QuickBooks Chapter 07 Test (Latest); Questions
and Answers
1.The Cost of Goods Sold in the Profit and Loss account increases when you sell a
product.
✔✔True
2: There is no limit to the number of inventory products you can enter in
QuickBooks Online.
✔✔True
3: The difference between the cost and the sales price is an expense. ✔✔false
4: You can verify goods were NOT received without applying the receipt of
inventory to a
purchase order. ✔✔true
5: QuickBooks Online can receive incomplete orders by leaving the purchase
order until the
complete order has arrived. ✔✔false
6: When you give a refund to a customer, you must issue a refund receipt.
✔✔True
, QuickBooks Chapter 07 Test (Latest); Questions
and Answers
7: When you first set up sales tax, you also set up the Sales Tax Receivable
Liability account.
✔✔False
8: Which account on the balance sheet increases when you purchase products to
sell?
✔✔Inventory
9: What happens to the Cost of Goods Sold account when you sell an item?
✔✔It increases by
the amount you paid for it.
10: What type of transaction is a purchase order? ✔✔non-posting transactions
11: Which of the following is NOT an option when receiving inventory ordered
on a purchase
order and closing the purchase order? ✔✔Creating an invoice and marking it
paid
12: When might you have to record a vendor credit? ✔✔all of these options
and Answers
1.The Cost of Goods Sold in the Profit and Loss account increases when you sell a
product.
✔✔True
2: There is no limit to the number of inventory products you can enter in
QuickBooks Online.
✔✔True
3: The difference between the cost and the sales price is an expense. ✔✔false
4: You can verify goods were NOT received without applying the receipt of
inventory to a
purchase order. ✔✔true
5: QuickBooks Online can receive incomplete orders by leaving the purchase
order until the
complete order has arrived. ✔✔false
6: When you give a refund to a customer, you must issue a refund receipt.
✔✔True
, QuickBooks Chapter 07 Test (Latest); Questions
and Answers
7: When you first set up sales tax, you also set up the Sales Tax Receivable
Liability account.
✔✔False
8: Which account on the balance sheet increases when you purchase products to
sell?
✔✔Inventory
9: What happens to the Cost of Goods Sold account when you sell an item?
✔✔It increases by
the amount you paid for it.
10: What type of transaction is a purchase order? ✔✔non-posting transactions
11: Which of the following is NOT an option when receiving inventory ordered
on a purchase
order and closing the purchase order? ✔✔Creating an invoice and marking it
paid
12: When might you have to record a vendor credit? ✔✔all of these options
