Full Test Bank Ch17 Quick Review Guide

Computer Accounting with QuickBooks 2019, 19e (Kay)

Chapter 17 Quick Review Guide

1) You are setting up a new company using the Easy Step Interview. Which items of company information must you enter:

A) Company address

B) Company Tax ID number

C) Employee information

D) Company name

Difficulty: 2 Medium

Learning Objective: 17-01 QuickBooks Setup

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

2) In completing the Easy Step Interview, which start date do you use?

A) The current date

B) The date the company formed

C) The date you begin using QuickBooks to keep track of the company's finances

D) The first date in the current fiscal year

Difficulty: 2 Medium

Learning Objective: 17-01 QuickBooks Setup

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

3) How can you backup data in QuickBooks?

A) You should never backup data.

B) Data can be backed up manually, automatically or scheduled.

C) Only the administrator can back up data.

D) All the choices are correct.

Difficulty: 1 Easy

Learning Objective: 17-02 QuickBooks Utilities and General Product Knowledge

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

4) If you see diamonds on lists, what does this indicate?

A) You can't move the item on the list.

B) There are secure transactions affecting this item.

C) This item cannot be changed.

D) The diamond can be clicked to move the item to a different place on the list.

Difficulty: 2 Medium

Learning Objective: 17-03 List Management

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

5) How many names can be placed on the Names List in QuickBooks Pro?

A) unlimited

B) 4,500

C) 14,500

D) 25,000

Difficulty: 2 Medium

Learning Objective: 17-03 List Management

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

6) Once a company is set up, how can the name and address be edited?

A) Go to Accountant Menu > Client Data Review

B) Choose Edit company information

C) Go to Company Menu > My Company > Edit

D) Go to Edit Menu > Preferences > General

Difficulty: 2 Medium

Learning Objective: 17-02 QuickBooks Utilities and General Product Knowledge

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

7) What type of inventory requires assembly from other items before sale?

A) Inventory Assembly

B) Inventory Group

C) Inventory Parts and Supplies

D) Non-inventory Assembly

Difficulty: 2 Medium

Learning Objective: 17-04 Items

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

8) When a customer pays cash at the time of sale, what do you record?

A) A sales receipt

B) An invoice

C) A purchase order

D) A thank you note

Difficulty: 2 Medium

Learning Objective: 17-05 Sales (Customer Transactions)

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

9) When a customer purchases goods or services but does not pay at the point of sale, what do you record?

A) An invoice

B) A purchase order

C) A reminder

D) None of the choices are correct

Difficulty: 2 Medium

Learning Objective: 17-05 Sales (Customer Transactions)

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

10) What are items used for?

A) An item can be used to create an invoice.

B) An item can help to track your sales in detail.

C) An item can represent various goods or services.

D) All the choices are correct.

Difficulty: 1 Easy

Learning Objective: 17-06 Purchases (Vendor Transactions)

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

11) If you need to enter a vendor credit, where do you begin?

A) Customers List

B) Employees List

C) Enter bill

D) Banking center

Difficulty: 2 Medium

Learning Objective: 17-06 Purchases (Vendor Transactions)

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

12) The Pay bills window can be used to:

A) Keep track of accounts payable

B) Keep track of inventory

C) Keep track of non-inventory items

D) Keep track of your outstanding checks

Difficulty: 2 Medium

Learning Objective: 17-06 Purchases (Vendor Transactions)

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

13) Which type of paycheck style do employees typically prefer?

A) Wallet

B) Electronic

C) Deluxe

D) Voucher

Difficulty: 1 Easy

Learning Objective: 17-07 Payroll (Employee Transactions)

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

14) If you open the Memorized Report List and then click Memorized Report > New Group, what are you creating?

A) A list of memorized files

B) A memorized group of reports that are useful to your business

C) Information needed by the IRS on a quarterly basis

D) Item Lists

Difficulty: 2 Medium

Learning Objective: 17-08 Reports

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

15) Subaccounts:

A) Help to show various account groups in one separate section

B) Help to keep track of finances by grouping and subtotaling categories

C) Improves efficiency in your system

D) Do not exist in QuickBooks

Difficulty: 2 Medium

Learning Objective: 17-09 Basic Accounting

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

16) Where do you find the Balance Sheet and Profit and Loss statements?

A) Accounting reports

B) Employee reports

C) Company and Financial

D) Other reports

Difficulty: 2 Medium

Learning Objective: 17-09 Basic Accounting

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

17) QuickBooks uses which basis of bookkeeping?

A) Accrual

B) Cash

C) Both accrual and cash

D) Neither accrual nor cash

Difficulty: 1 Easy

Learning Objective: 17-09 Basic Accounting

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

18) Where do you key in information about a new employee?

A) Company preferences

B) Must be keyed in each fiscal year in the employee preferences tab

C) In the Home Page

D) Payroll Info tab

Difficulty: 1 Easy

Learning Objective: 17-07 Payroll (Employee Transactions)

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

19) What does Edit > Memorize Check permit you to do?

A) Change your preferences

B) Automate the same transaction each month

C) Ensure you do not overdraw your account as it prevents you from paying bills if the balance does not cover the check

D) None of the choices are correct

Difficulty: 1 Easy

Learning Objective: 17-10 Customization/Saving Time and Shortcuts

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

20) The layout designer allows you to:

A) Change the background of your home screen

B) Change the design and location of items on your invoice

C) Only change one item per fiscal period

D) Change from cash to accrual basis of accounting

Difficulty: 3 Hard

Learning Objective: 17-10 Customization/Saving Time and Shortcuts

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

21) How do you handle the case when a customer's check is returned for non-sufficient funds?

A) Record it in purchases journal

B) Make an entry to record the money owed and an equal decrease in cash

C) Write it off as an uncollectible account

D) All the choices are correct

Difficulty: 3 Hard

Learning Objective: 17-05 Sales (Customer Transactions)

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

22) How much do you charge a delinquent customer who "bounces" a check payable to you?

A) The amount of the invoice

B) The amount of the NSF fee

C) Additional fees (if any)

D) All the choices are correct

Difficulty: 3 Hard

Learning Objective: 17-05 Sales (Customer Transactions)

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

23) List management includes:

A) Adding/deleting

B) Merging

C) Editing

D) All the choices are correct

Difficulty: 1 Easy

Learning Objective: 17-03 List Management

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

24) The two types of statements in QuickBooks are:

A) Open Transaction and Closed Transaction

B) Open Transaction and Activity Based

C) Open Transaction and Limited Transaction

D) Customer Based and Confidential

Difficulty: 3 Hard

Learning Objective: 17-05 Sales (Customer Transactions)

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

25) What two restrictions on merging occur in QuickBooks?

A) Names or different types of accounts

B) Accounts on different financial statements or negative balances

C) Accounts with credits or Contra Accounts

D) None of the choices are correct

Difficulty: 3 Hard

Learning Objective: 17-03 List Management

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic