Financial Accounting Review
Questions
Course Introduction
Financial Accounting introduces students to the fundamental concepts and practices involved in recording, summarizing, and reporting the financial transactions of a business. The course covers key topics such as the accounting cycle, preparation of financial statements, measurement of assets and liabilities, and analysis of profitability and cash flow. Emphasis is placed on understanding Generally Accepted Accounting Principles (GAAP) and their application in creating balance sheets, income statements, and statements of cash flows. Students also gain insights into ethical considerations and the role of financial information in 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
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Page 2
Chapter 1: Quick Tour of Quickbooks 2011
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27 Flashcards
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Sample Questions
Q1) The Chart of Accounts can be accessed from which section of the Home page?
A)Customer
B)Banking
C)Vendor
D)Company
Answer: D
Q2) 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 the above
Answer: C
Q3) 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
Answer: A
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Chapter 2: Customizing Quickbooks and the Chart of Accounts
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27 Flashcards
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Sample Questions
Q1) What does the Chart of Accounts list?
A)Assets, liabilities and owner's equity account
B)Income and expense accounts
C)Owner's contributions
D)All of the above
Answer: D
Q2) Which QuickBooks version is designed for mid-sized businesses?
A)QuickBooks Pro
B)QuickBooks Premier
C)QuickBooks Accountant
D)QuickBooks Enterprise Solutions
Answer: D
Q3) Balance Sheet accounts are also called:
A)equity accounts
B)temporary accounts
C)permanent accounts
D)None of the above
Answer: C
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Chapter 3: Banking
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Sample Questions
Q1) When deleting a check all of the following is true except:
A)It is better to Delete the check than Void the check in order to erase all records of the transaction
B)The deleted check no longer appears in the check register
C)QuickBooks changes the amount deducted in the check register to zero
D)All of the above are true
Answer: A
Q2) When recording a bill, QuickBooks automatically:
A)Records and expense (credit) and the obligation to pay later (debit)
B)Records and expense (debit) and the obligation to pay later (credit)
C)Reduces the liability (debit) and the checking account (credit)
D)Reduces the liability (credit) and the checking account (debit)
Answer: B
Q3) Which of the following steps will record a deposit?
A)Use the Make Deposits window.
B)Enter the information directly into the check register.
C)None of the above.
D)All the above.
Answer: D
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Page 5
Chapter 4: Customers and Sales
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Sample Questions
Q1) A Reminder Statement provides the following information, except:
A)Purchase Order details
B)Customer's previous account balance
C)Payments received from the customer
D)Customer's ending balance
Q2) When a customer is billed when the project/job reaches specified milestones, what type of billing does the company use?
A)Purchase Order billing
B)Estimates
C)Progress billing
D)Normal (end-of-job) billing
Q3) Sales in QuickBooks can be recorded with all the following means of payment, except:
A)Cash
B)Check
C)Credit Card
D)Purchase Order
Q4) Briefly explain the difference between creating a sales receipt and creating an invoice.
Q5) Name 3 (three) reasons why a job for a customer might be "pending".
Page 6
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Chapter 5: Vendors, Purchases, and Inventory
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27 Flashcards
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Sample Questions
Q1) 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
Q2) Which one of the following is usually classified as an inventory item?
A)Goods purchased for resale to customers
B)Items purchased and the quantity on hand does not need to be tracked
C)Items purchased and used by the company such as office supplies
D)Items purchased for a specific customer job
Q3) All the times below are when you can receive a bill except:
A)When receiving a service
B)When submitting a purchase order
C)When receiving inventory
D)After receiving inventory
Q4) What are Inventory Items, Non-inventory items, and Services? Provide examples.
Q5) Briefly describe how sales tax payments flow from customers to government entities.
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Chapter 6: Employees and Payroll
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Sample Questions
Q1) All of the following automatically calculate payroll tax withholdings in QuickBooks except:
A)Basic Payroll
B)Assisted Payroll
C)Enhanced Payroll
D)All of the above automatically calculate payroll tax withholdings
Q2) When tracking time for subcontractors, which QuickBooks window is used to enter subcontractor information?
A)Vendor List
B)Item List
C)Payroll Setup
D)Employee List
Q3) 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
Q4) Name 3 (three) types of payroll liabilities and indicate who funds each one.
Q5) Briefly describe what the "Time by Job" project reports tell management.
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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) 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
Q3) The Income Statement lists:
A)Net Income and Owner's Equity
B)Income and Expenses
C)Assets and Liabilities
D)Assets and Expenses
Q4) 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
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Chapter 8: New Company Setup
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Sample Questions
Q1) The steps to set up a new service company in QuickBooks with no employees are:
A)Easy Step Interview > Customer List > Vendor List > Item List
B)Setup Chart of Accounts > Easy Step Interview > Customer List > Vendor List > Item List
C)Easy Step Interview > Customize Chart of Accounts > Customer List > Vendor List > Item List.
D)Easy Step Interview > Customer List > Vendor List > Item List > Customize Chart of Accounts
Q2) QuickBooks creates a Chart of Accounts for your company based on:
A)Company address
B)Industry type
C)Your Federal ID Tax number
D)None of the above
Q3) Name 4 (four) accounts that would commonly be used for a service company and identify the account type for each.
Q4) To create a new company data file in QuickBooks, use the:
A)Company menu > New Company
B)Company section of the Home page > New Company
C)File menu > Open or Copy Company
D)File menu > New Company
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Chapter 9: Accounting for a Service Company
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Sample Questions
Q1) To print multiple checks at one time, use:
A)Banking menu > Write Checks > Print Checks
B)Vendor menu > Print Forms > Print Checks
C)File menu > Print Forms > Checks
D)Banking menu > Print Forms > Checks
Q2) To print the Profit & Loss report, select:
A)Report Center > Company & Financials
B)Report Center > Accountant & Taxes
C)Company Center > Company & Financials
D)Company Center > Accountant & Taxes
Q3) When customer payments are recorded in the Receive Payments window, QuickBooks records:
A)An increase in the Checking account.
B)An increase in Undeposited Funds account.
C)An increase in Accounts Receivable.
D)An increase in Sales
Q4) Briefly explain how to record an owner's investment in their company.
Q5) Briefly explain the difference between a permanent and a temporary account.
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Chapter 10: Merchandising Corporation: Sales, Purchases and Inventory
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Sample Questions
Q1) 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
Q2) 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
Q3) 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 the above
Q4) Briefly explain how the supplies on hand account is adjusted at the end of the period.
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Q5) Name 2 (two) differences between accounting for a service company and a retail shop.
Chapter 11: Merchandising Corporation: Payroll
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Sample Questions
Q1) Which form is used to manually calculate tax withholdings and payroll taxes?
A)Form 490
B)Form 491
C)IRS Circular E
D)None of the above
Q2) Payroll taxes a company must pay are recorded as:
A)Payroll expense
B)Payroll liabilities
C)Payroll payable
D)Payroll revenue
Q3) Wages paid to an employee are recorded as:
A)Payroll expense
B)Payroll liabilities
C)Payroll payable
D)Payroll revenue
Q4) 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 the above
13
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Chapter 12: Advanced Quickbooks Features for Accountants
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Sample Questions
Q1) To print a budget:
A)From the Report Center, select Budgets
B)From the Company Center, select Company & Financials, Budgets
C)From the Report Center, select Company & Financials, Budgets
D)From the Report Center, select Accountant & Taxes, Budgets
Q2) The Direct Write-off Method for bad debts:
A)Removes a customer's uncollectible account receivable and records a bad debt expense and is recorded at the time a specific customer's account becomes uncollectible
B)Complies with GAAP
C)Estimates bad debt expense and establishes an allowance or reserve for uncollectible D)None of the above
Q3) Briefly explain the allowance method for accounting for bad debts.
Q4) Customer payments received on progress invoices are:
A)Recorded using the Check Register
B)Recorded using the Statement icon in the Customer section of the Home page
C)Recorded in the same manner as customer payments for standard invoices
D)Recorded using the Progress Invoices icon in the Customer section of the Home page
Page 14
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