Small Business Accounting Study
Guide Questions
Course Introduction
Small Business Accounting introduces students to the fundamental principles and practices essential for managing the finances of a small business. The course covers topics such as bookkeeping, financial statement preparation, budgeting, cash flow management, payroll, and tax considerations unique to small enterprises. Emphasis is placed on practical skills using accounting software and manual methods to record transactions, track expenses, and monitor profitability. Students will learn how to interpret financial information to make informed decisions and ensure regulatory compliance, providing a solid foundation for successfully operating or advising a small business.
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) Which type of QuickBooks data file allows you to enter data and transactions?
A).QBM
B).QBB
C).QBX
D).QBW
Answer: D
Q2) 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
Q3) 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
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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) 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
Answer: A
Q2) 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
Answer: A
Q3) An example of a non-posting account is ________.
A)Employee Expense
B)Inventory
C)Purchase Orders Account
D)Accounts Payable
Answer: C
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Chapter 3: Banking
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29 Verified Questions
29 Flashcards
Source URL: https://quizplus.com/quiz/68286
Sample Questions
Q1) When recording a bill, QuickBooks automatically:
A)Records an expense (credit) and the obligation to pay later (debit)
B)Records an 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
Q2) Which of the following statements is true?
A)To conserve resources, it is best if the owner uses one Checking account for both personal and business purposes
B)To maintain separation between the personal and business accounting records, the owner's personal Checking account should not be used to pay bills for the business and should not be listed in the business' Chart of Accounts
C)To maintain more consistent records, it is best if the owner maintains a separate personal Checking account, but both the owner's personal Checking and business Checking accounts are listed in the Chart of Accounts
D)None of these
Answer: B
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Page 5
Chapter 4: Customers and Sales
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35 Verified Questions
35 Flashcards
Source URL: https://quizplus.com/quiz/68285
Sample Questions
Q1) The Undeposited Funds account:
A)Partial payments received from customers
B)Holds funds received but not deposited in the bank
C)Funds the company owes vendors
D)Petty Cash funds
Q2) Which report provides information on customers who have overdue accounts?
A)Accounts Receivable Aging Summary
B)Accounts Receivable Aging Detail
C)Customers with Open Invoices
D)Collections Report
Q3) 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 Pre-billing
C)Progress billing
D)Normal (end-of-job) billing
Q4) Name 3 (three) reasons why a job for a customer might be "pending".
Q5) Name 3 (three) reasons why a job for a customer might be "pending".
Q6) Briefly explain the difference between creating a sales receipt and creating an invoice.
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Chapter 5: Vendors, Purchases, and Inventory
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27 Verified Questions
27 Flashcards
Source URL: https://quizplus.com/quiz/68284
Sample Questions
Q1) How does QuickBooks categorize items?
A)Non-inventory items
B)Inventory items
C)Service items
D)All of these
Q2) Which one of the following activities is not shown in the Vendor section of the Home page?
A)Write Checks
B)Pay Sales Taxes
C)Pay Bills
D)Purchase Orders
Q3) If you received inventory without a bill, once the bill has arrived you could do all of the following, except:
A)Enter the bill against the inventory already recorded
B)Enter the inventory and then enter the bill separately
C)Enter the bill and wait for the inventory to arrive
D)Enter the inventory and bill at the same time
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
Source URL: https://quizplus.com/quiz/68283
Sample Questions
Q1) Name 3 (three) types of payroll liabilities and indicate who funds each one.
Q2) Which of the following may be billed to a specific customer job?
A)Mileage
B)Hours
C)Expenses
D)All of these
Q3) All of the following are QuickBooks Payroll Services, except:
A)Basic
B)Assisted
C)Advanced
D)Enhanced
Q4) The following are payroll liabilities except:
A)Federal income taxes
B)Unemployment taxes
C)Sales taxes
D)FICA
Q5) Briefly describe what the "Time by Job" project reports tell management.
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Page 8
Chapter 7: Reports and Graphs
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29 Verified Questions
29 Flashcards
Source URL: https://quizplus.com/quiz/68282
Sample Questions
Q1) The Income Tax Preparation report:
A)Summarizes income and expenses that should be listed on a business income tax return
B)Lists the assigned tax line for each account
C)Provides detailed information about the income and expenses
D)All of these
Q2) The Profit & Loss Statement lists:
A)Assets and Expenses
B)Assets and Liabilities
C)Net Income and Owner's Equity
D)Income and Expenses
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) What is the difference between the cash basis and the accrual basis?
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
Source URL: https://quizplus.com/quiz/68281
Sample Questions
Q1) The Vendor List contains information about:
A)Addresses, contacts and phone numbers of customers
B)Addresses, contacts and phone numbers for suppliers
C)Quantities and prices of items on hand
D)All of these
Q2) The Legal Name identifies a company for:
A)Advertising
B)Sales
C)Patents
D)All of these
Q3) Why should you customize the Chart of Accounts?
A)It's required
B)To modify it for your specific business
C)To make the system function
D)None of these
Q4) QuickBooks creates a Chart of Accounts for your company based on:
A)Industry type
B)Fiscal or calendar year
C)Federal ID Tax number
D)Company address
10
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Chapter 9: Accounting for a Service Company
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27 Verified Questions
27 Flashcards
Source URL: https://quizplus.com/quiz/68280
Sample Questions
Q1) Deposits may be recorded using the:
A)Check Register window
B)Write Checks window
C)Reconcile window
D)Print Checks window
Q2) When you record the receipt of a customer payment QuickBooks reduces _______ and increases ________.
A)Bank Account, Accounts Receivable
B)Accounts Payable, Undeposited Funds
C)Accounts Receivable, Undeposited Funds
D)Accounts Receivable, Bank Account
Q3) To record a purchase on account, use the:
A)Purchase Order > Receive Payment > Deposit
B)Invoice > Receive Payment > Deposit
C)Enter Bills > Pay Bills
D)Invoice > Enter Bills > Pay Bills
Q4) Briefly explain the difference between a permanent and a temporary account.
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) Name 2 (two) differences between accounting for a service company and a retail shop.
Q2) Briefly explain how the supplies on hand account is adjusted at the end of the period.
Q3) 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)
Q4) When recording the sale of a product, which account is decreased?
A)Inventory
B)Accounts Receivable
C)Notes Payable
D)None of these
Q5) 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
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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) List 3 (three) types for payroll liabilities and who is responsible for funding them.
Q2) 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
Q3) Payroll liabilities are based on:
A)Calendar months
B)Pay period
C)Check dates
D)The company's fiscal year
Q4) The Payroll Summary report:
A)Summarizes the amounts paid to employees
B)Summarizes the amounts paid in payroll taxes
C)May be accessed using the Reports Center
D)All of these
Q5) Briefly describe how you manually process payroll forms.
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Chapter 12: Advanced Quickbooks Features for Accountants
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27 Verified Questions
27 Flashcards
Source URL: https://quizplus.com/quiz/68277
Sample Questions
Q1) To enable progressive billing, select:
A)Customer menu > Jobs > Progressive Billing
B)Company menu > Preferences > Progressive Billing
C)Edit menu > Preferences > Jobs and Estimates > Company Preferences
D)Company menu > Estimates > Preferences
Q2) A credit card payment received against/on an open invoice would be recorded as:
A)Using the Statements icon in the Customers section of the Home page
B)Using the Receive Payments icon in the Customers section of the Home page
C)Using the Credit Card icon in the Banking section of the Home page
D)None 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) When creating a budget in QuickBooks, you can:
A)Create a budget that increases each monthly amount by a specific percentage
B)Create a budget from previous year's actual data
C)Create a budget from scratch
D)All of these
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