Quickbooks Study Guide questions and answers with rated solutions

Quickbooks Study Guide questions and answers with rated solutions How do you edit a collections letter? Choose COMPANY PREPARE LETTERS WITH ENVELOPES CUSTOMIZE LETTER TEMPLATES. What does the term "Double-Entry Accounting" mean? There are always at least two accounts involved in every financial transaction. You suspect that someone has changed a transaction. What report should you run? AUDIT TRAIL REPORT ~!~ ~!~ ~!~ The audit trail shows you transactions that have been added, changed, and deleted. It also shows you the original transaction and who changed the transaction, as well as the exact date and time. Which form should you use to enter petty cash expenditures? WRITE CHECKS or use CHECK REGISTER ~!~ ~!~ ~!~ Make sure the bank account is a Petty Cash account that you set up (not your actual checking account). How do you set up QuickBooks to automatically use discounts and credits? Choose EDIT PREFERENCES BILLS COMPANY PREFENCES, and then select to automatically use discounts or credits. When reconciling your bank account in QuickBooks, what must the beginning balance match? It should always match the opening balance on the paper bank statement. What methods for purchasing can be recorded using the WRITE CHECKS window? (ALL OF THESE) Debit Card Purchase Petty Cass Purchase ATM Withdrawl How do you create a memorized group of reports? Open the MEMORIZED REPORT LIST and then click MEMORIZED REPORT NEW GROUP. If you set up and track Sales Tax in QuickBooks, which category of reports contains Sales Tax reports? VENDORS and PAYABLES ~!~ ~!~ ~!~ Although the taxes are based on sales, you owe the money, so it is a payable. From this category you can run the Sales Tax Liability Report. How do you move columns on a report? Move your cursor over the column heading, and when it becomes a hand, click and drag the column to the desired posistion. What happens if you click "Collapse" on a report? QuickBooks hides Subaccounts and only shows Parent Accounts ~!~ ~!~ ~!~ Use this feature to hide unnecessary detail if you are preparing a report for someone who just wants the "Big" picture and none of the detail contained in Subaccounts. When you send a QuickBooks report to Excel, which feature allows you to have a drop-down list for each column to allow filtering? AUTO FILTER ~!~ ~!~ ~!~ To do this, open a reportand click Export. Then click the Advanced Tab. Below "Turn on the following features for this report," select Auto Filtering. When should you use a Sales Receipt in QuickBooks? To record a customer payment at the time of sale. You received 5 customer payments in the mail. At the bank you deposit the 5 checks as one deposit. When you record the 5 seperate payments in QuickBooks, how do you show that the 5 checks were actually 1 deposit? When you use the RECEIVE PAYMENTS window, QuickBooks doesn't deposit the money in your checking account. After you record the 5 payments, click RECORD DEPOSITS and select the 5 checks. Which report answers the question "What transactions make up the current balance I owe each Vendor?" VENDOR BALANCE DETAIL ~!~ ~!~ ~!~ For each Vendor, QuickBooks lists the transactions that contribute to (or make up) what you owe. What happens if you double-click on a diamond on a report column? - QuickBooks opens a detailed report about just that column. - QuickBooks automatically adjusts the column width to fit the data in the column. - QuickBooks hides the column. - None of the above. NONE OF THE ABOVE ~!~ ~!~ ~!~ If you click on the diamond to the right of the column, you can drag it to the the right to make it bigger, or to the left to make it smaller. If you drag it to the left past the column to the left, QuickBooks hides the column completely. You have customized and then memorized a report. What does QuickBooks save when memorizing a report? REPORT HEADER, FILTERS, AND COLUMNS BUT NOT THE ACTUAL TRANSACTIONS. ~!~ ~!~ ~!~ This means each time you run the report, QuickBooks automatically updates the information based on the new, edited, and deleted transactions. You can memorize a report you want to see each month with updated information. What is the easiest way to organize your memorized reports? Create a report group. How do you display or print a batch/group of reports quickly? Choose REPORTS PROCESS MULTIPLE REPORTS ~!~ ~!~ ~!~ You can choose from All Reports or you can select a specific group. You've just been hired by a bakery that sells delicious cup cakes. When they buy ingredients, they use Expense tab and assign the costs to a Cost Of Goods Sold account. You need to set up an item for cakes. What item should you use? NON-INVENTORY PART ~!~ ~!~ ~!~ Use a Non-Inventory Part when you sell (or buy) an item but don't need to keep track of the quantity on hand. What account (on the Chart Of Accounts) is affected when you sell an item? The account you selected when you set up the item. Suppose you own a company that repairs bicycles. What item type should you use for "Bicycle Repair"? SERVICE During the Advanced Setup, you can turn on and off which features in the EastStep Interview? (ALL OF THESE) Sales Taxes Inventory Progress Invoicing What happens to the inventory asset account when you enter a purchase order for inventory? No accounts are affected. Suppose you have a subcontractor who receives a 1990 from your company. Which list should you add them to? Vendor List Which report should you use to help you complete the state unemployment tax form? Employee State Taxes Detail Which of the following Payroll Services are available with QuickBooks? - Basic - Enhanced - Assisted - All of the Above ALL OF THE ABOVE ~!~ ~!~ ~!~ If you work for a company or own a business, it's important to understand your choices for running payroll. How do you track sick or vacation time in QuickBooks? (ALL OF THESE) 1) When you set up an employee, define how QuickBooks should accrue time. 2) Set up a sick or vacation wage item. 3) Pay an employee with a sick or vacation wage item. When you set up a new Payroll Item using EZ setup Wizard, which is not a choice? City / Local Taxes What are the first two steps to set up payroll in QuickBooks? 1) Sign up for payroll service. 2) Complete Payroll Setup Interview. How do you restore a company file from a backup copy? Choose FILE OPEN OR RESTORE COMPANY. Select RESTORE A BACKUP COPY and click NEXT.Choose LOCAL or ONLINE BACKUP and click NEXT. Select the file to restore and click OPEN. Choose where to restore the file to and click SAVE. If you choose to remove transactions as of a specific date from the "Condense Data" window, what does QuickBooks do? Removes all transactions while leaving lists, preferences, and service subscriptions intact. What happens when you press F2 in QuickBooks? QuickBooks opens the Product Information window which includes version and company file information. When you start a company or are hired as a bookkeeper, it is important to know which edition of QuickBooks you are using. What are the major QuickBooks editions? QuickBooks Online, QuickBooks Pro, QuickBooks Premier, and QuickBooks Enterprise Solutions. When would you enter a journal entry? To correct errors, For year-end adjustments, and To enter depreciation. You successfully reconciled the checking account last month. This month, when you begin to reconcile the same account, you notice that the beginning balance calculated by QuickBooks is different from the beginning balance according to the bank. How can this happen? Someone changed or deleted a cleared transaction. What is the purpose of the Chart of Accounts? It is how you categorize financial transactions. What is equity? Assets - Liabilities How can you stop yourself and others from deleting, editing, or adding transactions in a closed period? Set a closing date. What are the main sections of the Profit & Loss? Income, Cost of Goods Sold, and Expenses. How do you customize QuickBooks by changing the color scheme and adding or removing icons from the home page? Choose EDIT PREFERENCES DESKTOP VIEW. How do you set up multiple users in QuickBooks Pro or Premier? Choose COMPANY SET UP USERS AND PASSWORDS SET USERS. You don't like a form (For example, an invoice) looks when you print it. How can you change it? Click CUSTOMIZE at the top of the form. Suppose you customized an invoice in QuickBooks. You really like how it looks and want your estimates to look similar. How do you do this? Choose LIST TEMPLATES. Select the form you want to duplicate then click the TEMPLATES button and select DUPLICATE. Then select the type of template you want to create the same look, in this case, estimates. You need to enter the same transactions each month (for example, an insurance payment). How can you automate this process in QuickBooks? While the transaction in on the screen, choose EDIT MEMORIZE CHECK (or the name of the transaction). Can you delete a list entry (for example, an item)? BOTH OF THESE Yes, if the list entry is not used in any transactions or is not part of another list entry (for example, a group item). No, if the list entry is used in any transactions or is part of another list entry (for example, a group item). What keyboard shortcut allows you to see a total for all four names lists? F2 How do you combine or merge two list entries? Rename the unwanted list entry to match the name of the list entry you want to merge into. When you invoice for time and costs, where does QuickBooks get the billable time or costs? From billable time entered on timesheets and/or billable costs entered on checks and bills. ~!~ ~!~ ~!~ When you enter an expense, item, or time and also assign that line to a Customer: Job, QuickBooks displays a billable checkmark. You can uncheck this if you don't want to invoice for the cost. What is the purpose of Progress Invoicing? To invoice from an estimate in increments. What transaction should you enter if a customer returns a damaged product or, in the case of service, complains so much you decide to offer a refund? CREDIT MEMO ~!~ ~!~ ~!~ On the Home Page, click Refunds and Credits. This decreases the amount owed by the customer and reverses the sale. When you create a statement and select "All open transactions as of statement date," what does QuickBooks show on the statement? Open Transactions as of the statement date. What do you need to record in QuickBooks when a customer's check bounces (the customer had a non-sufficient funds, NSF)? (ALL OF THESE) 1) There is less money in the checking account 2) The customer owes you for the amount of the check (and optionally a bounced check fee). 3) The NSF fee the bank charged you. What are the 2 main Financial Statements you can run from the "Company and Financial" category of reports? BALANCE SHEET and PROFIT & LOSS. ~!~ ~!~ ~!~ The Profit and Loss is also known as the Income Statement. Which of the following statements in true concerning items? - You can use one item to represent different services or goods. - Items allow you to track your sales in more detail without cluttering your Chart of Accounts or Profit & Loss. - To create an invoice, you must use an Item. (ALL OF THESE) 1) You can use one item to represent different services or goods. 2) Items allow you to track your sales in more detail without cluttering your Chart of Accounts or Profit & Loss. 3) To create an invoice, you must use an Item. What are other benefits of using items? (ALL OF THESE) 1) You can track the actual quantity of goods or services you sell. 2) They can save you time by automatically entering a description and price on forms. 3) They allow you to track a lot of detail without cluttering your Chart of Accounts. Which of the following is NOT an item type? Income ~!~ ~!~ ~!~ Income is an Account type. You notice that when you print an invoice, the information in a field is cut off (that is, it doesn't fit). How can you fix this? Use the Layout Designer to make the field wider. ~!~ ~!~ ~!~ However, you cannot increase the number of characters QuickBooks allows in that field. Which of these functions can only be performed by the Administrator? - Merge entries on lists - Add new users and change their access privileges - Memorize custom reports - Back up the data file ADD NEW USERS AND CHANGE THEIR ACCESS PRIVILEGES ~!~ ~!~ ~!~ Even a user set up as an External Accountant can't add or edit users. Suppose you have to track a specific piece of information about your customers that QuickBooks does NOT track. What is the best way to do this? Edit a customer and click the "Additional Info" tab. Click Define Fields to create a Custom Field to track anything you want. ~!~ ~!~ ~!~ You can modify list reports to display this field/information. You can also customize forms to display this field/information. When entering a journal entry, what happens if the debits don't equal the credits? QuickBooks will not allow you to record the transactions. How do you switch to Multi-User Mode? Choose FILE SWITCH to MULTI-USER MODE from the menu. Which of the following is NOT a backup option in QuickBooks? - Manually back up the file. - Automatically back up data file when closing QuickBooks. - Schedule an unattended backup. - All of the above are QuickBooks backup options. ALL OF THE ABOVE ARE QuickBooks BACKUP OPTIONS. What happens when you QuickZoom on a number in a report? QuickBooks shows more detail about the number on the report. ~!~ ~!~ ~!~ On a summary report, QuickZoom displays a list of transactions that makes up that number. On a report that lists transactions, QuickZoom opens the actual transaction. During the Advanced Setup, how do you setup a new account that is not on the default list of accounts during the EasyStep Interview? You can't add accounts that are not on the QuickBooks default list. Finish the interview and add the accounts directly to the chart of accounts. When printing paychecks, what is the preferred check style to give an employee a paystub? VOUCHER ~!~ ~!~ ~!~ This style prints one check per page. The check on top and the voucher contains information regarding earnings, taxes, and payroll. What must you deposit frequencies for the taxes or deductions your company has to pay (Payroll Liabilities)? So that the Payroll Liabilities show up in the Pay Scheduled Liabilities list in the Payroll Center When you set up a new Payroll Item using the EZ setup wizard, which is not a choice? - Compensation - Retirement Benefits - City/Local Taxes - Insurance Benefits CITY / LOCAL TAXES When should you create an invoice in QuickBooks? When a customer purchases goods or services but does not pay you at the time of the sale. What options do you have after you create a credit memo in QuickBooks? (ALL OF THESE) 1) Retain as an available credit. 2) Give a Refund. 3) Apply to an invoice. When should you use a Sales Receipt in QuickBooks? To record a customer payment at the time of sale. How do you track accounts payable in QuickBooks? Enter a bill and then use the Pay Bills window. ~!~ ~!~ ~!~ If you enter a bill, you MUST use the Pay Bills window to pay the bill. What transaction/form do you begin with to enter a vendor credit? ENTER BILL ~!~ ~!~ ~!~ Open the Enter Bills window and select the Credit in the top left part of the form. This turns the Bill into a Vendor Credit, which reduces the amount you owe the vendor. What is a reason to use the Items tab when entering a bill? To assign a cost to a job or purchase inventory. When should you NEVER delete a check? You printed a check, and the check number has been used. What is one way that QuickBooks uses the Account type? To identify where the account appears on the financial statements.