Which of the following is not an input field or selection at the Add New Account window?
a. Financial Statement Override
b. Description
c. Account
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d. Enter Opening Balance
a. Financial Statement Override
Which of the following is not an available button at the Glad you're here! page when completing the Express Start method?
a. Preview Your Settings
b. Create Company
c. Create Chart of Accounts
d. All of the choices are correct.
c. Create Chart of Accounts
Which is a correct statement?
a. The Uncategorized Expenses account is created when you enter outstanding accounts receivable balances in the Vendor Center.
b. Upon completion of the New Company Setup level of operation, customizing and updating the Lists/Centers, viewing and printing Reports, and making a backup copy of the new company file, your accounting records are ready for recording daily activities.
c. The Uncategorized Income account is created when you enter outstanding accounts payable balances in the Customer Center.
d. All of the choices are correct
b. Upon completion of the New Company Setup level of operation, customizing and updating the Lists/Centers, viewing and printing Reports, and making a backup copy of the new company file, your accounting records are ready for recording daily activities.
Which of the following is true regarding payment terms when you set up a new company?
a. QuickBooks creates a list automatically, which can then be modified.
b. QuickBooks copies the payment terms used in the last company you set up.
c. QuickBooks creates no payment terms; you must establish them yourself.
d. QuickBooks creates a list automatically for customers only.
a. QuickBooks creates a list automatically, which can then be modified.
The accrual basis of accounting
a. does not follow GAAP-generally accepted accounting principles.
b. is not used for preparing the accounting reports and financial statements in QuickBooks.
c. requires the recording of revenues when earned and expenses when incurred regardless of cash receipts or cash payments.
d. is the same as cash basis of accounting, which records revenue only when the cash has been received for services provided or for a product sold, and records expenses only when cash payments have been made.
c. requires the recording of revenues when earned and expenses when incurred regardless of cash receipts or cash payments.
In QuickBooks, by default, the accounting reports and financial statements are prepared using the __________ basis of accounting.
a. cash
b. cost
c. revenue
d. accrual
d. accrual
Which of the following item types can be added to the Item List?
a. service, inventory part, and sales tax
b. inventory, uncategorized income, and uncategorized expenses
c. cost of goods sold and payment terms
d. service, non-inventory part, and payment terms
a. service, inventory part, and sales tax
Which of the following is not a field in the Sales Information section of the Edit Item window?
a. Tax Code
b. Income Account
c. Sales Price
d. COGS Account
d. COGS Account
To reverse the Uncategorized Income account in the Make General Journal Entries window,
a. debit Uncategorized Income and credit Opening Balance Equity (Capital).
b. debit Uncategorized Income and credit Accounts Receivable.
c. debit Opening Balance Equity and credit Uncategorized Income.
d. debit Accounts Receivable and credit Uncategorized Income.
a. debit Uncategorized Income and credit Opening Balance Equity (Capital).
Which of the following is true when viewing the Balance Sheet Standard report immediately after adding inventory items, customers, and vendors with balances to the Lists and Centers?
a. The only assets recorded so far are the Accounts Receivable and Inventory accounts.
b. The only liabilities recorded so far are the Accounts Payable.
c. All of the choices are correct.
d. The balance in the Opening Balance Equity (Capital) account is the sum of the total inventory.
c. All of the choices are correct.
Which statement is not true?
a. When using the Express Start method, you do not use the EasyStep Interview window. Therefore, you must establish the preferences for the new company file yourself.
b. The My Preferences tab records the preferences for each individual user on his or her personal computer.
c. You activate the account numbers feature using the Preferences window.
d. To begin establishing preferences, click Company from the main menu bar and then click Preferences from the drop-down menu.
d. To begin establishing preferences, click Company from the main menu bar and then click Preferences from the drop-down menu.
Which of these is not correct about the Preferences window?
a. Once activated, the account Number field appears in the New Account and Edit Account windows in the Chart of Accounts List.
b. Once the inventory feature is activated, fields of information relevant to inventory will appear in the Activities windows.
c. The Preferences window has three tabs: My Preferences, Company Preferences, and Group Preferences.
d. Once you answer Yes in the Do you charge sales tax? field, the other fields of information relevant to sales tax become active and you can add sales tax to the Item List.
c. The Preferences window has three tabs: My Preferences, Company Preferences, and Group Preferences.
The __________ account is created to capture net income at the end of the fiscal year.
a. Owners Draw
b. Opening Balance Equity
c. Cash - Operating
d. Owners Equity
d. Owners Equity
When QuickBooks activates the payroll feature, it automatically creates the
a. FICA Payable and Federal Withholding accounts.
b. Payroll Cash and Payroll Liabilities accounts.
c. Payroll Cash and Payroll Expenses accounts.
d. Payroll Liabilities and Payroll Expenses accounts.
d. Payroll Liabilities and Payroll Expenses accounts.
Which is a true statement?
a. When you create a new company file, QuickBooks creates a list of payment terms that cannot be edited.
b. Using the Make General Journal Entries window, you must manually enter the Uncategorized Income, Uncategorized Expenses, and Opening Balance Equity (Capital) entries, which appear in the Journal report.
c. The Profit & Loss Standard and Balance Sheet Standard reports are considered correct at any point in the setup process.
d. As you add the inventory items, customers, and vendors with balances to the Lists and Centers, behind the scenes QuickBooks records the information in general journal format and updates the appropriate account balances.
d. As you add the inventory items, customers, and vendors with balances to the Lists and Centers, behind the scenes QuickBooks records the information in general journal format and updates the appropriate account balances.
In QuickBooks, the Customer and Vendor Centers are equivalent to the __________ in a manual accounting system.
a. general journal
b. general and special journals
c. accounts receivable and accounts payable subsidiary ledgers
d. income and expense accounts
c. accounts receivable and accounts payable subsidiary ledgers
When vendors with outstanding balances are recorded during the setup process, QuickBooks debits __________ and credits __________.
a. Uncategorized Expense, Accounts Payable
b. Accounts Payable, Uncategorized Expenses
c. Uncategorized Income, Accounts Receivable
d. Accounts Receivable, Uncategorized Income
a. Uncategorized Expense, Accounts Payable
Which of the following is not true?
a. When the payroll feature is activated, QuickBooks creates the Payroll Liabilities and Payroll Expenses accounts.
b. When you use the Express Start method of New Company Setup, the payroll feature is activated by default.
c. When you use the Detailed Start method of New Company Setup, the payroll feature is activated by default.
d. When you use the Detailed Start method of New Company Setup, you have the choice to enable or disable the payroll feature
c. When you use the Detailed Start method of New Company Setup, the payroll feature is activated by default.
Which is not part of customizing the Chart of Accounts List?
a. editing account numbers
b. activating the account numbers feature
c. editing account names
d. deciding on which financial statement the account will appear
d. deciding on which financial statement the account will appear
Which of the following is true when viewing the Profit & Loss Standard report immediately after adding inventory items, customers, and vendors with balances to the Lists and Centers?
a. The report displays a proper representation of the financial condition of the company.
b. Only Uncategorized Income and Uncategorized Expenses accounts are displayed with the offsetting amounts from the Accounts Receivable and Accounts Payable accounts, respectively.
c. The report displays a proper representation of the income and expenses of the company.
d. All of the choices are correct.
b. Only Uncategorized Income and Uncategorized Expenses accounts are displayed with the offsetting amounts from the Accounts Receivable and Accounts Payable accounts, respectively.
A company cannot customize the pre-established payroll items in the Payroll Item List
a. to identify each employee.
b. to include the liability account appropriate for the company.
c. to include the expense account appropriate for the company.
d. to identify the government agency to which payment will be directed.
a. to identify each employee.
Federal income tax (FIT) withholdings from an employee's earnings are based on all of the following except
a. marital status.
b. projected annual earnings.
c. exemption allowances claimed.
d. gross pay
b. projected annual earnings.
__________ generally refer(s) to the amounts the employer takes out of the employee's earnings for various fringe benefits, such as insurance and pension.
a. Withholdings
b. Deductions
c. Employer payroll expense
d. Payroll tax liabilities
b. Deductions
__________ generally refer(s) to the payroll taxes the employer is required to take out of the employee's earnings and submit to the appropriate government agency.
a. Deductions
b. Fringe benefits
c. Withholdings
d. Employer payroll expense
c. Withholdings
Gross pay is
a. calculated by subtracting withholdings and deductions from earnings.
b. not subject to payroll taxes, for the employer or employee.
c. the total earnings for the employee for a specific pay period before any withholdings and deductions.
d. the amount of the employee's paycheck after FUTA and SUTA have been deducted.
c. the total earnings for the employee for a specific pay period before any withholdings and deductions.
Net pay is not
a. the amount that appears on an employee's paycheck.
b. calculated by subtracting taxes and deductions from earnings.
c. the same as the compensation earned.
d. the total earnings for an employee minus all employee withholdings and deductions.
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c. the same as the compensation earned.
Once the Payroll feature is activated, QuickBooks creates all of the following payroll items except
a. State Income Tax.
b. Medicare (Company and Employee).
c. Federal Withholding.
d. Social Security (Company and Employee).
a. State Income Tax.
Payroll Expenses
a. appears on the Balance Sheet Standard report.
b. is the system default general ledger liability posting account for all payroll-related liabilities.
c. is a subaccount of Payroll Liabilities.
d. is the system default general ledger expense posting account for all payroll-related expenses.
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d. is the system default general ledger expense posting account for all payroll-related expenses.
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Payroll involves each of the following actions except
a. preparing budget reports and financial statements.
b. computing of employees' gross earnings, determining withholdings and deductions, and calculating net pay.
c. submitting payroll withholdings to the appropriate tax agencies and preparing payroll compliance reports.
d. preparing paychecks or setting up direct deposits and recording payroll-related transactions.
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a. preparing budget reports and financial statements.
Payroll Liabilities
a. is a subaccount of Payroll Expenses.
b. is the system default general ledger liability posting account for all payroll-related liabilities.
c. appears on the Profit & Loss Standard report.
d. is the system default general ledger expense posting account for all payroll-related expenses.
d. is the system default general ledger expense posting account for all payroll-related expenses.
QuickBooks includes a payroll feature that, once activated,
a. prepares reports that summarize all quarterly and annual information needed for required filings and for required payments of employee withholdings to the appropriate agencies.
b. processes a payroll with employees' gross earnings and withholdings but not all deductions or net pay.
c. does not include the option for paychecks to be immediately printed.
d. requires the use of the Make General Journal Entries window to manually record the payroll transactions.
a. prepares reports that summarize all quarterly and annual information needed for required filings and for required payments of employee withholdings to the appropriate agencies.
The amount of federal income tax (FIT) an employee pays is not
a. periodically forwarded by the employer to the US Treasury along with the Social Security and Medicare taxes.
b. voluntarily withheld from each employee's pay by the employer.
c. based on the employee's gross pay, marital status, and exemption allowances claimed.
d. determined by tables and instructions published by the Internal Revenue Service to assist employers.
b. voluntarily withheld from each employee's pay by the employer. [Show Less]