Question 1

In QBO,users can save adjusting entries as recurring transactions.Which of the following is FALSE regarding recurring transactions used for adjustments?

Accepted Answer

A) Saving adjusting entries as recurring transactions saves time. 
B) When saving adjusting entries as recurring transactions users still must update the amount of the adjustment as needed. 
C) There are two ways to save adjusting entries as recurring transactions: 1.Using the Onscreen journal and 2.Using the recurring transactions screen. 
D) It is challenging to use recurring transactions for adjustments since most adjustment amounts need to change every month. 
A) Saving adjusting entries as recurring transactions saves time. 
B) When saving adjusting entries as recurring transactions users still must update the amount of the adjustment as needed. 
C) There are two ways to save adjusting entries as recurring transactions: 1.Using the Onscreen journal and 2.Using the recurring transactions screen. 
D) It is challenging to use recurring transactions for adjustments since most adjustment amounts need to change every month. D

Question 2

Accrued revenues:

Accepted Answer

A) are revenues not yet earned but have been collected or recorded. 
B) are revenues earned but not yet collected or recorded. 
C) require an adjusting entry to decreases (credits)an asset and increases (debit)a revenue. 
D) require an adjusting entry to decrease (credits)a revenue and increase (debit)a liability. 
A) are revenues not yet earned but have been collected or recorded. 
B) are revenues earned but not yet collected or recorded. 
C) require an adjusting entry to decreases (credits)an asset and increases (debit)a revenue. 
D) require an adjusting entry to decrease (credits)a revenue and increase (debit)a liability. B

Question 3

One way QBO enters adjusting entries is through using the Onscreen Journal. This method involves using the following process?

Accepted Answer

A) Select the Create (+)icon,then select Journal Entry to access the Onscreen Journal. Enter the Journal date,and Journal no (usually,label as AJ
E) . On Line 1 select Account to debit from the drop-down list,enter the Debit Amount,and Description.Do the same process on Line 2 for the credit. 
B) Select the Gear icon,then select Adjustment to access the Onscreen Journal. Enter the Journal date,and Journal no. On Line 1 select Account to debit from the drop-down list,enter the Debit Amount,and Description.Do the same process on Line 2 for the credit. 
C) Select the Create (+)icon,then select Adjustment to access the Onscreen Journal. Enter the Journal date,and Journal no. On Line 1 select Account to debit from the drop-down list,enter the Debit Amount,and Description.Do the same process on Line 2 for the credit. 
D) The Onscreen Journal is generally not used to enter in adjustments. It does not identify adjustments clearly enough. 
A) Select the Create (+)icon,then select Journal Entry to access the Onscreen Journal. Enter the Journal date,and Journal no (usually,label as AJ
E) . On Line 1 select Account to debit from the drop-down list,enter the Debit Amount,and Description.Do the same process on Line 2 for the credit. 
B) Select the Gear icon,then select Adjustment to access the Onscreen Journal. Enter the Journal date,and Journal no. On Line 1 select Account to debit from the drop-down list,enter the Debit Amount,and Description.Do the same process on Line 2 for the credit. 
C) Select the Create (+)icon,then select Adjustment to access the Onscreen Journal. Enter the Journal date,and Journal no. On Line 1 select Account to debit from the drop-down list,enter the Debit Amount,and Description.Do the same process on Line 2 for the credit. 
D) The Onscreen Journal is generally not used to enter in adjustments. It does not identify adjustments clearly enough. A

Question 4

Correcting errors on saved documents requires all of the following except:

Accepted Answer

A) One approach is to display the document,correct the error and then save the document again. 
B) The document can be voided and then create a new document. 
C) Delete the document and create a new document. 
D) Destroy the document to ensure there is no source for identity theft since that is more important than needing an audit trail. 
A) One approach is to display the document,correct the error and then save the document again. 
B) The document can be voided and then create a new document. 
C) Delete the document and create a new document. 
D) Destroy the document to ensure there is no source for identity theft since that is more important than needing an audit trail.

Question 5

What is FALSE regarding adjusting entries and QBO?

Accepted Answer

A) Adjusting entries are dated the last day of the accounting period which can be one month,one quarter or one year. 
B) Adjustments are made through the Chart of Accounts during the year and then using the Onscreen Journal at the end of the year. 
C) Adjusting Entries are entered in the Onscreen QBO Journal using debits and credits. 
D) Some companies use QBO to maintain its accounting system throughout the year and use an accountant to prepare and enter adjusting entries at year end. 
A) Adjusting entries are dated the last day of the accounting period which can be one month,one quarter or one year. 
B) Adjustments are made through the Chart of Accounts during the year and then using the Onscreen Journal at the end of the year. 
C) Adjusting Entries are entered in the Onscreen QBO Journal using debits and credits. 
D) Some companies use QBO to maintain its accounting system throughout the year and use an accountant to prepare and enter adjusting entries at year end.

Question 6

What is the difference between a correcting entry and an adjusting entry?

Accepted Answer

A) Correcting entries are updates required to bring accounts to the correct balances as of a certain date.Adjusting entries fix mistakes in the accounting system. 
B) Correcting entries require one journal entry to fix and adjusting entries require two entries to fix. 
C) Correcting entries fix mistakes in the accounting system.Adjusting entries are not mistakes but updates required to bring accounts to the correct balances as of a certain date. 
D) Correcting entries and adjusting entries are the same type of entry just labelled differently. 
A) Correcting entries are updates required to bring accounts to the correct balances as of a certain date.Adjusting entries fix mistakes in the accounting system. 
B) Correcting entries require one journal entry to fix and adjusting entries require two entries to fix. 
C) Correcting entries fix mistakes in the accounting system.Adjusting entries are not mistakes but updates required to bring accounts to the correct balances as of a certain date. 
D) Correcting entries and adjusting entries are the same type of entry just labelled differently.

Question 7

What is true regarding Unearned items?

Accepted Answer

A) Unearned items consist of revenue a company has not earned and an adjustment is necessary to increase the revenue once it is earned and decrease the liability once the obligation is satisfied. 
B) Unearned items consist of expenses that have not yet been incurred. A company must reduce an asset,prepaid,and increase expense for what has been incurred. 
C) The adjusting journal entry related to Unearned items would increase a liability and reduce revenue to recognize what has been earned. 
D) The adjusting entry related to Unearned items records the amount that needs to be transferred between two accounts,an Expense and a Liability,to show the appropriate balance in each account. 
A) Unearned items consist of revenue a company has not earned and an adjustment is necessary to increase the revenue once it is earned and decrease the liability once the obligation is satisfied. 
B) Unearned items consist of expenses that have not yet been incurred. A company must reduce an asset,prepaid,and increase expense for what has been incurred. 
C) The adjusting journal entry related to Unearned items would increase a liability and reduce revenue to recognize what has been earned. 
D) The adjusting entry related to Unearned items records the amount that needs to be transferred between two accounts,an Expense and a Liability,to show the appropriate balance in each account.

Question 8

What is the accounting cycle?

Accepted Answer

A) It is a series of accounting activities a business performs each accounting period. 
B) It consists of a period of steps beginning with preparing the financial statements. 
C) It is closing out revenue and expense accounts to begin a new accounting year. 
D) It is preparing adjustments to ensure revenue and expenses are correctly recorded. 
A) It is a series of accounting activities a business performs each accounting period. 
B) It consists of a period of steps beginning with preparing the financial statements. 
C) It is closing out revenue and expense accounts to begin a new accounting year. 
D) It is preparing adjustments to ensure revenue and expenses are correctly recorded.

Question 9

Accrued expenses are:

Accepted Answer

A) expenses that have been paid but not yet incurred. 
B) expenses incurred but not yet paid or recorded. 
C) expenses that require adjusting entries to increase a prepaid expense and decrease a liability. 
D) expenses that require adjusting entries to debit a liability and credit an expense. 
A) expenses that have been paid but not yet incurred. 
B) expenses incurred but not yet paid or recorded. 
C) expenses that require adjusting entries to increase a prepaid expense and decrease a liability. 
D) expenses that require adjusting entries to debit a liability and credit an expense.

Question 10

What is FALSE regarding prepaid items?

Accepted Answer

A) Prepaid adjustments typically decrease an expense and increase an asset. 
B) Prepaids are items relating to expenses that have been paid in advance. 
C) Adjusting entries for prepaids affect an Expense account and an Asset account. 
D) The adjusting entry records the amount that needs to be transferred between two accounts,an expense and an asset,to show the amount of the asset that has been reduced or used. 
A) Prepaid adjustments typically decrease an expense and increase an asset. 
B) Prepaids are items relating to expenses that have been paid in advance. 
C) Adjusting entries for prepaids affect an Expense account and an Asset account. 
D) The adjusting entry records the amount that needs to be transferred between two accounts,an expense and an asset,to show the amount of the asset that has been reduced or used.

Question 11

An example of an adjusting entry for a prepaid item using the QBO journal is:

Accepted Answer

A)  $$\begin{array} { l c c } 
&\text { Debit } & \text { Credit } \
\text { Insurance Expense } &\$ 1,000\
\text {   Prepaid Insurance } & &\$ 1,000 & \
\end{array}$$ 
B)  $$\begin{array} { l c c } 
&\text { Debit } & \text { Credit } \
\text { Prepaid Insurance} &\$ 1,000\
\text {  Insurance Expense   } & &\$ 1,000 & \
\end{array}$$ 
C)  $$\begin{array} { l c c } 
&\text { Debit } & \text { Credit } \
\text { Insurance Expense} &\$ 1,000\
\text {  Insurance Payable} & &\$ 1,000 & \
\end{array}$$ 
D)  $$\begin{array} { l c c } 
&\text { Debit } & \text { Credit } \
\text {  Insurance Payable} &\$ 1,000\
\text { Insurance Expense } & &\$ 1,000 & \
\end{array}$$ 
A)  $$\begin{array} { l c c } 
&\text { Debit } & \text { Credit } \
\text { Insurance Expense } &\$ 1,000\
\text {   Prepaid Insurance } & &\$ 1,000 & \
\end{array}$$ 
B)  $$\begin{array} { l c c } 
&\text { Debit } & \text { Credit } \
\text { Prepaid Insurance} &\$ 1,000\
\text {  Insurance Expense   } & &\$ 1,000 & \
\end{array}$$ 
C)  $$\begin{array} { l c c } 
&\text { Debit } & \text { Credit } \
\text { Insurance Expense} &\$ 1,000\
\text {  Insurance Payable} & &\$ 1,000 & \
\end{array}$$ 
D)  $$\begin{array} { l c c } 
&\text { Debit } & \text { Credit } \
\text {  Insurance Payable} &\$ 1,000\
\text { Insurance Expense } & &\$ 1,000 & \
\end{array}$$

Question 12

In QBO,which of the following is TRUE?

Accepted Answer

A) When making journal entries,accountants may have situations where a journal entry has 2 Debits and no Credits or 2 Credits and no Debits. 
B) There are situations in QBO when Debits will not equal Credits. 
C) When making journal entries,accountants generally list Credits before Debits,however,QBO may not always list Credits before Debits in journal entries. 
D) When making journal entries,accountants generally list Debits before Credits,however,QBO may not always list Debits before Credits in journal entries. 
A) When making journal entries,accountants may have situations where a journal entry has 2 Debits and no Credits or 2 Credits and no Debits. 
B) There are situations in QBO when Debits will not equal Credits. 
C) When making journal entries,accountants generally list Credits before Debits,however,QBO may not always list Credits before Debits in journal entries. 
D) When making journal entries,accountants generally list Debits before Credits,however,QBO may not always list Debits before Credits in journal entries.

Question 13

An example of an adjusting entry for an accrued expense item using the QBO journal is:

Accepted Answer

A)  $$\begin{array} { l c c } 
&\text { Debit } & \text { Credit } \
\text { Interest payable } &\$ 1,000\
\text { Interest expense } & &\$ 1,000 & \
\end{array}$$ 
B)  $$\begin{array} { l c c } 
&\text { Debit } & \text { Credit } \
\text { Interest expense } &\$ 1,000\
\text { Interest payable } & &\$ 1,000 & \
\end{array}$$ 
C)  $$\begin{array} { l c c } 
&\text { Debit } & \text { Credit } \
\text { Interest receivable } &\$ 1,000\
\text {  Interest revenue } & &\$ 1,000 & \
\end{array}$$ 
D)  $$\begin{array} { l c c } 
&\text { Debit } & \text { Credit } \
\text { Interest revenue } &\$ 1,000\
\text {  Interest receivable } & &\$ 1,000 & \
\end{array}$$ 
A)  $$\begin{array} { l c c } 
&\text { Debit } & \text { Credit } \
\text { Interest payable } &\$ 1,000\
\text { Interest expense } & &\$ 1,000 & \
\end{array}$$ 
B)  $$\begin{array} { l c c } 
&\text { Debit } & \text { Credit } \
\text { Interest expense } &\$ 1,000\
\text { Interest payable } & &\$ 1,000 & \
\end{array}$$ 
C)  $$\begin{array} { l c c } 
&\text { Debit } & \text { Credit } \
\text { Interest receivable } &\$ 1,000\
\text {  Interest revenue } & &\$ 1,000 & \
\end{array}$$ 
D)  $$\begin{array} { l c c } 
&\text { Debit } & \text { Credit } \
\text { Interest revenue } &\$ 1,000\
\text {  Interest receivable } & &\$ 1,000 & \
\end{array}$$

Question 14

In QBO,Recurring transactions can be classified as: 1.Scheduled 2.Unscheduled 3.Reminder.Which of the following statements is NOT true regarding these three classifications?

Accepted Answer

A) Scheduled transactions are a great option to use for Recurring adjusting entry transactions since adjustments generally are for a constant amount each time. 
B) Scheduled transactions mean QBO automatically enters the transaction on the date the user specifies. 
C) Unscheduled transactions appear in the Recurring Transactions list but QBO will not automatically enter the transaction. 
D) Reminder transactions mean QBO will alert us with a reminder when we should use a recurring transaction to enter in an adjustment. 
A) Scheduled transactions are a great option to use for Recurring adjusting entry transactions since adjustments generally are for a constant amount each time. 
B) Scheduled transactions mean QBO automatically enters the transaction on the date the user specifies. 
C) Unscheduled transactions appear in the Recurring Transactions list but QBO will not automatically enter the transaction. 
D) Reminder transactions mean QBO will alert us with a reminder when we should use a recurring transaction to enter in an adjustment.

Question 15

What is the definition of depreciation?

Accepted Answer

A) Depreciation is a special type of prepaid item involving fixed assets and it is the allocation of an asset's cost over its useful life. 
B) Depreciation is a special type of accrued liability item involving fixed assets and it is the allocation of an asset's cost over its useful life. 
C) Depreciation is a special type of prepaid item involving revenues and it is the allocation of an asset's cost compared to revenue generated over its useful life. 
D) Depreciation is a special type of prepaid item involving a current prepaid asset and it is the allocation of the prepaid's cost over the asset's life. 
A) Depreciation is a special type of prepaid item involving fixed assets and it is the allocation of an asset's cost over its useful life. 
B) Depreciation is a special type of accrued liability item involving fixed assets and it is the allocation of an asset's cost over its useful life. 
C) Depreciation is a special type of prepaid item involving revenues and it is the allocation of an asset's cost compared to revenue generated over its useful life. 
D) Depreciation is a special type of prepaid item involving a current prepaid asset and it is the allocation of the prepaid's cost over the asset's life.

Question 16

What are the four type of adjusting entries?

Accepted Answer

A) Prepaid,Unearned,Accrued Expenses,and Accrued Revenues 
B) Depreciation,Prepaid,Unearned,and Accrual 
C) Scheduled,Unscheduled,Accruals,and Depreciation 
D) Reminder,Accrual,Depreciation,and Prepaid 
A) Prepaid,Unearned,Accrued Expenses,and Accrued Revenues 
B) Depreciation,Prepaid,Unearned,and Accrual 
C) Scheduled,Unscheduled,Accruals,and Depreciation 
D) Reminder,Accrual,Depreciation,and Prepaid

Question 17

What is the difference between the accrual basis and the cash basis of accounting?

Accepted Answer

A) Accrual basis records revenue when cash is received and cash basis matches expenses with the revenues it generates. 
B) Accrual basis records revenue when cash is received and the cash basis records revenue when it is earned. 
C) Accrual basis matches expenses with the revenues it generates and cash basis records revenue when cash is received. 
D) Accrual basis records expenses when cash is paid and cash basis records expenses in the accounting period,it is incurred. 
A) Accrual basis records revenue when cash is received and cash basis matches expenses with the revenues it generates. 
B) Accrual basis records revenue when cash is received and the cash basis records revenue when it is earned. 
C) Accrual basis matches expenses with the revenues it generates and cash basis records revenue when cash is received. 
D) Accrual basis records expenses when cash is paid and cash basis records expenses in the accounting period,it is incurred.

Question 18

In QBO,the process for saving adjusting entries as a Recurring Transaction is:

Accepted Answer

A) Enter the adjusting entry in the Onscreen Journal,and select Save,then Make recurring.Enter a Template name and select Reminder and enter the number of days and interval for the reminder. 
B) Use the Create (+)icon to enter the adjusting entry in the Onscreen Journal,and select Save,then Make recurring.Enter a Template name and select Reminder and enter the number of days and interval for the reminder. 
C) Use the Gear icon to enter the adjusting entry in the Onscreen Journal,and select Save,then Make recurring.Enter a Template name and select Reminder and enter the number of days and interval for the reminder. 
D) Use the Gear icon to enter the adjusting entry in the Onscreen Journal,and select Save,then Make recurring.Schedule the transaction by entering the date and interval and QBO will automatically prepare the adjustment. 
A) Enter the adjusting entry in the Onscreen Journal,and select Save,then Make recurring.Enter a Template name and select Reminder and enter the number of days and interval for the reminder. 
B) Use the Create (+)icon to enter the adjusting entry in the Onscreen Journal,and select Save,then Make recurring.Enter a Template name and select Reminder and enter the number of days and interval for the reminder. 
C) Use the Gear icon to enter the adjusting entry in the Onscreen Journal,and select Save,then Make recurring.Enter a Template name and select Reminder and enter the number of days and interval for the reminder. 
D) Use the Gear icon to enter the adjusting entry in the Onscreen Journal,and select Save,then Make recurring.Schedule the transaction by entering the date and interval and QBO will automatically prepare the adjustment.

Question 19

What is the easiest way to correct an error?

Accepted Answer

A) First,make the correct entry that should have been made initially.Second,eliminate the effect of the incorrect entry by making the opposite journal entry. 
B) Update accounts via a journal entry that are required to bring the accounts up to date as of a certain date. 
C) First,eliminate the effect of the incorrect entry by making the opposite journal entry. Second,make the correct entry that should have been made initially. 
D) Make the correct entry that should have been done initially. 
A) First,make the correct entry that should have been made initially.Second,eliminate the effect of the incorrect entry by making the opposite journal entry. 
B) Update accounts via a journal entry that are required to bring the accounts up to date as of a certain date. 
C) First,eliminate the effect of the incorrect entry by making the opposite journal entry. Second,make the correct entry that should have been made initially. 
D) Make the correct entry that should have been done initially.

Question 20

Which selection below is FALSE regarding Adjustments?

Accepted Answer

A) Adjustments bring accounts up to date and show the correct account balances on financial reports. 
B) Adjusting entries are dated the first day of the accounting period. 
C) Adjustments are typically made at the end of the accounting period to up date accounts before year-end reports are prepared. 
D) Adjustments are also called Adjusting Entries since we enter Adjustments by making entries into a Journal. 
A) Adjustments bring accounts up to date and show the correct account balances on financial reports. 
B) Adjusting entries are dated the first day of the accounting period. 
C) Adjustments are typically made at the end of the accounting period to up date accounts before year-end reports are prepared. 
D) Adjustments are also called Adjusting Entries since we enter Adjustments by making entries into a Journal.

In QBO,users can save adjusting entries as recurring transactions.Which of the following is FALSE regarding recurring transactions used for adjustments?

Accrued revenues:

One way QBO enters adjusting entries is through using the Onscreen Journal. This method involves using the following process?

Correcting errors on saved documents requires all of the following except:

What is FALSE regarding adjusting entries and QBO?

What is the difference between a correcting entry and an adjusting entry?

What is true regarding Unearned items?

What is the accounting cycle?

Accrued expenses are:

What is FALSE regarding prepaid items?

An example of an adjusting entry for a prepaid item using the QBO journal is:

In QBO,which of the following is TRUE?

An example of an adjusting entry for an accrued expense item using the QBO journal is:

In QBO,Recurring transactions can be classified as: 1.Scheduled 2.Unscheduled 3.Reminder.Which of the following statements is NOT true regarding these three classifications?

What is the definition of depreciation?

What are the four type of adjusting entries?

What is the difference between the accrual basis and the cash basis of accounting?

In QBO,the process for saving adjusting entries as a Recurring Transaction is:

What is the easiest way to correct an error?

Which selection below is FALSE regarding Adjustments?

Quickbooks Online Navigation and Settings

QBO Chart of Accounts

QBO Transactions

Banking

Customers and Sales

Vendors and Expenses

Inventory

Employees and Payroll

QBO Reports

Filters

Exam 9: QBO Adjustments

In QBO,users can save adjusting entries as recurring transactions.Which of the following is FALSE regarding recurring transactions used for adjustments?

Accrued revenues:

One way QBO enters adjusting entries is through using the Onscreen Journal. This method involves using the following process?

Correcting errors on saved documents requires all of the following except:

What is FALSE regarding adjusting entries and QBO?

What is the difference between a correcting entry and an adjusting entry?

What is true regarding Unearned items?

What is the accounting cycle?

Accrued expenses are:

What is FALSE regarding prepaid items?

An example of an adjusting entry for a prepaid item using the QBO journal is:

In QBO,which of the following is TRUE?

An example of an adjusting entry for an accrued expense item using the QBO journal is:

In QBO,Recurring transactions can be classified as: 1.Scheduled 2.Unscheduled 3.Reminder.Which of the following statements is NOT true regarding these three classifications?

What is the definition of depreciation?

What are the four type of adjusting entries?

What is the difference between the accrual basis and the cash basis of accounting?

In QBO,the process for saving adjusting entries as a Recurring Transaction is:

What is the easiest way to correct an error?

Which selection below is FALSE regarding Adjustments?

Quickbooks Online Navigation and Settings

QBO Chart of Accounts

QBO Transactions

Banking

Customers and Sales

Vendors and Expenses

Inventory

Employees and Payroll

QBO Reports

Filters