QuickBooks Certification Study
Know how to record accumulated depreciation at end of year. Example:
Record journal entry at end of year for accumulated depreciation of $1000
for forklift correct answersDebit Depreciation expense $1000
Credit accumulated depreciation $1000
What is a cash flow statement? correct answersRecords the company's
cash transactions (the inflows and outflows) during the given period. It
shows whether all of the revenues booked on the income statement
have been collected.
Who is a 1099 given to? correct answers1099 form is given for money a
person earns as an independent contractor. A company may issue you a
1099 at end of year when you have performed services/work for them as
an independent contractor if you make more than $600 in a year from
them. It is also used to report non-employment income, including dividends
paid from owning a stock or income
Know the difference between tracking a project, tracking a class, and
tracking a location. correct answersa. Class tracking lets you track
account balances by department, business office or location,
separate properties, or any other meaningful breakdown of your business.
This lets you track
segments you want to keep a close eye on
b. Location tracking is used to categorize data from different locations,
offices, regions, outlets, or
departments of the same company. This feature lets you see all the
payments for one location and
deposit them as a group.
c. Project tracking -helps you organize all the moving pieces of your
project, including transactions,
time and running reports - so you always know where you stand with all
your jobs.
What is the difference between a billing address and a shipping
address? correct answersa. Billing is where the invoice is mailed to
b. Shipping is where the goods are delivered to
What is a balance sheet? correct answersReports a company's assets,
liabilities, and shareholder equity. It provides a snapshot of a company's
finances (what it owns and owes) as of the date of publication.
, Income (Profit and Loss) correct answersProvides a summary of a company's
revenue, expenses and profit. It gives investors and other interested parties
an insight into how a company is operating and whether it has the ability to
generate a profit.
What is the purpose of Accounts Payable Aging Report? correct
answersTo know if there are any overdue bills.
How do you track Accounts Payable (A/P) in QuickBooks? correct
answersStep 1: Enter a Bill. Step 2: Pay the Bill in the Pay Bills Window.
Which form cannot be customized in QuickBooks? correct answersBill
What is the purpose of the Audit Log report? correct answersTo track any
changes and deletions to transactions as well as track which user makes the
change or deletion.
What does the Apps tab do in QuickBooks? correct answersAllows you to
open and use apps you are connected to & allows you to search for new apps
to use. Use the Apps tab to find other apps a business needs (or if
already using) for their business.
When should you void a check? correct answersExample - check gets lost in
the mail. (keep in mind, you should always ask your bank to put a stop
payment on the check so if the check is found, it will not be used)
When should you not delete a check? correct answersExample - you
printed a check and the check number has been used.
What transaction should you enter if a customer returns a damaged
product, or in the case of service, complains so much you decide to write
them a check for a refund? correct answersRefund receipt -(refund check
is entered as a refund receipt in QB)
What transaction should you enter if a customer returns an item they have
not paid for yet? correct answersCredit memo - ANSWER (credit memo will
decrease their invoice total)
What transaction should you enter if you return unused inventory which
you have not yet paid for? correct answersVendor Credit - This will
decrease Accounts Payable.
Which two user types would be able to write a check in QuickBooks
Online? correct answersCompany admin and Standard user with vendor
access only.
What is the difference between an Invoice and a Sales Receipt? correct
answersAn Invoice records a sale and how much your customer owes. A
Sales Receipt records a sale and the payment you received (it doesn't track
any amount as owed).
Know how to record accumulated depreciation at end of year. Example:
Record journal entry at end of year for accumulated depreciation of $1000
for forklift correct answersDebit Depreciation expense $1000
Credit accumulated depreciation $1000
What is a cash flow statement? correct answersRecords the company's
cash transactions (the inflows and outflows) during the given period. It
shows whether all of the revenues booked on the income statement
have been collected.
Who is a 1099 given to? correct answers1099 form is given for money a
person earns as an independent contractor. A company may issue you a
1099 at end of year when you have performed services/work for them as
an independent contractor if you make more than $600 in a year from
them. It is also used to report non-employment income, including dividends
paid from owning a stock or income
Know the difference between tracking a project, tracking a class, and
tracking a location. correct answersa. Class tracking lets you track
account balances by department, business office or location,
separate properties, or any other meaningful breakdown of your business.
This lets you track
segments you want to keep a close eye on
b. Location tracking is used to categorize data from different locations,
offices, regions, outlets, or
departments of the same company. This feature lets you see all the
payments for one location and
deposit them as a group.
c. Project tracking -helps you organize all the moving pieces of your
project, including transactions,
time and running reports - so you always know where you stand with all
your jobs.
What is the difference between a billing address and a shipping
address? correct answersa. Billing is where the invoice is mailed to
b. Shipping is where the goods are delivered to
What is a balance sheet? correct answersReports a company's assets,
liabilities, and shareholder equity. It provides a snapshot of a company's
finances (what it owns and owes) as of the date of publication.
, Income (Profit and Loss) correct answersProvides a summary of a company's
revenue, expenses and profit. It gives investors and other interested parties
an insight into how a company is operating and whether it has the ability to
generate a profit.
What is the purpose of Accounts Payable Aging Report? correct
answersTo know if there are any overdue bills.
How do you track Accounts Payable (A/P) in QuickBooks? correct
answersStep 1: Enter a Bill. Step 2: Pay the Bill in the Pay Bills Window.
Which form cannot be customized in QuickBooks? correct answersBill
What is the purpose of the Audit Log report? correct answersTo track any
changes and deletions to transactions as well as track which user makes the
change or deletion.
What does the Apps tab do in QuickBooks? correct answersAllows you to
open and use apps you are connected to & allows you to search for new apps
to use. Use the Apps tab to find other apps a business needs (or if
already using) for their business.
When should you void a check? correct answersExample - check gets lost in
the mail. (keep in mind, you should always ask your bank to put a stop
payment on the check so if the check is found, it will not be used)
When should you not delete a check? correct answersExample - you
printed a check and the check number has been used.
What transaction should you enter if a customer returns a damaged
product, or in the case of service, complains so much you decide to write
them a check for a refund? correct answersRefund receipt -(refund check
is entered as a refund receipt in QB)
What transaction should you enter if a customer returns an item they have
not paid for yet? correct answersCredit memo - ANSWER (credit memo will
decrease their invoice total)
What transaction should you enter if you return unused inventory which
you have not yet paid for? correct answersVendor Credit - This will
decrease Accounts Payable.
Which two user types would be able to write a check in QuickBooks
Online? correct answersCompany admin and Standard user with vendor
access only.
What is the difference between an Invoice and a Sales Receipt? correct
answersAn Invoice records a sale and how much your customer owes. A
Sales Receipt records a sale and the payment you received (it doesn't track
any amount as owed).
