Question 1

When you place an order for items from a vendor, which one of the following QuickBooks forms would you use?

Accepted Answer

A) Create Invoice 
B) Purchase Order 
C) Receive Inventory 
D) None of the above 
A) Create Invoice 
B) Purchase Order 
C) Receive Inventory 
D) None of the above B

Question 2

The purchasing transaction cycle for a merchandising company is:

Accepted Answer

A) Create Purchase Order > Receive Inventory > Record Bill > Pay Bill > Print Check 
B) Create Invoice > Receive Payment > Record Deposits 
C) Create Purchase Order > Receive Payment > Record Deposits 
D) Create Invoice > Receive Inventory > Pay Bill > Record Deposits 
A) Create Purchase Order > Receive Inventory > Record Bill > Pay Bill > Print Check 
B) Create Invoice > Receive Payment > Record Deposits 
C) Create Purchase Order > Receive Payment > Record Deposits 
D) Create Invoice > Receive Inventory > Pay Bill > Record Deposits A

Question 3

When creating a new QuickBooks data file for an existing company, opening balances are added when you:

Accepted Answer

A) Customize the Chart of Accounts 
B) Add vendors to the vendor list 
C) Add customers to the customer list 
D) Add inventory the item list 
A) Customize the Chart of Accounts 
B) Add vendors to the vendor list 
C) Add customers to the customer list 
D) Add inventory the item list A

Question 4

When using QuickBooks, sales tax is:

Accepted Answer

A) Calculated manually for each item sold 
B) Calculated for all items that are listed on an invoice 
C) Calculated automatically by QuickBooks for items flagged as taxable 
D) All the above 
A) Calculated manually for each item sold 
B) Calculated for all items that are listed on an invoice 
C) Calculated automatically by QuickBooks for items flagged as taxable 
D) All the above

Question 5

Wholesale customers:

Accepted Answer

A) Pay no sales tax 
B) Pay sales tax 
C) Pay a manufacturing tax 
D) Pay sales tax on labor only
Short Answer Questions 
A) Pay no sales tax 
B) Pay sales tax 
C) Pay a manufacturing tax 
D) Pay sales tax on labor only
Short Answer Questions

Question 6

Retail customers:

Accepted Answer

A) Pay no sales tax 
B) Pay sales tax 
C) Pay a manufacturing tax 
D) Pay sales tax on labor only 
A) Pay no sales tax 
B) Pay sales tax 
C) Pay a manufacturing tax 
D) Pay sales tax on labor only

Question 7

QuickBooks classifies the sales tax rate as a(n):

Accepted Answer

A) Customer List item 
B) Vendor List item 
C) Item not stored in the accounting system 
D) Inventory item (Item List) 
A) Customer List item 
B) Vendor List item 
C) Item not stored in the accounting system 
D) Inventory item (Item List)

Question 8

When creating a new QuickBooks data file for an existing company, QuickBooks automatically off sets inventory item balances with an entry to the:

Accepted Answer

A) Uncategorized Expenses account 
B) Uncategorized Income account 
C) Opening Balance Equity account 
D) Capital Stock account 
A) Uncategorized Expenses account 
B) Uncategorized Income account 
C) Opening Balance Equity account 
D) Capital Stock account

Question 9

Inventory items received should be compared against:

Accepted Answer

A) Purchase order 
B) Sales order 
C) Supplies inventory 
D) Sales receipt 
A) Purchase order 
B) Sales order 
C) Supplies inventory 
D) Sales receipt

Question 10

When creating a new QuickBooks data file for an existing company, QuickBooks automatically off sets accounts receivable balances with an entry to the:

Accepted Answer

A) Uncategorized Expenses account 
B) Uncategorized Income account 
C) Opening Balance Equity account 
D) Capital Stock account 
A) Uncategorized Expenses account 
B) Uncategorized Income account 
C) Opening Balance Equity account 
D) Capital Stock account

Question 11

When recording the sale of a product, which account is decreased?

Accepted Answer

A) Inventory 
B) Accounts Receivable 
C) Notes Payable 
D) None of the above 
A) Inventory 
B) Accounts Receivable 
C) Notes Payable 
D) None of the above

Question 12

To add an existing opening balance to a new account, choose:

Accepted Answer

A) New Account > Opening Balance 
B) Account Options > Enter Opening Balance 
C) Account > Opening Balance 
D) Edit Account > Enter Opening Balance 
A) New Account > Opening Balance 
B) Account Options > Enter Opening Balance 
C) Account > Opening Balance 
D) Edit Account > Enter Opening Balance

Question 13

To see the account numbers in the Chart of Accounts, choose:

Accepted Answer

A) Edit > Preferences > Accounting > Company Preferences 
B) Edit > Preferences > Desktop View > Company Preferences 
C) Edit > Preferences > General > My Preferences 
D) Edit > Preferences > General > Company Preferences 
A) Edit > Preferences > Accounting > Company Preferences 
B) Edit > Preferences > Desktop View > Company Preferences 
C) Edit > Preferences > General > My Preferences 
D) Edit > Preferences > General > Company Preferences

Question 14

Name 2 (two) differences between accounting for a service company and a retail shop.

Accepted Answer

A merchandising company tracks inventory

Question 15

A grocery store is an example of a _________ company.

Accepted Answer

A) Service 
B) Retail Shop 
C) Manufacturing 
D) Product-based business 
A) Service 
B) Retail Shop 
C) Manufacturing 
D) Product-based business

Question 16

When setting up an existing company in QuickBooks, which of the following opening adjustments require journal entries?

Accepted Answer

A) When accounts payable opening balances create Uncategorized Expenses 
B) When the Customer List is created 
C) When payroll entries are added 
D) None of the above 
A) When accounts payable opening balances create Uncategorized Expenses 
B) When the Customer List is created 
C) When payroll entries are added 
D) None of the above

Question 17

The purchasing cycle includes all of the following transactions except:

Accepted Answer

A) Create a purchase order to order inventory. 
B) Enter hours in the time sheet for stocking inventory. 
C) Receive inventory items and record in the inventory account. 
D) Enter bill in QuickBooks when bill is received. 
A) Create a purchase order to order inventory. 
B) Enter hours in the time sheet for stocking inventory. 
C) Receive inventory items and record in the inventory account. 
D) Enter bill in QuickBooks when bill is received.

Question 18

If the supplies on hand at the end of January totaled $200 and the Supplies on Hand account before adjustment is $900, what would be the adjustment at month-end?

Accepted Answer

A) Reduce supplies on hand by $700; increase supplies expense by $700 
B) Increase supplies on hand by $900; reduce supplies expense by $900 
C) Reduce supplies on hand by $200; increase supplies expense by $200 
D) Increase supplies on hand by $200; reduce supplies expense by $200 
A) Reduce supplies on hand by $700; increase supplies expense by $700 
B) Increase supplies on hand by $900; reduce supplies expense by $900 
C) Reduce supplies on hand by $200; increase supplies expense by $200 
D) Increase supplies on hand by $200; reduce supplies expense by $200

Question 19

The sales transaction cycle for a merchandising company is:

Accepted Answer

A) Create Purchase Order > Receive Inventory > Record Bill > Pay Bill > Print Check 
B) Create Invoice > Receive Payment > Record Deposits 
C) Create Purchase Order > Receive Payment > Record Deposits 
D) Create Invoice > Receive Inventory > Pay Bill > Record Deposits 
A) Create Purchase Order > Receive Inventory > Record Bill > Pay Bill > Print Check 
B) Create Invoice > Receive Payment > Record Deposits 
C) Create Purchase Order > Receive Payment > Record Deposits 
D) Create Invoice > Receive Inventory > Pay Bill > Record Deposits

Question 20

When creating a new QuickBooks data file for an existing company, QuickBooks automatically off sets accounts payable balances with an entry to the:

Accepted Answer

A) Uncategorized Expenses account 
B) Uncategorized Income account 
C) Opening Balance Equity account 
D) Capital Stock account 
A) Uncategorized Expenses account 
B) Uncategorized Income account 
C) Opening Balance Equity account 
D) Capital Stock account

When you place an order for items from a vendor, which one of the following QuickBooks forms would you use?

The purchasing transaction cycle for a merchandising company is:

When creating a new QuickBooks data file for an existing company, opening balances are added when you:

When using QuickBooks, sales tax is:

Wholesale customers:

Retail customers:

QuickBooks classifies the sales tax rate as a(n):

When creating a new QuickBooks data file for an existing company, QuickBooks automatically off sets inventory item balances with an entry to the:

Inventory items received should be compared against:

When creating a new QuickBooks data file for an existing company, QuickBooks automatically off sets accounts receivable balances with an entry to the:

When recording the sale of a product, which account is decreased?

To add an existing opening balance to a new account, choose:

To see the account numbers in the Chart of Accounts, choose:

Name 2 (two) differences between accounting for a service company and a retail shop.

A grocery store is an example of a _________ company.

When setting up an existing company in QuickBooks, which of the following opening adjustments require journal entries?

The purchasing cycle includes all of the following transactions except:

If the supplies on hand at the end of January totaled $200 and the Supplies on Hand account before adjustment is $900, what would be the adjustment at month-end?

The sales transaction cycle for a merchandising company is:

When creating a new QuickBooks data file for an existing company, QuickBooks automatically off sets accounts payable balances with an entry to the:

Quick Tour of Quickbooks 2011

Customizing Quickbooks and the Chart of Accounts

Banking

Customers and Sales

Vendors, Purchases, and Inventory

Employees and Payroll

Reports and Graphs

New Company Setup

Accounting for a Service Company

Merchandising Corporation: Payroll

Advanced Quickbooks Features for Accountants

Filters

Exam 10: Merchandising Corporation: Sales, Purchases and Inventory

When you place an order for items from a vendor, which one of the following QuickBooks forms would you use?

The purchasing transaction cycle for a merchandising company is:

When creating a new QuickBooks data file for an existing company, opening balances are added when you:

When using QuickBooks, sales tax is:

Wholesale customers:

Retail customers:

QuickBooks classifies the sales tax rate as a(n):

When creating a new QuickBooks data file for an existing company, QuickBooks automatically off sets inventory item balances with an entry to the:

Inventory items received should be compared against:

When creating a new QuickBooks data file for an existing company, QuickBooks automatically off sets accounts receivable balances with an entry to the:

When recording the sale of a product, which account is decreased?

To add an existing opening balance to a new account, choose:

To see the account numbers in the Chart of Accounts, choose:

Name 2 (two) differences between accounting for a service company and a retail shop.

A grocery store is an example of a _________ company.

When setting up an existing company in QuickBooks, which of the following opening adjustments require journal entries?

The purchasing cycle includes all of the following transactions except:

If the supplies on hand at the end of January totaled $200 and the Supplies on Hand account before adjustment is $900, what would be the adjustment at month-end?

The sales transaction cycle for a merchandising company is:

When creating a new QuickBooks data file for an existing company, QuickBooks automatically off sets accounts payable balances with an entry to the:

Quick Tour of Quickbooks 2011

Customizing Quickbooks and the Chart of Accounts

Banking

Customers and Sales

Vendors, Purchases, and Inventory

Employees and Payroll

Reports and Graphs

New Company Setup

Accounting for a Service Company

Merchandising Corporation: Payroll

Advanced Quickbooks Features for Accountants

Filters