? A. Inventory B. Accounts Receivable C. Notes Payable D. None of these Accessibility: Keyboard Navigation Kay - Chapter 10 #7
8.
The purchasing cycle includes all of the following transactions except: A. Create a purchase order to order inventory B. Enter hours in the time sheet for stocking inventory C. Receive inventory items and record in the inventory account D. Enter bill in QuickBooks when bill is received Accessibility: Keyboard Navigation Kay - Chapter 10 #8
9.
When setting up an existing company in QuickBooks, which of the following opening adjustments require journal entries? A. When accounts payable opening balances create Uncategorized Expenses B. When the Customer List is created C. When payroll entries are added D. None of these Accessibility: Keyboard Navigation Kay - Chapter 10 #9
10.
The Chart of Accounts: A. Verifies the accounting system is in balance B. Helps detect errors C. Lists all accounts D. All of these Accessibility: Keyboard Navigation Kay - Chapter 10 #10
11.
To see the account numbers in the Chart of Accounts, choose: A. Edit > Preferences > Accounting > Company Preferences B. Edit > Preferences > Desktop View > Company Preferences C. Edit > Preferences > General > My Preferences D. Edit > Preferences > General > Company Preferences Accessibility: Keyboard Navigation Kay - Chapter 10 #11
12.
To add an existing opening balance to a new account, choose: A. New Account > Opening Balance B. Account Options > Enter Opening Balance C. Account > Opening Balance D. Edit Account > Enter Opening Balance Accessibility: Keyboard Navigation Kay - Chapter 10 #12
13.
The cost of the inventory items sold is tracked in what account: A. Items Sold B. Cost of Goods Sold C. Cost of Materials D. Inventory Sold Accessibility: Keyboard Navigation Kay - Chapter 10 #13
14.
When using QuickBooks, your accounting system includes which of the following steps: A. Enter vendor list B. Record transactions C. Prepare reports D. All of these Accessibility: Keyboard Navigation Kay - Chapter 10 #14
15.
If the supplies on hand at the end of January totaled $200 and the Supplies on Hand account before adjustment is $900, what would be the adjustment at month-end? A. Reduce supplies on hand by $700; increase supplies expense by $700 B. Increase supplies on hand by $900; reduce supplies expense by $900 C. Reduce supplies on hand by $200; increase supplies expense by $200 D. Increase supplies on hand by $200; reduce supplies expense by $200 Accessibility: Keyboard Navigation Kay - Chapter 10 #15
16.
To customize your settings for preferences such as estimates, time tracking, sales orders, choose Desktop View > _______. A. Company Preferences B. My Preferences C. Color Preferences D. Scheme Options Accessibility: Keyboard Navigation Kay - Chapter 10 #16
17.
A grocery store is an example of a _________ company. A. Service B. Retail C. Manufacturing D. Product-based business Accessibility: Keyboard Navigation Kay - Chapter 10 #17
18.
When creating a new QuickBooks data file for an existing company, opening balances are added when you: A. Customize the Chart of Accounts B. Add vendors to the vendor list C. Add customers to the customer list D. Add inventory the item list Accessibility: Keyboard Navigation Kay - Chapter 10 #18
19.
When creating a new QuickBooks data file for an existing company, QuickBooks automatically offsets accounts receivable balances with an entry to the: A. Uncategorized Expenses account B. Uncategorized Income account C. Opening Balance Equity account D. Capital Stock account Accessibility: Keyboard Navigation Kay - Chapter 10 #19
20.
When creating a new QuickBooks data file for an existing company, QuickBooks automatically offsets accounts payable balances with an entry to the: A. Uncategorized Expenses account B. Uncategorized Income account C. Opening Balance Equity account D. Capital Stock account Accessibility: Keyboard Navigation Kay - Chapter 10 #20
21.
When creating a new QuickBooks data file for an existing company, QuickBooks automatically offsets inventory item balances with an entry to the: A. Uncategorized Expenses account B. Uncategorized Income account C. Opening Balance Equity account D. Capital Stock account Accessibility: Keyboard Navigation Kay - Chapter 10 #21
22.
The purchasing transaction cycle for a merchandising company is: A. Create Purchase Order > Receive Inventory > Record Bill > Pay Bill > Print Check B. Create Invoice > Receive Payment > Record Deposits C. Create Purchase Order > Receive Payment > Record Deposits D. Create Invoice > Receive Inventory > Pay Bill > Record Deposits Accessibility: Keyboard Navigation Kay - Chapter 10 #22
23.
The sales transaction cycle for a merchandising company is: A. Create Purchase Order > Receive Inventory > Record Bill > Pay Bill > Print Check B. Create Invoice > Receive Payment > Record Deposits C. Create Purchase Order > Receive Payment > Record Deposits D. Create Invoice > Receive Inventory > Pay Bill > Record Deposits Accessibility: Keyboard Navigation Kay - Chapter 10 #23
24.
QuickBooks classifies the sales tax rate as a(n): A. Customer List item B. Vendor List item C. Item not stored in the accounting system D. Inventory item (Item List) Accessibility: Keyboard Navigation Kay - Chapter 10 #24
25.
Wholesale customers: A. Pay no sales tax B. Pay sales tax C. Pay a manufacturing tax D. Pay sales tax on labor only Accessibility: Keyboard Navigation Kay - Chapter 10 #25
26.
Briefly explain how the supplies on hand account is adjusted at the end of the period. The supplies on hand account is an asset account because the supplies have future value. At the end of the period, a count is done to determine what supplies were used and what amount still remain. Then, an adjusting entry is created for the supplies used during the period as a supply expense. Kay - Chapter 10 #26
27.
Name 2 (two) differences between accounting for a service company and a retail shop. A merchandising company tracks inventory and cost of goods sold, where a service company tracks services and hours per project. Also, the accounts in the chart of accounts vary, for example a service company uses the unearned revenue account and a retail shop uses the merchandise sales account. Kay - Chapter 10 #27
Chapter 10 Summary Category Accessibility: Keyboard Navigation Kay - Chapter 10
# of Questions 25 27
Chapter 11 Student: ___________________________________________________________________________
1.
To enable payroll: A. From the Company menu > Employees > Add Payroll B. From the Employee menu > Start Payroll C. From the Edit menu > Preferences > Payroll and Employees D. None of these
2.
The steps in processing payroll include all of the following activities except: A. Write Checks B. Enter Time C. Print Checks D. Create Paychecks
3.
The employer must match which of the following taxes paid by an employee: A. Medicare B. Federal Unemployment C. State Income Tax Withholding D. The employer must match all of these
4.
When creating paychecks using QuickBooks, you deduct withholdings from employees' pay for all of the following except: A. State income taxes B. Medicare C. City income taxes D. None of these
5.
When creating a new account to record a new loan, enter the loan amount as: A. an opening balance B. investment C. income D. a separate transaction
6.
All of the following are payroll tax liabilities owed to outside agencies except: A. Federal Income Taxes B. Unemployment Taxes C. Net Pay D. State Income Taxes
7.
Which order are payroll tasks are typically completed? A. Enter Time > Process Payroll Forms > Pay Employees > Pay Payroll Liabilities B. Enter Time > Pay Employees > Pay Payroll Liabilities > Process Payroll Forms C. Enter Time > Pay Payroll Liabilities > Process Payroll Forms > Pay Employees D. Enter Time > Pay Payroll Liabilities > Pay Employees > Process Payroll Forms
8.
You can obtain a copy of Circular E to use for payroll preparation from: A. The Employee section of the Home page B. The Employee Center of the Home page C. The QuickBooks website D. The IRS website
9.
The Payroll Summary report can be accessed from: A. The Employee section of the Home page B. The Reports Center > Employees & Payroll C. The Reports Center > Payroll Processing D. All of these
10. Taxes are withheld from paychecks for: A. Employees B. Independent Contractors C. Owner's withdrawals D. All of these 11. A short term loan to be repaid within one year is classified as a(n): A. Other Current Asset B. Other Current Liability C. Expense D. Owner's Due 12. The QuickBooks Tax Form Worksheets provide information to complete: A. Employee pay checks B. Sales tax forms C. Payroll tax forms D. The Income Statement 13. To view the payroll entry in the journal, go to Report Center > ________. A. Customers and Jobs B. Company and Financial C. Accountant and Taxes D. None of these 14. Which one of the following payroll services automatically calculates the tax deductions? A. QuickBooks Basic Payroll B. QuickBooks Assisted Payroll C. QuickBooks Enhanced Payroll D. All of these 15. Which form is used to manually calculate tax withholdings and payroll taxes? A. Form 940 B. Form 941 C. IRS Circular E D. None of these 16. Which icon is not in the Employees section of the Home page when a company file is set to use manual payroll calculations? A. Enter Time B. Pay Employees C. Pay Liabilities D. Payroll Forms 17. The QuickBooks Payroll Setup allows you to: A. Set employee defaults for information common to all employees B. Enter employee information C. Set the payment schedule for withholding payments D. All of these