Quickbooks 2014 Study Guide

Which of the following CANNOT be entered during the setup of a new company?

c. Trial balance, open balance

After QuickBooks sets up a chart of accounts during the Express Start or Advanced Setup, which of the following is TRUE?

b. It is possible to add more accounts later.

Once you have completed the sign up of new company file, how do you change company information such as business name, address, or phone number?

c. Select company information from the menu.

When you create a new company using the detailed setup Easy Step Interview, QuickBooks asks for your start date. What is the best definition of start date in QuickBooks?

c. The date you chose to start recording the financial records in QuickBooks.

What is the primary reason for setting a closing date in QuickBooks?

b. To restrict users from deleting, editing or adding transactions to last year.

The Product Information window shows you the version and release of QuickBooks you have along with other information about the company file. How do you access the Product Information window?

d. Press the F2 key.

Which of the following is a reason to create a new company file?

c. To start over when a company file has many errors that are beyond repair.

The company file you are working on is a mess. You decided to start a new file. At the same time you want to keep all the lists and preferences and just delete the transactions. How do you do this?

b. Click the File menu, choose utilities, clean up company data, then choose default transaction option.

Why might you need to restore a company file?

d. All of the above

You finished entering all the transactions for last year, and just sent the file to the tax preparer. How do you ensure that no one accidently deletes or edits a transaction last year?

d. Set the closing date and password in the accounting preferences in the company menu.

Which of the following is TRUE regarding General Journal entries?

a. General Journal entries require a good understanding of debits and credits and should not be used by non-accountants.

Which is a reason to NOT enter a general journal entry?

a. To enter transactions in another way instead of using built in forms.

You been asked to move the name of the customer and the customer center from the top of the list to the bottom of the list. How do you do this without renaming the customer?

d. Click on the diamond to the left of the name and then drag the name up or down to the desired location

How would you track customer birth dates in QuickBooks?

b. Add a custom field to the customer list.

How do you move list entries to a different location on the list? For example, Customers.

d. Click on the diamond to the left of the name and then drag the name up or down the list.

Which of the following is NOT true regarding merging entries?

b. QuickBooks allows you to merge an Expense account with an Income account.

Your company just hired a subcontractor to work 40 hours per week. Which list should you add this person to?

b. Vendors.

List entries may be deleted only when:

a. There is no balance, it has not been uses and is not linked to anything that has been used.

Which of the following statement is TRUE regarding items?

c. When you purchase or sell and item, the value of the purchase or sales flows to the account and therefore the financial statement you selected when you set up the item.

How do you make an item on the item list inactive?

b. Open the item list, click to select the appropriate item, then click the bottom left button and select make item inactive.

Which is an example of when to use a non-inventory part?

d. When you buy and sell an item but do not need to track quantity on hand information.

You are setting up a service item. What happens if you select the box next to this "service is performed by a subcontractor or partner"?

a. QuickBooks provides fields so you can track purchase and sales information for that item.

When should you use the items tab on a bill or check?

c. When you purchase inventory parts.

You have to set up an item for shipping. What item type should you use?

c. Other charge

Your company sells unique items to every customer. They never sell the same service or product twice. What item should you set up in QuickBooks?

a. Set up a generic item and edit the description and price each time.

Which of the following statements is NOT true about entering and paying bills in QuickBooks?

c. You should write a check for a bill using the write checks window or check register first then enter the bill for your records in QuickBooks.

Which two steps do you follow to track accounts payable in QuickBooks?

a. Enter bills, pay bills

What is the quickest way to find an invoice from 6 months ago?

b. Open an invoice and click the find button.

Which of the following elements on the invoice can you NOT customize?

d. The amount of information you can type in each field.

What is the Undeposited Funds account in QuickBooks?

d. An account used to record payments before you make a deposit.

Which of the following statements is TRUE regarding Undeposited Funds?

d. It is an account used to record payments before you make a deposit.

Which of the following CAN be memorized in QuickBooks?

a. Check

Which of the following transactions CANNOT be memorized?

c. Bill payment

How do you record debit card transactions in QuickBooks?

b. Use the write checks window, enter the check and write debit in the check number field.

Which of the following statements is TRUE regarding how you record a debit card transaction in QuickBooks?

b. Use the Write Checks window or Check Register and type debit in the check number field.

How do you record a debit card transaction in QuickBooks?

b. Use the write check window for the check register but type debit in the check number field.

Which of the following is a possible reason for a bank reconciliation discrepancy?

b. The beginning balance calculated by QuickBooks does not match last months ending balance.

When can you delete a check from QuickBooks without voiding it?

d. You entered a check in QuickBooks but haven't printed it yet. You realized the purchase was actually made using a credit card. The check was never really used.

When should you VOID instead of delete a check?

b. You used the check number but it will never be cashed.

The bank notified you that a customer's check you deposited has bounced. The customer did not have sufficient funds to cover the check. What should you do?

b. Record a transaction to show the customer owes you the money and that the checking balance has decreased by that same amount

The bank notifies you that a customer's check you have deposited has bounced. The customer did not have sufficient funds to cover the check. What should you NOT do?

c. Delete the customer's payment from the deposit.

When should you enter a customer credit memo?

b. When customer returns a product that is damaged,

What should you do after you click Save & Close on a Customer Credit Memo?

d. Choose between retained as an available credit, give a refund or apply to an invoice.

Your company had to return some goods to a vendor. How do you record the vendor credit in QuickBooks?

b. Enter bill then click credit on top of the bill.

Which of the following statement is TRUE regarding vendor credit memos?

b. Vendor credit memos reduce what you owe the vendor.

There are two primary financial statements that summarize the chart of accounts. Which of the following is one of these reports?

b. Balance sheet

Which report is also known as an income statement and summarizes income and expenses for a month.

a. Profit & Loss Standard

Name the sections of the Balance Sheet

d. Assets, Liabilities & Equity

When you run a profit and loss on the accrual basis what does QuickBooks include as income?

c. All sales.

Which of the following could explain why a profit and loss shows a profit, but the business owner doesn't have any money in the bank?

d. This is the difference between cash and accrual reporting.

Which report shows how much you owe for sales tax?

c. Sales Tax Liability

Where can you see a thumbnail sample of each report in QuickBooks along with a description of what the report tells you?

c. Report center

What can you do in the report center?

c. Run most reports in QuickBooks

How do you display a group of reports?

b. Click the reports menu then select process multiple reports.

How do you customize a report, i.e. change the information QuickBooks displays, change the title etc.

c. Click the modify report button on the report.

How do you change text in the header/footer of a report?

c. Click the customize report button on the report and then change the header footer tab.

Suppose you always want all reports to show a specific size and color, how do you set the standard or preference in QuickBooks so you don't have to customize each report?

d. Click the edit menu and select preferences then click the reports and graphs group to set your report preferences.

If you have a customized report that you use each month, which feature lets you run the report with updated data each month.

b. Memorize Report

How do you make a column on a report wider?

c. Click the diamond to the right of the column and drag it to the right.

How do you add or delete columns on a report?

c. Click the Customize report button and on the display tab check (add ) or (uncheck) remove columns.

How do you hide all subaccounts on a report?

d. Click the collapse button.

Why would you hide or collapse subaccounts on a report?

d. To temporarily hide unnecessary detail and hide parent accounts.

How can you open a QuickBooks report in Microsoft Excel?

b. Click the Excel button on the top of any QuickBooks report.

You sent a QuickBooks report to Excel and made some changes. How do you import the change in Excel back to QuickBooks?

b. You can't import changes in Excel back to QuickBooks.

What is the purpose of an Audit Trail report?

b. Track any changes and deletions to transactions and track which user makes the change or the deletion.

How do you use a different forms template when creating a new transaction? (i.e. Invoice)

d. Open the form, click the templates drop down list and select the appropriate form.

Which of the form templates cannot be customized in QuickBooks?

a. Checks

Which accounts are affected when you enter Time in QuickBooks?

a. None. Because time sheets are non-posting entries.

Which payroll service allows you to print state tax forms?

c. Enhanced payroll

Which list represents the payroll services you can add to QuickBooks?

a. Basic (calculates taxes for you); Enhanced (adds state and federal tax forms); Assisted (Intuit handles payroll taxes and forms); and Full Service (Intuit processes payroll completely).

What is the end result of payroll setup interview?

c. QuickBooks has an accurate record of employee's earnings and deductions and payroll history and you are ready to create your first paycheck.

Your new employee earned an annual salary of $40,000. How do you enter this into QuickBooks?

c. Enter 40,000 in the payroll info window.

When you set up a new employee, how do you add a payroll deduction such as medical insurance?

b. In the new employee window, click the change tab drop down list and select payroll and compensation info and then add the medical insurance payroll item below the additions deductions and company contributions.

What steps must you complete to use the payroll center to pay payroll liabilities?

c. Set deposit frequencies.

How do you pay, Payroll Liabilities in QuickBooks?

c. Select the payment you want to make form the pay scheduled liability select view pay.

For each functional area of QuickBooks Pro and Premier, ie Sales Accounts, Accounts Receivable, Purchases, what levels of access can you grant to users?

a. You can prohibit access, grant full access or grant selective access; these levels apply to all transactions within that area.

Assume that QuickBooks is now in Single User Mode. What does this mean?

a. Multiple users can access the company file, however, their activities are restricted.

Which of the following statement is TRUE regarding single user and multi user mode?

c. To use QuickBooks in multi user mode each user must have the same version of QuickBooks on their computer to have access

Which of the following editions of QuickBooks supports multiusers?

b. All versions support multiusers.