Domain 1
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 asks you what to do with the unequal amount.
C) Nothing. QuickBooks records the transaction as is.
D) QuickBooks will not allow you to record the transaction.
What is....D (QuickBooks will not allow you to record the transaction).
What is the difference between an Invoice and a Sales Receipt?
A) An Invoice keeps track of future sales. A Sales Receipt records sales in the current accounting period.
B) An invoice and a sales receipt are two separate transactions and do not work together.
C) An Invoice records a sale and how much your customer owes. A Sales Receipt records a sale and the payment you received (it doesn’t track any amount as owed).
D) An Invoice records a sale and how much your customer owes. A Sales Receipt records the customer payment and can be used as a receipt when they pay their invoice.
What is....C (An Invoice records a sale and how much your customer owes. A Sales Receipt records a sale and the payment you received (it doesn’t track any amount as owed).
How do you track Accounts Payable (A/P) in QuickBooks?
A) Step 1: Enter an Expense.
Step 2: Pay the Expense.
B) Step 1: Enter a Bill.
Step 2: Pay the Bill in the Pay Bills window
C) Step 1: Record a Journal Entry to Accounts Payable.
Step 2: Write a check to pay your vendor/supplier.
What is....B (Step 1: Enter a Bill.
Step 2: Pay the Bill in the Pay Bills window)
QuickBooks Online allows you to connect directly to which of the following financial accounts to download activity into QBO?
A) You state tax authority
B) Most major US Banks and credit card processors.
C) The IRS
D) All of the above.
What is....B (Most major US Banks and credit card processors).
You’re working in QuickBooks at a coffee shop for a few hours and don’t want to share all of your company’s financial details with everyone there. How can you fix this?
A) Click the Private mode switch on the dashboard to prevent sensitive financial information from being displayed in this window.
B) When logging in to your QuickBooks data, check the box next to Private mode.
C) From the company menu settings, select the option to Hide Financial Details.
D) There is not a way to exclude this type of information from your data.
What is...A (Click the Private mode switch on the dashboard to prevent sensitive financial information from being displayed in this window).
A company uses QuickBooks, but they need another program or app to manage all the interactions they have with their customers (this is usually called a customer relationship management or CRM application). They don’t want to enter every customer twice (once into QuickBooks and once into the CRM application). What do you suggest they do?
A) Use the Export to Excel function within QuickBooks to export the customers periodically. Then import them into the CRM application.
B) Look for a CRM app that produces financial statements. Use that app to record the company’s sales while continuing to track expenses in QuickBooks.
C) Use the Apps tab in QuickBooks to find a CRM app.
D) Track their CRM in QuickBooks.
What is.....C (Use the Apps tab in QuickBooks to find a CRM app).
What transaction should you enter if a customer returns a damaged product that they have not yet paid for.
A) Refund Receipt
B) Vendor Credit
C) Receive Payment
D) Credit Memo
What is....D (Credit Memo).
You mailed a check to pay your monthly rent. The check was lost in the mail and was never cashed. What should you do with the check in QuickBooks?
A) Change the amount of the check to zero.
B) Void the check.
C) Delete the check.
D) Make a Journal Entry to reverse the check.
What is....B (Void the check).
To add a receipt to QuickBooks Online from your computer, what option do you select from the left-hand navigation to begin the process?
A) Accounting
B) Banking
C) Expenses
D) Taxes
E) You cannot upload receipts into QuickBooks Online.
What is....B (Banking).
Where in QuickBooks can you find out the status of what you owe to a vendor and when it’s due?
A) Accounts Payable Aging report or the Vendor Balance Detail report.
B) Open Purchase Orders list.
C) The money bar at the top of the Vendors center.
D) Cash Flow report.
What is.....A (Accounts Payable Aging report or the Vendor Balance Detail report).
The company that just hired you uses QuickBooks Online. You notice there are many duplicate entries on lists, such as the same customer or account entered twice with slightly different spellings. You've decided to merge the duplicates. Which three statements are true about merging list entries? (Choose three)
A) You can only merge names from the same Type.
B) You cannot merge expenses and items.
C) You cannot merge a customer with a vendor entry.
D) You can merge an income account with an expense account.
What is....
A) You can only merge names from the same Type.
B) You cannot merge expenses and items.
C) You cannot merge a customer with a vendor entry.
When setting up a new inventory item what accounts have to be defined?
A) Payment account
B) Inventory asset account
C) Income account
D) Expense account
E) Checking account
What is....
B) Inventory asset account
C) Income account
D) Expense account
When should you select your checking account as the payment account on an Expense form?
A) When you are entering a debit card transaction
B) When you are entering a payment made online directly from your bank account
C) When you are entering a wire transfer directly from your checking account
D) All of the answers are correct
What is....D (All of the answers are correct).
For each statement below identify if the statement is true or false related to the benefits of connecting QuickBooks Online to online bank accounts.
A) Connecting to online bank accounts and downloading transactions, increases the likelihood of not recording a transaction.
B) Connecting to online bank accounts and downloading transactions, increases the risk of manual data entry errors.
C) Connecting to online bank accounts and downloading transactions allows you to apply banking rules to automatically categorize common transactions.
D) Connecting to online bank accounts and downloading transactions, increases the time spent on data entry.
True: (C) Connecting to online bank accounts and downloading transactions allows you to apply banking rules to automatically categorize common transactions.
False: (A) Connecting to online bank accounts and downloading transactions, increases the likelihood of not recording a transaction.
False: (B) Connecting to online bank accounts and downloading transactions, increases the risk of manual data entry errors.
False: (D) Connecting to online bank accounts and downloading transactions, increases the time spent on data entry.
You notice an invoice you entered last month has changed significantly, but you didn’t make the change. How can you find out who changed it and what they changed?
A) Look at the Audit Log report.
B) You cannot get this information.
C) Look at the Journal of Changes report.
D) While the invoice is open, click More > Show Prior State.
What is....A (Look at the Audit Log report).
Select three benefits of using QuickBooks Online.
A) QBO is in the cloud and can be accessed from anywhere as long as you have an internet connection.
B) Users must purchase a new version of the software each year.
C) The need to install software on computers is eliminated.
D) Companies can easily invite their outside accountant to access the QBO company file remotely.
What is...
A) QBO is in the cloud and can be accessed from anywhere as long as you have an internet connection.
C) The need to install software on computers is eliminated.
D) Companies can easily invite their outside accountant to access the QBO company file remotely.
All of the fields below are fields that can be edited when changing the email sent to the customer with their invoice except which two?
A) Priority
B) If the invoice is attached as a PDF.
C) Subject Line
D) Greeting
E) The message in the email.
F) From Address
What is...
A) Priority
F) From Address
Select the two statements below that are correct as it relates to merging vendors.
A) To merge vendor A into Vendor B you should edit the display name of vendor B to match vendor A.
B) Merging of vendors cannot be undone.
C) To merge vendor A into Vendor B you should edit the display name of vendor A to match vendor B.
D) When merging Vendor A into vendor B all the transactions for Vendor A will be permanently deleted from the record.
D)
What is....B (Merging of vendors cannot be undone).
What is....C (To merge vendor A into Vendor B you should edit the display name of vendor A to match vendor B).
For each statement below identify if the statement is true or false related to the how to use and process bank feeds.
A) If you want to keep a downloaded transaction from going into your company expenses you should exclude the transaction.
B) The first download after setting up the bank fees will include 90 days for transactions unless excluded.
C) After a transaction is downloaded from the bank feed into QuickBooks Online, QuickBooks will suggest the bank reconciliation discrepancy account if it does find an applicable bank rule or matching transaction.
What is...
True: (A) If you want to keep a downloaded transaction from going into your company expenses you should exclude the transaction.
True: (B) The first download after setting up the bank fees will include 90 days for transactions unless excluded.
False (C) After a transaction is downloaded from the bank feed into QuickBooks Online, QuickBooks will suggest the bank reconciliation discrepancy account if it does find an applicable bank rule or matching transaction.
Which two accounts of the following accounts would most likely appear on the Balance Sheet report?
A) Accounts Receivable
B) Cost of Goods Sold
C) Checking
D) Gross Profit
E) Depreciation Expense
E)
What is....
A) Accounts Receivable
C) Checking
For each statement below about recurring transactions identify if the statement is true or false.
A) A scheduled recurring transaction will process automatically at the set interval of recurrence.
B) An unscheduled recurring transaction must have a set end date.
C) A remind recurring transaction will process automatically at the set interval of recurrence.
What is...
True: A scheduled recurring transaction will process automatically at the set interval of recurrence.
False: An unscheduled recurring transaction must have a set end date.
False:A remind recurring transaction will process automatically at the set interval of recurrence.
For each statement below regarding sub-customers identify if the statement is true or false.
A) Sub-customers could be used when one customer has multiple shipping locations where you ship product.
B) If Bill with Customer option is selected on the sub-customer, then payments received must be applied to the parent customer.
C) If Bill with Parent option is selected on the sub-customer, you can see the activity of the sub-customer in the parent customer account.
D) You must set up the sub-customer before the parent-customer.
True: (C) If Bill with Parent option is selected on the sub-customer, you can see the activity of the sub-customer in the parent customer account.
True: (A) Sub-customers could be used when one customer has multiple shipping locations where you ship product.
False: (B) If Bill with Customer option is selected on the sub-customer, then payments received must be applied to the parent customer.
False: (D) You must set up the sub-customer before the parent-customer.
For each statement below out money out transactions identify if the statement is true or false.
A) When you receive a check from your customer to pay an open invoice, you should select Check to record the amount.
B) Vendor credits can be used to reduce the amount paid to a vendor.
C) After entering a Bill you should select to Pay bills when it is time to pay the bill.
D) Entering a Bill increases Accounts Payable.
What is....
True: (B) Vendor credits can be used to reduce the amount paid to a vendor.
True: (C) After entering a Bill you should select to Pay bills when it is time to pay the bill.
True: (D) Entering a Bill increases Accounts Payable.
False: (A) When you receive a check from your customer to pay an open invoice, you should select Check to record the amount.
For each transaction below select Yes if it would be a good candidate to apply a bank rule to or No if it would not be a good candidate to apply a bank rule to.
A) Monthly rent expense payments
B) Utility expense
C) Hourly payroll worker paycheck
D) Purchases of fuel for your work trucks
Yes: (A) Monthly rent expense payments
Yes: (B) Utility expense
Yes: (D) Purchases of fuel for your work trucks
No: (C) Hourly payroll worker paycheck
What information would you see on a standard accounts payable aging summary or accounts payable aging detail report? Select 2 items
A) Customers who owe you money.
B) Vendors who you owe money to.
C) Due dates for bills.
D) Checks written to vendors
E) The balance in your checking account.
What is....
B) Vendors who you owe money to.
C) Due dates for bills.