QuickBooks Certification Practice 100 Questions with Verified Answers,100% CORRECT

QuickBooks Certification Practice 100 Questions with Verified Answers When setting up a company, what should you do when you reach the Trial Balance/Opening Balances page? - CORRECT ANSWER There is no page or option called Trial Balance/Opening Balances. You can use the Opening Balance Field when you add Vendors (A/P) and Customers (A/R) to enter these balances. Which of the following CANNOT be entered during the setup of a new company (Express Start or Advanced/Detailed Setup) file? - CORRECT ANSWER Trial Balance opening balances You've completed the set up of a QuickBooks company file. But you forgot to enter the company's phone number during set up. How do you enter it now? - CORRECT ANSWER Select Company: My Company from the menu and click the icon How do you set up multiple business in Quickbooks (assuming each business files a separate tax return)? - CORRECT ANSWER Repeat the steps you take to set up 1 company. Use express Start or Advanced/Detailed Setup to create a separate company file for each business. When you set up a new Quickbooks company, how do you setup a new account that is not on the default list of accounts? - CORRECT ANSWER You can not add accounts that are not on the Quickbooks default list. Finish setting up and then add the accounts directly to the chart of accounts. The company file you are working on is a mess. You decide to start a new file. To save time, you want to keep all the lists and preferences and just delete the transactions. How do you do this? - CORRECT ANSWER Click the File menu and select Utilities> condense data from the menu. Then choose the All transactions option. Which of the following is NOT a backup option in Quckbooks? - CORRECT ANSWER All of these are Quickbooks backup options. Why would you restore a data file from the backup file? - CORRECT ANSWER All of these are reasons to restore from the backup file. How do you switch to Multi-User mode? - CORRECT ANSWER Choose File > Switch to Multi-user Mode from the menu. If you choose to remove transactions as of a specific date from the "Condense Data" window, what does Quickbooks do? - CORRECT ANSWER Removes all transactions while leaving lists, preferences and service subscriptions intact. What happens when you press F2 in Quickbooks? - CORRECT ANSWER Quickbooks opens the Product Information window which includes version and company file information. When would you enter a journal entry? - CORRECT ANSWER All of these answers are correct. If the computer that houses your QuickBooks data crashes, what should you do? - CORRECT ANSWER Restore a back up copy of your company file. 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? - CORRECT ANSWER QuickBooks Online, QuickBooks Pro, QuickBooks Premier, QuickBooks Enterprise Solutions. What do the diamonds mean on certain lists (for example, the diamonds to the left of each Customer Job)? - CORRECT ANSWER You can click on the diamond and move the list entry to a different location the list. If you moved a list entry up or down, what happens when you add a new entry to the list? - CORRECT ANSWER QuickBooks adds new list entries to the top of the list, regardless of the alphabetic order. What is the maximum number number of names that can be included on the Names lists in QuickBooks Pro or Premier? - CORRECT ANSWER 14,500 What keyboard shortcut allows you to see a total for four names list? - CORRECT ANSWER F2 How do you combine or merge two list entries? - CORRECT ANSWER Rename the unwanted list entry to match the name of the list entry you want to merge into. How do you customize QuickBooks by changing the color scheme and adding or removing icons from the home page? - CORRECT ANSWER Choose Edit > Preferences > Desktop View. During the Advanced/Detailed Setup, you can turn on and off which features in the EasyStep Interview? - CORRECT ANSWER All of these answers are correct. When setting up a new company through the Advanced/Detailed Setup, some company information is optional and some is absolutely required. Which of the following pieces of information does QuickBooks require you to enter during the EasyStep Interview? - CORRECT ANSWER Company name. You've been hired by a company that started in 1911. They've never used QuickBooks. During the advanced/detailed setup, what start date should you use? - CORRECT ANSWER The date you want to begin tracking the company's finances in QuickBooks. 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? - CORRECT ANSWER Non-inventory Part Which of the following statements is true concerning items? - CORRECT ANSWER All of these answers are correct. (To create an invoice, you must use an item. Items allow you to track your sales in more detail without cluttering your Chart of Accounts or Profit&Loss. You can use one item to represent different services or goods.) 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? - CORRECT ANSWER Credit Memo. When should NEVER delete a check? - CORRECT ANSWER You printed a check, and the check number has been used. When should you create an invoice in QuickBooks? - CORRECT ANSWER When a customer purchases goods or services but does not pay you at the time of the sale. What are other benefits of using items? - CORRECT ANSWER All of these answers are correct. (You can track the actual quantity of goods or services you sell. They can save you time by automatically entering a description and price on forms. They allow you to track a lot of detail without cluttering your Chart of Accounts.) When you create a statement and select "All open transactions as of statement date," what does QuickBooks show on the statement? - CORRECT 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"? - CORRECT ANSWER Service What options do you have after you create a credit memo in Quickbooks? - CORRECT ANSWER All of these are correct. (Give a refund. Retain as an available credit. Apply to an invoice.) What happens to the inventory asset account when you enter a purchase order for inventory? - CORRECT ANSWER No accounts are affected. When would you create an estimate in QuickBooks? - CORRECT ANSWER When a customer requests a bid, quote, or proposal. When should you use a Sales Receipt in QuickBooks? - CORRECT ANSWER To record a customer payment at the time of sale. What account (on the Chart of Accounts) is affected when you sell an item? - CORRECT ANSWER The account you selected when you set up the item. To record a bounced check, you open the same Receive Payment window that you used to receive the original payment, and click "Bounced Check". QuickBooks opens the bounced check wizard. What does QuickBooks do when you finish this wizard? - CORRECT ANSWER All of these answers are correct. (Marks any invoices that the payment was applied to as unpaid.Reduces the checking balance by the amount of the bounced check and the service fee charged by the bank.Creates a new invoice for the service fee that you charge to your customer.) Which of the following is NOT an item type? - CORRECT ANSWER Income. If you associate a service item with two accounts, how does QuickBooks know which account to use on a transaction? - CORRECT 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." 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? - CORRECT 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. When you invoice for time and costs, where does QuickBooks get the billable time or costs? - CORRECT ANSWER From billable time entered on timesheets and/or billable costs entered on checks and bills. What is the purpose of Progress Invoicing? - CORRECT ANSWER To invoice from an estimate in increments. What transaction/form do you begin with to enter a vendor credit? - CORRECT ANSWER Enter Bill When reconciling your bank account in QuickBooks, what must the beginning balance match? - CORRECT ANSWER It should always match the opening balance on the paper bank statement. What is a reason to use the Items tab when entering a bill? - CORRECT ANSWER To assign a cost to a job or purchase inventory. You used a debit card to buy one Door Frame (an item you sell) from Zeng Building Supplies. Enter Transaction in QuickBooks. - CORRECT ANSWER Go to Banking > Write Checks > Change no. to debit > Pay to the order of Zeng Building Supplies > Items > Door Frame > Enter the quantity > Save & Exit (Make sure to hit enter after keying in values) Suppose you have a subcontractor who receives a 1099 from your company. What list should you add them to? - CORRECT ANSWER Vendor List. How do you track accounts payable in QuickBooks? - CORRECT ANSWER Enter a bill and then use the Pay Bills window. Which form should you use to enter petty cash expenditures? - CORRECT ANSWER Write checks or use check register. How do you set up QuickBooks to automatically use discounts and credits? - CORRECT ANSWER Choose Edit > Preferences > Bills > Company Preferences, and then select to automatically use discounts or credits. You have customized and then memorized a report. What does QuickBooks save when memorizing a report? - CORRECT ANSWER Report header, filters, and columns but not the actual transactions. When printing paychecks, what is the preferred check style to give an employee a paystub? - CORRECT ANSWER Voucher. Which of these forms would you give to an employee? - CORRECT ANSWER W-2. What is the easiest way to organize your memorized reports? - CORRECT ANSWER Create a report group. What options (tabs) do you have to change a report when you click Customize Report? - CORRECT ANSWER All of these answers are correct. (Filters, Display, Header/Footer and Fonts & Numbers). What are the first two steps to set up payroll in QuickBooks? - CORRECT ANSWER 1) Sign up for a payroll service; and 2) complete the Payroll Setup Interview. How do you create a memorized group of reports? - CORRECT ANSWER Open the Memorized Report List and then click Memorized Report > New Group. You notice that multiple accounts should actually be subaccounts.How can you quickly make these accounts subaccounts of another account? - CORRECT ANSWER Click on the diamond to the left of the account, drag it below the appropriate parent account, and release the mouse button. Then click on the diamond again, drag it to the right, and release the mouse button. When would you use the Expenses tab on a payroll liability check? - CORRECT ANSWER To enter late fees/penalties or interest. Which of the following reports answers the question "What transactions make up the current balance I owe each vendor?" - CORRECT ANSWER Vendor Balance Detail. Which of the following Payroll Services are available with QuickBooks? - CORRECT ANSWER All of these answers are correct. (Enhanced, Basic, Assisted). Which of the following is a way to access a report in QuickBooks? - CORRECT ANSWER All of these answers are correct. (By clicking Reports at the bottom of lists, From the Reports menu, From the Report Center). You sent a QuickBooks report to excel and made some changes. How do you import the change in the excel back to QuickBooks? - CORRECT ANSWER You can't import changes in Excel back to QuickBooks. What happens if you click Collapse on a report? - CORRECT ANSWER QuickBooks hides Subaccounts and only shows Parent accounts. What happens when you QuickZoom on a number in a report? - CORRECT ANSWER QuickBooks shows more detail about the number on the report. How do you track sick or vacation time in QuickBooks? - CORRECT ANSWER All of these answers are correct. (When you set up an employee, define how QuickBooks should accrue time, Pay an employee with a sick or vacation wage item, Set up a sick or vacation wage item). When you send a QuickBooks report to Excel, which feature allow you to have a drop-down list for each column to allow filtering? - CORRECT ANSWER Auto Filter. When setting up a new employee, what is important about the Payroll Info tab? - CORRECT ANSWER Whatever you enter/see in this window affects each paycheck, unless you change the information on the paycheck itself. If you set up and track Sales Tax in QuickBooks, which category of reports contains Sales Tax reports? - CORRECT ANSWER Vendors and Payables. What report should you use to help you complete the state unemployment tax form? - CORRECT ANSWER Employee State Taxes Detail. Dan T. Miller, one of your employees, recently got a raise. His new salary is $45,000 a year. Enter this salary change in QuickBooks. - CORRECT ANSWER Click the Employees tab > Click Employee Center > Right click the employee > Click Edit Employee > Click Payroll Info > Click in the HOURLY/ANNUAL RATE box > Key in 45000 and hit Enter > Click Okay. What can you do in the Reports & Graphs Preferences (Edit >Preferences)? - CORRECT ANSWER All of these answers are correct. (Change the summary basis (Accrual or Cash) for all reports, Change Format options like font color and size, Set which date to use for aging reports.) Why must you set deposit frequencies for the taxes or deductions your company has to pay (Payroll Liabilities)? - CORRECT ANSWER So that Payroll Liabilities show up in the Pay Taxes & Other Liabilities list in the Payroll Center. How do you use Write Checks to pay Payroll Liabilities so your Payroll reports are accurate? - CORRECT ANSWER You can't. How do you display or print a batch/group of reports quickly? - CORRECT ANSWER Choose Reports >Process Multiple Reports. What happens if you double-click a diamond on a report column? - CORRECT ANSWER None of these are correct. How do you move columns on a report? - CORRECT ANSWER Move your cursor over the column heading, and when it becomes a hand, click and drag the column to the desired position. How does entering time for a job affect job cost reports? - CORRECT ANSWER None of these answers are correct. Your manager wants you to prepare a Profit & Loss Standard report but doesn't want to see subaccount details. Run a profit and loss standard report and modify the report to hide subaccounts. - CORRECT ANSWER Reports > Company & Financial > Profit & Loss Standard > Collapse. When you run Financial Statements in QuickBooks, what bookkeeping basis can you use to view the report? - CORRECT ANSWER All of these answers are correct. (Cash Basis, Accrual Basis, You can switch the bookkeeping basis if you want). You need to enter the same transaction each month (for example, an insurance payment). How can you automate this process in QuickBooks? - CORRECT ANSWER While the transaction is on the screen, choose Edit > Memorize check (or the name of the transaction). Which of these functions can only be preformed by the Administrator? - CORRECT ANSWER Add new users and change their access privileges. What is the purpose of the Chart of Accounts? - CORRECT ANSWER It is how you categorize financial transactions. 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? - CORRECT ANSWER Someone changed or deleted a cleared transaction. 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? - CORRECT ANSWER Edit a customer and click the "Additional Info" tab. Click Define Fields to create a Custom Field to track anything you want. What is equity? - CORRECT ANSWER Assets minus (-) liabilities. What is one way that QuickBooks uses the Account Type? - CORRECT ANSWER To identify where the account appears on the financial statements. You suspect that someone has changed a transaction. What report should you run? - CORRECT ANSWER Audit Trail Report. What are the 2 main Financial Statements you can run from the "Company and Financial" category of reports? - CORRECT ANSWER Balance Sheet, Profit and Loss. How do you set up multiple users in QuickBooks Pro or Premier? - CORRECT ANSWER Choose Company > Set up Users and Passwords > Set up Users. What are the main sections of the Profit & Loss? - CORRECT ANSWER Income, Cost of Goods Sold, and Expenses. You don't like how a form (for example, an invoice) looks when you print it. How can you change it? - CORRECT ANSWER Click the Formatting tab at the top of the form, then click Customize Data Layout. How do you edit a collections letter? - CORRECT ANSWER Choose Company > Prepare Letters With Envelopes > Customize Letter Templates. What does the term "Double-entry accounting" mean? - CORRECT ANSWER There are always at least two accounts involved in every financial transaction. How can you stop yourself and others from deleting, editing, or adding transactions in a closed period? - CORRECT ANSWER Set a closing date. 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? - CORRECT ANSWER Choose Lists > 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 with the same look, in this case, estimate. You've customized an invoice and are ready to use it, but when you open the invoice, QuickBooks displays the default Intuit Invoice. How do you change it? - CORRECT ANSWER On the invoice, click the Template drop-down arrow and select your customized invoice. Suppose your address information appears on the upper left of your invoice and you want to move it to the lower right. How would you do this? - CORRECT ANSWER Use the Layout Designer. 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? - CORRECT ANSWER Use the Layout Designer to make the field wider. When entering a journal entry, what happens if the debits don't equal the credits? - CORRECT ANSWER QuickBooks will not allow you to record this transaction.