Sales/ Money- In Flashcards

1
Q

Which of the following statements is true concerning products and services?

A

Products/Services allow you to track your sales in more detail without cluttering your Chart of Accounts or Profit & Loss.

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2
Q

The Company you work for set up three services in QuickBooks to record their sales. However, when they run a Profit and Loss report all of their sales are reported on one line, as “Services Income”. They ask you to fix this so the Profit and Loss displays a separate line for sales of each service. How do you do this?

A

Open the Products and Services list and edit each service. Change the Income account to the one you want sales of that service to appear as on the Profit and Loss. Click the “Also update this account in historical transactions” box if you want old transactions to affect this new account.

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3
Q

You made a sale and the customer paid the whole amount (they DON’T owe you anything). To record the sale you click the [+] or New+ button and select…

A

Sales Receipt. Enter the sale and payment information and save the transaction.

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4
Q

What is the difference between an Invoice and a Sales Receipt?

A

An Invoice records a sale and how much your customer owes. A Sales Receipt records a sale and the payment you received (it doesn’t track any amount as owed).

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5
Q

How do delayed charges affect a customer’s balance?

A

Delayed charges have no effect on a customer’s balance.

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6
Q

You invoice customers a set amount for mowing their lawn each month. Sometimes, you provide extra services like pruning trees or planting flowers that you must remember to add to their monthly invoice. What’s the best way to do this if you use QuickBooks?

A

Click the or New+ icon and select Delayed Charge. Enter the details you want to add to the invoice at the end of the month. Next time you invoice that customer, QuickBooks opens a list of delayed charges that you can easily add to the invoice.

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7
Q

Which of the following statements is true regarding Undeposited Funds in QuickBooks?

A

It is an account used to record payments before you make a deposit

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8
Q

Two customers with unpaid invoices paid you in cash today. Hooray! You really needed the money because your bank balance is almost zero! You immediately run to the bank and deposit the $1000 in cash (you received

$500 from each customer). Here’s the issue. The bank statement will show just ONE deposit of $1000. However, you received two payments of $500 each. How do you record these payments so your Bank Register in QuickBooks only shows ONE deposit of $1000?

A

Step 1: Click Receive Payment next to each customer and record their

$500 payments. In both cases, deposit the money to “Undeposited Funds.” Step 2: Click the or New+ icon and select Bank Deposit. Select both payments from the list and save the $1000 deposit.

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9
Q

What is one reason to NOT use a “bank deposit” or “Journal Entry” screen to record sales?

A

If you record sales through the bank deposits or journal entry screen the sale will not appear on sales reports.

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10
Q

Your new Employer has been using QuickBooks for 6 months. He’s frustrated because none of the sales he enters appear on the QuickBooks sales reports. However, the sales do appear on the Profit and Loss report. Why is this happening?

A

He’s recording sales using the bank deposit screen, Journal Entry, or directly into the bank register. These screens don’t allow him to enter a product/service which is required for a sale to appear on a Sales Report.

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11
Q

What transaction should you enter if a customer returns a damaged product or, in the case of a service, complains so much you decide to offer a refund?

A

Refund Receipt

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12
Q

You invoiced your customer for 5 Widgets (stock parts). Your customer returned 3 of the widgets but also haven’t paid their invoice yet. What’s the best way to handle this transaction in QuickBooks?

A

Use a Credit Memo. On the form enter 3 Widgets.

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13
Q

When you invoice for time and costs, where does QuickBooks get the billable time or costs?

A

When you invoice for time and costs, where does QuickBooks get the billable time or costs?

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14
Q

When would you create an estimate in QuickBooks?

A

When a customer requests a bid, quote, or proposal

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15
Q

You have a customer who isn’t sure they want you to do some work they need. But you want to record they’re interested. How?

A

Enter an Estimate.

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16
Q

You’re setting up a new customer. How do you tell QuickBooks that this customer’s invoices should be due 30 days after they’re issued?

A

Set the customer’s Terms to Net 30.

17
Q

One of your customers opens a new location. They want you to perform some work at the new location, and all invoices should go to the original customer. How do you handle this?

A

Create a New Customer and check the option ‘Is a sub-customer’, and select ‘Bill with parent’.

18
Q

Sub-customers can make tracking jobs or locations for a particular customer easy. You have a restaurant as a customer that just opened up a brand new location. How do you handle this?

A

Create a New Customer and check the option ‘Is a sub-customer’.