Deck 12: Merchandise Company

Question 1

The Sales Tax Rate appears on which of the QuickBooks lists?

A)Customers List
B)Vendors List
C)Item List
D)Account List

Answer 1

C

Question 2

To add an existing opening balance to a new account,select:

A)New Account > Opening Balance
B)Account Options > Enter Opening Balance
C)Account > Opening Balance
D)Edit Account > Enter Opening Balance

Answer 2

D

Question 3

When creating a new QuickBooks data file for an existing company,QuickBooks automatically offsets accounts payable balances with an entry to the:

A)Uncategorized Expenses account
B)Uncategorized Income account
C)Opening Balance Equity account
D)Capital Stock account

Answer 3

A

Question 4

When you place an order for items from a vendor,which one of the following QuickBooks forms would you use?

A)Create Invoice
B)Receive Inventory
C)Purchase Order
D)None of the choices are correct

Question 5

The sales cycle for a merchandising company consists of:

A)Create Purchase Order > Receive Inventory > Enter Bill > Pay Bill
B)Create Purchase Order > Receive Payment > Make Deposits
C)Create Invoice > Receive Payment > Make Deposits
D)Create Invoice > Receive Inventory > Pay Bill > Make Deposits

Question 6

A furniture store is an example of a ________ company.

A)Service
B)Merchandise
C)Manufacturing
D)None of the choices are correct

Question 7

After creating a new QuickBooks data file for an existing company and entering all the existing balances,use an opening adjusting entry to move the balance in the ________ account to the Capital Stock account.

A)Uncategorized Expenses
B)Uncategorized Income
C)Opening Balance Equity
D)None of the choices are correct

Question 8

Retail customers:

A)Pay no sales tax
B)Pay sales tax
C)Pay a manufacturing tax
D)Pay sales tax on labor only

Question 9

An accounting firm is an example of a ________ company.

A)Service
B)Retail Shop
C)Manufacturing
D)Product-based business

Question 10

When using QuickBooks,sales tax is:

A)Calculated manually for each item sold
B)Calculated for all items that are listed on an invoice
C)Calculated automatically by QuickBooks for items flagged as taxable
D)All the choices are correct

Question 11

The purchasing cycle includes all of the following transactions except:

A)Create a purchase order to order inventory
B)Receive inventory items and record in the inventory account
C)Enter hours in the time sheet for stocking inventory
D)Enter bill in QuickBooks when bill is received

Question 12

Identify which of the following opening adjusting entries should be used when setting up in QuickBooks an existing company with opening balances:

A)Debit: Capital Stock,Credit: Opening Balance Equity
B)Debit: Opening Balance Equity,Credit: Capital Stock
C)Debit: Accounts Receivable,Credit: Capital Stock
D)Debit: Accounts Payable,Credit: Opening Balance Equity

Question 13

If the supplies on hand at the end of January totaled $500 and the Supplies on Hand account before adjustment is $900,what should be the adjustment at month-end?

A)Increase supplies on hand by $900; reduce supplies expense by $900
B)Reduce supplies on hand by $400; increase supplies expense by $400
C)Reduce supplies on hand by $500; increase supplies expense by $500
D)Increase supplies on hand by $400; reduce supplies expense by $400

Question 14

The cost of the inventory items sold is tracked in what account:

A)Items Sold
B)Materials Cost
C)Cost of Goods Sold
D)Inventory Sold

Question 15

Inventory items received should be compared against:

A)Sales order
B)Purchase order
C)Supplies inventory
D)Sales receipt

Question 16

When creating a new QuickBooks data file for an existing company,QuickBooks automatically offsets accounts receivable balances with an entry to the:

A)Uncategorized Expenses account
B)Uncategorized Income account
C)Opening Balance Equity account
D)Capital Stock account

Question 17

When recording the sale of a product,which account is increased?

A)Inventory
B)Accounts Receivable
C)Notes Payable
D)None of the choices are correct

Question 18

To view account numbers in the Chart of Accounts,select:

A)Edit > Preferences > General > Company Preferences
B)Edit > Preferences > Desktop View > Company Preferences
C)Edit > Preferences > General > My Preferences
D)Edit > Preferences > Accounting > Company Preferences

Question 19

A consulting firm is an example of a ________ company.

A)Service
B)Retail Shop
C)Manufacturing
D)Merchandise

Question 20

The purchasing cycle for a merchandising company consists of:

A)Create Purchase Order > Receive Payment > Make Deposits
B)Create Purchase Order > Receive Inventory > Enter Bill > Pay Bill
C)Create Invoice > Receive Payment > Record Deposits
D)Create Invoice > Receive Inventory > Pay Bill > Record Deposits

Question 21

Name 2 (two)differences between accounting for a service company and a retail shop.

Question 22

Briefly explain how the supplies on hand account is adjusted at the end of the period.

Question 23

Briefly describe the main differences in using QuickBooks for a service company versus a merchandise company.