QUICKBOOKS CERTIFICATION EXAM
QUESTIONS WITH CORRECT ANSWERS
When should you create an invoice in QuickBooks? - Answer-When a customer
purchases goods or services but does not pay you at the time of the 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 separate payments in QuickBooks, how do you
show that the 5 checks were actually 1 deposit? - Answer-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.
What transaction should you enter if a customer returns a damaged product or, in the
case of a service, complains so much you decide to offer a refund? - Answer-Credit
Memo
When would you create an estimate in QuickBooks? - Answer-When a customer
requests a bid, quote, or proposal.
When should you use a sales receipt in QuickBooks? - Answer-To record a customer
payment at the time of a sale.
When you create a statement and select "All open transactions as of Statements Date",
what does QuickBooks show on the statement? - Answer-Open transactions as of the
statement date
Suppose you own a company that repairs bicycles. What item type should you use for
"bicycle repair"? - Answer-Service
If you associate a service item with two accounts, how does QuickBooks know which
account to use on a transaction? - Answer-When the item is on a sales form,
Quickbooks uses the account under "Sales Information" in the item setup. When it's on
a purchase form, it uses the account under "Purchase Information"
What item type should you use for inventory that you assemble from other items and
then sell? - Answer-Inventory Assembly
You've just been hired by a bakery that sells delicious cup cakes. When they buy
ingredients (flour, eggs, milk, and sugar), they use the Expense tab and assign the
costs to a Cost of Goods Sold account. You need to set up an item for cakes. What item
type should you use? - Answer-Non-Inventory Part
What account (on the Chart of Accounts) is affected when you sell an item? - Answer-
The account you selected when you set up the item
, Which of the following is NOT an Item Type? - Answer-Income
When setting up a new employee, what is important about the Payroll Info tab? -
Answer-Whatever you enter/see in this window affects each paycheck, unless you
change the information on the paycheck itself.
How do you use Write Checks to pay Payroll Liabilities so your Payroll reports are
accurate? - Answer-You can't
What are the first two steps to set up payroll in QuickBooks? - Answer-1. Sign up for a
payroll service; 2. complete the payroll setup interview.
When printing paychecks, what is the preferred check style to give an employee a
paystub? - Answer-Voucher
Why must you set deposit frequencies for the taxes or deductions your company has to
pay (Payroll Liabilities)? - Answer-So that Payroll Liabilities show up in the Pay Taxes
and Other Liabilities list in the Payroll Center.
What report should you use to help you complete the state unemployment tax form? -
Answer-Employee State Taxes Detail
When would you use the Expenses tab on payroll liability check? - Answer-To enter late
fees/penalties or interest.
What form must you give to an employee? - Answer-W-2
How does entering time for a job affect cost reports? - Answer-None of the above
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? - Answer-Someone changed or deleted a cleared transaction.
What are the two financial Statements you can run from the "Company and Financial"
category of reports? - Answer-Balance Sheet, Profit and Loss
What are the main sections of the Profit and Loss? - Answer-Income, Cost of Goods
Sold, and Expenses
What is one way that QuickBooks uses the Account Type? - Answer-To identify where
the account appears on the financial statement.
What is equity? - Answer-Assets minus (-) liabilities
QUESTIONS WITH CORRECT ANSWERS
When should you create an invoice in QuickBooks? - Answer-When a customer
purchases goods or services but does not pay you at the time of the 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 separate payments in QuickBooks, how do you
show that the 5 checks were actually 1 deposit? - Answer-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.
What transaction should you enter if a customer returns a damaged product or, in the
case of a service, complains so much you decide to offer a refund? - Answer-Credit
Memo
When would you create an estimate in QuickBooks? - Answer-When a customer
requests a bid, quote, or proposal.
When should you use a sales receipt in QuickBooks? - Answer-To record a customer
payment at the time of a sale.
When you create a statement and select "All open transactions as of Statements Date",
what does QuickBooks show on the statement? - Answer-Open transactions as of the
statement date
Suppose you own a company that repairs bicycles. What item type should you use for
"bicycle repair"? - Answer-Service
If you associate a service item with two accounts, how does QuickBooks know which
account to use on a transaction? - Answer-When the item is on a sales form,
Quickbooks uses the account under "Sales Information" in the item setup. When it's on
a purchase form, it uses the account under "Purchase Information"
What item type should you use for inventory that you assemble from other items and
then sell? - Answer-Inventory Assembly
You've just been hired by a bakery that sells delicious cup cakes. When they buy
ingredients (flour, eggs, milk, and sugar), they use the Expense tab and assign the
costs to a Cost of Goods Sold account. You need to set up an item for cakes. What item
type should you use? - Answer-Non-Inventory Part
What account (on the Chart of Accounts) is affected when you sell an item? - Answer-
The account you selected when you set up the item
, Which of the following is NOT an Item Type? - Answer-Income
When setting up a new employee, what is important about the Payroll Info tab? -
Answer-Whatever you enter/see in this window affects each paycheck, unless you
change the information on the paycheck itself.
How do you use Write Checks to pay Payroll Liabilities so your Payroll reports are
accurate? - Answer-You can't
What are the first two steps to set up payroll in QuickBooks? - Answer-1. Sign up for a
payroll service; 2. complete the payroll setup interview.
When printing paychecks, what is the preferred check style to give an employee a
paystub? - Answer-Voucher
Why must you set deposit frequencies for the taxes or deductions your company has to
pay (Payroll Liabilities)? - Answer-So that Payroll Liabilities show up in the Pay Taxes
and Other Liabilities list in the Payroll Center.
What report should you use to help you complete the state unemployment tax form? -
Answer-Employee State Taxes Detail
When would you use the Expenses tab on payroll liability check? - Answer-To enter late
fees/penalties or interest.
What form must you give to an employee? - Answer-W-2
How does entering time for a job affect cost reports? - Answer-None of the above
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? - Answer-Someone changed or deleted a cleared transaction.
What are the two financial Statements you can run from the "Company and Financial"
category of reports? - Answer-Balance Sheet, Profit and Loss
What are the main sections of the Profit and Loss? - Answer-Income, Cost of Goods
Sold, and Expenses
What is one way that QuickBooks uses the Account Type? - Answer-To identify where
the account appears on the financial statement.
What is equity? - Answer-Assets minus (-) liabilities
