Full Test Bank Ch6 Vendors and Expenses

Computer Accounting with QuickBooks 2019, 19e (Kay)

Chapter 6 Vendors and Expenses

1) QuickBooks considers all of the following to be vendors except:

A) Financial institutions such as banks

B) Suppliers of inventory and supplies

C) Tax agencies such as the IRS

D) Customers purchasing goods

Difficulty: 2 Medium

Learning Objective: 06-04 Vendor List

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

2) QuickBooks considers all of the following to be vendors except: 

A) Leasing companies

B) Tax agencies such as the IRS

C) Utility companies

D) All the choices are correct

Difficulty: 2 Medium

Learning Objective: 06-04 Vendor List

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

3) Which one of the following is a vendor transaction?

A) Make deposits

B) Pay bills

C) Receive customer payments

D) Sell products to customers

Difficulty: 2 Medium

Learning Objective: 06-05 Vendor Transactions

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

4) Which one of the following is not a vendor transaction?

A) Order goods

B) Receive inventory

C) Create sales receipt

D) Receive bills

Difficulty: 2 Medium

Learning Objective: 06-05 Vendor Transactions

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

5) Which one of the following tasks is shown in the Vendors section of the Home Page?

A) Write Checks

B) Receive Payments

C) Enter Bills

D) Make Deposits

Difficulty: 2 Medium

Learning Objective: 06-03 Vendor Navigation

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

6) The Enter Bills window is used to record which one of the following transactions? 

A) Services received but not yet paid

B) Owners' investment

C) Items sold to customers

D) Customer invoices created

Difficulty: 2 Medium

Learning Objective: 06-06 Enter Bills

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

7) Which one of the following tasks is associated with the Vendors section of the Home Page?

A) Items & Services

B) Invoices

C) Receive Inventory

D) None of the choices are correct

Difficulty: 2 Medium

Learning Objective: 06-03 Vendor Navigation

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

8) Which QuickBooks window is used to record services received?

A) Create Invoice

B) Purchase Order

C) Estimates

D) Enter Bills

Difficulty: 2 Medium

Learning Objective: 06-06 Enter Bills

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

9) Which report summarizes accounts payable balances by the age of the account?

A) Accounts Receivable Aging Detail

B) Accounts Payable Aging Summary

C) Purchases by Vendor Summary

D) Purchases by Item Summary

Difficulty: 1 Easy

Learning Objective: 06-08 Vendor Reports

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

10) Which one of the following reports helps track past due bills and bills that are due shortly?

A) Customer Aging Summary

B) Accounts Payable Aging Detail

C) Accounts Receivable Aging Summary

D) Vendor Aging Report

Difficulty: 1 Easy

Learning Objective: 06-08 Vendor Reports

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

11) Vendor reports can be accessed in QuickBooks in all of the following ways except:

A) Reports Center

B) Vendors Center

C) Reports Menu

D) All the choices are correct

Difficulty: 1 Easy

Learning Objective: 06-08 Vendor Reports

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

12) Which order of tasks is used when purchasing services?

A) Enter Bills > Pay Bills

B) Enter Invoice > Write Check

C) Create Purchase Order > Receive Bill > Enter Bill > Pay Bills

D) Enter Invoice > Receive Payment > Make Deposit

Difficulty: 2 Medium

Learning Objective: 06-03 Vendor Navigation; 06-05 Vendor Transactions

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

13) What QuickBooks activity comes next in this series of business activities:

Enter Bills > ________

A) Receive Payments

B) Pay Bills

C) Make Deposit

D) Enter Purchase Order

Difficulty: 1 Easy

Learning Objective: 06-03 Vendor Navigation; 06-05 Vendor Transactions

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

14) When a bill is entered into QuickBooks using the Enter Bills window, QuickBooks:

A) Decreases an Expense account and increases the Accounts Payable account

B) Increases an Expense account and increases the Accounts Payable account

C) Increases the Accounts Receivable account and increases the Income account

D) Decreases the Accounts Receivable account and decreases Accounts Payable account

Difficulty: 3 Hard

Learning Objective: 06-06 Enter Bills

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

15) When a bill is paid in QuickBooks using the Pay Bills window, QuickBooks:

A) Decreases an Expense account and decreases the Checking account

B) Increases an Expense account and increases the Accounts Payable account

C) Increases the Accounts Payable account and increases the Checking account

D) Decreases the Accounts Payable account and decreases the Checking account

Difficulty: 3 Hard

Learning Objective: 06-07 Pay Bills

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

16) Form 1099 is used to:

A) Report the amount paid to a vendor in compliance with IRS regulations

B) Report the amount received from customers in compliance with IRS regulations

C) Report the amount paid to employees in compliance with IRS regulations

D) None of the choices are correct

Difficulty: 2 Medium

Learning Objective: 06-10 Accounting Essentials: Vendors Transactions, Accounts Payable, and 1099s

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

17) All the times below are when you can receive a bill except:

A) Before receiving a service

B) When submitting a purchase order

C) At the time of providing a service

D) After receiving a service

Difficulty: 1 Easy

Learning Objective: 06-06 Enter Bills

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

18) Which one of the following is a vendor transaction?

A) Create invoices

B) Receive payments

C) Sell products

D) Enter bills

Difficulty: 1 Easy

Learning Objective: 06-05 Vendor Transactions

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

19) To view journal entries that QuickBooks creates behind the screen when you are entering and paying bills, you would select:

A) Reports Center > Accountant & Taxes > Journal

B) Reports Center > Company & Financials > General Journal

C) Company Menu > Company & Financials > General Journal

D) Company Menu > Accountant & Taxes > Journal

Difficulty: 2 Medium

Learning Objective: 06-07 Pay Bills

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

20) The journal entry behind the screen that QuickBooks creates when a bill is recorded using the Enter Bills window includes: 

A) Debit Accounts Payable, Credit Checking account

B) Debit Checking account, Credit Accounts Payable

C) Debit Expense account, Credit Accounts Payable

D) Debit Accounts Payable, Credit Expense account

Difficulty: 3 Hard

Learning Objective: 06-06 Enter Bills

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

21) Briefly explain why it is important for a company to track accounts payable and how accounts payable reports can assist with tracking accounts payable.

Difficulty: 2 Medium

Learning Objective: 06-08 Vendor Reports

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: manual

22) Explain how recording the purchase of services versus the purchase of inventory items differs in QuickBooks.

When using QuickBooks, inventory purchased is recorded using Enter Purchase Orders > Receive Inventory > Enter Bills Against Inventory > Pay Bills.

Difficulty: 2 Medium

Learning Objective: 06-05 Vendor Transactions

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: manual

23) List 3 (three) different ways to access Vendor reports using QuickBooks.

1. Vendor Center. Summarizes vendor information in one location (Access the Vendor Center by clicking the Vendors icon on the Navigation Bar.)

2. Report Center. Permits you to locate reports by type of report (Click the Reports icon on the Navigation Bar, then see Vendors & Payables, Purchases, and Inventory reports).

3. Reports Menu. Reports are grouped by type of report (See Vendors & Payables, Purchases, and Inventory reports).

Difficulty: 2 Medium

Learning Objective: 06-08 Vendor Reports

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: manual