Deck 4: Banking

Question 1

When reconciling a bank account,which one of the following is considered a timing difference (difference between the bank balance and the book balance)?

A)Checks that have cleared the bank
B)Outstanding checks
C)Deposits recorded by the bank
D)Errors

Answer 1

B

Question 2

A Check Register is a record of all transactions affecting the ________.

A)Payroll account
B)Petty cash account
C)Checking account
D)Taxes payable account

Answer 2

C

Question 3

An example of undeposited funds are:

A)Interest earned on the Checking account
B)Bank service charges
C)Customer payments recorded as received but not yet deposited
D)Owner's investment

Answer 3

C

Question 4

When the balance of an asset account,like Checking,increases,it means that the account has been:

A)Credited
B)Debited
C)Reconciled
D)None of the choices are correct

Question 5

The Write Checks approach to bill paying:

A)Pays the bill and then records the bill later
B)Records a bill when received and pays the bill later
C)Records and pays a bill at the same time
D)Is not supported by QuickBooks

Question 6

When the balance of an equity account,like Capital Stock,increases,it means that the account has been:

A)Debited
B)Credited
C)Deposited
D)None of the choices are correct

Question 7

When recording a bill,QuickBooks automatically:

A)Records an expense (credit)and the obligation to pay later (debit)
B)Records an expense (debit)and the obligation to pay later (credit)
C)Reduces the liability (debit)and the checking account (credit)
D)Reduces the liability (credit)and the checking account (debit)

Question 8

Which of the following statements is true?

A)To conserve resources,it is best if the owner uses one Checking account for both personal and business purposes
B)To maintain more consistent records,it is best if the owner maintains a separate personal Checking account,but both the owner's personal Checking and business Checking accounts are listed in the Chart of Accounts
C)To maintain separation between the personal and business accounting records,the owner's personal Checking account should not be used to pay bills for the business and should not be listed in the business' Chart of Accounts
D)None of the choices are correct

Question 9

Timing differences discovered when reconciling the bank statement that the bank has not recorded yet,include:

A)Deposits in transit
B)Interest earned
C)Outstanding Checks
D)Both Deposits in transit and Outstanding Checks

Question 10

When reconciling the bank statement using QuickBooks:

A)Service charges are added
B)Interest earned is subtracted
C)All deposits listed on the bank statement are selected as cleared in the Reconcile window
D)All of the choices are correct

Question 11

A business Checking account may be used for which of the following purchases?

A)Insurance for the owner's home
B)Insurance for the office
C)Utility bills for the owner
D)Owner's car payment

Question 12

The Check Register:

A)Lists all accounts and their account numbers
B)Is located directly on the Company section of the Home Page
C)Keeps track of company deposits only
D)Records payments and deposits to the Checking account

Question 13

When deleting a check all of the following is true except:

A)The deleted check no longer appears in the check register
B)It is better to delete the check than void the check in order to erase all records of the transaction
C)QuickBooks changes the amount deducted in the check register to zero
D)All of the choices are correct

Question 14

All of the following tasks can be completed in the Banking section of the Home Page except:

A)Pay Employees
B)Reconcile Checking accounts
C)Write Checks
D)Record deposits

Question 15

When paying a bill,QuickBooks automatically:

A)Records an expense (credit)and the obligation to pay later (debit)
B)Records an expense (debit)and the obligation to pay later (credit)
C)Reduces the liability (debit)and the checking account (credit)
D)Reduces the liability (credit)and the checking account (debit)

Question 16

Which of the following icons appear in the Banking section of the Home Page?

A)Receive Payments
B)Enter Bills
C)Write Checks
D)Pay Bills

Question 17

The Write Checks window can be used to pay which of the following:

A)Sales taxes
B)Bills entered in the Enter Bills window
C)Payroll checks
D)None of the choices are correct

Question 18

The Enter Bills > Pay Bills (two-step)approach for paying bills must be used to pay which of the following?

A)Rent Payments
B)Legal Services
C)Sales Taxes
D)None of the choices are correct

Question 19

One of the objectives of the bank reconciliation is:

A)Pay bills
B)Detect errors
C)Insure the debits equal credits
D)None of the choices are correct

Question 20

In the Check Register,the term "split" indicates the payment is split between two or more:

A)Purchase orders
B)Invoices
C)Checks
D)Accounts

Question 21

List 4 (four)types of bills that should not be paid using the Write Checks window.

Question 22

Briefly describe the QuickBooks drill-down feature and its advantages.

Question 23

List 5 (five)different types of accounts,the normal balance of the type of account (debit or credit),and how the account is increased (debit or credit).