to select the method of New Company Setup(Detailed Start)
The quickbooks setup window is first used..
Subsidiary ledgers
What needs to be set up in a manual system that is not set up in QuickBooks?
in QuickBooks, a company needs only to create the Chart of Accounts List to begin entering transactions
Which statement is not true?
you are moved to the EasyStep Interview window with the Enter your company information page displayed
When you choose the Detailed Start method of setting up a new company in QuickBooks
create your company file if you leave before saving the company file
Based on answers in the EasyStep Interview, QuickBooks does not...
used to create a new company file, establish some preferences, and begin the Chart of Accounts and Item Lists
The EasyStep Interview window is not...
At the Review income and expenses accounts page, you have the opportunity to select or deselect accounts to be included in the Chart of Accounts
Which is a correct statement?
add preferences
The QuickBooks Setup window,gets all the details into QuickBooks page does not have a link to....
transactions
The QuickBooks Setup window does not include the option to enter....
When entering a beginning balance for a customer, the date is not important
Which of the following is not correct?
will have to re-enter the customers with balances
If you do not click the Enter Opening Balances link on the Add the people you do business with page, then you..
service items, inventory part items, and sales tax
The Item List stores information about a company's...
The date does not matter as a journal entry will be recorded without a date
Which is not a correct statement?
create the Customer Center, the Vendor Center, and add the service items and inventory part items to the Item List
EasyStep Interview did not...
did not create all of them accounts used by a company
QuickBooks Setup and EasyStep Interview...
When service items and inventory part items were added, these items were not able to the Item list
Which of the these is correct for the Add new product and services page?
The sales tax item was created in the Item List
In the EasyStep Interview window, when you answer the question that yes you do charge sales tax.
Go to New Company Setup and start over
After reviewing the Item List as created in QuickBooks Setup, what is not a recommended method to correct errors in the Item List?
you can correct all information in the Edit Customer window, except the Current Balance
While reviewing the Customer Center created in QuickBooks Setup - Add the people you do business with pages,
delete the customer, and then go back to the QuickBooks Setup - Add people you do business with pages and re-enter the customer.
If there is no Current Balance for a customer with an outstanding balance,
If there is an error in the Current Balance, you can correct it when viewing journal entries.
How can you correct the errors in the Vendor Center?
Reviewing the Journal Report will not yet show the journal entries created as part of the QuickBooks Setup.
Which statement in not true?
show debits to Accounts Receivable with the customers' outstanding balances and credits to an account called Uncategorized Income.
Journal entries labeled as Invoice..
were created when vendors with outstanding balances were recorded in the Add people you do business with pages
Journal entries labeled as Bill...
show credits to the Opening Balance Equity account and debits to the Inventory Asset account with the total value for each inventory part item.
Journal entries labeled as inventory adjust...
Invoice, you can make corrections to a customer's opening balance or date.
In the Journal report, if you double-click on a transaction, for a transaction type of
the value of the inventory part item is automatically computed by QuickBooks as the quantity on hand multiplied by the cost for the inventory part.
In the journal report, if you double click on a transaction, for a transaction type of inventory Adjust,
amount in the Uncategorized Income account equals the amount in the Uncategorized Expenses account.
Upon reviewing the Trial Balance, observe that the Trial Balance does not indicate that the
that the report indicates only Uncategorized Income and Uncategorized Expenses as offsetting amounts of the Accounts Receivable and Accounts Payable accounts.
Reviewing the Profit & Loss Standard report will allow you to see
the net income is correct as seen in the Income Statement (Profit & Loss Report).
A review of the Balance Sheet Standard report does not indicate that...
Create the company file
When you use the EasyStep Interview and QuickBooks Setup windows, only part of New Company Setup is completed. The next part of the process does not include
The Company Preferences tab is not used when setting up a new company file.
Which statement is not correct?
Undeposited Funds, Inventory Asset, and Cost of Good Sold
When you created the company file using EasyStep Interview and QuickBooks Setup, what system default accounts were not created?
Which statement is not correct?
You can delete the Inventory Asset account and Cost of Goods Sold account (the default system accounts without numbers) created in QuickBooks Setup even though they are used in the Item List and in the Journal.
Updating the Chart of Accounts List does not include adding additional accounts to the List.
Which is not true?
requires the recording of revenues when earned and expenses when incurred regardless of cash receipts or cash payments.
The accrual basis of accounting...
are not used in an accrual basis of accounting and therefore must be reversed to eliminate them.
Uncategorized income and uncategorized accounts..
excluding accounts receivable, inventory, and accounts payable, as one large compound journal entry.
You enter all opening balances for the new company,...
Once you exit QuickBooks Setup, the company information cannot be edited.
Which statement is not correct?
entries recorded in the general journal to offset a balance in an account
Reversing entries are...
preparation of accounting reports and financial statements
What does payroll not involve?
Net pay is the total earnings for an employee minus all employee withholdings and deductions.
Which definition is correct?
Year-to-date earnings and withholdings do not have to be accumulated and used in preparing government-required quarterly and year-end reports.
Which is not the case in a manual accounting system?
simultaneously, prepares reports that summarize all quarterly and annual information needed for required filings, and for required payments of employee withholdings to the appropriate agency.
QuickBooks includes a payroll feature that, once activated,
Using an outside payroll processing firm
Part of what makes payroll processing in QuickBooks easier than that of a manual system is not
Time and chance of mistakes
Which of the following are not the same whether payroll is processed manually or with a software package?
the total earnings for the employee for a specific pay period before any withholdings and deductions
gross pay is
The employer does not needs specific information, such as Social Security number or marital status, about every employee.
Which of these statements about payroll is false?
SIT and SUI
Medicare tax
FICA tax (Social Security) and Medicare tax
Which taxes are imposed on both the employer and employee?
Only regular wages are subject to FICA and Medicare taxes.
Which statement is incorrect?
voluntarily withheld from each employee's pay by the employer
The amount of federal income tax(FIT) is not...
Federal Unemployment Insurance (FUTA) tax is imposed on both the employer and employee.
Which statement is not true?
impose an income tax and require employers to withhold the tax from the employees' pay, in a manner similar to that used for FIT.
Many states and some local governments(city,country)
Social Security Tax, Medicare Tax, FUTA, and SUI
Whic of the following payroll taxes are imposed on the employer?
All tax withholdings are calculated at the same rate.
Which of the following statements ins incorrect?
the same as the compensation earned.
Net pay is not..
the first step is to activate (enable) the payroll feature.
To set up payroll in Quickbooks,
determining tax withholding rates
Once the payroll feature has been enabled, setting up payroll does not involve
QuickBooks automatically creates two default general ledger accounts: Payroll Liabilities and Payroll Expenses.
When the payroll feature is activated...
is the system default general ledger liability posting account for all payroll-related liabilities
Payroll Liabilities...
the system default general ledger expense posting account for all payroll-related expenses.
Payroll Expenses is...
but most companies usually create separate payroll liability accounts for FIT, SIT, Social Security, Medicare, and so on.
QuickBooks creates only one payroll liability account, ....
but most companies usually create separate payroll expense accounts for Social Security, Medicare, FUTA, SUI, and so on.
QuickBooks creates only one payroll expense account, 24000 Payroll Liabilities .....
additional payroll accounts and subaccounts can be added.
Once the system default accounts for payroll are created,......
A company should choose the service that is best for the tax-collecting agency of the federal government.
Which statement is false?
QuickBooks automatically sets up a Payroll Item List, which you may access from the Lists menu.
Once you activated the payroll feature and the manual calculations feature,...
State withholding
QuickBooks automatically creates several standard payroll items in the Payroll Item List, not including
You cannot customize the pre-established payroll items that QuickBooks created.
Which of the following is incorrect?
To identify the employee
A company cannot customize the pre-established payroll items
because Social Security tax is withheld from the employee's paycheck and the employer must pay an equal amount.
QuickBooks creates two payroll items for Social Security....
the current tax rates, that are established for the current year by the federal government and cannot be changed.
On the Payroll Item for Social Security, the Company and employee tax rates page displays .....
Local Tax
Which of the following is not one of the Payroll Item types?
For two of the payroll types, there are several subtypes, listed in parentheses, next to the payroll item type.
Which of the following is not correct?
to the United States Treasury
A company remits its tax liability payments ....
payments are sent to the appropriate tax-collecting agencies.
Employee tax withholdings...
In the vendor center and the payroll item list
The government agency where the employee's payroll withholdings should be sent is listed ....
Internal payroll management and employee files
Reports in QuickBooks allow you to display and print a number of payroll reports for ...
displays the payroll item, type, rates, and limits for some of the mandatory taxes, and the expense and liability accounts relating to the payroll item.
The Payroll Item Listing report...
Employee Center
Where in QuickBooks can you establish a file for each employee and then process payroll transactions?
Pay Employees and Pay Liabilities
Transactions for payroll Activities are entered in which windows?
contains background information for each employee, such as name, address, Social Security number, pay rate, and applicable tax deductions.
In quickbooks, the Employee Center...
contains a file for all payroll items such as taxes and withholdings affecting the pay computation for the company.
The payroll item list...
If a company does not subscribe to a QuickBooks payroll service, QuickBooks allows you to process payroll, but not to track payroll information needed to prepare reports in compliance with federal and state payroll regulations.
Which of the following statements is incorrect?
name, address, Social Security number, marital status, pay rate, tax withholding allowances
What employee background information is needed in the Employee Center to process payroll?
the various taxes imposed on the employer, including Social Security tax (FICA), Medicare tax, Federal Unemployment Insurance (FUTA), and state unemployment insurance (SUI).
Expenses for a company, in addition to the employee's gross pay, include
FICA, Medicare, federal income tax, and state income tax (if applicable).
An employee will have amounts deducted from his or her paycheck by the employer for ....
as liabilities on the company books
Withheld taxes, along with the taxes imposed on the employer, are recorded ...
a net payroll check to the employee
Gross pay, less the employee deductions, results in ....
The employee is required to forward payment for Social Security tax, Medicare tax, and employee federal withholding to the federal government.
Which of these statements is not correct?
After processing payroll and before printing reports
In QuickBooks, the Employee Center does not need to be updated ...
Personal, Address & Contact, Additional Info, Payroll Info, and Employment Info.
The New Employee window has these information tabs:
The journal entry for payroll is recorded on the date the taxes are forwarded to the taxing authorities.
Which of the following statements is incorrect?
are used to calculate gross pay, taxes, and net payroll for employees.
The Pay Employees windows...
is used to select the employee(s) to be paid at the current pay date.
The Enter Payroll Information window..
6.2% of gross pay imposed on both the employee and the company
Which is the FICA tax rate?
to enter pay and tax information both for company-imposed taxes and employee deductions.
The Preview Paycheck window allows you ...
allows you to review gross pay and deductions computations before creating a paycheck.
The Review and Create Paychecks window...
After the taxes and deductions are entered in the Preview Paycheck window, you have to calculate and enter the check amount.
Which of the following statements is not true?
Pay liabilities window
Activities identified as paying payroll liabilities are recorded in the ..
tracks all payroll liabilities as they accumulate from each paycheck.
As you process paychecks in the Pay Employees windows, QuickBooks ....
Pay Liabilities window
When payroll tax liabilities are paid, which QuickBooks window is used to record the transaction?
allow the company to pay only a portion of the entire liability.
The Pay Liabilities window does not...
The federal employer and employee payroll taxes owed to the United States Treasury are paid at the end of the year.
Which is not correct..
provide the company with valuable information concerning payroll costs, such as gross pay, payroll liabilities and withholding, and employer payroll taxes.
Payroll management reports...
payroll summary report
Which report lists the earnings, deductions, and employer payroll taxes for each employee for a specified period of time?
Payroll Transaction Detail report
Which report provides detailed information for each payroll transaction (paychecks and payroll liability payments) recorded during the period?
online tables unless the company subscribes to a QuickBooks payroll service.
In the Pay Employees window, QuickBooks does not use ....
gross pay, payroll deductions, and net pay
The pay employees window determines..
used to calculate gross pay, taxes, and net payroll for employees.
The Employees window are..
Form 941
What is the quarterly payroll report forwarded to the Internal Revenue Service?
employee state taxes
Form 941 - Employer's Quarterly Federal Tax Return does not summarize
Form 940
What is the Employer's Annual Federal Unemployment (FUTA) Tax Return that is filed annually with the Internal Revenue Service?
Form W-2
Which form is prepared annually and furnished to each employee?
The Wage and Tax Statement (Form W-2) is prepared with each paycheck.
Which statement is false?
avoid costly penalties for noncompliance
With QuickBooks, small companies cannot
federal income tax (FIT)
Taxes imposed on the employer do not include ...
Salaries Expense, Social Sec/Medicare Tax Payable, FIT Payable, SIT Payable, Cash - Payroll.
A paycheck will have an effect on which general ledger accounts?
Social Security tax, Medicare tax, FUTA tax, and employee federal withholding.
Payment for the employer and the employee will be forwarded to the federal government for ...
merchandise that is sold to customers for a profit
Inventory is..
an inventory subsidary ledger for the company
In QuickBooks, the item List serves as..
all items the company sells, both inventory and service items
The item list includes..
Periodic inventory system
Values the inventory periodically based on a physical based on a physical count of the merchandise; usually done once a year
perpetual inventory system
values the inventory after every purchase and sale of inventory items
sales tax
an amount charged on the sale of merchandise, usually a percentage of the sales price. The company collects it as part of the sale and later remits it to the appropriate government agenct
sales discount
a reduction in the selling price if the invoice payment is made shortly after the invoice date
Inventory adjustment
an amount recorded in an expense or loss account to reflect the reduction of inventory value and/or quantity due to loss, theft, or damage