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QuickBooks Practice Test 100 Questions with
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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.
Which of the following is NOT a backup option in QuickBooks? a. Manually back up the file. b. Automatically back up the data file when closing QuickBooks. c. Schedule an unattended backup d. All of the above are QuickBooks backup options. Correct Answer-All of the above are QuickBooks backup options. Why would you restore a data file from the backup file? a. You wish to review the company data as it stood at an earlier date. b. The company data file on your hard drive is damaged and cannot be used. c. Your computer crashed. You reloaded QuickBooks, and now you are ready to open the company file. d. All of the above. Correct Answer-All of the above How do you switch to Multi-User Mode? a. Choose Company > Set Up Users and Passwords > Set Up Users from the
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.
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? a. QuickBooks sends the difference to an adjustment account. b. QuickBooks will not allow you to record the transaction. c. QuickBooks asks you what to do with the "unequal" amount. d. Nothing. QuickBooks records the transaction as is. Correct Answer-QuickBooks will not allow you to record the transaction.
What do the diamonds mean on certain lists (for example, the diamonds to the left of each Customer:Job)? a. You are not allowed to delete that entry. b. You can click on the diamond and move the list entry to a different location on the list. c. There are open transactions related to the list entry. d. You cannot move the list entry. Correct Answer-You can click on the diamond and move the list entry to a different location on the list. If you moved a list entry up or down, what happens when you add a new entry to the list? a. QuickBooks adds new list entries to the bottom of the list, regardless of alphabetic order b. QuickBooks adds new list entries in alphabetic order. c. QuickBooks adds new list entries to the top of the list, regardless of alphabetic order d. QuickBooks asks you how to sort new list entries. Correct Answer-QuickBooks adds new list entries to the top of the list, regardless of alphabetic order
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. b. Items allow you to track your sales in more detail without cluttering your Chart of Accounts or Profit & Loss. c. To create an invoice, you must use an item. d. All of the above. Correct Answer-All of the above What are other benefits of using items?
b. Inventory Part 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?
When should you create an invoice in QuickBooks? a. When a customer purchases goods or services and pays you in cash at the time of the sale b. When a customer purchases goods or services and pays you by check or credit card at the time of the sale c. When a customer purchases goods or services, but you don't want to record the sale as final d. When a customer purchases goods or services but does not pay you at the time of the sale Correct Answer-When a customer purchases goods or services but does not pay you at the time of the sale When should you use a Sales Receipt in QuickBooks? a. To give a customer a receipt for payment of an invoice b. To record a customer prepayment or deposit c. To record a customer payment at the time of sale d. To enter a customer early-payment discount Correct Answer-To record a customer payment at the time of sale
What is the purpose of Progress Invoicing? 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. 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. Suppose you have a subcontractor who receives a 1099 from your company. Which list should you add them to?
a. Employee List b. Vendor List c. Other Names List d. Class List Correct Answer-Class List When should you NEVER delete a check? a. You recorded a check but have not printed it yet. b. You printed a check on blank paper but now realize you don't want to record the check. c. You accidentally recorded the same check (with the same check number) twice. d. You printed a check, and the check number has been used. Correct Answer-You printed a check, and the check number has been used What methods for purchasing can be recorded using the Write Checks window? a. Debit card purchase b. Petty cash purchase
