QuickBooks Chapter 7 Test Latest 2023 Rated A+

QuickBooks Chapter 7 Test Latest 2023
Rated A+
In a sole proprietorship, equity is what shareholders have invested in the company ✔✔False




Amortization is the process of a balance increasing over time ✔✔False




Treating bad debt as a discount is recommended because it reduces sales tax liability ✔✔False




A fixed asset is something you DON'T plan to use up or turn into cash within the next year

✔✔True




When the fiscal year ends, you must manually transfer your net income/loss into the Retained

Earnings account ✔✔False




The Loan Manager tracks the principle and interest payments without having to set up separate

amortization schedules ✔✔True

, If you've made an error in charging sales tax, you will NOT be able to correct that error; you

must make up the difference yourself ✔✔False




Accumulated Depreciation is a contra account and a fixed-asset account ✔✔True




Credit memos used to write off bad debt are applied to the original invoice ✔✔True




The Loan Manager pulls information from your Long Term Liability or Other Current Liability

accounts ✔✔True




Which account does QuickBooks create for you so you have a working balance sheet account

from the start? ✔✔Opening Balance Equity




What QuickBooks feature allows you to easily enter repeated transactions? ✔✔Memorizing

Transactions




Why should you use the QuickBooks Loan Manager? ✔✔It includes a "what if" tool that allows

you to experiment with loan scenarios