Deck 4: Vendors and Inventory

Question 1

The Balance Sheet shows the accounting equation.

Answer 1

True

Question 2

QBO organizes and monitors accounts payable.

Answer 2

True

Question 3

When QBO_Student Name purchases and receives inventory, they are:

A)Subtracted from inventory.
B)Added to inventory.
C)Added to customer accounts.
D)Subtracted from customer accounts.
E)All of these.

Answer 3

B

Question 4

A report that breaks the analysis into operating, investing, and financing activities is called:

A)Trial Balance.
B)Profit and Loss.
C)Balance Sheet.
D)Statement of Cash Flows.
E)All of these.

Question 5

The money a company owes to a supplier or vendor is called:

A)Accounts payable.
B)Accounts receivable.
C)Sales.
D)Purchases.
E)None of these.

Question 6

The account reconciled in Chapter 4 is Accounts Receivable?

Question 7

Using the Bank Statement, go to the Journal to reconcile checking account activity.

Question 8

In QBO, an up-to-date record of inventory is maintained and tracked.This is called:

A)Perpetual inventory.
B)Periodic inventory.
C)Sales and cost of goods sold.
D)Account payable and customer accounts.
E)None of these.

Question 9

Bills are entered to record an expense or purchase of assets.

Question 10

The process of bringing the balance of the bank statement and balance of the checking account into agreement is called:

A)Accounts payable.
B)Accounts receivable.
C)Bank reconciliation.
D)Audit Log.
E)All of these.

Question 11

__________ report economic information about the business.

A)Journal transactions.
B)Financial statements.
C)Transaction registers.
D)Account distributions.
E)All of these.

Question 12

__________ are purchases on account from vendors.

A)Transfer transactions.
B)Accounts receivable transactions.
C)Accounts payable transactions.
D)Chart of accounts transactions.
E)None of these.

Question 13

QBO_Student Name receives bank statements at the end of the quarter.

Question 14

Before you reconcile, the check register balance does not include the bank's service charge.

Question 15

A product that is purchased from vendors for sale to customers is called a/an:

A)Account receivable.
B)Trial balance.
C)Activity transaction.
D)Inventory item.
E)All of these.

Question 16

In Chapter 4, checking Expense and Sales transactions and the October 30^th trial balance is the starting point for your data.

Question 17

The account distribution for sales of inventory on account is:

A)Debit Merchandise Inventory and Accounts Receivable;credit Cost of Goods Sold and Sales.
B)Debit Accounts Receivable/customer and Cost of Goods Sold;credit Sales and Merchandise Inventory.
C)Debit Accounts Payable/vendor and Cost of Goods Sold;credit Accounts Receivable/customer and Checking.
D)None of these.

Question 18

When you enter bills for a vendor, Accounts Payable and the vendor are debited.

Question 19

The account distribution for purchases of inventory on account is:

A)Debit Checking and Merchandise Inventory;credit Accounts Receivable/customer.
B)Debit Merchandise Inventory and Accounts Receivable;credit Sales.
C)Debit Accounts Receivable/Customer;credit Accounts Payable/vendor.
D)Debit Merchandise Inventory;credit Accounts Payable/vendor.
E)None of these.

Question 20

Use products and services to enter consistent transaction descriptions, prices and rates.