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
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
