GMETRIX EXAM 2

Question 1

Which menu option allows an administrator to change a password?

a. File > Set up Users and Passwords > Change Your Password

b. File > Change Your Password

c. Company > Change Your Password

d. Company > Set up Users and Passwords > Change Your Password

Answer 1

d. Company > Set up Users and Passwords > Change Your Password

Question 2

You’ve completed the setup of a QuickBooks company file, but during the company setup, you spelled the company’s name wrong. How do you fix it now?

a. Select Edit: Preferences from the menu and click General preferences. Change the address in this window.

b. Select File: EasyStep Interview from the menu. Enter the phone number in the appropriate field.

c. Select Company: My Company from the menu and click the icon.

d. Select File: Open Company from the menu and click the icon.

Answer 2

c. Select Company: My Company from the menu and click the icon.

Question 3

To be as safe as possible, where should you NOT save a backup company file?

a. QuickBooks’ built-in online hosting service
b. Your computer’s hard drive
c. A USB thumb drive
d. None of the above are any more or less safe than the other.

Answer 3

b. Your computer’s hard drive

Question 4

When you restore a backup company file, what happens?

a. QuickBooks lets you start entering new transactions in the backup company file.

b. QuickBooks is reinstalled on your computer.

c. QuickBooks deletes your old company file automatically.

d. QuickBooks creates a new working QuickBooks company file with all of the data that was in the backup company file.

Answer 4

d. QuickBooks creates a new working QuickBooks company file with all of the data that was in the backup company file.

Question 5

Why would a company switch to Multi-User Mode?

a. Multi-User Mode lets you create multiple company files in QuickBooks.

b. If a company wants multiple users to access a company file at the same time, the company file must be in Multi-User Mode.

c. Multi-User Mode allows you to send the company file to the company’s accountant

d. A company that is not in Multi-User Mode cannot add and use multiple users.

Answer 5

b. If a company wants multiple users to access a company file at the same time, the company file must be in Multi-User Mode.

Question 6

Which of the following is NOT a good reason to record a journal entry?

a. Correcting errors in the balances of accounts

b. Recording the depreciation of an asset

c. Recording a sale to a customer

d. Adjusting account balances at the end of a year

Answer 6

c. Recording a sale to a customer

Question 7

Which of the following is NOT a major edition of QuickBooks?

a. QuickBooks Enterprise Solutions
b. QuickBooks Basic
c. QuickBooks Pro
d. QuickBooks Online

Answer 7

b. QuickBooks Basic

Question 8

Which of the following situations would keep you from being able to delete something from a list?

a. The list entry appears on multiple lists.

b. The customer or vendor verified their address on a transaction you sent to them.

c. The list entry has a balance.

d. You created the list entry in a previous year.

Answer 8

c. The list entry has a balance.

Question 9

When setting up a new item, QuickBooks requires which of the following?

a. The name of the item
b. The price of the item
c. A description for the item
d. All of the above

Answer 9

d. All of the above

Question 10

What effect does a credit memo have on your bookkeeping?

a. Credit Memos are non-posting, so they don’t affect your bookkeeping.

b. It lowers the customer’s balance but doesn’t necessarily refund them.

c. It refunds a customer for a returned item or a service that didn’t work for them.

d. It creates a bill that your customer has to pay.

Answer 10

b. It lowers the customer’s balance but doesn’t necessarily refund them.

Question 11

What is the main purpose of an estimate in QuickBooks?

a. Invoices are used to enter sales with customers, and Estimates are used to enter sales with jobs.

b. It tracks how much money you’ve spent on a customer or job.

c. It is a method for sending a quote on potential prices and costs to a customer.

d. It allows you to send estimated costs to vendors before committing to a job.

Answer 11

c. It is a method for sending a quote on potential prices and costs to a customer.

Question 12

Which of the following statements best describes a Balance Forward type statement?

a. A Balance Forward statement displays all of a customer’s open statement charges.

b. A Balance Forward statement displays all sales-related transactions that affected a customer’s balance over a range of dates and what their balance was before those transactions took place.

c. A Balance Forward statement displays all of the customer’s open invoices, credit memos, and payments.

d. A Balance Forward statement shows how many expenses have been forwarded to a customer.

Answer 12

b. A Balance Forward statement displays all sales-related transactions that affected a customer’s balance over a range of dates and what their balance was before those transactions took place.

Question 13

How does a vendor credit affect your company’s balances?

a. It increases Accounts Receivable.
b. It increases the assigned bank account.
c. It decreases Accounts Payable.
d. It doesn’t. Vendor credits are non-posting.

Answer 13

c. It decreases Accounts Payable.

Question 14

If you want to enter a purchase without affecting Accounts Payable, what is one way to do that?

a. Enter a Bill for the purchase.

b. Click Write Checks and enter the purchase.

c. Enter a Sales Receipt for the purchase.

d. Accounts Payable is affected with every purchase.

Answer 14

b. Click Write Checks and enter the purchase.

Question 15

Which of the options below describes a situation in which you would need to create a new Deduction type item?

a. You need to pay an employee for something that will be tax deductible for that employee.

b. You need to set up a health insurance benefit that the company pays for.

c. You need to garnish the wages of an employee for something, such as child support.

d. You need to issue a bonus to an employee, deducting the money from your business’s bank account.

Answer 15

c. You need to garnish the wages of an employee for something, such as child support.

Question 16

Which of the following Payroll Item types should be used when setting up a bonus?

a. Liability
b. Compensation
c. Company Contribution
d. Deduction

Answer 16

b. Compensation

Question 17

When setting up an employee, what is the most efficient method for entering a Health Insurance deduction that will happen on every paycheck?

a. When paying the payroll liability, check the “Make this recurring” checkbox next to the employee’s name.

b. Every time you enter the details for a new paycheck, enter the health insurance information in the Additions and Deductions section of the Paycheck Detail screen.

c. When setting up the payroll item, assign the employee on the list of employees affected.

d. In the Employee screen, click Payroll Info, and in the Additions, Deductions, and Company Contributions section, enter the health insurance payroll item along with the amounts involved each pay period.

Answer 17

d. In the Employee screen, click Payroll Info, and in the Additions, Deductions, and Company Contributions section, enter the health insurance payroll item along with the amounts involved each pay period.

Question 18

Which of the following is a form new employees typically fill out?

a. 1040
b. 1099
c. W-2
d. W-4

Answer 18

d. W-4

Question 19

Which of the following is a method for removing a column from a report?

a. Click Customize Report and click the Fonts & Numbers tab. Deselect the column you don’t want to see.

b. Right-click the column header and select Hide Column.

c. Click Modify Report and click the Columns tab. Deselect the column you don’t want to see.

d. Click the three dots to the right of the column and drag it to the left, past the next column to the left.

Answer 19

d. Click the three dots to the right of the column and drag it to the left, past the next column to the left.

Question 20

Where do subaccounts appear on the Chart of Accounts and financial statements?

a. Underneath the parent account and in parentheses.

b. Indented and underneath the parent account.

c. To the right of the parent account.

d. Subaccounts don’t appear on the Chart of Accounts or financial statements until you click the Expand button.

Answer 20

b. Indented and underneath the parent account.

Question 21

Which of the following allows you to organize your memorized reports?

a. Comments on Reports
b. Sharing a Report with Other Users
c. Report Labels
d. Memorized Report Groups

Answer 21

d. Memorized Report Groups

Question 22

Which of the following reports compares your company’s income, expenses, and cost of goods sold?

a. Chart of Accounts
b. Job Profitability Detail
c. Balance Sheet
d. Profit & Loss Standard

Answer 22

d. Profit & Loss Standard

Question 23

Which of the following features lets you see a preview of a report before running it?

a. Memorized Reports
b. The Reports Menu
c. The Reports Center
d. Excel

Answer 23

c. The Reports Center

Question 24

What is the purpose of the Audit Trail report?

a. It prepares the books for an accounting firm’s audit.

b. It tracks any changes to and deletions of transactions, and it also tracks which user makes the changes or deletions.

c. It helps you perform a year-end audit.

d. It tracks attempts to access a restricted area.

Answer 24

b. It tracks any changes to and deletions of transactions, and it also tracks which user makes the changes or deletions.

Question 25

Which of the following could POSSIBLY explain but is not the only reason why a Profit & Loss shows a profit even though the business owner doesn’t have any money in the bank?

a. This is not possible. If there is a profit, there will be money in the bank.

b. The Profit & Loss was run on the Item Profitability basis instead of on the Job Profitability basis.

c. The Profit & Loss was run on the Accrual Basis instead of on the Cash Basis.

d. The Profit & Loss was run on the Fund basis instead of on the Class basis.

Answer 25

c. The Profit & Loss was run on the Accrual Basis instead of on the Cash Basis.

Question 26

Which of the following answers best completes this sentence: The Balance Sheet is…

a. …the financial statement that displays a company’s Income, Cost of Goods Sold, and Expenses.

b. …used to perform reconciliations.

c. …only available to companies on the Accrual Basis.

d. …one of the two primary financial statements that summarize the Chart of Accounts.

Answer 26

d. …one of the two primary financial statements that summarize the Chart of Accounts.

Question 28

What is a liability?

a. What you own in the business
b. Assets minus (-) Income
c. What you owe to people outside of the business
d. Assets plus (+) Expenses

Answer 28

c. What you owe to people outside of the business

Question 29

You want to add your company’s logo to your invoices. How can you do that in QuickBooks?

a. Click Create Invoices and then choose the Formatting tab. Click Customize Data Layout, and in the Header section, check the Add Logo checkbox. Then click Browse to find your logo.

b. Click Create Invoices and then choose the Formatting tab. Click the Add Logo button.

c. Click Company > My Company and click the Add Logo button.

d. Click Create Invoices and then choose the Formatting tab. Choose Customize Data Layout and then Layout Designer. From that screen, you can add your logo as an image.

Answer 29

d. Click Create Invoices and then choose the Formatting tab. Choose Customize Data Layout and then Layout Designer. From that screen, you can add your logo as an image.

Question 30

From the Customize Data Layout Screen of an invoice, you can do what?

a. You can enter the products and services that a customer is purchasing.

b. You can turn options like Sales Rep or Due Date on and off.

c. You can delete invoice templates.

d. You can assign a template to other types of transactions, like bills and checks.

Answer 30

b. You can turn options like Sales Rep or Due Date on and off.

Question 31

For each functional area of QuickBooks Pro and Premier (e.g., Sales & Accounts Receivable, Purchases & Accounts Payable, etc.), what levels of access can you grant to users?

a. All users other than the Administrator have no access.

b. You can prohibit access or grant full access. These levels apply to SPECIFIC transactions within that area.

c. You can prohibit access, grant full access, or grant selective access. These levels apply to ALL transactions within that area.

d. You can prohibit access or grant full access, but you can do that only for users set up as an External Accountant.

Answer 31

c. You can prohibit access, grant full access, or grant selective access. These levels apply to ALL transactions within that area.

Question 32

Which of the following can be memorized?

a. Checks
b. Bills
c. Reports
d. All of the above

Answer 32

d. All of the above

Question 33

What is the meaning of “Start Date” in QuickBooks?

a. The date the company began operating.

b. The date to start recording financial records in QuickBooks.

c. The date you created the company file.

d. The date you installed QuickBooks.

Answer 33

b. The date to start recording financial records in QuickBooks.

Question 34

What can you do to make sure your installed QuickBooks Desktop is always the latest release version.

a. Go to Edit > Preferences. Enable Automatic Updates.

b. Go to Edit > Preferences. Set download latest release version.

c. Go to Help > Update QuickBooks. Set the Automatic Update feature to Yes.

d. Go to Help and click the Check for Updates link.

Answer 34

c. Go to Help > Update QuickBooks. Set the Automatic Update feature to Yes.

Question 35

What is the advantage of operating QuickBooks in Multi-User Mode?

a. Multi-User Mode allows you to send the company file to the company’s accountant.

b. If a company wants multiple users to simultaneously access a company file, the company file must be in Multi-User Mode.

c. Multi-User Mode lets you create multiple company files in QuickBooks.

d. A company that is not in Multi-User Mode cannot add and use multiple users.

Answer 35

b. If a company wants multiple users to simultaneously access a company file, the company file must be in Multi-User Mode.

Question 36

Multiple users can access your company QuickBook file. One of the employees asks why she cannot change Company Preferences. What is most likely the reason?

a. The Company Preferences are locked

b. A password is required.

c. Company Preferences has not been activated

d. The employee is not an Administrator or External Accountant

Answer 36

d. The employee is not an Administrator or External Accountant

Question 37

You use QuickBooks to track sales at a tour company. You want to merge the Service list entry for labor cost of a tour guide with an Other Charge list entry for meals purchased for tourists. Why should you not merge these two list entries?

a. Merging records has no affect on past transactions.

b. You can only merge entries of the same Type.

c. Merging effectively combines records on a list.

d. You cannot merge Vendors.

Answer 37

b. You can only merge entries of the same Type.

Question 38

You are a consultant who helps businesses setup QuickBooks. To correctly track sales, you must setup the item types to the items sold by a company. Match the item type on the left with the item on the right.

o Inventory Assembly
o Service
o Non-Inventory Part
o Inventory Part

• A retail furniture store obtains their merchandise from a supplier and tracks the workflow from Purchase Order to Invoice Payment
• A landscaping company sells sprinkler systems and tracks the parts
• A bakery wants to track costs of various ingredients, but not how many ingredients are kept on hand
• A housekeeping company wants to track labor sold

Answer 38

o Inventory Assembly - A landscaping company sells sprinkler systems and tracks the parts

o Non-Inventory Part - A bakery wants to track costs of various ingredients, but not how many ingredients are kept on hand

o Inventory Part - A retail furniture store obtains their merchandise from a supplier and tracks the workflow from Purchase Order to Invoice Payment

o Service - A housekeeping company wants to track labor sold

Question 39

How do you re-order the Customer Center from A to Z?

a. Select Customer Center. Right-click on your Customer list. Click Re-sort List.

b. Select Edit. Click Preferences Click Hierarchical View.

c. Select Customer Center. Right-click on your Customer list. Click Hierarchical View.

d. Select Edit. Click Preferences. Click Re-order Customer Center.

Answer 39

a. Select Customer Center. Right-click on your Customer list. Click Re-sort List.

Question 40

A check from one of your customers.has been returned by your bank due to non-sufficient funds. Which action is the most accurate way to record this event with the returned check fee in QuickBooks?

a. Delete the customer’s payment from the deposit.

b. Remove the payment from the customer’s statement and send an update.

c. From the Home page, click Reconcile and during the bank reconciliation, click Record Bounded Check.

d. Open the customer payment and click Record Bounced Check.

Answer 40

d. Open the customer payment and click Record Bounced Check.

Question 41

You just purchased an item for your business using a debit card. What QuickBooks form should you use to record this transaction?

a. Debit Card Charge
b. Cash
c. Write Checks
d. Credit Card Charge

Answer 41

c. Write Checks

Question 42

QuickBooks recommends you perform a bank reconciliation monthly. What does reconciliation help you understand?

a. Taxes Due
b. Inventory
c. Cash Flow
d. Past Due Accounts

Answer 42

c. Cash Flow

Question 43

Which of the following statements about QuickBooks and Excel is false?

a. You can import a list of customers, vendors, and other lists from Excel into QuickBooks.

b. Once a report sent from QuickBooks is opened in Excel, you can update the report from the QuickBooks tab without opening QuickBooks.

c. QuickBooks lets you export reports to Excel.

d. If you export a report from QuickBooks to Excel and then make changes to the report in Excel, you can import the report with the changes.

Answer 43

d. If you export a report from QuickBooks to Excel and then make changes to the report in Excel, you can import the report with the changes.

Question 44

Which menu is used to access the Set Up Users and Passwords task?

a. File
b. Reports
c. Company
d. Help

Answer 44

c. Company

Question 45

Your company no longer sells floor plans. You want to make the Floor Plan service item inactive in QuickBooks Desktop. Put the steps for making a service item inactive in the correct order.

o Step 1
o Step 2
o Step 3
o Step 4
o Step 5

• Click the Item Menu.
• Select Floor Plans from the Item list.
• Click the Lists tab.
• Click Yes.
• Click Make Item Inactive.

Answer 45

o Click the Lists tab. - Step 1

o Select Floor Plans from the Item list. - Step 2

o Click the Item Menu. - Step 3

o Click Make Item Inactive. - Step 4

o Click Yes. - Step 5