Deck 7: Analysis and Reportsend of Fourth Quarter and Year

Question 1

The purpose of an adjusting entry is a/an:

A)Accurate Profit and Loss statement and Balance Sheet.
B)Create menu (+) > Credit Card Credit.
C)Gear > Account and Settings > Advanced.
D)Gear > Manage Users.
E)None.

Answer 1

A

Question 2

The purpose of closing the books is to transfer:

A)Drawing to Sales.
B)Cost of Goods Sold to Accounts Payable.
C)Checking to Accounts Receivable.
D)Net income to Retained Earnings
E)None.

Answer 2

D

Question 3

How do you access Account and Settings?

A)Plus sign for Settings menu.
B)Magnifying-glass for search.
C)Question mark for printing.
D)Gear icon.
E)All.

Answer 3

D

Question 4

In Chapter 7, adjusting entries are dated December 31.

Question 5

To close the books, change the trial balance date to December 31 of the current year.

Question 6

A list report with amounts can be exported and customized using:

A)The balance sheet.
B)A template.
C)Some apps.
D)Excel.
E)All.

Question 7

When the Balance Sheet's date is changed to January 1 of the next year, the Retained Earnings account will show the previous year's Net Income; and the Profit and Loss accounts will have zero balances.

Question 8

Use the Settings menu to record journal entries.

Question 9

Before completing work in Chapter 7, display the:

A)Export the October 1 trial balance to Excel.
B)Save the November 30 trial balance as a PDF file.
C)October 1 through December 31 trial balance.
D)All.
E)None.

Question 10

A period that the company uses for accounting purposes and preparing financial statements.

A)First quarter.
B)Fourth quarter.
C)Fiscal year.
D)End of year.
E)None.

Question 11

Accounts that are closed as the end of the year are called:

A)Permanent accounts.
B)Temporary accounts.
C)Balance sheet accounts.
D)Trial balance accounts.
E)All.

Question 12

When you close the books, income, cost of goods sold, and expense accounts are reset to zero amounts.

Question 13

A software design that emphasizes separating the functions of a program into independent, interchangeable components is called:

A)A user interface.
B)The operating system.
C)Web-delivered software.
D)Modules.
E)All

Question 14

Products and services can be used to represent different services or goods.

Question 15

Adjusting entries are recorded so that the financial statements reflect revenues that are earned and expenses incurred.

Question 16

A common characteristic of an adjusting entry is that it will include one Profit and Loss statement account and one Balance Sheet account.

Question 17

When does QB Cloud record adjusting entries?

A)Every month.
B)End of the quarter.
C)Weekly.
D)All.
E)None.

Question 18

The accounts shown on the balance sheet are called:

A)Permanent accounts.
B)Temporary accounts.
C)Transaction entries.
D)Customized accounts.
E)All.

Question 19

Adjusting entries are recorded on the Invoice page.

Question 20

To see the appropriate report balances, type the date range.