Test Bank Docx QuickBooks Chart of Accounts Chapter 2 - QuickBooks 2019 19e Test Bank by Donna Kay. DOCX document preview.
Computer Accounting with QuickBooks 2019, 19e (Kay)
Chapter 2 QuickBooks Chart of Accounts
1) How do you access the screen to add a user and password?
A) Company Menu > Set Up Users and Passwords > Set Up Users
B) Edit Menu > Preferences > Employees
C) Employees > Employee Center
D) Company Menu > Company Information
Difficulty: 2 Medium
Learning Objective: 02-09 QuickBooks Password Protection
Accessibility: Keyboard Navigation; Screen Reader Compatible
Gradable: automatic
2) What does the Chart of Accounts list?
A) Assets, liabilities and owner's equity accounts
B) Income and expense accounts
C) Owner's contributions
D) All of the choices are correct
Difficulty: 1 Easy
Learning Objective: 02-03 Customizing Chart of Accounts (COA)
Accessibility: Keyboard Navigation; Screen Reader Compatible
Gradable: automatic
3) Which account below is not an Expense account?
A) Utilities
B) Rent
C) Accounts Payable
D) Advertising
Difficulty: 1 Easy
Learning Objective: 02-03 Customizing Chart of Accounts (COA)
Accessibility: Keyboard Navigation; Screen Reader Compatible
Gradable: automatic
4) What are assets?
A) Net worth of a company
B) Resources that a company owns with future benefit
C) Amounts paid to owners
D) Amounts owed to others and are future obligations
Difficulty: 1 Easy
Learning Objective: 02-03 Customizing Chart of Accounts (COA)
Accessibility: Keyboard Navigation; Screen Reader Compatible
Gradable: automatic
5) The Income Statement:
A) Lists the accounts and account numbers
B) Lists a company's assets
C) Summarizes the results of a company's operations, listing income and expenses
D) Summarizes what a company owns and what it owes
Difficulty: 1 Easy
Learning Objective: 02-03 Customizing Chart of Accounts (COA)
Accessibility: Keyboard Navigation; Screen Reader Compatible
Gradable: automatic
6) Which of the following is a temporary account?
A) Inventory
B) Advertising Expense
C) Accounts Payable
D) Accounts Receivable
Difficulty: 1 Easy
Learning Objective: 02-03 Customizing Chart of Accounts (COA)
Accessibility: Keyboard Navigation; Screen Reader Compatible
Gradable: automatic
7) An example of a non-posting account is ________.
A) Employee Expense Account
B) Purchase Orders Account
C) Inventory Account
D) Accounts Payable Account
Difficulty: 1 Easy
Learning Objective: 02-03 Customizing Chart of Accounts (COA)
Accessibility: Keyboard Navigation; Screen Reader Compatible
Gradable: automatic
8) To add a new account to the Chart of Accounts:
A) From the Chart of Accounts window, select Account > New
B) From the Company menu, select New Account
C) From the Home Page, select Account > New
D) From the Lists Menu, select New > Account
Difficulty: 2 Medium
Learning Objective: 02-05 Add New Accounts
Accessibility: Keyboard Navigation; Screen Reader Compatible
Gradable: automatic
9) What is the purpose of a non-posting account?
A) To calculate income.
B) To track information necessary for the accounting system.
C) To calculate expenses.
D) To identify owner's equity.
Difficulty: 2 Medium
Learning Objective: 02-03 Customizing Chart of Accounts (COA)
Accessibility: Keyboard Navigation; Screen Reader Compatible
Gradable: automatic
10) Which of the following is considered a permanent account?
A) Income Statement accounts
B) Balance Sheet accounts
C) All the choices are correct
D) None of the choices are correct
Difficulty: 2 Medium
Learning Objective: 02-03 Customizing Chart of Accounts (COA)
Accessibility: Keyboard Navigation; Screen Reader Compatible
Gradable: automatic
11) A company's office furniture is classified as what account type:
A) Expense
B) Owner's Equity
C) Fixed Asset
D) Retained Earnings
Difficulty: 1 Easy
Learning Objective: 02-11 Accounting Essentials: Chart of Accounts
Accessibility: Keyboard Navigation; Screen Reader Compatible
Gradable: automatic
12) Which of the following is not considered an income account in QuickBooks?
A) Sales
B) Rent Expense
C) Interest Revenue
D) Gain on sale
Difficulty: 1 Easy
Learning Objective: 02-03 Customizing Chart of Accounts (COA)
Accessibility: Keyboard Navigation; Screen Reader Compatible
Gradable: automatic
13) To re-sort the Chart of Accounts, first display the Chart of Accounts window, then:
A) Click on the Company heading bar
B) Click File > Sort
C) Click Account > Re-sort List
D) Right click > Sort by Name
Difficulty: 2 Medium
Learning Objective: 02-04 Display Chart of Accounts (COA)
Accessibility: Keyboard Navigation; Screen Reader Compatible
Gradable: automatic
14) Balance Sheet accounts are also called:
A) Permanent accounts
B) Temporary accounts
C) Equity accounts
D) None of the choices are correct
Difficulty: 1 Easy
Learning Objective: 02-03 Customizing Chart of Accounts (COA)
Accessibility: Keyboard Navigation; Screen Reader Compatible
Gradable: automatic
15) Income Statement accounts are also called:
A) Equity accounts
B) Permanent accounts
C) Temporary accounts
D) None of the choices are correct
Difficulty: 1 Easy
Learning Objective: 02-03 Customizing Chart of Accounts (COA)
Accessibility: Keyboard Navigation; Screen Reader Compatible
Gradable: automatic
16) Non-posting accounts:
A) Track information required for the accounting system
B) Do not appear on the Balance Sheet
C) Do not appear on the Income Statement
D) All of the choices are correct
Difficulty: 2 Medium
Learning Objective: 02-03 Customizing Chart of Accounts (COA)
Accessibility: Keyboard Navigation; Screen Reader Compatible
Gradable: automatic
17) The different types of business ownership are:
A) Sole proprietorship
B) Partnership
C) Corporation
D) All of the choices are correct
Difficulty: 1 Easy
Learning Objective: 02-11 Accounting Essentials: Chart of Accounts
Accessibility: Keyboard Navigation; Screen Reader Compatible
Gradable: automatic
18) Which of the following is an asset?
A) Mortgage Payable
B) Accounts Payable
C) Inventory
D) Unearned Revenue
Difficulty: 1 Easy
Learning Objective: 02-03 Customizing Chart of Accounts (COA)
Accessibility: Keyboard Navigation; Screen Reader Compatible
Gradable: automatic
19) Which of the following is a liability?
A) Accounts Receivable
B) An amount a company owes
C) A resource a company owns
D) Dividends
Difficulty: 1 Easy
Learning Objective: 02-03 Customizing Chart of Accounts (COA)
Accessibility: Keyboard Navigation; Screen Reader Compatible
Gradable: automatic
20) Which of the following increases owner's equity?
A) Dividends
B) Business losses
C) Business expenses
D) Business profits
Difficulty: 2 Medium
Learning Objective: 02-03 Customizing Chart of Accounts (COA)
Accessibility: Keyboard Navigation; Screen Reader Compatible
Gradable: automatic
21) Briefly explain the difference between a permanent and a temporary account.
Difficulty: 2 Medium
Learning Objective: 02-11 Accounting Essentials: Chart of Accounts
Accessibility: Keyboard Navigation; Screen Reader Compatible
Gradable: manual
22) Briefly explain the purpose and benefits of using a password for QuickBooks access.
Difficulty: 2 Medium
Learning Objective: 02-09 QuickBooks Password Protection
Accessibility: Keyboard Navigation; Screen Reader Compatible
Gradable: manual
23) Briefly explain the purpose of account numbers as used in a Chart of Accounts. List three advantages of using account numbers.
1. Each account can be uniquely identified, avoiding duplicate, repetitive accounts that have slightly differently spellings.
2. When entering transactions, accounts numbers can be used to save time.
3. Account numbers can be used as a coding system so the account number also identifies the type of account.
Difficulty: 2 Medium
Learning Objective: 02-04 Display Chart of Accounts (COA)
Accessibility: Keyboard Navigation; Screen Reader Compatible
Gradable: manual