2017 Test 2 Testing (Intuit QuickBooks Desktop)

Question 1

When setting a new company through the Advanced/Detailed Setup, some company information is optional and some is absolutely required. Which of the following pieces of information does QuickBooks require you to enter during the EasyStep Interview?

Answer 1

Company name

Question 2

During the Advanced/Detailed Setup, you can turn on and off which features in the EasyStep Interview?

Answer 2

All of these answers are correct

1. Sales taxes
2. Inventory
3. Progress Invoicing

Question 3

How do you set up multiple businesses in QuickBooks (assuming each business files a separate tax return)?

Answer 3

Repeat the steps you take to set up 1 company. Use Express Start or Advanced/Detailed Setup to create separate company file for each business.

Question 4

The company file you are working on is a mess. You decide to start a new file. To save time, you want to keep all the lists and preferences and just delete the transactions. How do you do this?

Answer 4

Click the File menu and select Utilities > Condense Data from the menu. Then choose the All transactions option

Question 5

Which of the following is NOT a backup option in QuickBooks?

Answer 5

All of these are QuickBooks backup options

1. Manually back up the file
2. Automatically back up the data file when closing QuickBooks
3. Schedule an unattended backup

Question 6

How do you switch to Multi-User Mode

Answer 6

Choose File > Switch to Multi-user Mode from the menu

Question 7

If you moved a list entry up or down, what happens when you add a new entry to the list?

Answer 7

QuickBooks adds new list entries to the top of the list, regardless of alphabetic order

Question 8

What keyboard shortcut allows you to see a total for all four names lists?

Answer 8

F2

Question 9

Your company no longer sells floor plans. Make the Floor Plan service item inactive.

Answer 9

Application

Question 10

You’ve just been hired by a bakery that sells delicious cup cakes. When they buy ingredients (flour, eggs, milk, and sugar), they use the Expense tab and assign the costs to a Cost of Goods Sold account. You need to set up an item for cakes. What item type should you use.

Answer 10

Non-inventory Part

Question 11

What is the purpose of Progress Invoicing?

Answer 11

To invoice from an estimate in increments.

Question 12

When reconciling you bank account in QuickBooks, what must the beginning balance match?

Answer 12

It should always match the opening balance on the paper bank statement.

Question 13

How do you track accounts payable in QuickBooks?

Answer 13

Enter a bill, and then use the Pay Bills window.

Question 14

When setting up a new employee, what is important about the Payroll info tab?

Answer 14

Whatever you enter/see in this window affects each paycheck, unless you change the information on the paycheck itself

Question 15

When would you use the Expense tab on a payroll liability check?

Answer 15

To enter late fees/penalties or interest

Question 16

Your manager wants you to prepare a Profit & Loss Standard report but doesn’t want to see subaccount details. Run a Profit & Loss Standard report and modify the report to hide subaccounts.

Answer 16

application screen

Question 17

You sent a QuickBooks report to Excel and made some changes. How do you import the changes back to QuickBooks?

Answer 17

You can’t import changes in Excel back to QuickBooks

Question 18

What happens if you double-click a diamond on a report column?

Answer 18

None of these are correct

1. QuickBooks hides the column
2. QuickBooks automatically adjusts the column width to fit the data in the column
3. QuickBooks opens a detailed report about just that column

Question 19

If you set up and track Sales Tax in QuickBooks, which category of reports contains Sales Tax reports?

Answer 19

Vendors and Payables

Question 20

Which of the following reports answers the question “What transactions make up the current balance I owe each Vendor?”

Answer 20

Vendor Balance Detail

Question 21

How do you move columns on a report?

Answer 21

Move your cursor over the column heading, and when it becomes a hand, click and drag the column to the desired position.

Question 22

What is equity?

Answer 22

Assets minus (-) liabilities.

Question 23

When entering a journal entry, what happens if the debits don’t equal the credits?

Answer 23

QuickBooks will not allow you to record the transaction

Question 24

You need to enter the same transaction each month (for example, an insurance payment). How can you automate this process in QuickBooks?

Answer 24

While in the transaction is on the screen, choose Edit > Memorize check (or the name of the transaction).

Question 25

You’ve customized an invoice and are ready to use it, but when you open the invoice QuickBooks displays the default Intuit Invoice. How do you change it?

Answer 25

On the invoice, click the Template drop-down arrow and select your customized invoice.

Question 26

What happens to the inventory asset account when you enter a purchase order for inventory?

Answer 26

No accounts are affected

Question 27

If the computer that houses your QuickBooks data crashes, what should you do?

Answer 27

Restore a back up copy of your company file

Question 28

Which of the following CANNOT be entered during the setup of a new company (Express Start or Advanced/Detailed Setup) file?

Answer 28

Trial Balance opening balances

Question 29

How do you customize QuickBooks by changing the color scheme and adding or removing icons from the Home page?

Answer 29

Choose Edit > Preferences > Desktop View

Question 30

What are other benefits of using items?

Answer 30

All of these answers are correct

1. You can track the actual quantity of goods or services you sell
2. They allow you to track a lot of detail without cluttering your Chart of Accounts
3. They can save you time by automatically entering a description and price on forms.

Question 31

What are the first two steps to set up payroll in QuickBooks?

Answer 31

1. Sign up for a payroll service; and

2. complete the Payroll Setup Interview

Question 32

When you run Financial Statements in QuickBooks, what bookkeeping basis can you use to view the report?

Answer 32

All of these answers are correct.

1. Cash Basis
2. Accrual Basis
3. You can switch the bookkeeping basis if you want

Question 33

What are the main sections of the profit & loss?

Answer 33

Income, Cost of Goods Sold, and Expenses

Question 34

When would you create an estimate in QuickBooks?

Answer 34

When a customer requests a bid, quote, or proposal

Question 35

If you associate a service item with two accounts, how does QuickBooks know which account to use on a transaction?

Answer 35

When the item is on a sales form, QuickBooks uses the account under “Sales Information” in the item setup. When it’s on a purchase form, it uses the account under “Purchase Information.”