QuickBooks Certification: Practice Test 1|47 Questions with Verified Answers,100% CORRECT

QuickBooks Certification: Practice Test 1|47 Questions with Verified Answers How can you stop yourself and others from deleting, editing, or adding transactions in a closed period? - CORRECT ANSWER Set a closing date You successfully reconciled the checking account last month. This month, when you begin to reconcile the same account, you notice the beginning balance calculated by QB is different than the bank. How can this happen? - CORRECT ANSWER Someone deleted or changed a cleared transaction. When should you use a sales receipt in QB? - CORRECT ANSWER To record a customer payment at the time of sale. How does entering time for a job affect job cost reports? - CORRECT ANSWER None of these answers are correct.. What account on the Chart of Accounts is affected when you sell an item? - CORRECT ANSWER The account you selected when you set up the item. You notice that multiple accounts should actually be subaccounts. How quickly can you make these accounts subaccounts of another account? - CORRECT ANSWER Click on the diamond to the left of the account, drag it below the appropriate parent account, and release the mouse button. Then, click the diamond again, drag to the right, and release the mouse button. What happens if you click "Collapse" on a report? - CORRECT ANSWER QB hides subaccounts and only shows parent accounts. What is the reason you use the items tab when Entering Bills? - CORRECT ANSWER To assign a cost to a job or purchase inventory. When you start a company or are hired as a bookkeeper, it is important to know which edition you are using. What are the major QB versions? - CORRECT ANSWER QB Online, QB Pro, QB Premier, QB Enterprise Solutions Suppose you have a subcontractor who receives a 1099 from your company. Which list would you add them to? - CORRECT ANSWER Vendor list What are the two main financial statements you can run from the 'Company & Financial' category of reports? - CORRECT ANSWER Balance sheet, Profit & Loss Which of the following statements is true about items? a) All of these are correct. b) You can use one item to represent different services or goods. c) To create an invoice, you must use an item. d) Items allow you to track your sales in more detail without cluttering your chart of accounts - CORRECT ANSWER a) All of these are correct. What item type should you use for inventory that you assemble from other items and then sell? a) Group b) Inventory Assembly c) Non-inventory part d) Inventory part - CORRECT ANSWER b) Inventory Assembly What is the maximum number of names that can be included on the Names lists in QB Pro or Premier? a) 1,000 b) 14,500 c) 10,000 d) 2,500 - CORRECT ANSWER b) 41,500 What transaction/form do you begin with to enter a Vendor Credit? a) Vendor Credit b) Enter Bill c) Receive Vendor Credit d) Pay Bills window - CORRECT ANSWER d) Pay Bills window When setting up a new company through Advanced/Detailed set up, some company information is optional and some is absolutely required. Which of the following pieces of information does QB require you to enter during the Easy Step Interview? a) All of these are correct b) Company Name c) Company password d) Tax ID - CORRECT ANSWER b) Company Name Suppose you have to track a specific piece of information about your customers that QB does not track. What is the best way to do this? a) Export the customer list to Excel, add the information there, and then re-import the list b) Use the 'Notes' feature for each customer c) Edit a customer and click the "Additional Info" tab. Click 'Define fields' to create a custom field to track anything you want d) You can't create new fields or rename fields in QB - CORRECT ANSWER c) Edit a customer and click the "Additional Info" tab. Click 'Define fields' to create a custom field to track anything you want. How do you set up multiple users in QB Pro or Premier? a) During the loading screen when you install QB on that user's machine b) Choose Edit Preferences, and select the Authorized Users Preferences c) Choose Company Setup Users and Passwords Setup Users d) You can't set up multiple users in QB Pro or Premier, but only in QB Enterprise Solutions or QB Online - CORRECT ANSWER c) Choose Company Setup Users and Passwords Setup Users What report should you use to help you complete the State Unemployment tax forms? a) Payroll Data Review b) State Unemployment Report c) Payroll Summary d) Employee State Taxes Detail - CORRECT ANSWER d) Employee State Taxes Detail You have customized and then memorized a report. What does QB save when memorizing a report? a) Everything. A memorized report is like a photographic snapshot of a report b) Report header, filters, and columns, but not the actual transactions c) Transactions only d) Report header, filters, and transactions - CORRECT ANSWER b) Report header, filters, and columns, but not the actual transactions Suppose your address information appears on the upper left of your invoice and you want to move it to the lower right. How would you do this? a) Use the Custom Form Designer b) Use the QB Print Engine Editor c) Use the Layout Designer d) Open the Financial Statement Designer - CORRECT ANSWER c) Use the Layout Designer You notice that when you print an invoice, the information in a field is cut off. How can you fix this? a) Use the Layout designer to make the field wider b) This can't happen in QB, as fields are automatically adjusted to fit whatever you type c) Send the invoice to Word and use that form instead d) Use a different invoice template - CORRECT ANSWER a) Use the Layout Designer to make the field wider. 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) Your computer crashed. You reloaded QB, and now you are ready to open the company file. c) All of these are reasons to restore from the backup file d) The company data file on your hard drive is damaged and cannot be used - CORRECT ANSWER c) All of these are reasons to restore from the backup file Which of the following Payroll Services are available with QB? a) Assisted b) All of these are correct c) Basic d) Enhanced - CORRECT ANSWER b) All of these are correct 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) Check or Bill c) Credit memo d) Customer Return - CORRECT ANSWER c) Credit memo When printing paychecks, what is the preferred check style to give an employee a paystub? a) Standard b) Payroll c) Voucher d) Wallet - CORRECT ANSWER c) Voucher How do you display or print a batch/group of reports quickly? a) On the Home page, click Batch Reports b) You can't do this in QB c) Choose Reports Process Multiple Reports d) The only way is to create a memorized batch/group of reports - CORRECT ANSWER d) The only way is to create a memorized batch/group of reports When would you enter a journal entry? a) All of these are correct b) To correct errors (if you have a strong accounting background) c) To enter depreciation d) For year-end adjustments - CORRECT ANSWER a) All of these are correct During the Advanced/Detailed setup, you can turn on and off which features in the Easy Step Interview? a) Progress invoicing b) Sales taxes c) Inventory d) All of these are correct - CORRECT ANSWER d) All of these are correct How do you combine or merge two list entries? a) From the bottom of the list, click the Activities menu and select combine entries b) Open the list entry you want to get rid of and click merge c) You cannot combine or merge two list items d) Rename the unwanted list entry to match the name of the list entry you want to merge into - CORRECT ANSWER d) Rename the unwanted list entry to match the name of the list entry you want to merge into When you create a statement and select "All Open Transactions as of Statement Date" what does QB show on the statement? a) All transactions during the specified date range b) Open transactions as of the statement date c) Invoice item details for invoinces d) Customer payments that haven't been deposited - CORRECT ANSWER b) Open transactions as of the statement date How do you create a memorized group of reports? a) Click the report center icon. Then click the Create New Report Group button b) Choose File Reports Memorized Reports Create Group c) Open the memorized report list and then click Memorized Report New Group d) Open the Group Reports list and then click Groups New Group - CORRECT ANSWER c) Open the memorized report list and then click Memorized Report New Group Suppose you own a company that repairs bicycles. what item type should you use for "bicycle repair"? a) Non-inventory part b) Inventory part c) Other charge d) Service - CORRECT ANSWER d) Service What is the easiest way to organized your memorized reports? a) Delete reports from your memorized report list quarterly to keep the list manageable b) You are only allowed to create 5 memorized reports, so there is no need to organized them c) Track your memorized reports in Excel d) Create a report group - CORRECT ANSWER d) Create a report group What do the diamonds mean on certain lists? a) You can click on the diamond and move the list entry to a different location on the list. b) You cannot move the list entry c) There are open transactions related to the list entry d) You are not allowed to delete that list entry - CORRECT ANSWER a) You can click on the diamond and move the list entry to a different location on thelist Why must you set deposit frequencies for the taxes or deductions your company has to pay? a) This is required by State and Federal governments. If those are not setup, a warning is sent to the agencies. b) So that QB can enter the dates on the Payroll Calendar that checks are due c) So that Payroll Liabilities show up in the Pay Taxes and other liabilities list in the payroll cnter d) You don't need to set up deposit frequencies, QB does it for you - CORRECT ANSWER c) So that Payroll Liabilities show up in the Pay Taxes and Other Liabilities list in the Payroll Center What can you do in the Reports and Graphs Preferences? a) All of these are correct b) Set which date to use for aging reports c) Change format options like font color and size d) change the summary basis for all reports - CORRECT ANSWER a) All of these are correct Which form should you use to enter petty cash expenditures? a) Write Checks or Use check register b) Enter credit card charges c) Money out d) Enter Petty Cash - CORRECT ANSWER a) Write Checks or use check register Suppose you customized an invoice in QB. You really like how it looks and want your estimates to look similar. How do you do this? - CORRECT ANSWER Choose Lists Templates. Select the form you want to duplicate, then click the Templates button and select Duplicate. Then, select the type of template you want to create with the same look What is one way that QB uses the account type? - CORRECT ANSWER To identify where the account appears on the financial statements. What is the purpose of the chart of accounts? - CORRECT ANSWER It is how you categorize financial transactions Which of the following is a way to access a report in QB? a) From the Report Center b) From the Reports Menu c) All of these are correct d) By clicking 'Reports' at the bottom of lists - CORRECT ANSWER c) All of these are correct When you invoice for time and costs, where does QB get the billable time or costs? - CORRECT ANSWER From billable time entered on time sheets and/or billable costs entered on checks and bills If you choose to remove transactions as of a specific date from the Condense Data window, what does QB do? - CORRECT ANSWER Removes all transactions while leaving lists, preferences, and service subscriptions intact. 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 QB, how do you show that the 5 checks were actually one deposit? - CORRECT ANSWER When you use the Receive Payments window, QB doesn't deposit the money in your checking account, after you record the 5 payments, click 'Record Deposits' and select the 5 checks What happens when you Quick Zoom on a number in a report? - CORRECT ANSWER QB shows more detail about that number on the report. When you set up a new QB company, how do you set up a new account that is not on the default list of accounts? - CORRECT ANSWER You can't add accounts that aren't on the QB default list. Finish setting up, then add the accounts directly into the chart of accounts.