Deck 2: Customizing Quickbooks and the Chart of Accounts

Question 1

A Mortgage Payable account:

A)Has real estate as collateral
B)Is identical to a Loan Payable account
C)Is a type of Owner's Equity account
D)None of the above

Answer 1

A

Question 2

To sort the Chart of Accounts by account name:

A)Click on the Name heading bar
B)Click Account > Re-sort List
C)Click File > Sort
D)Right click Sort by Name

Answer 2

A

Question 3

Which of the following is not an income account?

A)Revenue
B)Interest Revenue
C)Rent Expense
D)Gain on sale

Answer 3

C

Question 4

Which QuickBooks version is designed for small businesses without industry specific needs?

A)QuickBooks Pro
B)QuickBooks Premier
C)QuickBooks Accountant
D)QuickBooks Enterprise Solutions

Question 5

To add a new account to the Chart of Accounts:

A)From the Chart of Accounts window, select Account, New
B)From the Company menu, select New Account
C)From the Chart of Accounts menu, select New Account
D)From the Lists menu, select New Account

Question 6

Balance Sheet accounts are also called:

A)equity accounts
B)temporary accounts
C)permanent accounts
D)None of the above

Question 7

How do you access the screen to add a user and password?

A)Company menu > Set Up Users and Passwords > Set Up Users
B)Employees > Employee Center
C)Edit menu > Preferences > Employees
D)Company menu > Company Information

Question 8

The Income Statement:

A)lists the accounts and account numbers
B)lists a company's assets
C)summarizes what a company owns and what it owes
D)reports the results of a company's operations, listing income and expenses for a period of time

Question 9

What are assets?

A)Resources that a company owns with future benefit
B)Net worth of a company
C)Amounts paid to owners
D)Amounts owed to others and are future obligations

Question 10

Which of the following is considered a permanent account?

A)Income Statement accounts.
B)Balance Sheet accounts.
C)All the above.
D)None of the above.

Question 11

Which of the following is a temporary account?

A)Sales
B)Inventory
C)Accounts Payable
D)Accounts Receivable

Question 12

Which account below is not an Expense account?

A)Utilities
B)Rent
C)Accounts Payable
D)Advertising

Question 13

Income Statement accounts are also called:

A)equity accounts
B)temporary accounts
C)permanent accounts
D)None of the above

Question 14

What does the Chart of Accounts list?

A)Assets, liabilities and owner's equity account
B)Income and expense accounts
C)Owner's contributions
D)All of the above

Question 15

An example of a non-posting account is ________.

A)Employee Expense
B)Inventory
C)Purchase Orders Account
D)Accounts Payable

Question 16

How may you customize QuickBooks to fit your specific needs?

A)Make changes to the Chart of Accounts.
B)Purchase one of the various QuickBooks editions.
C)Enable security access to QuickBooks files.
D)All the above.

Question 17

What is the purpose of a non-posting account?

A)To calculate income.
B)To track information necessary to the accounting information system.
C)To calculate expenses.
D)To identify owner's equity.

Question 18

Which QuickBooks version is designed for small businesses that have industry specific needs?

A)QuickBooks Pro
B)QuickBooks Premier
C)QuickBooks Accountant
D)QuickBooks Enterprise Solutions

Question 19

Which QuickBooks version is designed for mid-sized businesses?

A)QuickBooks Pro
B)QuickBooks Premier
C)QuickBooks Accountant
D)QuickBooks Enterprise Solutions

Question 20

Non-posting accounts:

A)Track information required for the accounting system
B)Do not appear on the Balance Sheet
C)Do not appear on the Income Statement
D)All the above

Question 21

Which of the following increases owner's equity?

A)Dividends
B)Business losses
C)Business expenses
D)Business profits

Question 22

What is an asset?

A)Mortgage payable
B)An amount a company owes
C)A resource a company owns
D)None of the above

Question 23

Briefly explain the purpose and benefits of using a password for QuickBooks access?

Question 24

How do you access the Statement of Cash Flows report?

A)Report Center icon > Banking
B)Report Center icon > Company & Financial
C)Report Center icon > Accountant & Taxes
D)Company menu > Company Information

Question 25

The different types of business ownership are:

A)Sole proprietorship
B)Partnership
C)Corporation
D)All the above
Short Answer Questions

Question 26

What is a liability?

A)Inventory
B)An amount a company owes
C)A resource a company owns
D)None of the above

Question 27

What does the QuickBooks Company Snapshot provide?