Question 1

Briefly explain how the supplies on hand account is adjusted at the end of the period.

Accepted Answer

The supplies on hand account is an asset account because the supplies have future value. At the end of the period, a count is done to determine what supplies were used and what amount still remain. Then, an adjusting entry is created for the supplies used during the period as a supply expense.

Question 2

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 D

Question 3

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

Question 4

When creating a new QuickBooks data file for an existing company, QuickBooks automatically offsets 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

Question 5

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 6

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 7

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 8

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 these 
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 these

Question 9

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

Question 10

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

Question 11

When creating a new QuickBooks data file for an existing company, QuickBooks automatically offsets 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 12

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 of these 
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 of these

Question 13

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

Accepted Answer

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

Question 14

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 15

After creating a new QuickBooks data file for an existing company and entering all the existing balances, use an opening adjustment to move the balance in the _________ account to the Capital Stock account.

Accepted Answer

A) Uncategorized Expenses 
B) Uncategorized Income 
C) Opening Balance Equity 
D) None of these 
A) Uncategorized Expenses 
B) Uncategorized Income 
C) Opening Balance Equity 
D) None of these

Question 16

A grocery store is an example of a _________ company.

Accepted Answer

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

Question 17

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 18

When using QuickBooks, your accounting system includes which of the following steps?

Accepted Answer

A) Enter vendor list 
B) Record transactions 
C) Prepare reports 
D) All of these 
A) Enter vendor list 
B) Record transactions 
C) Prepare reports 
D) All of these

Question 19

To customize your settings for preferences such as estimates, time tracking, sales orders, choose Edit>Preferences>Desktop View > _______

Accepted Answer

A) Company Preferences 
B) My Preferences 
C) Color Preferences 
D) Scheme Options 
A) Company Preferences 
B) My Preferences 
C) Color Preferences 
D) Scheme Options

Question 20

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

Briefly explain how the supplies on hand account is adjusted at the end of the period.

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

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

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

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

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 purchasing cycle includes all of the following transactions except:

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

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

Wholesale customers:

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

When using QuickBooks, sales tax is:

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

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

After creating a new QuickBooks data file for an existing company and entering all the existing balances, use an opening adjustment to move the balance in the _________ account to the Capital Stock account.

A grocery store is an example of a _________ company.

Inventory items received should be compared against:

When using QuickBooks, your accounting system includes which of the following steps?

To customize your settings for preferences such as estimates, time tracking, sales orders, choose Edit>Preferences>Desktop View > _______

The sales transaction cycle for a merchandising company is:

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

Briefly explain how the supplies on hand account is adjusted at the end of the period.

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

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

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

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

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 purchasing cycle includes all of the following transactions except:

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

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

Wholesale customers:

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

When using QuickBooks, sales tax is:

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

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

After creating a new QuickBooks data file for an existing company and entering all the existing balances, use an opening adjustment to move the balance in the _________ account to the Capital Stock account.

A grocery store is an example of a _________ company.

Inventory items received should be compared against:

When using QuickBooks, your accounting system includes which of the following steps?

To customize your settings for preferences such as estimates, time tracking, sales orders, choose Edit>Preferences>Desktop View > _______

The sales transaction cycle for a merchandising company is:

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