Deck 11: Service Company

Question 1

Which tax form would you select for a Corporation?

A)Form 1120
B)Form 1120S
C)Form 1065
D)Form 1040S

Answer 1

A

Question 2

QuickBooks automatically closes ________ accounts to start each new accounting year with a $0 balance in all ________ accounts.

A)temporary; permanent
B)temporary; temporary
C)permanent; permanent
D)permanent; temporary

Answer 2

B

Question 3

An account's tax line determines where QuickBooks lists the account balances on the:

A)Income Statement
B)Statement of Cash Flows
C)Income Tax Summary Report
D)Balance Sheet

Answer 3

C

Question 4

When customer payments are received and recorded,QuickBooks reduces the ________ account balance.

A)Accounts Receivable
B)Accounts Payable
C)Undeposited Funds
D)Checking

Question 5

Which tax form would you select for a Subchapter S corporation?

A)Form 1120
B)Form 1120S
C)Form 1040
D)Schedule S

Question 6

To create a new company data file in QuickBooks,use the:

A)Company Menu > New Company
B)Company section of the Home Page > New Company
C)File Menu > New Company
D)File Menu > Open or Copy Company

Question 7

When setting up a new company,QuickBooks automatically creates:

A)Customers List
B)Vendors List
C)Chart of Accounts
D)Employee List

Question 8

To record a sales transaction,use the following:

A)Create Purchase Order > Receive Payment > Make Deposit
B)Create Invoices > Receive Payment > Make Deposits
C)Create Invoices > Create Sales Receipts > Make Deposits
D)Receive Payment > Create Sales Receipts > Make Deposits

Question 9

The Customers List contains information about:

A)The quantity of non-inventory parts on hand
B)The credit rating of the vendors
C)Vendors from whom the company buys products and services
D)Customer addresses,contacts and phone numbers

Question 10

To edit an account in the Chart of Accounts:

A)From the Company Center > Edit Chart of Accounts
B)From the Chart of Accounts window > Account > Edit Account
C)From the Chart of Accounts window > Account > New Account
D)From the Company Menu > New Account

Question 11

When closing the accounting period you:

A)Close temporary accounts at year end
B)Bring account balances up to date at year end
C)Close permanent accounts at year-end
D)All the choices are correct

Question 12

Which icon does not appear in the Vendors section for service companies that do not sell inventory?

A)Purchase Orders
B)Pay Bills
C)Enter Bills
D)All the choices are correct

Question 13

QuickBooks creates a Chart of Accounts for your company based on:

A)Fiscal or calendar year
B)Industry type
C)Federal ID Tax number
D)Company address

Question 14

To display account numbers in the Chart of Accounts,select:

A)Edit > Options
B)Company > Preferences
C)Edit > Preferences
D)Company > Accounts

Question 15

Sales on account are recorded using the ________ window.

A)Make Deposits
B)Sales Receipts
C)Create Invoices
D)Receive Items

Question 16

The Vendors List contains information about:

A)Addresses,contacts and phone numbers of customers
B)Addresses,contacts and phone numbers for suppliers
C)Quantities and prices of items on hand
D)All the choices are correct

Question 17

To record receiving a bill for services to be paid at a later time,use the following:

A)Purchase Order > Receive Payment > Deposit
B)Invoice > Receive Payment > Deposit
C)Enter Bills > Pay Bills
D)Invoice > Enter Bills > Pay Bills

Question 18

The following are examples of possible memorized transactions except:

A)Rent payments
B)Special order for a customer
C)Insurance payments
D)Utility bills

Question 19

When customer payments are recorded in the Receive Payments window,QuickBooks records:

A)An increase in the Checking account
B)An increase in Sales
C)An increase in Accounts Receivable
D)An increase in Undeposited Funds account

Question 20

Which tax form would you select for a Partnership?

A)Form 1120
B)Form 1120S
C)Form 1065
D)Form 1040S

Question 21

Name at least 4 (four)types of transactions that could be entered in QuickBooks for a service company.

Question 22

Briefly discuss the objectives for QuickBooks closing prior accounting periods.

Question 23

List 3 (three)questions asked by the QuickBooks EasyStep Interview.