Deck 3: Banking

Question 1

The one-step approach to bill paying:

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

Answer 1

C

Question 2

When reconciling the bank statement using QuickBooks:

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

Answer 2

D

Question 3

Which of the following steps will record a deposit?

A)Use the Make Deposits window.
B)Enter the information directly into the check register.
C)None of the above.
D)All the above.

Answer 3

D

Question 4

Documents that prove a transaction occurred are:

A)Source documents
B)Receipts
C)Paid invoices
D)All the above

Question 5

The Customer section of the Home page is used to record which of the following transaction?

A)Customer payment
B)Other income, such as rental income
C)Interest earned
D)Cash from investors

Question 6

The one-step approach (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 above

Question 7

Examples of undeposited funds are:

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

Question 8

All the following are nonsales type of deposit except:

A)Money received from a loan
B)Payment from a customer
C)Cash from investors
D)Interest earned

Question 9

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)Deposits recorded by the bank
C)Outstanding checks
D)Errors

Question 10

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 above

Question 11

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 12

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

A)Pay Employees
B)Reconcile Accounts
C)Print Checks
D)Record Deposits

Question 13

The two-step approach for writing checks must be used to pay which of the following?

A)Rent Payments
B)Legal Services
C)Sales Taxes
D)None of the above.

Question 14

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 A and C

Question 15

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

A)Debited
B)Credited
C)Deposited
D)None of the above

Question 16

The Check Register:

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

Question 17

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 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
C)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
D)None of the above

Question 18

Which one of the following activities is associated with the Banking section of the Home page?

A)Enter credit card charges
B)Select bills received to pay later
C)Record finance charges
D)Create invoices to bill customers

Question 19

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

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

Question 20

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

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

Question 21

To print multiple checks at one time:

A)Report Center > Banking > Checks
B)Company menu > Banking > Checks
C)Banking menu > Forms > Checks
D)File menu > Print Forms > Checks
Short Answer Questions

Question 22

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 above

Question 23

What are the 4 (four) types of bills that should not be paid using the One-Step Approach?

Question 24

When paying a bill, QuickBooks automatically:

A)Records and expense (credit) and the obligation to pay later (debit)
B)Records and 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 25

Check Register is a record of all transactions affecting the __________.

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

Question 26

When recording a bill, QuickBooks automatically:

A)Records and expense (credit) and the obligation to pay later (debit)
B)Records and 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 27

Briefly describe the QuickBooks "drill-down" feature and how it helps companies.