Post-Assessment Flashcards
1
Q
What does the Sales Tax Center enable you to do?
Multiple Choice
- Streamlines the collection and tracking of sales taxes.
- View the Chart of Accounts.
- Streamlines reconciling the bank balance to the book balance.
- Provide your accountant administrative access to your QuickBooks Online company.
A
Streamlines the collection and tracking of sales taxes.
2
Q
On the Dashboard, what does the Invoices graph display?
Multiple Choice
- Net income, Revenue, and Expenses for tracking profitability.
- Overdue and not yet due amounts from customers.
- Categories of expenses, focusing attention on how money is spent.
- How sales vary over the month.
A
Overdue and not yet due amounts from customers.
3
Q
Which of the following is not a transaction category?
Multiple Choice
- Banking
- Customers and Sales
- Company Preferences
- Employees and Payroll
A
Company Preferences
4
Q
On the Dashboard, what does the Profit and Loss graph display?
Multiple Choice
- Net income, Revenue, and Expenses for tracking profitability.
- Overdue and not yet due amounts from customers.
- Categories of expenses, focusing attention on how money is spent.
- How sales vary over the month.
A
Net income, Revenue, and Expenses for tracking profitability.
5
Q
The QuickBooks Online New (+) icon lists various transactions that can be created. It is commonly used for all of the following transaction types except:
Multiple Choice
- Customers
- Reports
- Vendors
- Employees
A
Reports
6
Q
The _____ summarizes the income a company has earned and the expenses incurred to earn the income.
Multiple Choice
- Balance Sheet
- Profit and Loss Statement
- Statement of Cash Flows
- Trial Balance
A
Profit and Loss Statement
7
Q
Which tax return is used by a Partnership?
Multiple Choice
- Form 1065
- Form 1120
- Schedule C attached to Form 1040
- Form 1120S
A
Form 1065
8
Q
Which tax return is used by a S Corporation?
Multiple Choice
- Form 1065
- Form 1120
- Schedule C attached to Form 1040
- Form 1120S
A
Form 1120S
9
Q
The balance sheet summarizes what a company owns and what it owes. What account types are on the balance sheet?
Multiple Choice
- Assets, Expenses, Liabilities, and Owners’ Equity.
- Assets, Liabilities, Revenues, and Owners’ Equity.
- Assets, Liabilities, Revenues and Expenses.
- Assets, Liabilities, and Owners’ Equity.
A
Assets, Liabilities, and Owners’ Equity.
10
Q
Which of the following is correct regarding QuickBooks Online Chart of Accounts?
Multiple Choice
- By customizing the QuickBooks Online Chart of Accounts to align with the business tax return, countless hours can be saved in preparation time.
- QuickBooks Online does not encourage editing of its Chart of Accounts since too many errors can be made by changing what was initially set up when the company was organized.
- QuickBooks Online does allow editing of the accounts in the Chart of Accounts, however, it only allows authorized users to make changes. QuickBooks Online codes accounts for tax return preparation tracking.
- QuickBooks Online is not able to assist in tax return preparation and only requests legal entity status for Chart of Accounts account purposes. Changes to the Chart of Accounts are encouraged and should happen often.
A
By customizing the QuickBooks Online Chart of Accounts to align with the business tax return, countless hours can be saved in preparation time.
11
Q
Customer transactions typically focus on which type of events?
Multiple Choice
- Bank deposits
- Inventory audit
- Sales
- Insurance payment
A
Sales
12
Q
Equity accounts are:
Multiple Choice
- Increased with debits and decreased with credits.
- Increased and decreased with credits.
- Increased with credits and decreased with debits.
- Increased and decreased with debits.
A
Increased with credits and decreased with debits.
13
Q
Which icon allows you to search for a transaction?
Multiple Choice
- Magnifying glass icon
- Gear icon
- Bell icon
- Plus sign inside a circle icon
A
Magnifying glass icon
14
Q
Which icon allows you to view lists?
Multiple Choice
- Bell icon
- Gear icon
- Maginfying glass icon
- Question mark inside a circle icon
A
Gear icon
15
Q
QuickBooks automatically converts transaction information entered in an onscreen form to a _____.
Multiple Choice
- Adjusting entry
- Transaction report
- Journal entry
- Sales invoice
A
Journal entry
16
Q
Which account should be used to make a rent payment for a company’s office building?
Multiple Choice
- Payroll related checking account
- Operations related checking account
- Owner’s personal checking account
- Tax related checking account
A
Operations related checking account
17
Q
A business needs to track _____ going into and out of its bank accounts.
Multiple Choice
- Cash
- Inventory
- Customers
- Vendors
A
Cash
18
Q
Source documents, such as a canceled check, should be kept on file for _____.
Multiple Choice
- Trial Balance Sheet preparation
- Profit and Loss statement
- Tax purposes
- None of the choices are correct.
A
Tax purposes
19
Q
Small enterprises that have a strictly cash-based operation sometimes just use the _____ to record all transactions.
Multiple Choice
- Reports
- Invoice form
- Purchase Order form
- Check Register
A
Check Register
20
Q
The “Select Payments Included in This Deposit” section of the Bank Deposit form lists _____.
Multiple Choice
- Payments received from customers that were deposited.
- Payments received from customers but not deposited yet.
- Investments from the company owners.
- Payments received from other income, such as rental income.
A
Payments received from customers but not deposited yet.
21
Q
In QuickBooks Online, if the Deposit to: Undeposited Funds account is selected on the Sales Receipt, then funds are recorded directly in the
Multiple Choice
- Petty Funds account.
- Checking account.
- Rent Expense account.
- Undeposited Funds account.
A
Undeposited Funds account.
22
Q
In QuickBooks Online, when can the Product and Services List be updated?
Multiple Choice
- Before entering transactions and while entering transactions.
- Before entering transactions and after entering transactions.
- Only after entering transactions.
- None of the choices are correct.
A
Before entering transactions and while entering transactions.
23
Q
What is a Bundle type product and service?
Multiple Choice
- A product a company sells but does not track the quantity.
- A product a company sells and track the quantity.
- A service the company provides.
- A collection of products and services that a company sells together.
A
A collection of products and services that a company sells together.
24
Q
What is a Delayed Charge?
Multiple Choice
- A form used to record money that is returned to a customer.
- A form used to record money that will be added to a customer’s account at a specified future date that the customer may apply to a future sale.
- A form used to record money that will be removed from a customer’s account at a specified future date.
- A form used to record a credit or reduction in the amount the customer is charged.
A
A form used to record money that will be removed from a customer’s account at a specified future date.
25
All of the following are true regarding QuickBooks Online Customers List except:
Multiple Choice
- Customers List allows the user to collect information about the customer and reuse the information without re-entering.
- Customers List is a time-saving feature.
- Customers List contains past sales transactions and allows us to estimate future intended sales.
- Customers List collects information about a customer such as name, address and contact information.
Customers List contains past sales transactions and allows us to estimate future intended sales.
26
The Expense form is used to record expenses that
Multiple Choice
- We use to record for services, such as utilities or accounting services, that we agree to pay at a future date.
- We use to record a credit to our credit card.
- We pay for at the time we receive the product or service.
We pay for at a future date.
We pay for at the time we receive the product or service.
27
What are accounts payable?
Multiple Choice
- Amounts a customer owes our business from a credit sale where the customer promises to pay later.
- Amounts our company has already payed to our vendors.
- Amounts our business is obligated to pay in the future.
- Amounts our company must return to our vendor if discounts are not granted on our purchases.
Amounts our business is obligated to pay in the future.
28
A company buys inventory from which vendor type?
Multiple Choice
- Tax agency
- Supplier
- Financial institution
- Bank
Supplier
29
Which report provides information about amounts owed to vendors?
Multiple Choice
- Accounts Payable Aging Report.
- Accounts Receivable Aging Report.
- Accounts Payable Reconciliation Report.
- Cash to Payables Reconciliation.
Accounts Payable Aging Report.
30
Which forms can be used to record services purchased?
Multiple Choice
- Expense form and Invoice form
- Check form, Bill form, and Vendor Credit form
- Expense form, Check form, and Bill form
- None of the choices are correct.
Expense form, Check form, and Bill form
31
The Products and Services List is used for
Multiple Choice
- Products and services sold to customers that were not purchased from vendors.
- Products that are both purchased and sold.
- Storing vendor information.
- Storing customer information.
Products that are both purchased and sold.
32
A Purchase Order usually does not include
Multiple Choice
- Purchase price
- Purchaser name
- Selling price
- Vendor part number
Selling price
33
Which products and services type consists of multiple products or services?
Multiple Choice
- Service
- Non-inventory
- Bundle
- Inventory
Bundle
34
The ____ is used only if Undeposited Funds is selected on the Receive Payment form.
Multiple Choice
- Check Register
- Invoice
- Bank Deposit
- Purchase Order
Bank Deposit
35
How is a Purchase Order different from a Bill?
Multiple Choice
- A Purchase Order records a fulfilled order of purchased products from a vendor. A Bill is mailed by the vendor once the order has been approved by a company.
- A Purchase Order is a record of an order to purchase products from a vendor. A Bill is received when a purchase order has been fulfilled and received by a company.
- A Purchase Order is a preliminary pricing of items ordered. A Bill is received when a purchase order has been fulfilled and received by a company.
- A Purchase Order is a record of an order to purchase products from a vendor. A Bill is record collection of the customer's payment.
A Purchase Order is a record of an order to purchase products from a vendor. A Bill is received when a purchase order has been fulfilled and received by a company.
36
Work can be performed by:
Multiple Choice
- Contractors
- Owners
- Employees
- All of the choices are correct
All of the choices are correct
37
Which payroll tax form is a summary of the employer’s W-2 form?
Multiple Choice
- Form 940
- Form 941
- Form 944
- Form W-3
Form W-3
38
Which method of time tracking allows tracking of multiple activities?
Multiple Choice
- Monthly Timesheet
- Weekly Timesheet
- Daily Timesheet
- Single Time Activity
Weekly Timesheet
39
Which tax form should be used to record payments to a contractor?
Multiple Choice
- W-2
- 1099-MISC
- 1095-C
- Owner’s tax return
1099-MISC
40
Which payroll tax form summarizes the amount of unemployment tax is due?
Multiple Choice
- Form 940
- Form 941
- Form 944
- Form W-3
Form 940
41
What is false regarding prepaid items?
Multiple Choice
- Prepaid item adjustments typically decrease an expense and increase a revenue.
- Prepaids are items relating to expenses that have been paid in advance.
- Adjusting entries for prepaids affect an Expense account and an Asset account.
- The adjusting entry records the amount that needs to be transferred between two accounts, an expense and an asset, to show the amount of the asset that has been reduced or used.
Prepaid item adjustments typically decrease an expense and increase a revenue.
42
Unearned items consists of:
Multiple Choice
- Revenue earned but not yet paid.
- Revenue earned and paid.
- Revenue a company has not earned.
- None of the choices are correct.
Revenue a company has not earned.
43
If a company initially recorded prepaid rent as an asset, which is the correct adjusting entry to record the amount of rent that has expired?
Multiple Choice
- Debit Credit
Rent Expense $ 5,000
Prepaid Rent $ 5,000
- Debit Credit
Rent Expense $ 5,000
Rent Payable $ 5,000
- Debit Credit
Rent Receivable $ 5,000
Rent Revenue $ 5,000
- Debit Credit
Rent Revenue $ 5,000
Prepaid Rent $ 5,000
Debit Credit
Rent Expense $ 5,000
Prepaid Rent $ 5,000
44
What are the four types of adjusting entries when using the accrual basis of accounting?
Multiple Choice
- Prepaid, Unearned, Accrued Expenses, and Accrued Revenues
- Depreciation, Prepaid, Unearned, and Accrual
- Scheduled, Unscheduled, Accruals, and Depreciation
- Reminder, Accrual, Depreciation, and Prepaid
Prepaid, Unearned, Accrued Expenses, and Accrued Revenues
45
Accrued expenses are:
Multiple Choice
- expenses that have been paid but not yet incurred.
- expenses incurred but not yet paid or recorded.
- expenses that require adjusting entries to increase a prepaid expense and decrease a liability.
- expenses that require adjusting entries to debit a liability and credit an expense.
expenses incurred but not yet paid or recorded.
46
What is not true regarding tax forms?
Multiple Choice
- The objective of the tax form is to provide information to federal and state tax authorities.
- When preparing tax returns, a company uses the same rules as those used to prepare financial statements.
- When preparing tax returns, a company uses different rules from those used to prepare financial statements.
- Tax forms include: Federal and State income tax returns, Federal Payroll Forms and Federal Form 1099.
When preparing tax returns, a company uses the same rules as those used to prepare financial statements.
47
In an accrual basis accounting system, a sale is recorded when
Multiple Choice
- The bill is sent to the customer.
- The good or service is provided.
- Cash is collected from the customer.
- The Profit and Loss Statement is created.
The good or service is provided.
48
Which of the following statements is not true about the Trial Balance?
Multiple Choice
- Trial Balances are prepared only after making adjusting entries since the account balances must be up to date to prepare a trial balance.
- The Trial Balance is a listing of all of the company's accounts and the ending account balances. Incorrect
- The purpose of the Trial Balance is to verify account balances and ensure an accounting system balances.
- The Trial Balance is prepared both before and after making adjusting entries.
Trial Balances are prepared only after making adjusting entries since the account balances must be up to date to prepare a trial balance.
49
In a cash basis accounting system, a sale is recorded when
Multiple Choice
- The bill is sent to the customer.
- The good or service is provided.
- Cash is collected from the customer.
- The Profit and Loss Statement is created.
Cash is collected from the customer.
50
Cash flows from _____ activities related to cash inflows and outflows to and from investors and creditors.
Multiple Choice
- Investing
- Operating
- Financing
- Advertising
Financing
