QuickBooks Desktop Test 2 Training questions and answers with rated solutions

QuickBooks Desktop Test 2 Training questions and answers with rated solutions You've completed the setup of a QuickBooks company file, but during the company setup, you spelled the company's name wrong. How do you fix it now? Select Company: My Company from the menu and click the pencil icon. To be as safe a possible, where should you NOT save a backup company file? Your computer's hard drive When you restore a backup company file, what happens? QuickBooks creates a new working QuickBooks company file with all of the data that was in the backup company file. Why would a company switch to Multi-User Mode? If a company wants multiple users to access a company file at the same time, the company file must be in Multi-User Mode. Which of the following is NOT a good reason to record a journal entry? Recording a sale to a customer Which of the following is NOT a major edition of QuickBooks? QuickBooks Basic Which of the following situations would keep you from being able to delete something from a list? The list entry has a balance. When setting up a new item. QuickBooks requires which of the following? All of the above What effect does a credit memo have on your bookkeeping? It lowers the customer's balance but doesn't necessarily refund them. What is the main purpose of an estimate in QuickBooks? It is a method for sending a quote on potential prices and costs to a customer. Which of the following statements best describes a Balance Forward type statement? A Balance Forward statement displays all sales-related transactions that affected a customer's balance over a range of dates and what their balance was before those transactions took place. How does a vendor credit affect your company's balances? It decreases Accounts Payable. If you want to enter a purchase without affecting Accounts Payable, what is one way to do that? Click Write Checks and enter the purchase. Which of the options below describes a situation in which you would need to create a new Deduction type item? You need to garnish the wages of an employee for something, such as child support. Which of the following Payroll Item types should be used when setting up a bonus? Compensation When setting up an employee, what is the most efficient method for entering a Health Insurance deduction that will happen on every paycheck? In the Employee screen, click Payroll Info, and in the Additions, Deductions, and Company Contributions section, enter the health insurance payroll item along with the amounts involved each pay period. Which of the following is a form new employees typically fill out? W-4 Which of the following is a method for removing a column from a report? Click the three dots to the right of the column and drag it to the left, past the next column to the left. Where do subaccounts appear on the Chart of Accounts and financial statements? Indented and underneath the parent account. Which of the following allows you to organize your memorized reports? Memorized Report Groups Which of the following reports compares your company's income, expenses, and cost of goods sold? Profit & Loss Standard Which of the following features lets you see a preview of a report before running it? The Reports Center What is the purpose of the Audit Trail report? It tracks any changes to and deletions of transactions, and it also tracks which user makes the changes or deletions. Which of the following could POSSIBLY explain but is not the only reason why a Profit & Loss shows a profit even though the business owner doesn't have any money in the bank? The Profit & Loss was run on the Accrual Basis instead of on the Cash Basis. Which of the following answers best complete this sentence: The Balance Sheet is... ...one of the two primary financial statements that summarize the Chart of Accounts. What is a liability? What you owe to people outside of the business You want to add your company's logo to your invoices. How can you do that in QuickBooks? Click Create Invoices and then choose the Formatting tab. Choose Customize Data Layout and then Layout Designer. From that screen, you can add your logo as an image. From the Customize Data Layout Screen of an invoice, you can do what? You can turn options like Sales Rep or Due Date on and off. For each functional area of QuickBooks Pro and Premier, i.e. Sales Accounts, Accounts Receivable, Purchases, what levels of access can you grant to users? You can prohibit access, grant full access, or grant selective access. These levels apply to ALL transactions within that area. Which of the following can be memorized? All of the above What is the meaning of "Start Date" in QuickBooks? The date to start recording financial records in QuickBooks. What can you do to make sure your installed QuickBooks Desktop is always the latest release version. Go to Help > Update QuickBooks. Set the Automatic Update feature to Yes. What is the advantage of operating QuickBooks in Multi-User Mode? If a company wants multiple users to simultaneously access a company file, the company file must be in Multi-User Mode. Multiple users can access your company QuickBook file. One of the employees asks why she cannot change Company Preferences. What is most likely the reason? If a company wants multiple users to simultaneously access a company file, the company file must be in Multi-User Mode. You use QuickBooks to track sales at a tour company. You want to merge the Service list entry for labor cost of a tour guide with an other Charge list entry for meals purchased for tourists. Why should you not merge these two list entries? You can only merge entries of the same Type. A landscaping company sells sprinkler systems and tracks the parts Inventory Assembly A bakery wants to track costs of various ingredients, but not how many ingredients are kept on hand Non-Inventory Part A retail furniture store obtains their merchandise from a supplier and tracks the workflow from Purchase Order to Invoice Payment Inventory Part