Question 1

How may you customize QuickBooks to fit your specific needs?&#10;A)Make changes to the Chart of Accounts.&#10;B)Purchase one of the various QuickBooks editions.&#10;C)Enable security access to QuickBooks files.&#10;D)All of these

Accepted Answer

All of these options are ways in which you can customize QuickBooks to fit your specific needs. Making changes to the Chart of Accounts allows you to organize and track your finances in a way that makes sense for your business. Purchasing a different QuickBooks edition may offer features that better suit your needs. Enabling security access to QuickBooks files ensures that your financial data is protected from unauthorized users.

Question 2

The Income Statement:&#10;A)lists the accounts and account numbers&#10;B)lists a company's assets&#10;C)summarizes what a company owns and what it owes&#10;D)reports the results of a company's operations, listing income and expenses for a period of time

Accepted Answer

The income statement is a financial statement that reports a company's performance over a specific period of time, typically one year. It lists income and expenses and shows whether a company has made a profit or a loss. It does not list accounts and account numbers or assets, and while it does provide information about a company's financial position, it does not summarize what a company owns and what it owes in the same way that a balance sheet does.

Question 3

What does the Chart of Accounts list?&#10;A)Assets, liabilities and owner's equity accounts&#10;B)Income and expense accounts&#10;C)Owner's contributions&#10;D)All of these

Accepted Answer

The chart of accounts lists all of the accounts used in a company's financial transactions, including assets, liabilities, owner's equity, income, expenses, and owner's contributions.

Question 4

What is the purpose of a non-posting account?&#10;A)To calculate income.&#10;B)To track information necessary to the accounting information system.&#10;C)To calculate expenses.&#10;D)To identify owner's equity.

Accepted Answer

A non-posting account is used to track information necessary to the accounting information system, such as adjusting entries and other temporary transactions that do not affect the balance of an account. It is not used to calculate income or expenses, nor does it identify owner's equity.

Question 5

A Mortgage Payable account:&#10;A)Has real estate as collateral&#10;B)Is identical to a Loan Payable account&#10;C)Is a type of Owner's Equity account&#10;D)None of these

Accepted Answer

A mortgage payable account is a liability account that is used to record the amount of money owed on a mortgage loan. Unlike a loan payable account, a mortgage payable account is specifically tied to real estate as collateral. It is not a type of owner's equity account.

Question 6

To add a new account to the Chart of Accounts:&#10;A)Display the Chart of Accounts, select Account, New&#10;B)From the Company menu, select New Account&#10;C)From the Home page, select New Account&#10;D)From the Lists menu, select New Account

Accepted Answer

To add a new account to the Chart of Accounts, you need to display the Chart of Accounts and then select Account, New.

Question 7

Non-posting accounts:&#10;A)Track information required for the accounting system&#10;B)Do not appear on the Balance Sheet&#10;C)Do not appear on the Income Statement&#10;D)All of these

Accepted Answer

Non-posting accounts are used to track information required for the accounting system, but they do not appear on the balance sheet or income statement. Therefore, the best choice is D, all of these.

Question 8

What are assets?&#10;A)Resources that a company owns with future benefit&#10;B)Net worth of a company&#10;C)Amounts paid to owners&#10;D)Amounts owed to others and are future obligations

Accepted Answer

Assets are resources that a company owns, which have future benefits. They can be tangible, such as property, equipment, or inventory, or intangible, such as patents or trademarks. Net worth (B) is the difference between assets and liabilities, while amounts paid to owners (C) are typically in the form of dividends or distributions. Amounts owed to others (D) are liabilities, which are future obligations, rather than assets.

Question 9

Which of the following is a temporary account?&#10;A)Sales&#10;B)Inventory&#10;C)Accounts Payable&#10;D)Accounts Receivable

Accepted Answer

Sales is a temporary account because it is closed at the end of the accounting period to determine the net income or loss, while the other accounts are permanent and carry their balances into the next period.

Question 10

Balance Sheet accounts are also called:&#10;A)permanent accounts&#10;B)temporary accounts&#10;C)equity accounts&#10;D)None of these

Accepted Answer

Balance Sheet accounts are considered permanent because they are not closed out at the end of each accounting period like temporary accounts (such as revenue and expense accounts). They show the company's assets, liabilities, and equity at a specific point in time, and their balances roll over to the next accounting period.

Question 11

Which QuickBooks version is designed for small businesses that have industry specific needs?&#10;A)QuickBooks Pro&#10;B)QuickBooks Premier&#10;C)QuickBooks Accountant&#10;D)QuickBooks Enterprise Solutions

Accepted Answer

The answer of Which QuickBooks version is designed for small...

Question 12

Which QuickBooks version is designed for mid-sized businesses?&#10;A)QuickBooks Pro&#10;B)QuickBooks Premier&#10;C)QuickBooks Accountant&#10;D)QuickBooks Enterprise Solutions

Accepted Answer

The answer of Which QuickBooks version is designed for mid-sized...

Question 13

Which QuickBooks version is designed for small businesses without industry specific needs?&#10;A)QuickBooks Pro&#10;B)QuickBooks Premier&#10;C)QuickBooks Accountant&#10;D)QuickBooks Enterprise Solutions

Accepted Answer

The answer of Which QuickBooks version is designed for small...

Question 14

An example of a non-posting account is ________.&#10;A)Employee Expense&#10;B)Inventory&#10;C)Purchase Orders Account&#10;D)Accounts Payable

Accepted Answer

The answer of An example of a non-posting account is...

Question 15

How do you access the screen to add a user and password?&#10;A)Company menu > Set Up Users and Passwords > Set Up Users&#10;B)Employees > Employee Center&#10;C)Edit menu > Preferences > Employees&#10;D)Company menu > Company Information

Accepted Answer

The answer of How do you access the screen to...

Question 16

Which account below is not an Expense account?&#10;A)Utilities&#10;B)Rent&#10;C)Accounts Payable&#10;D)Advertising

Accepted Answer

The answer of Which account below is not an Expense...

Question 17

Which of the following is not an income account?&#10;A)Revenue&#10;B)Interest Revenue&#10;C)Rent Expense&#10;D)Gain on sale

Accepted Answer

The answer of Which of the following is not an...

Question 18

Which of the following is considered a permanent account?&#10;A)Income Statement accounts&#10;B)Balance Sheet accounts&#10;C)All of these&#10;D)None of these

Accepted Answer

The answer of Which of the following is considered a...

Question 19

To Re-sort the Chart of Accounts, first display the Chart of Accounts window, then:&#10;A)Click on the Company heading bar&#10;B)Click Account > Re-sort List&#10;C)Click File > Sort&#10;D)Right click Sort by Name

Accepted Answer

The answer of To Re-sort the Chart of Accounts, first...

Question 20

Income Statement accounts are also called:&#10;A)equity accounts&#10;B)temporary accounts&#10;C)permanent accounts&#10;D)None of these

Accepted Answer

The answer of Income Statement accounts are also called:&#10;A)equity accounts&#10;B)temporary...

Question 21

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

Accepted Answer

The answer of Briefly explain the purpose and benefits of...

Question 22

What is a liability?&#10;A)Inventory&#10;B)An amount a company owes&#10;C)A resource a company owns&#10;D)None of these

Accepted Answer

The answer of What is a liability?&#10;A)Inventory&#10;B)An amount a company...

Question 23

The Favorites menu allows you to:&#10;A)Add websites that are useful to your business&#10;B)Customize up to 30 of your favorite QuickBooks menu items&#10;C)Add one favorite QuickBooks menu item&#10;D)None of these

Accepted Answer

The answer of The Favorites menu allows you to:&#10;A)Add websites...

Question 24

What does the QuickBooks Company Snapshot provide?

Accepted Answer

The answer of What does the QuickBooks Company Snapshot provide?...

Question 25

What is an asset?&#10;A)Mortgage payable&#10;B)Notes Receivable&#10;C)An amount a company owes&#10;D)None of these

Accepted Answer

The answer of What is an asset?&#10;A)Mortgage payable&#10;B)Notes Receivable&#10;C)An amount...

Question 26

Which of the following increases owner's equity?&#10;A)Dividends&#10;B)Business losses&#10;C)Business expenses&#10;D)Business profits

Accepted Answer

The answer of Which of the following increases owner's equity?&#10;A)Dividends&#10;B)Business...

Question 27

How do you access the Statement of Cash Flows report?&#10;A)Report Center icon > Banking&#10;B)Report Center icon > Company & Financial&#10;C)Report Center icon > Accountant & Taxes&#10;D)Company menu > Company Information

Accepted Answer

The answer of How do you access the Statement of...

Question 28

What feature helps you track tasks and due dates?&#10;A)Control&#10;B)Charting&#10;C)Calendar&#10;D)All of these

Accepted Answer

The answer of What feature helps you track tasks and...

Question 29

The different types of business ownership are:&#10;A)Sole proprietorship&#10;B)Partnership&#10;C)Corporation&#10;D)All of these

Accepted Answer

The answer of The different types of business ownership are:&#10;A)Sole...

Deck 2: Customizing Quickbooks and the Chart of Accounts