Financial Accounting
Practice Questions
Course Introduction
Financial Accounting introduces students to the fundamental concepts and principles of recording, classifying, and summarizing financial transactions for business organizations. The course covers the preparation and interpretation of key financial statements, including the balance sheet, income statement, and cash flow statement, in accordance with generally accepted accounting principles (GAAP). Students will also explore topics such as the accounting cycle, accruals and deferrals, asset valuation, and internal controls. Emphasis is placed on developing the analytical skills necessary to understand and use financial information for decision-making by internal and external stakeholders.
Recommended Textbook
Computer Accounting With Quickbooks Pro 2011 13th Edition by Donna Kay
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12 Chapters
338 Verified Questions
338 Flashcards
Source URL: https://quizplus.com/study-set/3437
Page 2
Chapter 1: Quick Tour of Quickbooks 2011
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27 Verified Questions
27 Flashcards
Source URL: https://quizplus.com/quiz/68276
Sample Questions
Q1) Your QuickBooks data can be stored in all the following ways except:
A)Online
B)Backup
C)Portable File
D)All of the above are ways to store QuickBooks data
Answer: D
Q2) 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
Answer: D
Q3) Management reports help identify:
A)Overdue customer accounts
B)Least profitable product
C)Most profitable product
D)All the above.
Short Answer Questions
Answer: D
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Page 3
Chapter 2: Customizing Quickbooks and the Chart of Accounts
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27 Verified Questions
27 Flashcards
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Sample Questions
Q1) To add a new account to the Chart of Accounts:
A)From the Chart of Accounts window, select Account, New
B)From the Company menu, select New Account
C)From the Chart of Accounts menu, select New Account
D)From the Lists menu, select New Account
Answer: A
Q2) Which of the following is a temporary account?
A)Sales
B)Inventory
C)Accounts Payable
D)Accounts Receivable
Answer: A
Q3) 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.
Answer: B
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Chapter 3: Banking
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27 Verified Questions
27 Flashcards
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Sample Questions
Q1) Check Register is a record of all transactions affecting the __________.
A)Payroll account
B)Petty cash account
C)Checking account
D)Taxes payable account
Answer: C
Q2) The one-step approach to bill paying:
A)Pays the bill and then records the bill later
B)Records a bill when receives and pays the bill later
C)Records and pays a bill at the same time
D)Is not supported by QuickBooks
Answer: C
Q3) All of the following tasks can be completed in the Banking section of the Home page except:
A)Pay Employees
B)Reconcile Accounts
C)Print Checks
D)Record Deposits
Answer: A
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Page 5
Chapter 4: Customers and Sales
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27 Flashcards
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Sample Questions
Q1) Which report provides information to help in tracking accounts receivable?
A)Customers with Open Invoices
B)Accounts Receivable Aging Summary
C)Collections Reports
D)All the above
Q2) Sales in QuickBooks can be recorded with all the following means of payment, except:
A)Cash
B)Check
C)Credit Card
D)Purchase Order
Q3) Which one of the following activities is not shown in the Customer section of the Home page?
A)Make Deposit
B)Receive Payments
C)Create Estimates
D)All of the above
Q4) Name 3 (three) reasons why a job for a customer might be "pending".
Q5) Briefly explain the difference between creating a sales receipt and creating an invoice.
6
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Chapter 5: Vendors, Purchases, and Inventory
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27 Flashcards
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Sample Questions
Q1) Briefly describe how sales tax payments flow from customers to government entities.
Q2) Which of the following activities and QuickBooks window used to record it is incorrect?
A)Sell goods and bill customers; Invoice
B)Record inventory information; Inventory List
C)Record vendor information; Vendor List
D)Order goods; Purchase Order
Q3) Sales taxes are:
A)Charged on sales to other retailers
B)Charged on retail sales to customers
C)Paid by the retailer on sales to customers
D)Paid by the vendor
Q4) Which report provides information on items ordered by not received?
A)Accounts Payable Aging Detail
B)Accounts Payable Aging Summary
C)Open Purchase Orders Report
D)Physical Inventory Worksheet
Q5) What are Inventory Items, Non-inventory items, and Services? Provide examples.
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Chapter 6: Employees and Payroll
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27 Verified Questions
27 Flashcards
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Sample Questions
Q1) The Payroll Center:
A)Contains the employee list
B)Manages payroll and tax information
C)Is where employees enter time worked
D)Is located in the Banking Center
Q2) Which of the following is typically used to track time for a single activity?
A)Employee Tracker
B)Stopwatch
C)Timesheet
D)QuickTime
Q3) Each year employees are sent Form ______ to summarize tax withholdings for the year.
A)1099
B)W-2
C)W-3
D)W-4
Q4) Briefly describe what the "Time by Job" project reports tell management.
Q5) Name 3 (three) types of payroll liabilities and indicate who funds each one.
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Chapter 7: Reports and Graphs
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Sample Questions
Q1) What is owner's equity?
A)What a company owes
B)What is left after the liabilities are satisfied
C)What a company owns
D)None of the above
Q2) Income tax reports in QuickBooks include all of the following except:
A)Income Tax Preparation report
B)Income Tax Detail report
C)Income Tax Summary report
D)Income Tax Mapping report
Q3) To export reports to Excel:
A)With the Report window open, click the Excel button
B)With the Report window open, click the Export button
C)With the Report window open, click the Print button
D)All the above
Q4) What is an asset?
A)What is left after the liabilities are satisfied
B)What a company owns
C)What a company owes
D)None of the above
Page 9
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Chapter 8: New Company Setup
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41 Verified Questions
41 Flashcards
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Sample Questions
Q1) To edit an account in the Chart of Accounts:
A)From the Company Center > Edit Chart of Accounts
B)From the Chart of Accounts window > right-click > New
C)From the Chart of Accounts window > Account > Edit Account
D)From the Company menu > New Account
Q2) List 3 (three) questions asked by the QuickBooks EasyStep Interview.
Q3) A company's computer is classified as what account
Q4) Which of the following type of information is not entered during the Easy Step Interview?
A)Company organization (for example, LLC, LLP, S Corporation)
B)Industry type
C)Products and services the company sells
D)QuickBooks company file password
Short Answer Questions
Q5) An account's tax line determines where QuickBooks lists the account balance on the:
A.Income Statement
B.Income Tax Summary Report
C.Balance Sheet
D.Statement of Cash Flows
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Chapter 9: Accounting for a Service Company
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Sample Questions
Q1) To record a cash purchase, use the:
A)Pay Bills
B)Write Check
C)Purchase Order
D)None of the above
Q2) When customer payments are recorded, QuickBooks reduces the ________ balance.
A)Accounts Payable.
B)Accounts Receivable.
C)Undeposited Funds.
D)Checking
Q3) Credit sales are recorded using the _________ window.
A)Make Deposits
B)Sales Receipts
C)Create Invoices
D)Receive Items
Q4) To print the Statement of Cash Flows, select:
A)Report Center > Company & Financials
B)Report Center > Accountant & Taxes
C)Company Center > Company & Financials
D)Company Center > Accountant & Taxes
11
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Chapter 10: Merchandising Corporation: Sales, Purchases and Inventory
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27 Verified Questions
27 Flashcards
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Sample Questions
Q1) 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 the above
Q2) 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
Q3) 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
Q4) Briefly explain how the supplies on hand account is adjusted at the end of the period.
Page 12
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Chapter 11: Merchandising Corporation: Payroll
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27 Flashcards
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Sample Questions
Q1) Payroll taxes a company must pay are recorded as:
A)Payroll expense
B)Payroll liabilities
C)Payroll payable
D)Payroll revenue
Q2) 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 the above
Q3) The steps in processing payroll include all of the following activities except:
A)Write Checks
B)Enter Time
C)Print Checks
D)Create Paychecks
Q4) List 3 (three) types for payroll liabilities and who is responsible for funding them.
Q5) Briefly describe how you manually process payroll forms.
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Chapter 12: Advanced Quickbooks Features for Accountants
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Sample Questions
Q1) The Client Data Review:
A)Helps a merchandising company track inventory
B)Helps an accountant find discrepancies between the financial statements and account balances
C)Identifies payments and credits applied to bills
D)All of the above
Short Answer Questions
Q2) The audit trail lists:
A)All deleted transactions
B)All changes to transactions
C)User ID of person entering transactions
D)All of the above
Q3) A credit card payment received against/on an open invoice would be recorded as:
A)Using the Statements icon in the Customer section of the Home page
B)Using the Receive Payments icon in the Customer section of the Home page
C)Using the Credit Card icon in the Banking section of the Home page
D)None of the above
Q4) Briefly explain the direct write off method for accounting for bad debts.
Q5) Briefly explain the allowance method for accounting for bad debts.
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