Test Bank Docx 19e QuickBooks Service Company Chapter.11

Computer Accounting with QuickBooks 2019, 19e (Kay)

Chapter 11 QuickBooks Service Company

1) Which tax form would you select for a Subchapter S corporation?

A) Form 1120

B) Form 1120S

C) Form 1040

D) Schedule S

Difficulty: 2 Medium

Learning Objective: 11-03 Create New Company

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

2) To create a new company data file in QuickBooks, use the:

A) Company Menu > New Company

B) Company section of the Home Page > New Company

C) File Menu > New Company

D) File Menu > Open or Copy Company

Difficulty: 2 Medium

Learning Objective: 11-03 Create New Company

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

3) When setting up a new company, QuickBooks automatically creates:

A) Customers List

B) Vendors List

C) Chart of Accounts

D) Employee List

Difficulty: 2 Medium

Learning Objective: 11-03 Create New Company; 11-10 Customize Chart of Accounts

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

4) To edit an account in the Chart of Accounts:

A) From the Company Center > Edit Chart of Accounts

B) From the Chart of Accounts window > Account > Edit Account

C) From the Chart of Accounts window > Account > New Account

D) From the Company Menu > New Account

Difficulty: 2 Medium

Learning Objective: 11-10 Customize Chart of Accounts

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

5) Which icon does not appear in the Vendors section for service companies that do not sell inventory?

A) Purchase Orders

B) Pay Bills

C) Enter Bills

D) All the choices are correct

Difficulty: 2 Medium

Learning Objective: 11-09 Customize QuickBooks

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

6) To display account numbers in the Chart of Accounts, select:

A) Edit > Options

B) Company > Preferences

C) Edit > Preferences

D) Company > Accounts

Difficulty: 2 Medium

Learning Objective: 11-10 Customize Chart of Accounts

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

7) The Vendors 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 the choices are correct

Difficulty: 2 Medium

Learning Objective: 11-06 Add The Products and Services You Sell

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

8) The Customers List contains information about:

A) The quantity of non-inventory parts on hand

B) The credit rating of the vendors

C) Vendors from whom the company buys products and services

D) Customer addresses, contacts and phone numbers

Difficulty: 2 Medium

Learning Objective: 11-06 Add The Products and Services You Sell

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

9) Which tax form would you select for a Partnership?

A) Form 1120

B) Form 1120S

C) Form 1065

D) Form 1040S

Difficulty: 2 Medium

Learning Objective: 11-03 Create New Company

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

10) Which tax form would you select for a Corporation?

A) Form 1120

B) Form 1120S

C) Form 1065

D) Form 1040S

Difficulty: 2 Medium

Learning Objective: 11-03 Create New Company

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

11) An account's tax line determines where QuickBooks lists the account balances on the:

A) Income Statement

B) Statement of Cash Flows

C) Income Tax Summary Report

D) Balance Sheet

Difficulty: 2 Medium

Learning Objective: 11-10 Customize Chart of Accounts

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

12) QuickBooks creates a Chart of Accounts for your company based on:

A) Fiscal or calendar year

B) Industry type

C) Federal ID Tax number

D) Company address

Difficulty: 2 Medium

Learning Objective: 11-03 Create New Company; 11-10 Customize Chart of Accounts

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

13) When customer payments are recorded in the Receive Payments window, QuickBooks records:

A) An increase in the Checking account

B) An increase in Sales

C) An increase in Accounts Receivable

D) An increase in Undeposited Funds account

Difficulty: 2 Medium

Learning Objective: 11-13 Customer and Sales Transactions

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

14) When customer payments are received and recorded, QuickBooks reduces the ________ account balance.

A) Accounts Receivable

B) Accounts Payable

C) Undeposited Funds

D) Checking

Difficulty: 2 Medium

Learning Objective: 11-03 Create New Company

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

15) The following are examples of possible memorized transactions except:

A) Rent payments

B) Special order for a customer

C) Insurance payments

D) Utility bills

Difficulty: 2 Medium

Learning Objective: 11-02 New QuickBooks Service Company

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

16) When closing the accounting period you:

A) Close temporary accounts at year end

B) Bring account balances up to date at year end

C) Close permanent accounts at year-end

D) All the choices are correct

Difficulty: 2 Medium

Learning Objective: 11-16 Close the Accounting Period

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

17) QuickBooks automatically closes ________ accounts to start each new accounting year with a $0 balance in all ________ accounts.

A) temporary; permanent

B) temporary; temporary

C) permanent; permanent

D) permanent; temporary

Difficulty: 2 Medium

Learning Objective: 11-16 Close the Accounting Period

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

18) Sales on account are recorded using the ________ window.

A) Make Deposits

B) Sales Receipts

C) Create Invoices

D) Receive Items

Difficulty: 2 Medium

Learning Objective: 11-13 Customer and Sales Transactions

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

19) To record receiving a bill for services to be paid at a later time, use the following:

A) Purchase Order > Receive Payment > Deposit

B) Invoice > Receive Payment > Deposit

C) Enter Bills > Pay Bills

D) Invoice > Enter Bills > Pay Bills

Difficulty: 2 Medium

Learning Objective: 11-12 Vendor and Expense Transactions

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

20) To record a sales transaction, use the following:

A) Create Purchase Order > Receive Payment > Make Deposit

B) Create Invoices > Receive Payment > Make Deposits

C) Create Invoices > Create Sales Receipts > Make Deposits

D) Receive Payment > Create Sales Receipts > Make Deposits

Difficulty: 2 Medium

Learning Objective: 11-13 Customer and Sales Transactions

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: automatic

21) Name at least 4 (four) types of transactions that could be entered in QuickBooks for a service company.

• Banking and Credit Card transactions
• Vendors and Expenses transactions
• Customers and Sales transactions
• Employees and Payroll transactions
• Other transactions

Difficulty: 2 Medium

Learning Objective: 11-13 Customer and Sales Transactions; 11-12 Vendor and Expense Transactions

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: manual

22) List 3 (three) questions asked by the QuickBooks EasyStep Interview.

• Do you accept credit cards?
• Do you charge sales tax?
• Would you like to add an existing bank account?
• Do you track time?

Difficulty: 2 Medium

Learning Objective: 11-03 Create New Company

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: manual

23) Briefly discuss the objectives for QuickBooks closing prior accounting periods.

Also, to prevent changes to prior periods, QuickBooks permits you to restrict access to the accounting records for past periods that have been closed.

Difficulty: 2 Medium

Learning Objective: 11-06 Add The Products and Services You Sell

Accessibility: Keyboard Navigation; Screen Reader Compatible

Gradable: manual