Quickbooks Quiz Chapter 10

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.