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Quickbooks Certification Study Guide
Which of the following CANNOT be entered during the setup of a new company? A. Company name and address B. Chart of accounts C. Trial balance, open balance D. Checking account statement balance - Answer- C After QuickBooks sets up a chart of accounts during the Express Start or Advanced Setup, which of the following is TRUE? A. Accounts open balances can be changed. B. It is possible to add more accounts later. C. New accounts can only be added during the Express Start or Advanced Setup. D. Only Income and Expense accounts can be added after completing the Express Start Setup. - Answer- B 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? A. Select file, open company from the menu. B. Select file Express Start from the menu. C. Select company information from the menu. D. Select edit preferences from the menu. - Answer- C 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? A. The date the company began operating. B. The date you sit down to start the new company file. C. The date you chose to start recording the financial records in QuickBooks. D. The date you were hired to do the bookkeeping for the business. - Answer- C What is the primary reason for setting a closing date in QuickBooks? A. To transfer current year net income to retained earnings. B. To restrict users from deleting, editing or adding transactions to last year. C. To delete prior year transactions.
D. To reduce company file size - Answer- B 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? A. Click the Help menu, About QuickBooks B. Only technical support can access this window. C. File menu, version information. D. Press the F2 key. - Answer- D Which of the following is a reason restore a company file? A. To start recording transactions for a new year because each file tracks only one fiscal year. B. QuickBooks cannot create more than one file. C. To start over when a company file has many errors that are beyond repair. D. The current company file has reached a limit of 1,000 transactions. - Answer- C 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? A. Create a company and select copy settings from another company in the Easy Step interview. B. Click the File menu, choose utilities, condense data, then choose the default transaction option. C. You can't do this in QuickBooks D. Click on the Edit menu and delete all transactions. - Answer- B Why might you need to restore a company file? A. The company file on your hard drive is damaged or corrupted B. The computer's hard drive is damaged C. You want to review your company's data as it stood at an earlier period D. All of the above - Answer- D 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 accidentally deletes or edits a transaction last year? A. In the company information window select the first month in the fiscal year. B. Click the close financial year icon on the home page and enter the end of your fiscal year. C. Complete the closed the book wizard.
B. QuickBooks allows you to merge an Expense account with an Income account. C. Merging entries affects past transaction D. You can only merge names of the same type. - Answer- B Your company just hired a subcontractor to work 40 hours per week. Which list should you add this person to? A. Employees. B. Vendors. C. Subcontractors. D. Other names. - Answer- B 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. B. You entered a valid security password. C. List entries can never be deleted. D. The entry has not been used in the current year. - Answer- A Which of the following statement is TRUE regarding items? A. Items on a transaction do not affect the financial statements. B. When you set up a non-inventory item, QuickBooks assigns the current on-hand quantity to the balance sheet. C. When you purchase or sell an 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. D. You must use items on checks. - Answer- C How do you make an item on the item list inactive? A. Open the item list, click to select appropriate item, then click the activities button and select inactivate item. B. Open the item list, click to select the appropriate item, then click the bottom left button and select make item inactive. C. Open the item list, click the select inactive items button, then select the appropriate items then click ok. D. Click the items list and select make entries inactive then select the appropriate list entry then click ok. - Answer- B Which is an example of when to use a non-inventory part? A. When you sell the item and need to track quantity on hand information. B. When you build a finished item from components. C. When you buy the item and need to track quantity on hand information.
D. When you buy and sell an item but do not need to track quantity on hand information.
- Answer- D 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. B. QuickBooks automatically sets up a 1099 tracking. C. QuickBooks makes the item a payroll item. D. QuickBooks automatically marks this item for time tracking. - Answer- A When should you use the items tab on a bill or check? A. To track sales tax. B. To see if expenses are recorded accurately. C. When you purchase inventory parts. D. All of the above. - Answer- C You have to set up an item for shipping. What item type should you use? A. Inventory part B. Non inventory part C. Other charge D. Service - Answer- C 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. B. Set up unique items for each sale and make them inactive after the sale. C. Click the one time use button in the new item window. D. Do not use items when invoicing the customer. - Answer- A Which of the following statements is NOT true about entering and paying bills in QuickBooks? A. If you record the bill in QuickBooks, use the write checks window or check register to pay that same bill. B. If you record the bill in QuickBooks, do not use the write checks window or check register to pay that same bill. C. You should write a check fora bill using the write checks window or check register first then enter the bill for your records in QuickBooks. D. If you use on-line banking in QuickBooks you can't pay bills that you entered in QuickBooks. - Answer- A
C. Bill payment D. Credit card charge - Answer- C How do you record debit card transactions in QuickBooks? A. You don't set up a debit card at all. B. Use the write checks window, enter the check and write debit in the check number field. C. Open the check register and select debit card. D. Create sub accounts. - Answer- B How do you record a debit card transaction in QuickBooks? A. Setup a credit card type account and name it debit card. B. Use the write check window for the check register but type debit in the check number field. C. Open the check register and select debit card from the drop down list. D. Create a subaccount of your checking account and name it debit card. - Answer- B Which of the following statements is TRUE regarding how you record a debit card transaction in QuickBooks? A. Set up a credit card type account and name it debit card then use the Enter Credit Card Charges window. B. Use the Write Checks window or Check Register and type debit in the check number field. C. Set up a new window and choose Debit Card as the type then use the Enter Debit Card Charges window D. Use the cash payment window. - Answer- B Which of the following is a possible reason for a bank reconciliation discrepancy? A. You did not record checks in QuickBooks that are dated after the bank statement date. B. The beginning balance calculated by QuickBooks does not match last months ending balance. C. The QuickBooks Balance will never match the banks' balance. D. The bank reconciliation is on a cash basis instead of the correct accrual basis. - Answer- D When can you delete a check from QuickBooks without voiding it? A. It is not possible to delete a check from QuickBooks. B. You printed or wrote a check but it will never be cashed. Example, the check was destroyed or lost.
C. You printed or wrote a check but changed your mind and decided to use a credit card instead. 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. - Answer- D When should you VOID instead of delete a check? A. You mistakenly printed checks on plain paper. B. You used the check number but it will never be cashed. C. You entered the same check number twice in QuickBooks. D. You accidently entered a handwritten check in QuickBooks but the purchase is actually made using a credit card. - Answer- B 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? A. Record a transaction to show that the customer owes you that money but do not update your checking balance until you contact the customer in case they want to pay with a credit card. B. Record a transaction to show the customer owes you the money and that the checking balance has decreased by that same amount. C. Delete the customer's payment from the deposit D. Delete the customer's statement charge from your records - Answer- B 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? A. Call the customer and tell him to send another check. B. Record a transaction to show the customer owes you the money and the checking balance had decreased that same amount. C. Delete the customer's payment from the deposit. D. Charge your customer a bounced check fee. - Answer- C When should you enter a customer credit memo? A. To extend credit to a customer, i.e. Setup a revolving credit account B. When a customer returns a product that is damaged. C. To record a customer payment against an invoice. D. Only after you issue a debit memo. - Answer- B What should you do after you click Save & Close on a Customer Credit Memo? A. Print a bill payment stub B. Apply the credit memo used in the Pay Bills window
A. All sales entered with accrual journal entry. B. All sales except statement charges. C. All sales - Answer- C 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? A. This is the difference between fund and class reporting. B. This is the difference between accounts receivable and accounts payable reporting. C. This is the difference between item profitability reporting and job profitability reporting. D. This is the difference between cash and accrual reporting. - Answer- D Which report shows how much you owe for sales tax? A. Sales Tax Revenue Summary B. 1099 Detail C. Sales Tax Liability D. AP Aging - Answer- C Where can you see a thumbnail sample of each report in QuickBooks along with a description of what the report tells you? A. Report menu B. View menu C. Report center D. Document center - Answer- C What can you do in the report center? A. Start the client data review. B. Add reports to QuickBooks C. Run most reports in QuickBooks D. Delete reports in QuickBooks Multiple Reports - Answer- C How do you display a group of reports? A. Click the reports center icon then click the process multiple reports button. B. Click the reports menu then select process multiple reports. C. Click the file menu then click multiple reports. D. Click the process multiple reports icon on the home page. - Answer- B How do you customize a report, i.e. change the information QuickBooks displays, change the title etc. A. Click the customize report button on the report.
B. Double click on the report element you want to change. C. Click the modify report button on the report. D. Right click on the report element you want to change. - Answer- A How do you change text in the header/footer of a report? A. You can't change the header/footer in QuickBooks. You would have to do this in Excel. B. Double click on the header or footer in the report you want to change. C. Click the customize report button on the report and then change the header footer tab. D. Right click on the header footer in the report you want to change. - Answer- C 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? A. You must customize each report individually. B. Click the Reports menu and select global report preferences. C. Click the Reports menu and select Memorize Reports, set preferences; you can only set report preferences for memorized reports. D. Click the edit menu and select preferences then click the reports and graphs group to set your report preferences. - Answer- D If you have a customized report that you use each month, which feature lets you run the report with updated data each month. A. Update Report B. Memorize Report C. Automate Report D. Customize Report - Answer- B How do you make a column on a report wider? A. Right click on the column and select column width, enter the appropriate amount and click OK. B. Click the Format menu, select column width and enter the appropriate amount and click OK. C. Click the three dots to the right of the column and drag it to the right. D. Click the modify report button, click the display tab, and enter the appropriate column width. - Answer- C How do you add or delete columns on a report? A. You cannot delete columns on a report. B. Click the reports menu and select customize columns.
A. Select Edit Preferences from the menu then click the customization icon and select the appropriate form template. B. Double click on the form title bar and select the appropriate form template. C. Select Edit, Apply custom template from the menu D. Open the form, click the templates drop down list and select the appropriate form. - Answer- D Which of the form templates cannot be customized in QuickBooks? A. Checks B. Invoice C. Purchase Order D. All of the above - Answer- A Which accounts are affected when you enter Time in QuickBooks? A. None. Because time sheets are non-posting entries. B. Payroll Expenses. C. Employee payroll balances. D. Accounts Receivable - Answer- A Which payroll service allows you to print state tax forms? A. Basic payroll B. Standard payroll C. Enhanced payroll D. Advanced payroll - Answer- C 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). B. You don't have to add a payroll service to QuickBooks. C. Basic (calculates taxes and helps create state and federal tax forms) and Assisted (Intuit handles payroll taxes and forms). D. Basic (calculates taxes and helps create state and federal tax forms) and Full Service (Intuit processes payroll completely). - Answer- A What is the end result of payroll setup interview? A. A payroll service option has been selected and you are ready to setup employees and taxes. B. Your first payroll is completed. C. QuickBooks has an accurate record of employee's earnings and deductions and payroll history and you are ready to create your first paycheck.
D. QuickBooks advises that you need to create checks or regular checks from 1099. - Answer- C What is the end result of a payroll setup interview? A. A payroll service option is selected. B. Your fist payroll is completed. C. QuickBooks has an accurate record of employees, earning deductions and payroll history and you are ready to create the first paycheck D. Your payroll service subscription is selected and activated. - Answer- C Your new employee earned an annual salary of $40,000. How do you enter this into QuickBooks? A. Divide 40,000 by the number of pay periods and manually enter this amount on each paycheck. B. Divide 40,000 by the number of pay periods, example monthly, and enter that amount in the payroll info window. C. Enter 40,000 in the payroll info window. D. Divide 40,000 by the number of hours in a work year and enter that amount in the payroll info window. - Answer- C When you set up a new employee, how do you add a payroll deduction such as medical insurance? A. In the new employee window, click the change tab drop down list and select employment info, then add the medical insurance payroll item below the employment detail section. 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. C. In the new employee window, click the change tab drop down list and select personal info and then add the medical information in the personal deductions. D. In the new employee window, click the change tab drop down list and select payroll and compensation information then click the taxes button and the medical insurance payroll below the other taxes and deductions. - Answer- B What steps must you complete to use the payroll center to pay payroll liabilities? A. Enter General Journal entries to record amounts due. B. Drag and drop liabilities to the payment calendar. C. Set deposit frequencies. D. Run payroll forms such as the 9-41 - Answer- C How do you pay, Payroll Liabilities in QuickBooks?
A. Sales Orders B. Invoice C. Estimate D. Statement E. Sales receipt - Answer- A Customer is thinking about buying but hasn't decided for sure yet. A. Invoice B. Sales Orders C. Sales receipt D. Estimate E. Statement - Answer- D Customer received goods and paid in full. A. Invoice B. Estimate C. Statement D. Sales Orders E. Sales receipt - Answer- E You want to remind a customer about the outstanding invoices they still owe you for. A. Statement B. Invoice C. Estimate D. Sales Orders E. Sales receipt - Answer- A Customer received goods and services but hasn't paid yet. A. Statement B. Sales Orders C. Sales receipt D. Invoice E. Estimate - Answer- D Inventory Assembly A. Cans of soda pop and energy bars that you buy in bulk, store in the van, and then sell. B. You allow customers to buy a handful (whatever their hand can hold of chocolates) for dessert. You don't track the number. C. A quick lunch special that you make by attaching an energy bar to a can of soda. D. Catering by the hour if someone asked you to help with the party. - Answer- C
You need to restore a company file from a backup. Which is step number one? A. Make sure the Homepage is open. B. Click the File menu C. Click the Backup menu D. Choose Open or Restore Company E. Select Restore a backup copy click next and follow the steps - Answer- B You need to restore a company file from a backup. Which is step number two? A. Make sure the Homepage is open. B. Click the File menu C. Click the Backup menu D. Choose Open or Restore Company E. Select Restore a backup copy click next and follow the steps - Answer- D Which two of the following steps are not needed to restore a company file? A. Make sure the Homepage is open. B. Click the File menu C. Click the Backup menu D. Choose Open or Restore Company E. Select Restore a backup copy click next and follow the steps - Answer- A & C Your company no longer sells a particular item. You've been asked to make the item inactive. Which is step one? A. Open the Item List B. Click on the Item you want to hide C. Drag the Item off the list D. Click the Item drop-down arrow at the bottom left of the window. Select make Item Inactive - Answer- A Your company no longer sells a particular item. You've been asked to make the item inactive. Which is step two? A. Open the Item List B. Click on the Item you want to hide C. Drag the Item off the list D. Click the Item drop-down arrow at the bottom left of the window. Select make Item Inactive - Answer- B Report Task - Answer- -Report -List -Name of Report
