Advanced QuickBooks Features for Accountants Exam Prep Ch.15

Computer Accounting with QuickBooks 2019, 19e (Kay)

Chapter 15 Advanced QuickBooks Features for Accountants

1) To create a budget:

A) From the Company Center, select Company & Financials > Budgets

B) From the Edit Menu, select Preferences > Set Up Budgets

C) From the Company Menu, select Planning & Budgeting > Set Up Budgets

D) From the Banking Menu, select Planning & Budgets > Budgets

Difficulty: 2 Medium

Learning Objective: 15-03 Budgets

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

2) To print a budget:

A) From the Company Center, select Company & Financials > Budgets

B) From the Reports Center, select Budgets & Forecasts > Budget Overview

C) From the Reports Center, select Company & Financials > Budgets

D) From the Reports Center, select Accountant & Taxes > Budgets

Difficulty: 2 Medium

Learning Objective: 15-03 Budgets

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

3) 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 the choices are correct

Difficulty: 1 Easy

Learning Objective: 15-03 Budgets

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

4) Which QuickBooks feature would you use to prepare a bid for a potential customer?

A) Progress Billing

B) Enter Bills

C) Estimates

D) Invoice

Difficulty: 1 Easy

Learning Objective: 15-04 Estimates

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

5) Customer payments received on progress invoices are:

A) Recorded using the Check Register

B) Recorded using the Statement icon in the Customers 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 Customers section of the Home Page

Difficulty: 2 Medium

Learning Objective: 15-05 Progress Billing

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

6) A credit card payment received against/on an open invoice would be recorded using the:

A) Statements icon in the Customers section of the Home Page

B) Invoices icon in the Customers section of the Home Page

C) Receive Payments icon in the Customers section of the Home Page

D) Credit Card icon in the Banking section of the Home Page

Difficulty: 2 Medium

Learning Objective: 15-06 Credit Card Sales

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

7) The audit trail lists:

A) All deleted transactions

B) All changes to transactions

C) User ID of person entering transactions

D) All the choices are correct

Difficulty: 1 Easy

Learning Objective: 15-08 Audit Trail

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

8) To create an audit trail report:

A) Select Reports Center > Accountant & Taxes > Audit Trail

B) Select Reports Menu > Company & Financials > Audit Trail

C) Select the Audit Trail icon in the Company Center

D) Select the Audit Trail report from the Company section of the Home Page

Difficulty: 2 Medium

Learning Objective: 15-08 Audit Trail

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

9) The audit trail can improve which of the following?

A) Bad debt expense

B) Progress invoicing

C) Creating estimates

D) Internal control

Difficulty: 2 Medium

Learning Objective: 15-08 Audit Trail

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

10) When exporting the Audit Trail report to Excel, which of the following can be used to perform further analysis?

A) Excel Autofilter

B) Word tables

C) QuickBooks fast format

D) All the choices are correct

Difficulty: 2 Medium

Learning Objective: 15-08 Audit Trail

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

11) After displaying the QuickBooks Audit Trail report, the report can be exported to Excel using the Autofilter by selecting:

A) Excel button > Create new worksheet > Replace an existing worksheet > Advanced tab > Auto Filtering

B) Excel button > Advanced > Auto Filter

C) Export > Auto Filtering

D) None of the choices are correct

Difficulty: 3 Hard

Learning Objective: 15-08 Audit Trail

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

12) For long-term projects that are to be billed as each stage of the project is complete, the QuickBooks ________ feature should be used.

A) Progressive Projects

B) Long Term Projects

C) Progress Billing

D) Projects Billing

Difficulty: 2 Medium

Learning Objective: 15-05 Progress Billing

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

13) To write off a transaction that was charged a sales tax, use:

A) A journal entry to move the customer's balance (credit) to the Bad Debt Expense account (debit)

B) A journal entry to move the customer's balance (credit) to Allowance for Uncollectible Accounts (debit)

C) The Receive Payments window (Discount Info button)

D) The Credit Memo window

Difficulty: 3 Hard

Learning Objective: 15-07 Bad Debts

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

14) In QuickBooks, budget types include:

A) Profit & Loss

B) Balance Sheet

C) All the choices are correct

D) None of the choices are correct

Difficulty: 1 Easy

Learning Objective: 15-03 Budgets

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

15) Progress Invoicing is turned on by going to Edit > Preferences > ________

A) Bills

B) Jobs and Estimates

C) Sales and Customers

D) Time and Expenses

Difficulty: 2 Medium

Learning Objective: 15-05 Progress Billing

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

16) If the Estimates icon does not appear on your screen in QuickBooks, select:

A) Edit Menu > Preferences > Jobs and Estimates > Company Preferences

B) Customers Menu > Jobs > Estimates

C) Company Menu > Estimates > Preferences

D) Company Menu > Preferences > Estimates

Difficulty: 2 Medium

Learning Objective: 15-04 Estimates

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

17) To enable progress billing, select:

A) Customers Menu > Jobs > Progressive Billing

B) Edit Menu > Preferences > Jobs and Estimates > Company Preferences

C) Company Menu > Preferences > Progressive Billing

D) Company Menu > Estimates > Preferences

Difficulty: 2 Medium

Learning Objective: 15-05 Progress Billing

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

18) When recording a customer credit card payment on account using QuickBooks, select:

A) Create Invoice > Customer Payment > Customer & Job Name

B) Create Sales Receipt > Record Deposits

C) Receive Payment > Select Customer & Job Name > Select Payment Method and enter credit card information

D) Make Deposit > Select Customer & Job Name > Select Payment Method and enter credit card information

Difficulty: 3 Hard

Learning Objective: 15-06 Credit Card Sales

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

19) The Allowance Method for bad debts:

A) Should be used if uncollectible accounts have a material effect on the company's financial statements used by investors and creditors

B) Complies with GAAP

C) Estimates bad debt expense and establishes an allowance or reserve for uncollectible

D) All the choices are correct

Difficulty: 1 Easy

Learning Objective: 15-12 Accounting Essentials: Bad Debts

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

20) The Direct Write-off Method for bad debts:

A) Complies with GAAP

B) 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

C) Estimates bad debt expense and establishes an allowance or reserve for uncollectible

D) None of the choices are correct

Difficulty: 1 Easy

Learning Objective: 15-12 Accounting Essentials: Bad Debts

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

21) Briefly explain the direct write off method for accounting for bad debts.

Difficulty: 2 Medium

Learning Objective: 15-12 Accounting Essentials: Bad Debts

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: manual

22) Briefly explain the allowance method for accounting for bad debts.

Difficulty: 2 Medium

Learning Objective: 15-12 Accounting Essentials: Bad Debts

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: manual

23) Compare and contrast the direct write off method versus the allowance method for account for bad debts.

• Direct write-off method. This method records bad debt expense when it becomes apparent that the customer is not going to pay the amount due. If the direct write-off method is used, the customer's uncollectible account receivable is removed and bad debt expense is recorded at the time a specific customer's account becomes uncollectible. The direct write-off method is used for tax purposes.
• Allowance method. The allowance method estimates bad debt expense and establishes an allowance or reserve for uncollectible accounts. When using the allowance method, uncollectible accounts expense is estimated in advance of the write-off. The estimate can be calculated as a percentage of sales or as a percentage of accounts receivable. (For example, 2% of credit sales might be estimated to be uncollectible.) This method should be used if uncollectible accounts have a material effect on the company's financial statements used by investors and creditors.

Difficulty: 2 Medium

Learning Objective: 15-12 Accounting Essentials: Bad Debts

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: manual