Many companies maintain two checking accounts, one for paying bills and one used exclusively for
payroll
As a business grows in complexity, the need for special purpose accounts
grows accordingly.
The process of determining the correct cash balance in an account by comparing company records with the bank statement is called a(n)
bank reconciliation.
In accounting terms, the movement of money from one account to another is called a(n)
transfer
In a manual accounting system, a transfer from a company's operating account is usually recorded in the ____ journal.
cash payments
In a manual accounting system, when a transfer out of one cash account is recorded in the general journal, the corresponding transfer into another cash account is recorded in the ____ journal.
general
In QuickBooks, transfers between bank accounts are recorded in the ____ window, unless the transfer is done by check.
Transfer Funds Between Accounts
Balance differences identified during a bank reconciliation fall into three categories:
timing differences, omissions, and errors.
Using QuickBooks' Enter Credit Card Charges window to immediately record a company's credit card charges ensures that
the expenses are recorded in the proper time period.
A check written and recorded by the company but not yet paid by the bank is referred to as a(n)
outstanding check.
In QuickBooks, when you write a check from one cash account to deposit into another cash account, you use the ____ window.
Write Checks
Besides allowing you to identify the source and receiving accounts, the Transfer Funds window also shows you the
balance of the source account.
When you transfer funds from one cash account to another via an online banking transaction, you record the transaction in QuickBooks in the ____ window.
Transfer Funds
What is the purpose of the reconciliation procedure in QuickBooks?
To ensure that a company's cash records are correct
The Reconcile windows in QuickBooks do not display ____.
bad debts of an account
When QuickBooks' reconciliation process turns up transactions that were not recorded in the company records, the user
has the opportunity to record them from within the Reconciliation windows and adjust the company's accounts accordingly.
The QuickBooks Reconcile window consists of ____ parts.
2
Which of the following fields in the first of QuickBooks Reconcile windows should not be edited?
Beginning Balance
In the first Reconcile window, where does the amount to be entered in the Interest Earned field come from?
It comes from the bank statement.
Information for ____ bank account(s) at a time is displayed in the Reconciliation windows.
only one
A zero (0) in this field of the Reconcile window indicates that all reconciling items have been accounted for.
Difference
At what point is the user supposed to click the Reconcile Now button in the second of QuickBooks' Reconcile window?
When the Difference field displays a zero (0).
To start the reconciliation process, begin by clicking ____ on the main menu bar.
Banking
In the Service Charge section of the Reconciliation window, the user enters the amount of the charge as well as the
account it will be charged to.
What symbol is used in the Reconcile window to indicate that a check or deposit has been recorded at the bank?
check mark
After completing the reconciliation process, the Reconciliation report is available from the Reports menu until you
do the next reconciliation.
The Accounts Payable account ____ used to track a company's credit card liability.
is not
In QuickBooks, the Enter Credit Card Charges window is used to record
a company's credit card purchases.
What two tabs are displayed in the bottom half of the Enter Credit Card Charges window?
Expenses and Items
In the Enter Credit Card Charges window, you would click Refund/Credit option when
processing a vendor credit.
When paying a credit card charge in the Write Checks window, you should specify this account in the Expenses tab.
Credit Card Liability account
The fourth level of operations in QuickBooks is to
view and print reports.
QuickBooks allows you to print banking reports from these two menus.
Reports and Lists
The ____ report displays the components of all deposits to each cash account for a specified period of time.
Deposit Detail
Which of the following reports is described in Chapter 10 as having a somewhat misleading title?
Missing Checks
In its default setting, the Account QuickReport displays all transactions for the current
fiscal year.
This reports displays for the cash accounts all checks written by the company and whether they have cleared the bank.
Transaction Detail by Account
Chapter 10 indicates that the Transaction Detail by Account report can be helpful in
the reconciliation process.
QuickBooks allows you to print banking reports from these two menus.
Reports and Lists
The ____ report displays the components of all deposits to each cash account for a specified period of time.
Deposit Detail
Which of the following reports is described in Chapter 10 as having a somewhat misleading title?
Missing Checks
In its default setting, the Account QuickReport displays all transactions for the current
fiscal year.
This reports displays for the cash accounts all checks written by the company and whether they have cleared the bank.
Transaction Detail by Account
The fourth level of operations in QuickBooks is to
view and print reports.
QuickBooks allows you to print banking reports from these two menus.
Reports and Lists
The ____ report displays the components of all deposits to each cash account for a specified period of time.
Deposit Detail
Which of the following reports is described in Chapter 10 as having a somewhat misleading title?
Missing Checks
In its default setting, the Account QuickReport displays all transactions for the current
fiscal year.
This reports displays for the cash accounts all checks written by the company and whether they have cleared the bank.
Transaction Detail by Account
QuickBooks allows you to print banking reports from these two menus.
Reports and Lists
The ____ report displays the components of all deposits to each cash account for a specified period of time.
Deposit Detail
Which of the following reports is described in Chapter 10 as having a somewhat misleading title?
Missing Checks
QuickBooks allows you to print banking reports from these two menus.
Reports and Lists
The ____ report displays the components of all deposits to each cash account for a specified period of time.
Deposit Detail
In the Enter Credit Card Charges window, you would click Refund/Credit option when
the reconciliation process.