Download QuickBooks Certification Exam Study Guide and more Exams Company Secretarial Practice in PDF only on Docsity!
QuickBooks Certification Exam Study Guide 125 Questions
with Verified Answers
Why would you hide or collapse sub accounts on a report? - CORRECT ANSWER To temporarily hide unnecessary detail and hide parent accounts What should you do after you click save & close on a customer credit memo? - CORRECT ANSWER Choose between retained as an available credit, give a refund or apply to an invoice Which of the following CAN be memorized in quickbooks? - CORRECT ANSWER check Which is NOT shown on the payroll summary report on quickbooks? - CORRECT ANSWER information necessary to complete your state unemployment tax form 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? - CORRECT ANSWER Record a transaction to show the customer owes you the money and that the checking balance decreased by that same amount Suppose you always want all reports to show a specific size and color,how do you set standard preference in quickbooks so you don't have to customize each report? - CORRECT ANSWER Click the edit menu and select preferences then click the reports and graphs group to set preferences Suppose you want to restrict which users can access customer credit card numbers. How do you do this? - CORRECT ANSWER Give the user access to sales and accounts receivable but do not check the complete credit card numbers Which of the following is a possible reason for a bank reconciliation discrepancy?
- CORRECT ANSWER The beginning balance calculated by quickbooks does not match last months ending balance
which of the following statements is TRUE regarding Undeposited funds? - CORRECT ANSWER It is an account used to record payments before you make a deposit Which accounts are affected when you enter Time in quickbooks? - CORRECT ANSWER Accounts receivable Workers who require a W2 tax form at the end of the year should be added to which of the following lists? - CORRECT ANSWER Employee If you have customized report that you use each month, which feature lets you run the - CORRECT ANSWER Memorize Report What is the primary reason for setting a closing date in Quickbooks? - CORRECT ANSWER To restrict users from deleting, editing or adding transactions to last year Your new employee earned an annual salary of $40,000. How do you enter this into quickbooks? - CORRECT ANSWER Enter 40,000 in the payroll info window What steps must you complete to use the payroll center to pay payroll liabilities - CORRECT ANSWER set deposit frequencies Name the section of the balance sheet - CORRECT ANSWER Assets, Liabilities, Equity When you create a new company file, quickbooks asks for your start date. What is the best definition of the start date in quickbooks? - CORRECT ANSWER The day you chose to start recording the finacial records in quickbooks Which of the following statements is NOT true regarding entering and paying bills in quickbooks? - CORRECT ANSWER If you use the enter bills window to record a bill, do not use the write checks window or check register to pay that same bill How do you use a different forms template when creating a new transaction? (i.e. Invoice) - CORRECT ANSWER Open the form, click the templates drop down list and select the appropriate form
When should you use the items tab on a bill or check? - CORRECT ANSWER When you purchase inventory parts When 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"? - CORRECT ANSWER quickbooks provides fields so you can track purchase and sales information for that item Which of the following statements is NOT true regarding single user and multi- user mode? - CORRECT ANSWER Only the administrator is allowed in the file when it is in single user mode Which of the form templates cannot be customized in quickbooks? - CORRECT ANSWER checks 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? - CORRECT ANSWER Press the F key When should you set up a non-inventory item type? - CORRECT ANSWER for something you buy but dont sell for something you sell but dont buy for something you buy and sell but do not need track the quantity on hands Which of the following statements is TRUE regarding items? - CORRECT ANSWER When you purchase or sell and item, the value of the purchase or sales flows to the account and therefore the financial statements you selected when you set up the item Which report shows how much you owe for sales tax? - CORRECT ANSWER Sales tax liabilitiy Which report is also known as an income statement and summarizes income and expenses for a month - CORRECT ANSWER Profit & loss standard
When making your payroll tax deposit, how can you add IRS interest and/or penalties? - CORRECT ANSWER Click the expense tab and enter the appropriate account and amount of interest and penalties Which of the following is a reason to create a new company file? - CORRECT ANSWER To start over when a company file has many errors that are beyond repair When you enter a purchase order for inventory, which accounts are affected? - CORRECT ANSWER None. Because purchase orders are non-posting transactions After quickbooks sets up a chart of accounts in the easy step interview, which of the following is TRUE? - CORRECT ANSWER It is possible to add more accounts later Which of the following is TRUE regarding general journal entries? - CORRECT ANSWER General journal entries require a good understanding of debits and credits and should not be used by non-accountants Which of the following statements is TRUE regarding how you record a debit card transaction in quickbooks? - CORRECT ANSWER Use the write checks window or check register and type debit in the check number field When can you delete a check from quickbooks without voiding it? - CORRECT ANSWER 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 really used What tool do you use to move your logo to a form? - CORRECT ANSWER layout designer What is the reason for not being able to delete a list entry? - CORRECT ANSWER The entry has been used in a transaction How do you move list entries to a different location on the list? - CORRECT ANSWER Click on the diamond to the left of the name and then drag the name up or down the list
You suspect that someone has changed a transaction. What report should you run? - CORRECT ANSWER Audit Trail Report How do you create a memorized group of reports? - CORRECT ANSWER Open MEMORIZED REPORT LIST and then click MEMORIZED REPORT> NEW GROUP How do you move columns on a report? - CORRECT ANSWER Move your cursor over the column heading, and when it becomes a hand, click and drag the column to the desired position. What happens if you click "Collapse" on a report? - CORRECT ANSWER QuickBooks hides Subaccounts and only show Parent Accounts. When should you use a sales receipt in QuickBooks? - CORRECT ANSWER To record a customer payment at the time of sale. What happens if you double-click on a Dimond on a report column? - CORRECT ANSWER Nothing You have customized and then memorized a report. What does QuickBooks save when memorizing a report? - CORRECT ANSWER Report headers, Filters, and columns but not the actual transaction What is the easiest way to organize your memorized reports? - CORRECT ANSWER Create a report group How do you display or print a batch/group of reports quickly? - CORRECT ANSWER Choose REPORTS> PROCESS MULTIPLE REPORTS Suppose you have a subcontractor who receives a 1099 from your company. Which list should you add them to? - CORRECT ANSWER Vendor List You successfully reconciled the checking account last month. This month, when you begin to reconcile the same account, you notice that the beginning balance calculated by QuickBooks is different from the beginning balance according to the
bank. How can this happen? - CORRECT ANSWER Someone changed or deleted a cleared transaction How do you combine or merge two list entires? - CORRECT ANSWER Rename the unwanted list entry to match the name of the list entry you want to merge into. What options do you have after you create a credit memo in QuickBooks? - CORRECT ANSWER 1. Retain as an available credit
- Give a refund
- Apply to invoice When should you NEVER delete a check? - CORRECT ANSWER You printed a check, and the check number has been used. How do you use Write Checks to pay Payroll Liabilities so your reports are accurate? - CORRECT ANSWER You can't You've customized an invoice and are ready to use it, but when you open the invoice, QuickBooks display the default Intuit Invoice. how do you change it? - CORRECT ANSWER On the Invoice, click Template drop-down arrow and select your customized invoice. If the computer that houses your QuickBooks data Crashes, What should you do?
- CORRECT ANSWER Restore a backup copy of your company file What can you do in the Reports & Graphs Preferences (Edit>Preferences)? - CORRECT ANSWER 1. Change the summary basis (Accrual or Cash) for all reports.
- Change format option like font, color,and size.
- Set which date to use for aging reports. How do items affect financial statements? - CORRECT ANSWER When you purchase or sell an item, the value of the purchase or sale flows to the account you selected when you set up the item. Which is Not a good reason to enter a general journal entry? - CORRECT ANSWER To avoid using the built-in forms ( e.g., checks and invoice)
ANSWER Edit the unwanted list entry. Change the name to match the name you want to merge into. Click OK. Then Click yes when prompted to merge the names. 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 NOT do? - CORRECT ANSWER Delete the customer's payment from the deposit. Your company just hired a subcontractor to work 40 hour per week on a job. Which list should you add this person to? - CORRECT ANSWER Vendors Which of the following editions of QuickBooks support multiple users? - CORRECT ANSWER All versions support multiple users. What is the quickest way in QuickBooks to find an invoice from months. Click help and search for the invoice by date? - CORRECT ANSWER Open an invoice and click the Find button. The computer that houses your QuickBooks data crash. What should you do in QuickBooks to make sure you always have access to your data? - CORRECT ANSWER Create a back up of your company file and store it separately from the computer. How do you make an item on the item list inactive? - CORRECT ANSWER Open the Item list. Click to select the appropriate item. Then click the bottom-left Item button and select Make Item Inactive. How do you pay payroll liabilities in QuickBooks? - CORRECT ANSWER Select the payments you want to make from the Pay Scheduled Liabilities list in the Payroll Center. Then click View/Pay. How do you hide subaccounts on a report? - CORRECT ANSWER Click the Collapse button The company file you are working on is a mess. You decide to start a new file. To save time, you want to keep all the lists and preferences and just delete the transactions. How do you do this? - CORRECT ANSWER Click the File menu and
select Utilities>Condense Data from the menu. Then choose the All transactions option. When you run a Profit & Loss on the accrual basis, What does QuickBooks include as income? - CORRECT ANSWER All sales Which of the following elements on an invoice can you NOT customize? - CORRECT ANSWER The amount of information (number of characters) you can type in each field. For each functional area of QuickBooks Pro and Premier (e.g, Sale & Accounts Receivable, Purchases & Accounts Payable, etc.), What levels of the access can you grant to users? - CORRECT ANSWER You can prohibit access, grant full access, or grant selective access. These levels apply to All transactions within that area. Which of the following CANNOT be entered during the setup of new company (Express Start or Advanced Setup) file? - CORRECT ANSWER Chart of Accounts. What two steps do you follow to track accounts payable in QuickBooks? - CORRECT ANSWER EnterBills, Pay Bills How do you record a debit card transaction in QuickBooks? - CORRECT ANSWER Use the Write Checks window (or the check register) but type "Debit" in the check number field. Suppose you always want all reports to show with a specific font size and color. How do you set this standard or preference in QuickBooks so you don't have have to customized each report? - CORRECT ANSWER Click the Edit menu and select Preferences. Then click the Reports & Graphs group to set your report preferences. Once you've completed the setup of a new company file, how do you change company information, such as business name, address, or phone number? - CORRECT ANSWER Select Company: Company Information from the menu Which of the following statements is true regrading single-user and multi-user mode? - CORRECT ANSWER To use QuickBooks in the multi-user mode, each user
2.Setup a Sick/vacation wage item
- Use the sick/vacation wage item to pay employees for sick/vacation time A list entry may be deleted Only when - CORRECT ANSWER It has no balance, it has not been used, and is not kinked to anything that has been used. Which of the Following transaction s CANNOT be Memorized? - CORRECT ANSWER Bill Payment How do item affect financial statements? - CORRECT ANSWER When you purchase or sell an item, the value of the purchase or sale flows to the account you selected when you setup the item. Which report is also know as an income statement and summarizes income and expenses for a month - CORRECT ANSWER Profit & Loss Standard Which report shows how much you owe for sales tax? - CORRECT ANSWER Sales tax liability Why would you hide or collapse subaccounts on report? - CORRECT ANSWER To temporarily hide unnecessary detail and hide parent account Workers who require a W2 tax form at the end of the year should be added to Which of the following list? - CORRECT ANSWER Employee Your new employee earned a annual salary of $40,000. How do you enter this into QuickBooks? - CORRECT ANSWER Enter 40,000 in the payroll info Window.
