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

Accepted Answer

not answered

Question 2

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

Accepted Answer

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

Accepted Answer

Adding payroll forms is not necessary for completing company setup as it is an optional feature that is only relevant for companies that have employees and process payroll. The other options (adding customers, products and services, and vendors) are essential for setting up a functional company profile.

Question 4

A company's computer is classified as what account

Accepted Answer

The answer of A company's computer is classified as what...

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

Accepted Answer

A. Enter additional company information - After creating your company file, you can enter or edit additional details about your company, such as the business name, address, phone number, email, website, tax ID numbers, and more. This information is crucial for invoices, reports, and other official documents generated by QuickBooks.
B. Set QuickBooks preferences - QuickBooks allows you to set up preferences to tailor the software to your specific business needs. Preferences can include setting up default accounts for activities like invoicing or bill payments, choosing how reports are displayed, setting up payroll, managing inventory, and defining payment terms. Adjusting these settings helps streamline your workflow and ensures that QuickBooks operates in a way that's most efficient for your business.
C. Customize the Chart of Accounts - The Chart of Accounts is a complete list of a company's accounts and balances. In QuickBooks, you can customize this list to reflect the specific accounts relevant to your business. You can add, edit, or delete accounts to match your business structure and financial reporting requirements. Customizing the Chart of Accounts is essential for accurate financial tracking and reporting.
By doing all of the above, you ensure that QuickBooks is set up correctly and customized to fit the unique needs of your business, which can help you manage your finances more effectively.

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

Accepted Answer

The answer of An account's tax line determines where QuickBooks...

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

Accepted Answer

QuickBooks allows you to import vendor, customer, and employee information from Outlook, which is an email and personal information management application from Microsoft. It does not support direct import from Yahoo or Gmail for the "Add People You Do Business With" section of the QuickBooks Setup window. However, you may be able to export your contacts from Yahoo or Gmail into a CSV file and then import that file into QuickBooks, depending on the version and capabilities of the QuickBooks software you are using.

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

Accepted Answer

QuickBooks automatically creates a Chart of Accounts when setting up a new company to help categorize financial transactions.

Question 9

In the Easy Step Interview, you must identify:
A)Type of Industry
B)Company name
C)Company address
D)All the above

Accepted Answer

In the Easy Step Interview, all three pieces of information (type of industry, company name, and company address) must be identified. This ensures that the correct company is being set up in the accounting software with accurate information.

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

Accepted Answer

QuickBooks creates a Chart of Accounts for your company based on the industry type you select during the setup process. The software uses the information about your industry to tailor the Chart of Accounts to better fit the common financial recording needs of your specific business. This helps ensure that the accounts are relevant for reporting and tracking your company's financial activities. Company address and Federal ID Tax number do not determine the structure of the Chart of Accounts in QuickBooks.

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

Accepted Answer

A Subchapter S corporation would file Form 1120S as its annual income tax return. This form allows for pass-through taxation, meaning that the corporation's income, deductions, and credits flow through to its shareholders, who report them on their individual tax returns.

Question 12

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

Accepted Answer

The answer of Which tax form would you select for...

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

Accepted Answer

To edit an account in the Chart of Accounts, you need to open the Chart of Accounts window and then select the account you want to edit. To do this, you can simply click on the account name and then click on the "Edit Account" button or go to the "Account" menu and select "Edit Account". Option A would take you to the Edit Chart of Accounts window, but you cannot edit individual accounts from there. Option B would create a new account instead of editing an existing one. Option D would also create a 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.

Accepted Answer

An EIN number is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to businesses for the purpose of identification. It is used for tax purposes and other official business.

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

Accepted Answer

The correct way to create a new company data file in QuickBooks is by selecting "File" and then "New Company" from the menu. This will bring up a setup wizard that can guide you through the process of creating a new company file. The other options listed do not pertain to creating a new company data file.

Question 16

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

Accepted Answer

The answer of Which tax form would you select for...

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.

Accepted Answer

The answer of Sole Proprietorships use __________ as its Federal...

Question 18

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

Accepted Answer

The answer of Name 4 (four) accounts that would commonly...

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

Accepted Answer

The answer of Which of the following type of information...

Question 20

The QuickBooks Setup window allows you to enter __________ information.
A)vendor
B)customer
C)banking
D)All the above

Accepted Answer

The QuickBooks Setup window is designed to help you enter various types of information, including vendor, customer, and banking details, to set up your accounting system comprehensively.

Quiz 8: New Company Setup

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

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

A company's computer is classified as what account

To customize QuickBooks after creating a company file you would:

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

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

When setting up a new company, QuickBooks automatically creates:

In the Easy Step Interview, you must identify:

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

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

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

To edit an account in the Chart of Accounts:

A corporation uses __________ as its Federal Tax ID number.

To create a new company data file in QuickBooks, use the:

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

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.

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

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

The QuickBooks Setup window allows you to enter __________ information.