Financial Accounting
Solved Exam Questions
Course Introduction
Financial Accounting introduces students to the principles, concepts, and standards used in recording, reporting, and interpreting financial information for business entities. The course covers the preparation and analysis of key financial statements such as the balance sheet, income statement, and cash flow statement. Emphasis is placed on understanding the accounting cycle, the importance of ethical financial reporting, and the role of accounting in decision-making for both internal and external stakeholders. Students will develop foundational skills in measuring business transactions, analyzing financial data, and using accounting information in real-world business scenarios.
Recommended Textbook
Computer Accounting with QuickBooks 2015 17th Edition by Donna Kay
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12 Chapters
340 Verified Questions
340 Flashcards
Source URL: https://quizplus.com/study-set/3438
Page 2
Chapter 1: Quick Tour of Quickbooks 2011
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28 Verified Questions
28 Flashcards
Source URL: https://quizplus.com/quiz/68288
Sample Questions
Q1) A business transaction is an exchange between:
A)Vendor
B)Employee
C)Customer
D)All of these Answer: D
Q2) The Home page in QuickBooks consists of all the following sections except:
A)Employee
B)Lists
C)Customer
D)Vendor Answer: B
Q3) 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
Answer: C
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Chapter 2: Customizing Quickbooks and the Chart of Accounts
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29 Verified Questions
29 Flashcards
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Sample Questions
Q1) Balance Sheet accounts are also called:
A)permanent accounts
B)temporary accounts
C)equity accounts
D)None of these
Answer: A
Q2) Which account below is not an Expense account?
A)Utilities
B)Rent
C)Accounts Payable
D)Advertising
Answer: C
Q3) Which QuickBooks version is designed for small businesses without industry specific needs?
A)QuickBooks Pro
B)QuickBooks Premier
C)QuickBooks Accountant
D)QuickBooks Enterprise Solutions
Answer: A
Page 4
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Chapter 3: Banking
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29 Flashcards
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Sample Questions
Q1) Which of the following icons appear in the Banking section of the Home page?
A)Receive Payments
B)Enter Bills
C)Write Checks
D)Pay Bills
Answer: C
Q2) When reconciling the bank statement using QuickBooks:
A)Service charges are added
B)Interest earned is subtracted
C)All deposits listed on the bank statement are selected as cleared in the Reconcile window
D)All of these
Answer: C
Q3) Briefly describe the QuickBooks "drill-down" feature and how helps companies.
Answer: The drill down feature in QuickBooks is the ability to click on an item and be taken to the supporting detail. This can help a company understand what transactions make up a number or entry in their accounting records.
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Chapter 4: Customers and Sales
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35 Verified Questions
35 Flashcards
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Sample Questions
Q1) The Customer List in QuickBooks can be accessed from all of the following except:
A)Banking section of the Home page
B)Customer section of the Home page
C)Customer Menu
D)Customer Center
Q2) Name 3 (three) reasons why a job for a customer might be "pending".
Q3) When recording a payment from a customer, if the customer does not send the full amount:
A)Record the full amount as paid and make a note in the To Do List to follow up with the customer regarding the remainder of the payment
B)You can record the partial payment but must leave the funds in the Undeposited Funds account until receiving the full payment
C)You must wait until the customer pays the full amount to record the payment
D)Enter the amount received in the Amount field in the Customer Payment window
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".
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Page 6
Chapter 5: Vendors, Purchases, and Inventory
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27 Verified Questions
27 Flashcards
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Sample Questions
Q1) Which window is used to pay sales taxes?
A)Create Invoice
B)Write Checks
C)Manage Sales Tax
D)Enter Bills
Q2) The Open Purchase Orders Report gives information about:
A)Purchase Orders for items ordered but not yet received.
B)All Purchase Orders.
C)Purchase Orders from domestic companies only.
D)Purchase Orders from foreign companies only.
Q3) Which of the following reports is typically used when counting inventory on hand?
A)Inventory Valuation Summary
B)Inventory Valuation Detail
C)Inventory Stock Status by Item
D)Physical Inventory Worksheet
Q4) Briefly describe how sales tax payments flow from customers to government entities.
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) When setting up a new employee where do you get their filing status and allowances information?
A)Form W-9
B)Form W-4
C)Form W-3
D)Form W-2
Q2) A company is required to withhold payroll taxes for:
A)Employees
B)Vendors
C)Subcontractors
D)All of these
Q3) To include a charge for labor on an invoice, labor as a service item must be recorded in the:
A)Item List
B)Vendor List
C)Inventory List
D)Employee List
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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29 Verified Questions
29 Flashcards
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Sample Questions
Q1) What is the difference between the cash basis and the accrual basis?
Q2) Which of the following determines if the account appears classified properly on the balance sheet?
A)Tax-Mapping Line
B)Account Number
C)Item Number
D)None of these
Q3) To print the General Ledger:
A)Select Chart of Accounts icon > Print Report
B)From the Company section of the Home page > select Trial Balance icon
C)Select Report Center > Accountant & Taxes, General Ledger
D)Select Company Center > Print General Ledger
Q4) 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 of these
Q5) Briefly explain 2 (two) differences between depreciation on a tax return and on a financial statement.
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Chapter 8: New Company Setup
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28 Verified Questions
28 Flashcards
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Sample Questions
Q1) Which icon does not appear in the Vendors section for service companies that do not sell inventory?
A)Receive Inventory
B)Pay Bills
C)Enter Bills
D)All of these
Q2) Name 4 (four) accounts that would commonly be used for a service company and identify the account type for each.
Q3) To customize QuickBooks after creating a company file you would:
A)Enter additional company information
B)Set QuickBooks preferences
C)Customize the Chart of Accounts
D)All of these
Q4) 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
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Chapter 9: Accounting for a Service Company
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Sample Questions
Q1) Briefly explain the difference between a permanent and a temporary account.
Q2) QuickBooks automatically closes ________________ accounts to start each new accounting year with a $0 balance in all _______________ accounts.
A)temporary; permanent
B)temporary; temporary
C)permanent; permanent
D)permanent; temporary
Q3) To print the General Ledger, select:
A)Report Center > Company & Financials > General Ledger
B)Company Center > Company & Financials > General Ledger
C)Report Center > Accountant & Taxes > General Ledger
D)Company Center > Accountant & Taxes > General Ledger
Q4) To print the Balance Sheet, select:
A)Company Center > Company & Financials
B)Report Center > Company & Financials
C)Report Center > Accountant & Taxes
D)Company Center > Accountant & Taxes
Q5) Briefly explain how to record an owner's investment in their company.
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Chapter 10: Merchandising Corporation: Sales, Purchases and Inventory
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27 Verified Questions
27 Flashcards
Source URL: https://quizplus.com/quiz/68279
Sample Questions
Q1) When recording the sale of a product, which account is decreased?
A)Inventory
B)Accounts Receivable
C)Notes Payable
D)None of these
Q2) 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
Q3) 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
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 Verified Questions
27 Flashcards
Source URL: https://quizplus.com/quiz/68278
Sample Questions
Q1) Wages paid to an employee are recorded as:
A)Payroll expense
B)Payroll liabilities
C)Payroll payable
D)Payroll revenue
Q2) Payroll taxes a company must pay are recorded as:
A)Payroll expense
B)Payroll liabilities
C)Payroll payable
D)Payroll revenue
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) 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: www.quickbooks.com
D)The IRS website: www.irs.gov
Page 13
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Chapter 12: Advanced Quickbooks Features for Accountants
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Sample Questions
Q1) To write off a transaction that was charged a sales tax:
A)use a journal entry to move the customer's balance (credit) to the Bad Debt Expense account (debit)
B)use a journal entry to move the customer's balance (credit) to Allowance for Uncollectable Accounts (debit)
C)use the Credit Memo window
D)use the Receive Payments window (Discount Info button)
Q2) When doing business in multiple currencies, QuickBooks allows you to:
A)Apply currency conversions automatically
B)Download the current currency exchange rates
C)Specify your home currency
D)All of these
Q3) QuickBooks can export reports to all of the following types for files except:
A)Numbers Document
B)Excel Document
C)Comma Delimited
D)Adobe PDF
Q4) Briefly explain the allowance method for accounting for bad debts.
Q5) Briefly explain the direct write off method for accounting for bad debts.
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