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QuickBooks Practice Test 100 Questions with Correct
tions^ Solutions
- 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: 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: administrator
- When setting up a new company through the Advanced Setup, some com- pany information is optional and some is absolutely required. Which of the following pieces of information does QuickBooks require you to enter during the EasyS- tep Interview? a. Company name b. Company password c. Tax ID d. All of the above: company name
- How do you set up multiple businesses in QuickBooks (assuming each busi- ness 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
2 / 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.: 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.: 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.-
4 / c. Choose File > Open or Restore Company. Select Restore a backup copy and click Next. Choose Local or Online Backup and click Next. Select the file to restore and click Open. Choose where to restore the file to and click Save. d. Click the Restore icon on the Home page. click Next.: Choose File > Open or Restore Company. Select Restore a backup copy and click Next. Choose Local or Online Backup and click Next. Select the file to restore and click Open. Choose where to restore the file to and click Save.
- 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.: 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.: 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
5 / b. Open the data file from a remote location.
7 / b. For year-end adjustments
8 / c. To enter depreciation d. All of the above: 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: 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 Quick- Books editions? a.QuickBooks Online, QuickBooks Pro, QuickBooks Premier, QuickBooks Enter- prise Solutions b. QuickBooks Online, QuickBooks Basic, QuickBooks Pro c. QuickBooks Basic, QuickBooks Pro d. QuickBooks Premier, QuickBooks Enterprise Solutions: 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.
10 / c. 2, d. 14,500: 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: 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.: 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).
11 / c. Both A and B are correct.
13 / b. They can save you time by automatically entering a description and price on forms. c. They allow you to track a lot of detail without cluttering your Chart of Accounts. d. All of the above.: All of the above
- What item type should you use for inventory that you assemble from other items and then sell? a. Group b. Inventory Part c. Inventory Assembly d. Non-inventory Part: Inventory Assembly
- You've just been hired by a bakery that sells delicious cup cakes. When they buy ingredients (flour, eggs, milk, and sugar), they use the Expense tab and assign the costs to a Cost of Goods Sold account. You need to set up an item for cakes. What item type should you use? a. Group b. Inventory Part c. Inventory Assembly d. Non-inventory Part: d
- What account (on the Chart of Accounts) is affected when you sell an item?
14 / a. The account you selected when you set up the item.
16 / c. Customer Return d. Check or Bill: Credit Memo
17 / 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: 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 man- ually 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. d. From billable time entered on timesheets and/or billable costs entered on checks and bills.: From billable time entered on timesheets and/or billable costs entered on checks and bills. When you enter an expense, item, or time and also assign that line to a Customer: Job, QuickBooks displays a billable checkmark. You can uncheck this if you don't want to invoice for the cost.
- When should you create an invoice in QuickBooks?
19 / 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: 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: 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: 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;
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- 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 state- ment 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: 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.: 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.
