QUICKBOOKS EXAM QUESTIONS AND
ANSWERS WITH COMPLETE ANSWERS
Ch.1 - What do the arrows on the QuickBooks Home page indicate? - Answer-The
workflow to follow when executing tasks in QuickBooks
Ch.1 - Rasha is working in QuickBooks as a heavy storm begins. Her building is
notorious for losing power during storms, so she wants to save her company file right
away. How should she do this? - Answer-There is no need to save because
QuickBooks automatically saves all actions.
Ch.1 - Elise's business has hundreds of transactions every day, and her accountant has
suggested she back up her QuickBooks company file to secure her data. With so many
daily transactions, how often should Elise back up her company file? - Answer-Daily
Ch.1 - If you've already been using QuickBooks, what does it do automatically when you
start it? - Answer-It opens the last company file that was open when you exited
QuickBooks.
Ch.1 - What prior accounting knowledge should you have before using QuickBooks? -
Answer-A basic knowledge of debits and credits, and what happens behind the scenes
Ch.1 - Match each QuickBooks file type to its description. - Answer-Company file- a
decompressed, regular file for carrying out daily transactions
Backup file- a compressed copy of your data that can be stored online
Portable company file- a compressed copy of your data; great for sending via email
Transaction log file- helps to recover any data entered after the last backup
Network data file- contains important configuration data; should not be deleted
Ch.1 - Match these accounting terms to their descriptions. - Answer-Behind the scenes-
the accounting QuickBooks performs when a transaction is recorded
Activities- what the user enters on forms such as invoices or bills
GAAP- principles generally accepted in the accounting world
Ch.2 - To edit an existing transaction in QuickBooks, you void it and then re-create it. -
Answer-False
Ch.2 - Lists in QuickBooks are used for storing your list of accounts. - Answer-False
Ch.2 - You CANNOT add information to a customer entry; you must enter the
information into a job. - Answer-False
Ch.2 - You CANNOT edit a customer record after it has been created. - Answer-False
,Ch.2 - You CANNOT merge more than two customer names at one time. - Answer-True
Ch.2 - Non-inventory items are tracked in the Cost of Goods account. - Answer-True
Ch.2 - Use a sales graph to display your sales by item, customer, or rep. - Answer-True
Ch.2 - Subitems do NOT affect the accounting behind the scenes. - Answer-True
Ch.2 - What type of information can the Search feature help you find? - Answer-List
entries
Ch.2 - Jemal is trying to create an invoice but in the Customer:Job list, only <Add New>
is showing. What must Jemal do to populate his customer list? - Answer-He must first
enter his customers into the Customers & Jobs List.
Ch.2 - Match each form type to its best description and use. - Answer-Used to gather
customer charges for a specific period.- Statements
Used when a customer does not pay at time of service.- Invoice
Used when a customer makes a payment at time of service.- Sales receipt
Ch.2 - Before you can add something to an invoice, it must be created as a(n): -
Answer-Item
Ch.2 - What must you specify when creating an invoice? - Answer-Customer
Ch.2 - Carlos has many customers in his company file and it's getting difficult for him to
navigate through them all. He wants to clean up his list of customers by removing those
he's pretty sure won't be coming in again. How can Carlos do this? - Answer-He can
mark the unwanted customers as inactive.
Ch.2 - What happens behind the scenes if you don't use the Receive Payments window
to record a payment on an invoice? - Answer-Income will be overstated and Accounts
Receivable will not be cleared out.
Ch.2 - To remove a transaction and still retain a record of it, use the _____ command. -
Answer-Void
Ch.2 - Which aspects of doing business with customers are set up and executed in the
Customer Center? - Answer-All of these options, Managing payment terms, Setting up
sales tax, Tracking customers
Ch.2 - When can you add a new customer or job to the Customer Center? - Answer-At
any time
, Ch.2 - Kendall is frustrated with having to manually populate every field whenever she
enters a transaction. What can she do to help automate this process? - Answer-She can
set defaults for specific information for each customer.
Ch.2 - Eisa recently added a new customer. After about a week of entering transactions
for that customer, Eisa notices that he misspelled the customer's name when he
originally created the record. How can Eisa most efficiently correct the problem? -
Answer-He can edit the customer name in the Customer Center, as any changes made
to the customer record will change all future and past transactions.
Ch.2 - Which of these is an action you can take in the Lead Center to help track
potential sales leads? - Answer-All of these options, Input contact and local information,
Keep notes, Create and track tasks
Ch.2 - In QuickBooks, what is considered an item? - Answer-Anything the company
buys, sells, or resells in the course of business
Ch.2 - Kyle's Item List includes many items for various cleaning services. They all start
with different letters, so they don't appear together in the list, which means he must
scroll up/down when choosing more than one service to include on an invoice. How can
Kyle make finding his cleaning services items easier? - Answer-He can group them into
subitems under a general term.
Ch.2 - When you enter a Sales Receipt transaction, where do the funds go? - Answer-
Undeposited Funds
Ch.2 - Match each item type with its description. - Answer-Discount- use this to. subtract
a percentage of fixed amount from a total or subtotal
Inventory Part- what you purchase, track as inventory, and resell
Subtotal- use this to apply a percentage discount or surcharge to many items
Sales Tax Item- calculates a single sales tax at a specific rate, which you pay to a single
tax agency
Payment- records partial remittance at the time of sale and reduces the total amount
owed
Service- what you charge for or purchase
Ch.3 - You must print the check at the time you enter transaction information into the
Write Checks window. - Answer-False
Ch.3 - The Vendor List can be exported to contact management software, such as
Microsoft Outlook. - Answer-True
Ch.3 - You CANNOT delete a vendor once you have used that vendor in a transaction. -
Answer-True
ANSWERS WITH COMPLETE ANSWERS
Ch.1 - What do the arrows on the QuickBooks Home page indicate? - Answer-The
workflow to follow when executing tasks in QuickBooks
Ch.1 - Rasha is working in QuickBooks as a heavy storm begins. Her building is
notorious for losing power during storms, so she wants to save her company file right
away. How should she do this? - Answer-There is no need to save because
QuickBooks automatically saves all actions.
Ch.1 - Elise's business has hundreds of transactions every day, and her accountant has
suggested she back up her QuickBooks company file to secure her data. With so many
daily transactions, how often should Elise back up her company file? - Answer-Daily
Ch.1 - If you've already been using QuickBooks, what does it do automatically when you
start it? - Answer-It opens the last company file that was open when you exited
QuickBooks.
Ch.1 - What prior accounting knowledge should you have before using QuickBooks? -
Answer-A basic knowledge of debits and credits, and what happens behind the scenes
Ch.1 - Match each QuickBooks file type to its description. - Answer-Company file- a
decompressed, regular file for carrying out daily transactions
Backup file- a compressed copy of your data that can be stored online
Portable company file- a compressed copy of your data; great for sending via email
Transaction log file- helps to recover any data entered after the last backup
Network data file- contains important configuration data; should not be deleted
Ch.1 - Match these accounting terms to their descriptions. - Answer-Behind the scenes-
the accounting QuickBooks performs when a transaction is recorded
Activities- what the user enters on forms such as invoices or bills
GAAP- principles generally accepted in the accounting world
Ch.2 - To edit an existing transaction in QuickBooks, you void it and then re-create it. -
Answer-False
Ch.2 - Lists in QuickBooks are used for storing your list of accounts. - Answer-False
Ch.2 - You CANNOT add information to a customer entry; you must enter the
information into a job. - Answer-False
Ch.2 - You CANNOT edit a customer record after it has been created. - Answer-False
,Ch.2 - You CANNOT merge more than two customer names at one time. - Answer-True
Ch.2 - Non-inventory items are tracked in the Cost of Goods account. - Answer-True
Ch.2 - Use a sales graph to display your sales by item, customer, or rep. - Answer-True
Ch.2 - Subitems do NOT affect the accounting behind the scenes. - Answer-True
Ch.2 - What type of information can the Search feature help you find? - Answer-List
entries
Ch.2 - Jemal is trying to create an invoice but in the Customer:Job list, only <Add New>
is showing. What must Jemal do to populate his customer list? - Answer-He must first
enter his customers into the Customers & Jobs List.
Ch.2 - Match each form type to its best description and use. - Answer-Used to gather
customer charges for a specific period.- Statements
Used when a customer does not pay at time of service.- Invoice
Used when a customer makes a payment at time of service.- Sales receipt
Ch.2 - Before you can add something to an invoice, it must be created as a(n): -
Answer-Item
Ch.2 - What must you specify when creating an invoice? - Answer-Customer
Ch.2 - Carlos has many customers in his company file and it's getting difficult for him to
navigate through them all. He wants to clean up his list of customers by removing those
he's pretty sure won't be coming in again. How can Carlos do this? - Answer-He can
mark the unwanted customers as inactive.
Ch.2 - What happens behind the scenes if you don't use the Receive Payments window
to record a payment on an invoice? - Answer-Income will be overstated and Accounts
Receivable will not be cleared out.
Ch.2 - To remove a transaction and still retain a record of it, use the _____ command. -
Answer-Void
Ch.2 - Which aspects of doing business with customers are set up and executed in the
Customer Center? - Answer-All of these options, Managing payment terms, Setting up
sales tax, Tracking customers
Ch.2 - When can you add a new customer or job to the Customer Center? - Answer-At
any time
, Ch.2 - Kendall is frustrated with having to manually populate every field whenever she
enters a transaction. What can she do to help automate this process? - Answer-She can
set defaults for specific information for each customer.
Ch.2 - Eisa recently added a new customer. After about a week of entering transactions
for that customer, Eisa notices that he misspelled the customer's name when he
originally created the record. How can Eisa most efficiently correct the problem? -
Answer-He can edit the customer name in the Customer Center, as any changes made
to the customer record will change all future and past transactions.
Ch.2 - Which of these is an action you can take in the Lead Center to help track
potential sales leads? - Answer-All of these options, Input contact and local information,
Keep notes, Create and track tasks
Ch.2 - In QuickBooks, what is considered an item? - Answer-Anything the company
buys, sells, or resells in the course of business
Ch.2 - Kyle's Item List includes many items for various cleaning services. They all start
with different letters, so they don't appear together in the list, which means he must
scroll up/down when choosing more than one service to include on an invoice. How can
Kyle make finding his cleaning services items easier? - Answer-He can group them into
subitems under a general term.
Ch.2 - When you enter a Sales Receipt transaction, where do the funds go? - Answer-
Undeposited Funds
Ch.2 - Match each item type with its description. - Answer-Discount- use this to. subtract
a percentage of fixed amount from a total or subtotal
Inventory Part- what you purchase, track as inventory, and resell
Subtotal- use this to apply a percentage discount or surcharge to many items
Sales Tax Item- calculates a single sales tax at a specific rate, which you pay to a single
tax agency
Payment- records partial remittance at the time of sale and reduces the total amount
owed
Service- what you charge for or purchase
Ch.3 - You must print the check at the time you enter transaction information into the
Write Checks window. - Answer-False
Ch.3 - The Vendor List can be exported to contact management software, such as
Microsoft Outlook. - Answer-True
Ch.3 - You CANNOT delete a vendor once you have used that vendor in a transaction. -
Answer-True
