QuickBooks Chapter 4 Questions and Answers 100% Pass

QuickBooks Chapter 4 Questions and Answers 100% Pass Accrual-basis accounting matches the income from the period and the expenses for the period in order to determine the net income or net loss for the period. True In QuickBooks, the Journal is called the book of final entry. False An account may be deleted at any time. False In a sole proprietorship, an owner's name is added to the Vendor List for recording withdrawals. False Additional investments made by an owner may be cash or non-cash items. True QuickBooks records every transaction in the Journal. True A Reconciliation Detail Report prints the last two bank reconciliation reports. False Once an account has been used in a transaction, no changes may be made to the account name. False When completing a bank reconciliation, anything entered as a service charge or as interest earned will be entered in the Journal automatically when the reconciliation is complete. True A Balance Sheet is prepared to prove the equality of debits and credits. False When the letter of the corect answer in the space povided before the question number A. have a closing password B. enter a closing date in the Company Preferences for Accounting C. enter a closing date in the Company Preferences for Reports D. enter the traditional closing entries in debit/credit format in the General Journal B. enter a closing date in the Company Preferences for Accounting When a master account name such as "cars" is changed to "automobiles", the subaccount "depreciation" . A. needs to be changed to a subaccount of automobiles B. is automatically changed to a subaccount of automobiles C. cannot be changed D. must be deleted and re-entered A. needs to be changed to a subaccount of automobiles B. is automatically changed to a subaccount of automobiles The report that proves Assets = Liabilities + Owner's Equity is the . A. Trial Balance B. Income Statement C. Profit and Loss Statement D. Balance Sheet D. Balance Sheet If the adjusting entry to transfer net income/retained earnings into the owner's capital account is made prior to the end of the year, the Balance Sheet shows . A. Retained Earnings B. Net Income C. both Net Income and Retained Earnings D. none of the above because the income/earnings has been transferred into capital C. both Net Income and Retained Earnings The type of Profit and Loss Report showing year-to-date transactions instead of totals for each income and expense account is a(n) Profit and Loss Report. A. Standardized B. YTD Comparison C. Prev Year Comparison D. Detailed D. Detailed A bank statement may . A. show service charges or interest not yet recorded B. be missing deposits in transit or outstanding checks C. show automatic payments D. all of the above D. all of the above The Journal shows . A. all transactions no matter where they were recorded B. only those transactions recorded in the General Journal C. only transactions recorded in account registers D. only those transactions that have been edited A. all transactions no matter where they were recorded A QuickBooks backup file . A. is a condensed file containing company data B. is prepared in case of emergencies or errors on current disks C. must be restored before information can be used D. all of the above D. all of the above An error known as a transposition can be found by . A. dividing the amount out of balance by 9 B. dividing the amount out of balance by 2 C. multiplying the difference by 9, then dividing by 2 D. dividing the amount out of balance by 5 A. dividing the amount out of balance by 9 The type of Balance Sheet Report showing information for today and a year ago is a(n) Balance Sheet. A. Standard B. Summary C. Comparison D. Detailed C. Comparison Bank reconciliations should be performed on a(n) ______ basis. monthly Exporting report data from QuickBooks to _____ can be made in order to perform "what if" scenarios. Excel An owner's paycheck is considered a(n) ______. withdrawal The Summary Report Basis for _____ or _____ is selected as a Report Preference. Accrual; Cash The Cash Flow Forecast ___________ column shows the total in all bank accounts if all customer and bill payments are made on time. Projected Balance