Question 1

Income tax reports in QuickBooks include all of the following except:
A)Income Tax Preparation report
B)Income Tax Detail report
C)Income Tax Summary report
D)Income Tax Mapping report

Accepted Answer

Income Tax Mapping report is not a standard report in QuickBooks for income tax reporting. The other options (A, B, and C) are standard reports that are available for income tax reporting in QuickBooks.

Question 2

To print the General Ledger:
A)Select Chart of Accounts icon > Print Report
B)From the Company section of the Home page > select Trial Balance icon
C)Select Report Center > Accountant & Taxes, General Ledger
D)Select Company Center > Print General Ledger

Accepted Answer

The most direct and appropriate way to print the General Ledger is by selecting Report Center and then navigating to the Accountant & Taxes section, where the General Ledger report can be found.

Question 3

Examples of management reports for internal decision making include all of the following except:
A)1120S Report
B)Cash Budget
C)Cash Forecast
D)Accounts Receivable Aging Summary

Accepted Answer

The 1120S Report is a tax form that is filed with the IRS and is therefore not a management report for internal decision making. The other options, the Cash Budget, Cash Forecast, and Accounts Receivable Aging Summary are all common management reports used for internal decision making.

Question 4

Providing information to internal users' decision making is the purpose of which of the following?
A)Management Reports
B)Tax forms
C)Financial statements
D)Vendor list

Accepted Answer

Management reports provide information to internal users to aid in decision making. Tax forms are usually required for external reporting purposes. Financial statements can be used for both internal and external decision making. Vendor lists are for reference purposes and not necessarily for decision making.

Question 5

What is owner's equity?
A)What a company owes
B)What remains after the liabilities are satisfied
C)What a company owns
D)None of these

Accepted Answer

Owner's equity is the residual interest in the assets of an entity after deducting liabilities. In other words, it is the difference between the company's total assets and its total liabilities. Therefore, option B, "What remains after the liabilities are satisfied," is the correct answer.

Question 6

To export reports to Excel:
A)With the Report window open, click the Excel button
B)With the Report window open, click the Export button
C)With the Report window open, click the Print button
D)All of these

Accepted Answer

Clicking the Excel button in the Report window is the correct method to export reports directly to Excel.

Question 7

The Income Statement lists:
A)Net Income and Owner's Equity
B)Income and Expenses
C)Assets and Liabilities
D)Assets and Expenses

Accepted Answer

The Income Statement lists both the Income and Expenses of a business, and calculates the Net Income (income minus expenses). It does not list Owner's Equity, Assets, or Liabilities.

Question 8

Which one of the following classifications is found on the Statement of Cash Flows?
A)Cash Flows from Financing Activities
B)Cash Flows from Purchasing Activities
C)Cash Flows from Owner's Activities
D)Cash Flows from Selling Activities

Accepted Answer

The Statement of Cash Flows typically includes three classifications: Cash Flows from Operating Activities, Cash Flows from Investing Activities, and Cash Flows from Financing Activities. Choices B, C, and D are not valid classifications found on the Statement of Cash Flows.

Question 9

Which of the following determines if the account appears classified properly on the balance sheet?
A)Tax-Mapping Line
B)Account Number
C)Item Number
D)None of these

Accepted Answer

The account number typically determines how an account is classified on the balance sheet, as it is often structured to reflect the type of account and its classification.

Question 10

Providing information to external users' decision making is the purpose of which of the following?
A)Management Reports
B)Tax forms
C)Financial statements
D)Inventory reports

Accepted Answer

Financial statements are intended to provide external users, such as investors and creditors, with information that will assist them in making decisions regarding investment and lending activities. Management reports are intended to provide internal users, such as management, with information to aid in operational decision making. Tax forms and inventory reports are not necessarily intended to provide decision-making information to external users.

Question 11

What is an asset?
A)What remains after the liabilities are satisfied
B)What a company owes
C)What a company owns
D)What a company has after expenses are removed

Accepted Answer

An asset is something that a company owns and has value. This can include physical items such as property, equipment, and inventory, as well as intangible items such as patents and trademarks. It is not what a company owes (liabilities) or what remains after liabilities are satisfied (equity), nor is it what a company has after expenses are removed (profits or losses).

Question 12

Sales are recorded under cash basis accounting when:
A)The goods or services are provided regardless of whether the cash is collected from the customers
B)The bookkeeper has time to record the transactions
C)The cash is collected from the customers
D)The costs are incurred to earn the revenue

Accepted Answer

Sales are recorded under cash basis accounting when the cash is collected from the customers. This means that revenue is recognized only when cash is received, regardless of when the goods or services were provided or when the costs were incurred.

Question 13

The Profit & Loss Statement lists:
A)Assets and Expenses
B)Assets and Liabilities
C)Net Income and Owner's Equity
D)Income and Expenses

Accepted Answer

The Profit & Loss Statement, also known as the Income Statement, lists the income earned and expenses incurred during a specific period of time. Therefore, the best choice is D, which states that the statement lists income and expenses.

Question 14

The Balance Sheet lists:
A)Assets, Liabilities, and Owner's Equity
B)Gains, Losses, and Net Income
C)Operating, Investing, and Financing Activity
D)Income, Expenses, Liabilities

Accepted Answer

The Balance Sheet is a financial statement that lists Assets, Liabilities, and Owner's Equity. It provides a snapshot of the company's financial position at a specific point in time. Gains, losses, net income, operating, investing, financing activity, income, and expenses are all shown on different financial statements.

Question 15

The Trial Balance:
A)Lists all the company's accounts and ending balances
B)Is printed before and after making adjustments
C)Verifies the accounting system balances
D)All of these

Accepted Answer

The trial balance lists all the company's accounts and ending balances, it is printed before and after making adjustments and it verifies the accounting system balances, therefore all of these options are correct.

Question 16

The Statement of Cash Flows lists:
A)Operating, Investing, and Financing Activity
B)Assets, Liabilities, and Owner's Equity
C)Income, Expenses, Liabilities
D)Gains, Losses, and Net Income

Accepted Answer

The Statement of Cash Flows lists the company's operating, investing, and financing activities, which are the three main categories of cash flows. It shows the inflows and outflows of cash during the period and provides important information about how the company generates and uses its cash. The other options (B, C, and D) are not accurate descriptions of the content of the Statement of Cash Flows.

Question 17

An accounting period may be:
A)One quarter
B)One month
C)One year
D)All of these

Accepted Answer

An accounting period can vary in length depending on the company, but it typically aligns with the fiscal year. A fiscal year is usually 12 months long, but it can be broken down into shorter periods like quarters (3 months) or months. Therefore, all options (A, B, and C) can be accounting periods.

Question 18

The order of the steps in the accounting cycle includes:
A)Adjusted trial balance, financial reports, adjusting entries, trial balance
B)Adjusted trial balance, adjusting entries, financial reports, trial balance
C)Trial balance, adjusting entries, adjusted trial balance, financial reports
D)Trial balance, financial reports, adjusting entries, adjusted trial balance

Accepted Answer

The accounting cycle starts with recording transactions and preparing a trial balance. Once errors are corrected and adjusting entries are made, an adjusted trial balance is produced. Financial reports can then be prepared based on the adjusted trial balance. Therefore, the correct order is trial balance, adjusting entries, adjusted trial balance, and financial reports. Option C is the only answer choice with this order.

Question 19

To record adjusting journal entries in QuickBooks, select:
A)Company Center, Journal Entry icon
B)Accountant menu, Make General Journal Entries
C)Banking section of the Home page, Journal Entry icon
D)Company section of the Home page, Journal Entry icon

Accepted Answer

To record adjusting journal entries in QuickBooks, select the Accountant menu and then choose Make General Journal Entries. This will allow you to input the necessary adjustments and ensure proper accounting procedures are followed.

Question 20

What information does the Balance Sheet provide?
A)A summary of cash inflows and outflows over a specific time period
B)A company's financial position on a specific date
C)Sales and expenses for a specific time period
D)None of these

Accepted Answer

The Balance Sheet provides information about a company's financial position on a specific date, including its assets, liabilities, and equity. It does not provide information about cash inflows and outflows over a specific time period or a summary of sales and expenses.

Quiz 7: Reports and Graphs

Income tax reports in QuickBooks include all of the following except:

To print the General Ledger:

Examples of management reports for internal decision making include all of the following except:

Providing information to internal users' decision making is the purpose of which of the following?

What is owner's equity?

To export reports to Excel:

The Income Statement lists:

Which one of the following classifications is found on the Statement of Cash Flows?

Which of the following determines if the account appears classified properly on the balance sheet?

Providing information to external users' decision making is the purpose of which of the following?

What is an asset?

Sales are recorded under cash basis accounting when:

The Profit & Loss Statement lists:

The Balance Sheet lists:

The Trial Balance:

The Statement of Cash Flows lists:

An accounting period may be:

The order of the steps in the accounting cycle includes:

To record adjusting journal entries in QuickBooks, select:

What information does the Balance Sheet provide?