Question 1
A client has an auto repair shop. They have replaced the tires on a customer's truck and they
collect payment when the customer picks up the truck at the end of the day. Which sales
form should they use to record this sales transaction?
a) Invoice
b) Estimate
c) Sales Receipt
d) Credit memo
ANSWER
c) Sales Receipt
Question 2
Which of the following statements are TRUE regarding using the Undeposited Funds
account?
a) You should use Undeposited Funds so that you can select payments from several
customers and noncustomers to match the total amount deposited at the bank
b) You should use the Undeposited Funds account as a temporary holding account to track
payments received from customers that have not been deposited to your client's bank
account
c) You should use the Undeposited Funds account when recording payments received for
invoices, but not when recording payments via a sales receipt
d) You should only use the Undeposited Funds account if you're using cash-basis accounting
ANSWER
A and B
1
,Question 3
Which of the following statements are TRUE regarding credit memos?
a) Its the reverse of an invoice
b) Reduces accounts receivable
c) Decreases cash
d) It's a money-out accounting transaction
e) Refunds the customer
ANSWER
A and B
Question 4
A client wants to automatically invoice customers for a regular service they provide at a fixed
price. Which recurring transaction template type would be most appropriate for them?
a) Scheduled
b) Unscheduled
c) Reminder
ANSWER
a) Scheduled
Question 5
Your client wants to see a list of all their open invoices and how long they have been open
for. Which reports will show them this?
a) Customer Balance Summary and Detail reports
b) Sales by Customer Summary and Detail reports
c) Sales by Product/Service Summary and Detail reports
2
, d) Accounts Receivable Aging Summary and Detail reports
ANSWER
d) Accounts Receivable Aging Summary and Detail reports
Question 6
You are creating a new item in your client's products and service list. This item is provided to
your client's customers, and can be one-time, recurring, or fixed-fee. Which item type should
you choose to set this up?
a) Inventory
b) Non-inventory
c) Service
d) Bundle
ANSWER
d) Service
Question 7
A customer pays an invoice issued by your client. Which option from the +New button
should be selected next?
a) Receive payment
b) Sales receipt
c) Journal Entry
d) Bank deposit
ANSWER
a) Receive payment
3
A client has an auto repair shop. They have replaced the tires on a customer's truck and they
collect payment when the customer picks up the truck at the end of the day. Which sales
form should they use to record this sales transaction?
a) Invoice
b) Estimate
c) Sales Receipt
d) Credit memo
ANSWER
c) Sales Receipt
Question 2
Which of the following statements are TRUE regarding using the Undeposited Funds
account?
a) You should use Undeposited Funds so that you can select payments from several
customers and noncustomers to match the total amount deposited at the bank
b) You should use the Undeposited Funds account as a temporary holding account to track
payments received from customers that have not been deposited to your client's bank
account
c) You should use the Undeposited Funds account when recording payments received for
invoices, but not when recording payments via a sales receipt
d) You should only use the Undeposited Funds account if you're using cash-basis accounting
ANSWER
A and B
1
,Question 3
Which of the following statements are TRUE regarding credit memos?
a) Its the reverse of an invoice
b) Reduces accounts receivable
c) Decreases cash
d) It's a money-out accounting transaction
e) Refunds the customer
ANSWER
A and B
Question 4
A client wants to automatically invoice customers for a regular service they provide at a fixed
price. Which recurring transaction template type would be most appropriate for them?
a) Scheduled
b) Unscheduled
c) Reminder
ANSWER
a) Scheduled
Question 5
Your client wants to see a list of all their open invoices and how long they have been open
for. Which reports will show them this?
a) Customer Balance Summary and Detail reports
b) Sales by Customer Summary and Detail reports
c) Sales by Product/Service Summary and Detail reports
2
, d) Accounts Receivable Aging Summary and Detail reports
ANSWER
d) Accounts Receivable Aging Summary and Detail reports
Question 6
You are creating a new item in your client's products and service list. This item is provided to
your client's customers, and can be one-time, recurring, or fixed-fee. Which item type should
you choose to set this up?
a) Inventory
b) Non-inventory
c) Service
d) Bundle
ANSWER
d) Service
Question 7
A customer pays an invoice issued by your client. Which option from the +New button
should be selected next?
a) Receive payment
b) Sales receipt
c) Journal Entry
d) Bank deposit
ANSWER
a) Receive payment
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