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QuickBooks Practice Test 100 Questions with Verified
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During the Advanced Setup, you can turn on and off which features in the EasyStep Interview? a. Sales taxes b. Inventory c. Progress Invoicing d. All of the above - CORRECT ANSWER ALL of the above During the Advanced Setup, you can set up a password for which of the following users during the EasyStep Interview? a. Administrator b. External Accountant c. You cannot setup passwords during the EasyStep interview d. All users - CORRECT ANSWER administrator When setting up a new company through the Advanced Setup, some company information is optional and some is absolutely required. Which of the following pieces of information does QuickBooks require you to enter during the EasyStep Interview? a. Company name b. Company password c. Tax ID d. All of the above - CORRECT ANSWER company name How do you set up multiple businesses in QuickBooks (assuming each business files a separate tax return)? a. Purchase a separate QuickBooks license for each company you need to set up. b. Use the Advanced Setup to go through the EasyStep interview for the oldest
c. Use the Advanced Setup to go through the EasyStep interview for each company d. Use the Advanced Setup to go through the EasyStep Interview for the largest company first, and then choose File > Add a separate business at the end of the interview. to create a separate company file. - CORRECT ANSWER Use the Advanced Setup to go through the EasyStep interview for each company During the Advanced Setup, how do you setup a new account that is not on the default list of accounts during the EasyStep Interview? a. You can't add accounts that are not on the QuickBooks default list. Finish the interview and add the accounts directly to the Chart of Accounts. b. Click Add new account in the EasyStep Interview. c. Click Edit Account during the EasyStep Interview. d. Select Import My Chart of Accounts during the EasyStep Interview. - CORRECT ANSWER You can't add accounts that are not on the QuickBooks default list. Finish the interview and add the accounts directly to the Chart of Accounts. You've been hired by a company that started in 1911. They've never used QuickBooks. During the Advanced Setup, what "Start Date" should you use in the EasyStep Interview? a. There is no Start Date in the EasyStep Interview. b. The date the company bought QuickBooks. c. 1911 d. The date you want to begin tracking the company's finances in QuickBooks. - CORRECT ANSWER The date you want to begin tracking the company's finances in QuickBooks. How do you restore a company file from a backup copy? a. Choose File > Back Up. Then click the Restore from Backup button.
b. Open the data file from a remote location. c. Choose Edit > Preferences > Multi-User from the menu. d. Choose File > Switch to Multi-user Mode from the menu. - CORRECT ANSWER Choose File > Switch to Multi-user Mode from the menu. If you choose to remove transactions as of a specific date from the "Condense Data" window, what does QuickBooks do? a. Removes all payroll transactions that occurred on that date. This is a great way to fix the mistakes a new person made on a particular day. b. Removes all transactions while leaving lists, preferences, and service subscriptions intact. c. Changes the company's start date. d. Deletes all transactions, as well as user passwords and access privileges. - CORRECT ANSWER Removes all transactions while leaving lists, preferences, and service subscriptions intact. What happens when you press F2 in QuickBooks? a. Nothing, because function keys are not designed to work with QuickBooks. b. QuickBooks opens the Help. c. QuickBooks opens the Product Information window which includes version and company file information. d. QuickBooks closes all windows. - CORRECT ANSWER QuickBooks opens the Product Information window which includes version and company file information. When would you enter a journal entry?
a. To correct errors (if you have a strong accounting background) b. For year-end adjustments c. To enter depreciation d. All of the above - CORRECT ANSWER All of the above If the computer that houses your QuickBooks data crashes, what should you do? a. Restore a back up copy of your company file b. Create a back up copy of your company file c. Condense your company file data d. Export your data to Excel - CORRECT ANSWER Restore a back up copy of your company file When you start a company or are hired as a bookkeeper, it is important to know which edition of QuickBooks you are using. What are the major QuickBooks editions? a. QuickBooks Online, QuickBooks Pro, QuickBooks Premier, QuickBooks Enterprise Solutions b. QuickBooks Online, QuickBooks Basic, QuickBooks Pro c. QuickBooks Basic, QuickBooks Pro d. QuickBooks Premier, QuickBooks Enterprise Solutions - CORRECT ANSWER QuickBooks Online, QuickBooks Pro, QuickBooks Premier, QuickBooks Enterprise Solutions When entering a journal entry, what happens if the debits don't equal the credits?
What is the maximum number of names that can be included on the Names lists in QuickBooks Pro or Premier? a. 10, b. 1, c. 2, d. 14,500 - CORRECT ANSWER 14, What keyboard shortcut allows you to see a total for all four names lists? a. F b. Ctrl + L c. F d. Ctrl + 4 - CORRECT ANSWER F How do you combine or merge two list entries? a. Rename the unwanted list entry to match the name of the list entry you want to merge into. b. Open the list entry you want to get rid of and click Merge. c. From the bottom of the list, click the Activities menu and select Combine Entries. d. You cannot combine or merge two list entries. - CORRECT ANSWER From the bottom of the list, click the Activities menu and select Combine Entries. Can you delete a list entry (for example, an item)?
a. Yes, if the list entry is not used in any transactions or is not part of another list entry (for example, a group item). b. No, if the list entry is used in any transactions or is part of another list entry (for example, a group item). c. Both A and B are correct. d. No, you can never delete a list entry. - CORRECT ANSWER Both A and B are correct. Suppose you own a company that repairs bicycles. What item type should you use for "bicycle repair"? a. Inventory Part b. Non-inventory Part c. Other Charge d. Service - CORRECT ANSWER Service Which of the following is NOT an Item Type? a. Inventory Part b. Service c. Non-inventory Part d. Income - CORRECT ANSWER Income is an Account type. Which of the following statements is true concerning items? a. You can use one item to represent different services or goods.
c. Inventory Assembly d. Non-inventory Part - CORRECT ANSWER d What account (on the Chart of Accounts) is affected when you sell an item? a. The account you selected when you set up the item. b. Other Income account. c. A default sales account set up by QuickBooks. d. Accounts are not affected by items. - CORRECT ANSWER The account you selected when you set up the item. If you associate a service item with two accounts, how does QuickBooks know which account to use on a transaction? a. When the item is on a sales form, QuickBooks uses the account under "Sales Information" in the item setup. When it's on a purchase form, it uses the account under "Purchase Information." b. When you enter the item on a transaction, QuickBooks asks which account to use. c. You cannot associate two accounts to an item. d. Items do not affect accounts. - CORRECT ANSWER When the item is on a sales form, QuickBooks uses the account under "Sales Information" in the item setup. When it's on a purchase form, it uses the account under "Purchase Information." You can set up an item to affect different accounts (based on whether it's a sale or purchase) by selecting "This service is performed by a sub-contractor or partner."
What transaction should you enter if a customer returns a damaged product or, in the case of a service, complains so much you decide to offer a refund? a. Debit Memo b. Credit Memo c. Customer Return d. Check or Bill - CORRECT ANSWER Credit Memo On the Home Page, click Refunds and Credits. This decreases the amount owed by the customer and reverses the sale. When would you create an estimate in QuickBooks? a. When you want to send a billing statement b. When a customer requests a bid, quote, or proposal c. When a customer loses an invoice and needs a second copy d. When a customer pays for goods and services at the time of sale - CORRECT ANSWER When a customer requests a bid, quote, or proposal When you invoice for time and costs, where does QuickBooks get the billable time or costs? a. QuickBooks places a "Time/Costs" stamp on the invoice, but you must manually enter the line items on the invoice. b. From billable time entered on bills and checks. c. From payroll costs/expenses marked as billable on paychecks.
a. To invoice items marked as billable b. To automatically update a customer's job status c. To invoice from an estimate in increments d. To convert a sales order to an invoice - CORRECT ANSWER To invoice from an estimate in increments When Progress Invoicing is turned on (Preferences) and you create an invoice for a customer with an Estimate, QuickBooks provides 3 choices:
- Invoice for the entire estimate;
- Invoice for a percentage of the entire estimate;
- Invoice for selected items/percentages of each item. When you create a statement and select "All open transactions as of statement date," what does QuickBooks show on the statement? a. Open transactions as of the statement date b. All transactions during the specified date range c. Invoice item details for invoices d. Customer payments that haven't been deposited - CORRECT ANSWER Open transactions as of the statement date What do you need to record in QuickBooks when a customer's check bounces (the customer had non-sufficient funds, NSF)? a. There is less money in the checking account. b. The customer owes you for the amount of the check (and optionally a bounced check fee). c. The NSF fee the bank charged you.
d. All of the above. - CORRECT ANSWER All of the above You received 5 customer payments in the mail. At the bank you deposit the 5 checks as one deposit. When you record the 5 separate payments in QuickBooks, how do you show that the 5 checks were actually 1 deposit? a. In the receive payments window, check "deposited with deposit number." b. Record all the payments in the same Receive Payments window. c. When you use the Receive Payments window, QuickBooks doesn't deposit the money in your checking account. After you record the 5 payments, click Record Deposits and select the 5 checks. d. All of the above - CORRECT ANSWER When you use the Receive Payments window, QuickBooks doesn't deposit the money in your checking account. After you record the 5 payments, click Record Deposits and select the 5 checks When you record a customer payment, QuickBooks automatically "stores" the payments in the Undeposited Funds account. When you record a deposit, QuickBooks lists the payments in that account that have not yet been deposited. What options do you have after you create a credit memo in QuickBooks? a. Retain as an available credit b. Give a refund c. Apply to an invoice d. All of the above - CORRECT ANSWER All of the above A credit memo is used when a customer returns goods or you want to credit them for services you've provided. It "reverses" a sale.
b. Write a check, and then mark it as "pending" until you pay it. c. Enter a bill, and then use the Pay Bills window. d. You can't track accounts payable. - CORRECT ANSWER Enter a bill, and then use the Pay Bills window What transaction/form do you begin with to enter a vendor credit? a. Vendor Credit b. Enter Bill c. Pay Bills window d. Receive Vendor Credit - CORRECT ANSWER Enter Bill What happens to the inventory asset account when you enter a purchase order for inventory? a. The inventory asset account increases. b. The inventory asset account decreases. c. The inventory asset account is not affected. Cost of Goods Sold increases. d. No accounts are affected. - CORRECT ANSWER No accounts are affected Which form should you use to enter petty cash expenditures? a. Enter Petty Cash b. Money Out c. Enter Credit Card Charges
d. Write Checks or use check register - CORRECT ANSWER Write Checks or use check register Make sure that the bank account is a Petty Cash account that you set up (not your actual checking account). When reconciling your bank account in QuickBooks, what must the beginning balance match? a. The beginning balance should always equal the net amount of all uncleared bank transactions. b. It should always match the opening balance on the paper bank statement. c. It should always match the original account opening balance when the account was created. d. The beginning balance should always be zero. - CORRECT ANSWER It should always match the opening balance on the paper bank statement
- What is a reason to use the Items tab when entering a bill? a. To track expenses. b. To assign a cost to a job or purchase inventory. c. To track freight charges. d. There is not an Items tab on the Enter Bills form. - CORRECT ANSWER To assign a cost to a job or purchase inventory To have accurate job cost reports in the "Jobs, Time, and Mileage" category, QuickBooks requires item information on any job-related expense. You must also enter inventory items when you purchase them so QuickBooks can keep track of the quantity on hand.
b. It identifies the state subject to withholding and the state where the employee lives (usually the same). c. You enter Emergency Contact information, which is required by law in many states. d. This tab tracks an employee's age and gender necessary for tax calculations. - CORRECT ANSWER Whatever you enter/see in this window affects each paycheck, unless you change the information on the paycheck itself. You enter wages (hourly or annual salary), and QuickBooks calculates the amount per paycheck for you. You also enter any deductions (for example, health insurance) that you want QuickBooks to take from each paycheck. Why must you set deposit frequencies for the taxes or deductions your company has to pay (Payroll Liabilities)? a. This is required by State and Federal governments. If these are not set up, a warning is sent to the agency. b. So that QuickBooks can enter the dates on the Payroll Calendar that checks are due. c. So that Payroll Liabilities show up in the Pay Scheduled Liabilities list in the Payroll Center. d. You don't need to set deposit frequencies. QuickBooks does it for you. - CORRECT ANSWER So that Payroll Liabilities show up in the Pay Scheduled Liabilities list in the Payroll Center. QuickBooks uses this information to list the due date, status (upcoming, due, overdue), amount, and other important information so you remember to pay your payroll liabilities
on time. What are the first two steps to set up payroll in QuickBooks? a. 1) Sign up for a payroll service; and 2) complete the Payroll Setup Interview. b. 1) Sign up for a payroll service; and 2) Setup Payroll Schedules. c. 1) Turn on payroll through preferences; and 2) complete the Payroll Setup Interview. d. 1) Complete the Payroll Setup Interview; and 2) set up employees. - CORRECT ANSWER 1) Sign up for a payroll service; and 2) complete the Payroll Setup Interview. At the end of the Payroll Setup Interview, QuickBooks has an accurate record of employees, earnings, deductions, and payroll history, and you are ready to create your first paycheck. When you set up a new Payroll Item using the EZ setup wizard, which is not a choice? a. Compensation b. Retirement Benefits c. City/Local Taxes d. Insurance Benefits - CORRECT ANSWER City/Local Taxes There is no choice for city or local taxes. Select Custom Setup, and then choose Other Tax. How do you use Write Checks to pay Payroll Liabilities so your Payroll reports are accurate?
