Question 1

What statement is true regarding a company's bank and credit card in QBO?

Accepted Answer

A) QBO can connect a company's bank account and its credit card resulting in expenses being automatically downloaded from the bank or credit card to QBO.QBO then prepares transactions related to both of these expenses. 
B) QBO can connect a company's bank account but not its credit card resulting in expenses written by check or electronically deducted from the bank being automatically downloaded from the bank to QBO.QBO then prepares transactions related to bank account expenses. 
C) QBO can connect a company's credit card but not a bank account resulting in expenses being automatically downloaded from the credit card to QBO.QBO then prepares transactions related to credit card expenses. 
D) QBO users will manually enter in all bank and credit card expenses; QBO will not assume the responsibility of automatically downloading from these types of accounts. 
A) QBO can connect a company's bank account and its credit card resulting in expenses being automatically downloaded from the bank or credit card to QBO.QBO then prepares transactions related to both of these expenses. 
B) QBO can connect a company's bank account but not its credit card resulting in expenses written by check or electronically deducted from the bank being automatically downloaded from the bank to QBO.QBO then prepares transactions related to bank account expenses. 
C) QBO can connect a company's credit card but not a bank account resulting in expenses being automatically downloaded from the credit card to QBO.QBO then prepares transactions related to credit card expenses. 
D) QBO users will manually enter in all bank and credit card expenses; QBO will not assume the responsibility of automatically downloading from these types of accounts. A

Question 2

In the QBO Check Register the ✔column indicates which of the following:

Accepted Answer

A) It indicates whether the bank transaction is C (cleared),R (reconciled)or blank (uncleared,unreconciled). 
B) It lists the amount of money coming into the Checking account. 
C) It displays the running balance of the Checking account,and it updates the balance with each new transaction in the account. 
D) It lists the amount of money coming out of the Checking account. 
A) It indicates whether the bank transaction is C (cleared),R (reconciled)or blank (uncleared,unreconciled). 
B) It lists the amount of money coming into the Checking account. 
C) It displays the running balance of the Checking account,and it updates the balance with each new transaction in the account. 
D) It lists the amount of money coming out of the Checking account. A

Question 3

Which of the following is NOT an objective of a bank reconciliation?

Accepted Answer

A) Detection of errors. 
B) Update the checking account for unrecorded increases and decreases in cash. 
C) It is a great internal control that involves comparing actual assets at the bank with accounting records. 
D) The reconciliation ensures that the owner's personal expenses are not included in the business expenses. 
A) Detection of errors. 
B) Update the checking account for unrecorded increases and decreases in cash. 
C) It is a great internal control that involves comparing actual assets at the bank with accounting records. 
D) The reconciliation ensures that the owner's personal expenses are not included in the business expenses. D

Question 4

What is the process to add a new transaction from the Check Register window?

Accepted Answer

A) Select the drop-down arrow by Balance in the Check Register window,then select the type of transaction to enter i.e.deposit,refund,expense,etc. 
B) Select the drop-down arrow by Add Check in the Check Register window,then select the payee account,and save. 
C) Select the drop-down arrow by Add Check in the Check Register window,then select the new type of transaction to enter i.e.deposit,refund,expense,etc. 
D) Select the drop-down arrow by Payment in the Check Register window,then select the new type of transaction to enter i.e.deposit,refund,expense,etc. 
A) Select the drop-down arrow by Balance in the Check Register window,then select the type of transaction to enter i.e.deposit,refund,expense,etc. 
B) Select the drop-down arrow by Add Check in the Check Register window,then select the payee account,and save. 
C) Select the drop-down arrow by Add Check in the Check Register window,then select the new type of transaction to enter i.e.deposit,refund,expense,etc. 
D) Select the drop-down arrow by Payment in the Check Register window,then select the new type of transaction to enter i.e.deposit,refund,expense,etc.

Question 5

What is the correct process to record a Bank Deposit (not related to customer sales)?

Accepted Answer

A) Select the Gear icon,click on Bank and enter the date,select Received Form in Add New Deposits,then select the appropriate Account and enter in the information necessary. 
B) Select the Create (+)icon,select Bank Deposit under Other,click on Bank and enter the date,select Received Form in Add New Deposits,then select the appropriate Account and enter in the information necessary. 
C) Select the Gear icon,select Create (+),click on Bank and enter the date,select Received Form in Add New Deposits,then select the appropriate Account and enter in the information necessary.Use Attachments to add a file or photo of the source document. 
D) Select the Create (+)icon,select Bank Deposit under Other,click on Bank and enter the date,select Received Form in Add New Deposits,then select the appropriate Account and enter in the information necessary.Use Attachments to add a file or photo of the source document. 
A) Select the Gear icon,click on Bank and enter the date,select Received Form in Add New Deposits,then select the appropriate Account and enter in the information necessary. 
B) Select the Create (+)icon,select Bank Deposit under Other,click on Bank and enter the date,select Received Form in Add New Deposits,then select the appropriate Account and enter in the information necessary. 
C) Select the Gear icon,select Create (+),click on Bank and enter the date,select Received Form in Add New Deposits,then select the appropriate Account and enter in the information necessary.Use Attachments to add a file or photo of the source document. 
D) Select the Create (+)icon,select Bank Deposit under Other,click on Bank and enter the date,select Received Form in Add New Deposits,then select the appropriate Account and enter in the information necessary.Use Attachments to add a file or photo of the source document.

Question 6

Money Out can be recorded using the Expense or Check Onscreen Form.Which situation should not use the Expense or Check Onscreen Form to record Money Out?

Accepted Answer

A) Rent expense 
B) Paychecks to employees for wages and salaries 
C) Legal bills 
D) Office supplies purchased 
A) Rent expense 
B) Paychecks to employees for wages and salaries 
C) Legal bills 
D) Office supplies purchased

Question 7

Businesses might want to have multiple checking accounts to provide various functions.What type checking account would a business NOT want to have?

Accepted Answer

A) Salaried Payroll 
B) Operations related 
C) Owner's personal expenses 
D) Hourly Payroll 
A) Salaried Payroll 
B) Operations related 
C) Owner's personal expenses 
D) Hourly Payroll

Question 8

In QBO,what situations cause the company to use the Bank Deposit form?

Accepted Answer

A) Money coming in is not related to customer sales. 
B) Money coming in is related to customer sales. 
C) All money coming into the company. 
D) Cash received from customers that purchased on credit (accounts receivable receipts). 
A) Money coming in is not related to customer sales. 
B) Money coming in is related to customer sales. 
C) All money coming into the company. 
D) Cash received from customers that purchased on credit (accounts receivable receipts).

Question 9

Unrecorded charges that need to be recorded on the bank reconciliation include all of the following except:

Accepted Answer

A) Deposits in Transit 
B) Service charges 
C) Loan payments 
D) Automatic withdrawals 
A) Deposits in Transit 
B) Service charges 
C) Loan payments 
D) Automatic withdrawals

Question 10

What is the QBO Check Register?

Accepted Answer

A) It tracks deposits and checks in QBO; credit cards are managed in a Credit Register. 
B) It is a review analysis and it is a list of all items checked during the review analysis. 
C) It keeps track of all banking activities. 
D) Monitors credit card charges and withdrawals. 
A) It tracks deposits and checks in QBO; credit cards are managed in a Credit Register. 
B) It is a review analysis and it is a list of all items checked during the review analysis. 
C) It keeps track of all banking activities. 
D) Monitors credit card charges and withdrawals.

Question 11

When Bank Errors are detected by a company on the bank statement and a bank reconciliation is prepared,what action does the company need to take to adjust its Cash account?

Accepted Answer

A) Increase the Cash account. 
B) Decrease the Cash account. 
C) Increase or decrease the Cash account depending on the error. 
D) Take no action. 
A) Increase the Cash account. 
B) Decrease the Cash account. 
C) Increase or decrease the Cash account depending on the error. 
D) Take no action.

Question 12

Why are bank reconciliations a good internal control?

Accepted Answer

A) Bank reconciliations allow the company to update the Cash account to equal the bank balance. 
B) Bank reconciliations compare actual assets existing at the bank with accounting records. 
C) Bank reconciliations allow the bank to update its cash to agree to the company's accounting records. 
D) Bank reconciliations are not part of the internal control system. 
A) Bank reconciliations allow the company to update the Cash account to equal the bank balance. 
B) Bank reconciliations compare actual assets existing at the bank with accounting records. 
C) Bank reconciliations allow the bank to update its cash to agree to the company's accounting records. 
D) Bank reconciliations are not part of the internal control system.

Question 13

What are the four main ways QBO records money out?

Accepted Answer

A) Interest Earned,Investments from Owners,Bill > Pay Bills,and Purchase Order > Pay Bills. 
B) Expense,Check,Bill > Pay Bills,and Purchase Order >Bill> Pay Bills. 
C) Expense,Receipt Advices,Bill > Pay Bills,and Purchase Order > Bill > Pay Bills. 
D) Expense,Check,Bill > Pay Bills,and Interest on Investments. 
A) Interest Earned,Investments from Owners,Bill > Pay Bills,and Purchase Order > Pay Bills. 
B) Expense,Check,Bill > Pay Bills,and Purchase Order >Bill> Pay Bills. 
C) Expense,Receipt Advices,Bill > Pay Bills,and Purchase Order > Bill > Pay Bills. 
D) Expense,Check,Bill > Pay Bills,and Interest on Investments.

Question 14

What determines whether a company can pay its bills on time?

Accepted Answer

A) Adequate cash flow 
B) High employee moral 
C) Ability to reduce expenses easily 
D) Talent of its sales force 
A) Adequate cash flow 
B) High employee moral 
C) Ability to reduce expenses easily 
D) Talent of its sales force

Question 15

Select the answer that best describes how to View the Check Register?

Accepted Answer

A) Select Reports from the Navigation Bar,and from the Chart of Accounts window select View Register. 
B) Select Banking from the Navigation Bar,and from the Chart of Accounts window select View Register. 
C) Select Accounting from the Navigation Bar,and from the Chart of Accounts window select View Register. 
D) Select Taxes from the Navigation Bar,and from the Chart of Accounts window select View Register. 
A) Select Reports from the Navigation Bar,and from the Chart of Accounts window select View Register. 
B) Select Banking from the Navigation Bar,and from the Chart of Accounts window select View Register. 
C) Select Accounting from the Navigation Bar,and from the Chart of Accounts window select View Register. 
D) Select Taxes from the Navigation Bar,and from the Chart of Accounts window select View Register.

Question 16

What impact will a Deposit in Transit and an Outstanding Check have on a company's accounting records after a reconciliation is completed? (will cash have to increase or decrease based on the reconciling item)

Accepted Answer

A) Deposit in Transit will need to increase the Cash account and Outstanding Checks will decrease the Cash account. 
B) Deposit in Transit will need to decrease the Cash account and Outstanding Checks will increase the Cash account. 
C) Both will increase the Cash account. 
D) No change needs to be made to the Cash account for Outstanding Checks and Deposits in Transit. 
A) Deposit in Transit will need to increase the Cash account and Outstanding Checks will decrease the Cash account. 
B) Deposit in Transit will need to decrease the Cash account and Outstanding Checks will increase the Cash account. 
C) Both will increase the Cash account. 
D) No change needs to be made to the Cash account for Outstanding Checks and Deposits in Transit.

Question 17

What are the two reasons differences exist between the bank statement and accounting records?

Accepted Answer

A) Bank errors and timing differences. 
B) Company accounting errors and timing differences. 
C) Errors (bank or company)and timing differences. 
D) Timing differences and bank system errors. 
A) Bank errors and timing differences. 
B) Company accounting errors and timing differences. 
C) Errors (bank or company)and timing differences. 
D) Timing differences and bank system errors.

Question 18

Which statement best describes a bank reconciliation?

Accepted Answer

A) It is the process of comparing,or reconciling,the bank statement with a company's accounting records for the cash account. 
B) Process of ensuring no owner expenses are recorded in the accounting system. 
C) Ensuring a business has at least one checking account in the business name that is separate from the owner's personal checking account. 
D) The process of ensuring a company has a general checking account and a payroll account to separately track expenses based on function of the business. 
A) It is the process of comparing,or reconciling,the bank statement with a company's accounting records for the cash account. 
B) Process of ensuring no owner expenses are recorded in the accounting system. 
C) Ensuring a business has at least one checking account in the business name that is separate from the owner's personal checking account. 
D) The process of ensuring a company has a general checking account and a payroll account to separately track expenses based on function of the business.

Question 19

Timing differences on a bank reconciliation include all of the following except:

Accepted Answer

A) Bank Errors 
B) Deposits in Transit 
C) Outstanding Checks 
D) Interest Earned on the Account 
A) Bank Errors 
B) Deposits in Transit 
C) Outstanding Checks 
D) Interest Earned on the Account

Question 20

QBO offers a drill-down feature in its registers.What does this feature allow the user to view in the Check Register?

Accepted Answer

A) By double clicking on a transaction the user can view the source document for that particular transaction; edits cannot be made in this feature. 
B) By double clicking on a transaction,the user can view what cash has been received or paid.To view the source document,the user will have to access the Chart of Accounts. 
C) By double clicking on a transaction,the user can view the source document for that particular transaction and make changes if needed. 
D) It details the bank account information such as: routing number,account number,address and contact. 
A) By double clicking on a transaction the user can view the source document for that particular transaction; edits cannot be made in this feature. 
B) By double clicking on a transaction,the user can view what cash has been received or paid.To view the source document,the user will have to access the Chart of Accounts. 
C) By double clicking on a transaction,the user can view the source document for that particular transaction and make changes if needed. 
D) It details the bank account information such as: routing number,account number,address and contact.

What statement is true regarding a company's bank and credit card in QBO?

In the QBO Check Register the ✔column indicates which of the following:

Which of the following is NOT an objective of a bank reconciliation?

What is the process to add a new transaction from the Check Register window?

What is the correct process to record a Bank Deposit (not related to customer sales)?

Money Out can be recorded using the Expense or Check Onscreen Form.Which situation should not use the Expense or Check Onscreen Form to record Money Out?

Businesses might want to have multiple checking accounts to provide various functions.What type checking account would a business NOT want to have?

In QBO,what situations cause the company to use the Bank Deposit form?

Unrecorded charges that need to be recorded on the bank reconciliation include all of the following except:

What is the QBO Check Register?

When Bank Errors are detected by a company on the bank statement and a bank reconciliation is prepared,what action does the company need to take to adjust its Cash account?

Why are bank reconciliations a good internal control?

What are the four main ways QBO records money out?

What determines whether a company can pay its bills on time?

Select the answer that best describes how to View the Check Register?

What impact will a Deposit in Transit and an Outstanding Check have on a company's accounting records after a reconciliation is completed? (will cash have to increase or decrease based on the reconciling item)

What are the two reasons differences exist between the bank statement and accounting records?

Which statement best describes a bank reconciliation?

Timing differences on a bank reconciliation include all of the following except:

QBO offers a drill-down feature in its registers.What does this feature allow the user to view in the Check Register?

Quickbooks Online Navigation and Settings

QBO Chart of Accounts

QBO Transactions

Customers and Sales

Vendors and Expenses

Inventory

Employees and Payroll

QBO Adjustments

QBO Reports

Filters

Exam 4: Banking

What statement is true regarding a company's bank and credit card in QBO?

In the QBO Check Register the ✔column indicates which of the following:

Which of the following is NOT an objective of a bank reconciliation?

What is the process to add a new transaction from the Check Register window?

What is the correct process to record a Bank Deposit (not related to customer sales)?

Money Out can be recorded using the Expense or Check Onscreen Form.Which situation should not use the Expense or Check Onscreen Form to record Money Out?

Businesses might want to have multiple checking accounts to provide various functions.What type checking account would a business NOT want to have?

In QBO,what situations cause the company to use the Bank Deposit form?

Unrecorded charges that need to be recorded on the bank reconciliation include all of the following except:

What is the QBO Check Register?

When Bank Errors are detected by a company on the bank statement and a bank reconciliation is prepared,what action does the company need to take to adjust its Cash account?

Why are bank reconciliations a good internal control?

What are the four main ways QBO records money out?

What determines whether a company can pay its bills on time?

Select the answer that best describes how to View the Check Register?

What impact will a Deposit in Transit and an Outstanding Check have on a company's accounting records after a reconciliation is completed? (will cash have to increase or decrease based on the reconciling item)

What are the two reasons differences exist between the bank statement and accounting records?

Which statement best describes a bank reconciliation?

Timing differences on a bank reconciliation include all of the following except:

QBO offers a drill-down feature in its registers.What does this feature allow the user to view in the Check Register?

Quickbooks Online Navigation and Settings

QBO Chart of Accounts

QBO Transactions

Customers and Sales

Vendors and Expenses

Inventory

Employees and Payroll

QBO Adjustments

QBO Reports

Filters