Instant Download with all chapters and Answers
*you will get test bank in PDF in best viewable format after buy*
A COMPLETE COURSE
EXAM CHAPTERS 5-7
ANSWER THE FOLLOWING QUESTIONS IN THE SPACE PROVIDED BEFORE THE
T 1.A withdrawal by an owner in a partnership reduces the owner’s capital.
T 2.If a customer issues a check that is returned marked NSF, you may charge
the customer the amount of the bank charges and any penalty charges you
F 3.Since purchase discounts are a cost of doing business, they are categorized
as an expense.
F 4.A single purchase order can be prepared and sent to several vendors.
F 5.Once an account has been used, the name cannot be changed.
T 6.QuickBooks keeps track of sales tax liability and will prepare the payment of
sales taxes to the appropriate agency when using the Pay Sales Tax feature
of the program.
T 7.If a return is made by a customer and the customer does not owe you any
money, a refund check is issued along with a credit memo.
T 8. When a credit is received from a vendor for the return of merchandise, it may
be applied to a payment to the same vendor.
F 9.Receiving part of an order closes the Purchase Order.
T 10.The adjusting entry for depreciation may be made in the depreciation account
register or in the General Journal
F 11.Receipt of purchase order items is never recorded before the bill arrives.
F 12.The Subtotal account calculates the sales discount.
T 13.When a customer uses a bank credit card, such as a Visa card, the amount of
the sale is placed into the Undeposited Funds account. When the actual bank
deposit is made, the amount is deposited into the checking or bank account
and bank fees for the charge cards are deducted directly from the bank
F 14.QuickBooks automatically applies payments received from customers on
account to the most current invoice.
T 15.At the end of the year, QuickBooks transfers the net income into retained
T 16.When receiving a discount for merchandise purchased, you use the Cost of
Goods Sold Merchandise Discounts account to record the discount.
T 17.You may use a credit card to pay for inventory items.
F 18.The Discounts and Credits button on the Receive Payments window allows
discounts to be applied to invoices being paid by clicking Cancel.
F 19.The retained earnings account should always be deleted.
F 20.To give a discount to a nonprofit organization, you must create a new
WRITE THE LETTER OF THE CORRECT ANSWER IN THE SPACE PROVIDED
BEFORE THE QUESTION NUMBER.
C 21.The basis of accounting matches income for the period against expenses
for the period.
22.To change a column width in a report without changing the size of the print,
you must .
A. print the report in landscape orientation
B. use Fit report to one page wide option
C. change the column width manually
D. all of the above
23.If an invoice is , it will not show up in the Customer Balance Detail Report.
24.Adjustments for accrual basis accounting generally include adjustments to
A. petty cash
B. office supplies
C. sales discounts
D. accounts payable
25.A discount received for a purchase of merchandise is recorded in the
A. Income account: Purchases Discounts
B. Expense account: Sales Discounts
C. Cost of goods sold account: Merchandise Discounts
D. Asset account: Inventory Asset
26.If a customer has a balance for an amount owed and a return is made, a
credit memo is prepared and .
A. a refund check is issued
B. the amount of the return may be applied to the balance owed for the
C. the customer determines whether to apply the amount to the balance
owed or get a refund check
D. all of the above
27.The Make Payment dialog box appears on the screen .
A. in order to print a check
B. when you enter a bill
C. after the bank reconciliation is complete
D. after the credit card reconciliation is complete
28.The item must appear before the Nonprofit Discount item on an invoice in
order for QuickBooks to calculate the sales discount on the entire sale.
B. last sales item
C. no special item is required
D. QuickBooks does not calculate the discount, it must be computed
29.If reports are prepared as of January 31 of the current year, net income will
appear in the .
A. Profit & Loss Statement
B. Balance Sheet
C. both A and B
D. neither A nor B
30.If an invoice is entered and causes a customer’s account to exceed its limit,
A. denies the transaction
B. automatically approves the transaction
C. provides a dialog box allowing you to approve the transaction
D. requires you to change the customer’s account limit
31.Even though transactions are entered via business documents such as
invoices and sales receipts, QuickBooks keeps track of all transactions .
A. in a chart
B. in the master register
C. on a graph
D. in the Journal
32.The accounts that may be reconciled are .
A. income and expenses
B. cost of goods sold
C. all balance sheet accounts
D. both A and B above
33.To print a reconciliation report that lists only totals, select .
34.The Fixed Asset Item list includes the name of the asset, the date of
purchase, and the .
A. cost of the asset
B. asset account to use
C. description of the asset
D. All of the above
35.When using QuickBooks to pay bills that have been recorded in the Enter
Bills window, you may and the bills will be marked “Paid.”.
A. write checks to pay bills
B. use a credit card to pay bills
C. use the pay bills feature so QuickBooks will write the checks or prepare
the credit card charges
D. all of the above
36.If an order for an inventory item is received with a bill but is incomplete,
QuickBooks will .
A. record the bill for the full amount ordered
B. record the bill only for the amount received
C. not allow the bill to be prepared until all the merchandise is received
D. close the purchase order
37.If a customer makes a payment on account and a return has been made, the
correct amount of the sales discount is calculated .
A. automatically by QuickBooks on the full amount
B. automatically by QuickBooks on the amount due after the credit is
C. manually by using QuickMath
D. all of the above
38.For owner withdrawals in a partnership, QuickBooks .
A. allows you to establish a separate account for each owner’s withdrawals
B. requires that all owner withdrawals are combined within the same account
C. deducts the amount of withdrawals from retained earnings
D. does not allow owner withdrawals because each partner who works in the
business earns a salary
39.QuickBooks uses the method of inventory valuation
B. average cost
D. Actual Cost
40.If you change the minimum quantity for an item, it becomes effective .
B. the beginning of next month
C. as soon as outstanding purchase orders are received
D. the beginning of the next fiscal year
IN THE SPACE PROVIDED, WRITE THE ANSWER THAT MOST APPROPRIATELY
COMPLETES THE SENTENCE.
41.When receiving payments from customers, QuickBooks places the amount received
in an account called Undeposited Funds until the bank deposit is made.
42.The Sales Tax Liability report shows the total taxable sales and the amount of
sales tax owed.
43.You may use QuickBooks’s pay bills feature to pay bills using a check or a
credit card for payment.
44.In order for the entire invoice to receive a discount, a subtotal must be used as
the item immediately before a nonprofit discount.
45.Orders for merchandise are prepared using the QuickBooks Purchase Order
46.Purchase, Sales, and Inventory information must be entered when creating a(n)
47.Changes to an inventory quantity are made by clicking the Inventory Activities icon
on the QuickBooks Home Page .
48.If the Quantity and Price Each are entered on an invoice, pressing the tab key
will cause QuickBooks to calculate and enter the correct information in the Amount
column of the invoice.
49.To see the bill payment information, checks must be printed individually .
50.In the Vendor Center, expense accounts for vendors are assigned using the
Payment Settings tab when editing or adding a vendor