Question 1

In Chapter 3, to check that you are starting in the correct place in the data display the:

Accepted Answer

The Account List is the best choice as it provides a comprehensive list of all accounts that the business uses, ensuring that you are starting in the correct place in the data.

Question 2

You can look at the Journal to see all the transactions that were entered.

Accepted Answer

The Journal is used to record all transactions and can be used to view them all at once.

Question 3

Funds can be transferred between Profit and Loss accounts but not Balance Sheet accounts.

Accepted Answer

(Funds can be transferred between most Balance Sheet accounts.)

Question 4

Sales receipts are included in the Customers list.

Accepted Answer

The answer of Sales receipts are included in the Customers...

Question 5

In Chapter 3, the account distribution for a sales receipt is:

Accepted Answer

The account distribution for a sales receipt would be to debit the Checking account (as the money is coming into the business) and credit the Sales account (as this is the revenue earned from the sale). Therefore, option B - Debit Checking; credit Sales - is the correct answer. None of the other options are applicable to accounting for a sales receipt.

Question 6

To view your company financial information, display transactions.

Accepted Answer

(To view financial information, display reports.)

Question 7

Use the __________________________ to record a journal entry.

Accepted Answer

The Create menu is typically where you will find options for creating new content, such as journal entries.

Question 8

The month that the company, QB Cloud_Student Name, starts is:

Accepted Answer

QB Cloud_Student Name starts in October.

Question 9

On the Create menu, select Invoices for cash sales.

Accepted Answer

(For cash sales, select Sales Receipts on the Create menu.)

Question 10

A transaction in which there are at least two parts - a debit and a credit - also called distribution lines is called:

Accepted Answer

A transaction with at least two parts- a debit and a credit- is recorded in a journal entry. The journal entry is used to post transactions to the general ledger accounts and is a critical step in the accounting cycle. The other options are not appropriate as they do not refer to a transaction with multiple distribution lines.

Question 11

After analyzing the transaction and typing the transaction date, complete this task:

Accepted Answer

The answer of After analyzing the transaction and typing the...

Question 12

________________________________are examples of checks, bills, and transfers.

Accepted Answer

The answer of ________________________________are examples of checks, bills, and transfers.
...

Question 13

By default, each report shows data as of the current or today's date.

Accepted Answer

By default, reports show data as of the current or today's date.

Question 14

The Profit and Loss statement shows the debit and credit balances of each account during a period of time.

Accepted Answer

(The Trial Balance shows the debit and credit balances of each account during a period of time.)

Question 15

The __________________________ shows deposits and checks.

Accepted Answer

The transaction register is a record of all deposits and checks, making it the most appropriate option for this statement. Choices A, B, D, and E are not specific enough or do not necessarily show deposits and checks.

Question 16

To go beyond QBO's customize report feature, save the recommended report as a PDF file.

Accepted Answer

(To further customize, export the report to Excel and make changes on it.)

Question 17

When QBO updates, accounts may be added automatically to the chart of accounts.

Accepted Answer

QBO sometimes adds accounts automatically to the chart of accounts during software updates to accommodate changes in accounting regulations or to improve user experience.

Question 18

The Balance Sheet lists assets, liabilities, and equity.

Accepted Answer

The Balance Sheet is a financial statement that lists the assets, liabilities, and equity of a company as of a specific date.

Question 19

Written evidence of a business transaction such as invoices, sales receipts, bank statements:

Accepted Answer

Source documents are the written evidence of business transactions, such as invoices, sales receipts, and bank statements. Journal entries, trial balances, and activities are not the written evidence itself, but rather the tools used to record and organize the transactions. Therefore, the best choice is B, source documents.

Question 20

In Chapter 3, when a check is issued, the account distribution is a:

Accepted Answer

When a check is issued, it is typically used to pay for an expense, which would require a debit to the appropriate expense account. The check is then paid using funds from the Checking account, resulting in a credit to that account. Therefore, the correct account distribution is a Debit expense account and credit Checking.

Quiz 3: Beginning Balances and October Transaction Register