Deck 8: New Company Setup

Question 1

The steps to set up a new service company in QuickBooks with no employees are:
A.Easy Step Interview > Customer List > Vendor List > Item List
B.Setup Chart of Accounts > Easy Step Interview > Customer List > Vendor List > Item List
C.Easy Step Interview > Customize Chart of Accounts > Customer List > Vendor List > Item List.
D.Easy Step Interview > Customer List > Vendor List > Item List > Customize Chart of Accounts

Question 2

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

Answer 2

Chapter 08 New Company Setup Answer Key
Multiple Choice Questions

Question 3

To complete company setup you must complete all of the following except:
A.Add customers.
B.Add payroll forms
C.Add products and services as items
D.Add vendors

Question 4

A company's computer is classified as what account

Question 5

To customize QuickBooks after creating a company file you would:

A)Enter additional company information
B)Set QuickBooks preferences
C)Customize the Chart of Accounts
D)All the above

Question 6

An account's tax line determines where QuickBooks lists the account balance on the:
A.Income Statement
B.Income Tax Summary Report
C.Balance Sheet
D.Statement of Cash Flows

Question 7

QuickBooks allows you to import vendor, customer, and employee information from (Add People You Do Business With section of the QuickBooks Setup window):

A)Yahoo
B)Outlook
C)Gmail
D)All the above

Question 8

When setting up a new company, QuickBooks automatically creates:

A)Chart of Accounts
B)Vendor List
C)Customer List
D)None of the above

Question 9

In the Easy Step Interview, you must identify:

A)Type of Industry
B)Company name
C)Company address
D)All the above

Question 10

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

A)Company address
B)Industry type
C)Your Federal ID Tax number
D)None of the above

Question 11

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

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

Question 12

Which tax form would you select for a Partnership?
A.Form 1120
B.Form 1120S
C.Form 1065
D.Form 1040S

Question 13

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 > right-click > New
C)From the Chart of Accounts window > Account > Edit Account
D)From the Company menu > New Account

Question 14

A corporation uses __________ as its Federal Tax ID number.

A)the owner's social security number
B)an EIN number
C)business operating license number
D)None of the above.

Question 15

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 > Open or Copy Company
D)File menu > New Company

Question 16

Which tax form would you select for a Corporation?
A.Form 1120
B.Form 1120S
C.Form 1065
D.Form 1040S

Question 17

Sole Proprietorships use __________ as its Federal Tax ID number.
A.the owner's social security number
B.an EIN number
C.business operating license number
D.None of the above.

Question 18

Name 4 (four) accounts that would commonly be used for a service company and identify the account type for each.

Question 19

Which of the following type of information is not entered during the Easy Step Interview?
A.Company organization (for example, LLC, LLP, S Corporation)
B.Industry type
C.Products and services the company sells
D.QuickBooks company file password
Short Answer Questions

Question 20

The QuickBooks Setup window allows you to enter __________ information.

A)vendor
B)customer
C)banking
D)All the above

Question 21

Sole Proprietorships use __________ as its Federal Tax ID number.

A)the owner's social security number
B)an EIN number
C)business operating license number
D)None of the above.

Question 22

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

A)Company address
B)Industry type
C)Your Federal ID Tax number
D)None of the above

Question 23

The QuickBooks Setup window allows you to enter __________ information.

A)vendor
B)customer
C)banking
D)All the above

Question 24

To display account numbers in the chart of accounts choose:

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

Question 25

The Item List contains information about all of the following except:

A)Service items
B)Non-inventory items
C)Inventory items
D)All of the above

Question 26

Which tax form would you select for a Corporation?

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

Question 27

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

A)Receive Inventory
B)Pay Bills
C)Enter Bills
D)All the above

Question 28

The Vendor 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 of the above

Question 29

A company's computer is classified as what account

Question 30

The Legal Name identifies a company for:

A)Advertising
B)Sales
C)Patents
D)All the above

Question 31

A corporation uses __________ as its Federal Tax ID number.

A)the owner's social security number
B)an EIN number
C)business operating license number
D)None of the above.

Question 32

To complete company setup you must complete all of the following except:

A)Add customers.
B)Add payroll forms
C)Add products and services as items
D)Add vendors

Question 33

The Customer 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 34

Name 4 (four) accounts that would commonly be used for a service company and identify the account type for each.

Question 35

The steps to set up a new service company in QuickBooks with no employees are:

A)Easy Step Interview > Customer List > Vendor List > Item List
B)Setup Chart of Accounts > Easy Step Interview > Customer List > Vendor List > Item List
C)Easy Step Interview > Customize Chart of Accounts > Customer List > Vendor List > Item List.
D)Easy Step Interview > Customer List > Vendor List > Item List > Customize Chart of Accounts

Question 36

The Doing Business As name identifies a company for:

A)Bank accounts
B)Sales
C)Patents
D)None of the above

Question 37

Which of the following type of information is not entered during the Easy Step Interview?

A)Company organization (for example, LLC, LLP, S Corporation)
B)Industry type
C)Products and services the company sells
D)QuickBooks company file password
Short Answer Questions

Question 38

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

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

Question 39

Which tax form would you select for a Partnership?

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

Question 40

QuickBooks allows you to import vendor, customer, and employee information from (Add People You Do Business With section of the QuickBooks Setup window):

A)Yahoo
B)Outlook
C)Gmail
D)All the above

Question 41

To customize QuickBooks after creating a company file you would:

A)Enter additional company information
B)Set QuickBooks preferences
C)Customize the Chart of Accounts
D)All the above

Question 42

List 3 (three) questions asked by the QuickBooks EasyStep Interview.
"Do you accept credit cards?" "Do you charge sales tax?" and "Would you like to add an existing bank account?"