QuickBooks Reports Ch10 Exam Questions

Computer Accounting with QuickBooks 2019, 19e (Kay)

Chapter 10 QuickBooks Reports

1) To prepare the Balance Sheet, select:

A) Company Center > Company & Financials

B) Reports Center > Company & Financials

C) Reports Center > Accountant & Taxes

D) Company Center > Accountant & Taxes

Difficulty: 2 Medium

Learning Objective: 10-08 Financial Statements

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

2) To prepare the Profit & Loss report, select:

A) Reports Center > Company & Financials

B) Reports Center > Accountant & Taxes

C) Company Center > Company & Financials

D) Company Center > Accountant & Taxes

Difficulty: 2 Medium

Learning Objective: 10-08 Financial Statements

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

3) To prepare the Statement of Cash Flows, select:

A) Reports Center > Company & Financials

B) Reports Center > Accountant & Taxes

C) Company Center > Company & Financials

D) Company Center > Accountant & Taxes

Difficulty: 2 Medium

Learning Objective: 10-08 Financial Statements

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

4) Examples of management reports for internal decision making include all of the following except:

A) Form 1099

B) Cash Budget

C) Cash Forecast

D) Accounts Receivable Aging Summary

Difficulty: 2 Medium

Learning Objective: 10-10 Management Reports

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

5) Income tax reports in QuickBooks include all of the following except:

A) Income Tax Preparation report

B) Income Tax Detail report

C) Income Tax Summary report

D) Income Tax Mapping report

Difficulty: 2 Medium

Learning Objective: 10-09 Tax Reports

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

6) To prepare the entire Journal, select:

A) Reports Center > Accountant & Taxes > Journal

B) Company Center > Company & Financials > Journal

C) Reports Center > Company & Financials > Journal

D) Company Center > Accountant & Taxes > Journal

Difficulty: 2 Medium

Learning Objective: 10-08 Financial Statements

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

7) The Income Statement lists:

A) Net Income and Owner's Equity

B) Income and Expenses

C) Assets and Liabilities

D) Assets and Expenses

Difficulty: 1 Easy

Learning Objective: 10-08 Financial Statements

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

8) Which one of the following classifications is found on the Statement of Cash Flows?

A) Cash Flows from Operating Activities

B) Cash Flows from Purchasing Activities

C) Cash Flows from Owner's Activities

D) Cash Flows from Selling Activities

Difficulty: 1 Easy

Learning Objective: 10-08 Financial Statements

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

9) What is owner's equity?

A) What a company owes

B) What remains after liabilities are satisfied

C) What a company owns

D) None of the choices are correct

Difficulty: 1 Easy

Learning Objective: 10-08 Financial Statements

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

10) On the Statement of Cash Flows, cash inflows and outflows to and from investors and creditors are categorized as cash flows from:

A) Investing activities

B) Financing activities

C) Owner activities

D) Operating activities

Difficulty: 2 Medium

Learning Objective: 10-08 Financial Statements

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

11) The Profit & Loss Statement lists:

A) Assets and Expenses

B) Assets and Liabilities

C) Net Income and Owner's Equity

D) Income and Expenses

Difficulty: 1 Easy

Learning Objective: 10-08 Financial Statements

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

12) What information does the Balance Sheet provide?

A) A summary of cash inflows and outflows over a specific time period

B) A company's financial position on a specific date

C) Sales and expenses for a specific time period

D) None of the choices are correct

Difficulty: 1 Easy

Learning Objective: 10-08 Financial Statements

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

13) The Statement of Cash Flows lists:

A) Operating, Investing, and Financing Activity

B) Assets, Liabilities, and Owner's Equity

C) Income, Expenses, Liabilities

D) Gains, Losses, and Net Income

Difficulty: 1 Easy

Learning Objective: 10-08 Financial Statements

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

14) 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 the choices are correct

Difficulty: 2 Medium

Learning Objective: 10-10 Management Reports; 10-09 Tax Reports; 10-08 Financial Statements; 10-04 Trial Balance; 10-05 Adjusting Entries; 10-06 Adjusted Trial Balance; 10-12 Back Up QuickBooks Files

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

15) The Balance Sheet lists:

A) Assets, Liabilities, and Owner's Equity

B) Gains, Losses, and Net Income

C) Operating, Investing, and Financing Activity

D) Income, Expenses, Liabilities

Difficulty: 1 Easy

Learning Objective: 10-08 Financial Statements

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

16) Which of the following determines if the account appears classified properly on the balance sheet?

A) Tax-Mapping Line

B) Account Type

C) Item Number

D) None of the choices are correct

Difficulty: 2 Medium

Learning Objective: 10-08 Financial Statements

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

17) Providing information to external users for decision making is the purpose of which of the following?

A) Management reports

B) Tax forms

C) Financial statements

D) Inventory reports

Difficulty: 1 Easy

Learning Objective: 10-08 Financial Statements; 10-05 Adjusting Entries

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

18) Providing information to internal users for decision making is the purpose of which of the following?

A) Management reports

B) Tax forms

C) Financial statements

D) Vendors list

Difficulty: 1 Easy

Learning Objective: 10-08 Financial Statements

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

19) Cash inflows and outflows related to the company's primary business are categorized as cash flows from:

A) Investing activities

B) Financing activities

C) Sales activities

D) Operating activities

Difficulty: 1 Easy

Learning Objective: 10-10 Management Reports

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

20) Cash inflows and outflows related to acquisition and disposal of long-term assets are categorized as cash flows from:

A) Investing activities

B) Financing activities

C) Sales activities

D) Operating activities

Difficulty: 2 Medium

Learning Objective: 10-04 Trial Balance; 10-06 Adjusted Trial Balance

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

21) List 3 (three) main types of financial reports and briefly explain the differences of each of the types of reports.

• Financial statements. The primary purpose of financial statements is to provide information to creditors and owners for decision making.
• Tax reports. Tax reports are used when preparing tax forms for filing with the appropriate tax agencies.
• Management reports. These reports are used by management of a company to make decisions related to the company's operations.

Difficulty: 2 Medium

Learning Objective: 10-10 Management Reports; 10-09 Tax Reports; 10-08 Financial Statements

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: manual

22) What is the primary objective of providing reports to users?

Difficulty: 2 Medium

Learning Objective: 10-08 Financial Statements

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: manual

23) Briefly explain how internal users can use management reports to make decisions. Give at least two examples of management reports and how they can be used by internal decision makers.

Examples of reports that managers use include: 

• Cash budget that projects amounts of cash that will be collected and spent in the future. (Note: A Statement of Cash Flows focuses on cash inflows and outflows in the past. A Cash Budget focuses on expected cash flows in the future.)
• Accounts receivable aging report that lists the age and balance of customer accounts receivable so accounts are collected in a timely manner.

Difficulty: 2 Medium

Learning Objective: 10-13 Accounting Essentials: Financial Reports

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: manual