Question 1

Which two QBO lists will be used when entering customer sales related transactions?&#10;A)Customers List,and Products and Services List.&#10;B)Banking List,and Invoices List.&#10;C)Customers List,and Sales List.&#10;D)Credit List,and Products and Services List.

Accepted Answer

When entering customer sales related transactions, the Customers List and the Products and Services List will be used. The Customers List is used to keep track of customer information, such as name, contact details, and billing address. The Products and Services List is used to keep track of the products or services provided to customers and their corresponding prices. Using these two lists will ensure accurate recording of customer sales transactions. Option B is incorrect because the Banking List is used for managing bank accounts and the Invoices List is a transaction record of invoices issued. Option C is incorrect because the Sales List is not a list in QBO, and the Credit List is used for tracking credit issued to customers.

Question 2

Updating the Customers List While entering transactions is accomplished by:&#10;A)Select the Gear icon and then choose a customer drop-down arrow > + Add new and entering the new customer information.&#10;B)Using the screen where we enter the transaction by choosing a customer drop-down arrow > + Add new and enter the new customer information.&#10;C)Select the Create (+)and then choose a customer drop-down arrow > + Add new and enter the new customer information.&#10;D)Select the Gear icon and then the Create (+)will allow the user to choose a customer drop-down arrow > + Add new and enter the new customer information.

Accepted Answer

The easiest and most efficient way to update the customers list while entering transactions is by selecting the customer drop-down arrow on the transaction screen and choosing + Add new to enter new customer information. This ensures that the new customer information is entered correctly in relation to the existing transaction. The other options listed also allow for adding new customers, but they require unnecessary steps and may disrupt the transaction entry process.

Question 3

Which of the following is NOT true regarding the Allowance method?&#10;A)The uncollectible accounts expense is estimated in advance of the write-off.&#10;B)The estimate can be calculated as a percentage of sales or as a percentage of accounts receivable.&#10;C)The method should be used if uncollectible accounts have a material effect on a company's financial statements.&#10;D)This method is used for tax purposes.

Accepted Answer

The Allowance method is not used for tax purposes, instead, the Direct Write-Off method is used for tax purposes.

Question 4

What are the two main ways to record customers and sales transactions using QBO?&#10;A)Customer Sales using Sales Receipts and Customer Sales using Invoices.&#10;B)Customer Sales using Credit Memos and Customer Sales using Invoices.&#10;C)Customer Sales using Sales Receipts and Customer Sales using Payment Receipts.&#10;D)Customer Sales using Sales Receipts and Customer Sales using Estimates.

Accepted Answer

The two main ways to record customers and sales transactions in QBO are by using Sales Receipts and Invoices. Sales Receipts are used when the customer pays at the time of purchase, while Invoices are used when the customer will pay at a later date.

Question 5

All of the following are true regarding the Products and Services List except:&#10;A)It collects information about the products and services sold to customers.&#10;B)New products must be entered twice to confirm the initial information is correct.&#10;C)It is a time-saving feature.&#10;D)QBO uses four types of products and services: Inventory,Non-inventory,Service,and Bundle.

Accepted Answer

There is no requirement to enter new products twice to confirm initial information is correct. This statement is false.

Question 6

How can an estimate of the uncollectible accounts expense be estimated in advance of the write-off using the Allowance method?&#10;A)Cash sales plus a percentage of credit sales.&#10;B)As a percentage of credit sales or as a percentage of accounts receivable.&#10;C)As a percentage of cash sales or a percentage of credit sales.&#10;D)As a percentage of newer receivables with little or no consideration of older receivable balances.

Accepted Answer

The most accurate way to estimate the uncollectible accounts expense using the Allowance method is to use a percentage of credit sales or a percentage of accounts receivable. This takes into account both the amount of credit sales that are made and the age of the accounts, giving a more accurate estimate of the amount of uncollectible accounts that are likely to occur. Using cash sales or newer receivables alone would not give an accurate estimate of the potential uncollectible accounts expense.

Question 7

What is NOT a difference between the Allowance method and the Direct-write Off method?&#10;A)The Direct Write-Off method is used if bad debts have a material impact on the financial statements.&#10;B)Direct Write-Off is used for tax purposes.&#10;C)The Allowance method estimates bad debts and establishes a reserve for uncollectible accounts.The Direct Write-off method records bad debt expense at the specific time a customer's account becomes uncollectible.&#10;D)In both methods,an uncollectible account credits accounts receivable,however,what is debited is different depending on what method is used.

Accepted Answer

The Direct Write-Off method is not preferred if bad debts have a material impact on the financial statements; instead, the Allowance method is used because it better matches revenues with expenses.

Question 8

All of the following are true regarding QBO Customers List except:&#10;A)It allows the user to collect information about the customer and reuse the information without re-entering.&#10;B)It is a time-saving feature.&#10;C)It contains past sales transactions and allows us to estimate future intended sales.&#10;D)It collects information about a customer such as: name,address and contact information.

Accepted Answer

The QBO Customers List does not contain past sales transactions or allow for estimating future intended sales. It only collects information about the customer such as their name, address, and contact information, and allows for reusing this information to save time.

Question 9

When using the Navigation Bar in QBO to enter in sales transactions,a user must perform the following:&#10;A)Select Sales and click on the drop-down arrow for New transaction.Next,select the type of transaction and complete the online form.&#10;B)Select Create (+)and click on the drop down arrow for New transaction.Next,select the type of transaction and complete the online form.&#10;C)Select Sales and select New transaction from the Customer transactions shown.&#10;D)Select Create (+)and select New transaction from the Customer transactions shown.

Accepted Answer

Selecting Sales and clicking on the drop-down arrow for New transaction allows for a clear and straightforward way to choose the desired transaction type and complete the form online. Choice B also involves selecting Create (+), but skips the dropdown arrow, potentially leading to a less intuitive selection process. Choices C and D only offer the option to select New transaction from the Customer Transactions shown, with no indication of transaction type.

Question 10

The following process is used to update a Customers List Before entering transactions:&#10;A)At the Navigation Bar click on Customers,then select Sales and New customer.Editing an existing customer or entering a new customer can be performed by either selecting Edit or New transaction.&#10;B)At the Navigation Bar click on Sales,then select Customers and New customer.Enter a new customer by selecting New transaction.Editing a customer must be performed in a different screen using the Gear icon.&#10;C)At the Navigation Bar click on Sales,then select Edit customers.Editing an existing customer or entering a new customer can be performed by either selecting Edit or New transaction.&#10;D)At the Navigation Bar click on Sales,then select Customers and New customer.Editing an existing customer or entering a new customer can be performed by either selecting Edit.

Accepted Answer

The answer of The following process is used to update...

Question 11

What is accounts receivable?&#10;A)Amounts a customer owes our business from a credit sale where the customer promises to pay later.&#10;B)Amounts a customer has already paid us and the receivable represents discounts we will pay our customers at a later date.&#10;C)Amounts a customer will pay us at a later date only if we provide a service or product to them.&#10;D)Amounts we must return to our customer if they pay us within a specified period of time.

Accepted Answer

The answer of What is accounts receivable?&#10;A)Amounts a customer owes...

Question 12

In QBO,what is the difference between a Sales Receipt and an Invoice?&#10;A)A Sales Receipt records a sales transaction when the customer pays at the time of sale (when the products or services are provided to the customer).An Invoice is recorded when the product or service is provided to the customer and the customer promises to pay later.&#10;B)A Sales Receipt records when the product or service is provided to the customer and the customer promises to pay later.An Invoice records a sales transaction when the customer pays at the time of sale when the product or service is provided to the customer.&#10;C)A Sales Receipt records a sales transaction when the customer pays at the time of sale (when the product or services are provided to the customer).An Invoice records when the product or service is provided to the customer and the customer determines that they are not able to pay.&#10;D)A Sales Receipt records a sales transaction when the customer pays at the time of sale (when the product or service is provided to the customer).An Invoice is used to record a pending charge to a customer that will occur at a future date.

Accepted Answer

The answer of In QBO,what is the difference between a...

Question 13

Which of the following is NOT true regarding accounts receivable?&#10;A)Accounts receivable arise from credit sales where we debit account receivable and credit sales.&#10;B)The risk is that a customer may break their promise to pay resulting in a bad debt or uncollectible account.&#10;C)It is important to track accounts receivable to determine if accounts are collected in a timely manner.&#10;D)Due to a company's prescreening activities,it is generally not that important to track the receivable after the credit sale.

Accepted Answer

The answer of Which of the following is NOT true...

Question 14

What is the mechanism a company uses to track Accounts Receivable to ensure company's pay on time?&#10;A)Accounts Receivable Reconciliation.&#10;B)Accounts Receivable List.&#10;C)Accounts Receivable Aging Report.&#10;D)Cash to Receivables Reconciliation.

Accepted Answer

The answer of What is the mechanism a company uses...

Question 15

In QBO,the following two ways exist for updating the Customers List:&#10;A)Delayed charges and Delayed credit.&#10;B)Before entering transactions and After entering transactions.&#10;C)Before entering transactions and While entering transactions.&#10;D)While entering transactions and Delayed charging of transactions.

Accepted Answer

The answer of In QBO,the following two ways exist for...

Question 16

Which is true regarding the collectability of accounts receivable?&#10;A)A company should establish a credit policy after they have an issue with a customer not paying.&#10;B)An accounts receivable aging report is not always helpful when monitoring receivables and collectability.&#10;C)Newer accounts receivable balances should be monitored more since it is less likely the customer will pay.&#10;D)Generally,the older the account,the less likely the customer will pay the bill.

Accepted Answer

The answer of Which is true regarding the collectability of...

Question 17

In QBO,the user will use a Delayed Credit and Delayed Charge when:&#10;A)Delayed Credit - record a sale to a customer on account to be paid in the future. Delayed Charge - record a pending expense to be paid at a future date.&#10;B)Delayed Credit - record a credit or reduction in the amount charged to a customer at a future date. Delayed Charge - record a refund to a customer at a future date.&#10;C)Delayed Credit - record a pending credit to a customer occurring at a specified future date. Delayed Charge - record a pending charge to a customer occurring at a specified future date.&#10;D)Delayed Credit - record a product or service provided to the customer at a specified future date. Delayed Charge - record a pending charge to a customer occurring at a specified future date.

Accepted Answer

The answer of In QBO,the user will use a Delayed...

Question 18

In QBO,when is a sales transaction recorded on an invoice?&#10;A)The product or service is provided to the customer and the customer pays immediately.&#10;B)An estimate of the cost of products or services is needed for the future.&#10;C)The product or service is provided to the customer and the customer promises to pay later.&#10;D)A credit or reduction in the amount charged to the customer is needed to be communicated.

Accepted Answer

The answer of In QBO,when is a sales transaction recorded...

Question 19

What are the two different methods for accounting for bad debts:&#10;A)Direct Write-off method and Allowance method&#10;B)Accounts Receivable method and Direct Write-off method&#10;C)Accounts Receivable Reconciliation method and Allowance method&#10;D)Direct Write-off method and Accounts Receivable Reconciliation method

Accepted Answer

The answer of What are the two different methods for...

Question 20

Customers pay their outstanding balances in the following ways except:&#10;A)Credit Card&#10;B)Online&#10;C)Barter&#10;D)Customer Check

Accepted Answer

The answer of Customers pay their outstanding balances in the...

Deck 5: Customers and Sales