QuickBooks Chapter 1 Test Questions and Complete Solutions Graded A+

QuickBooks Chapter 1
Test Questions and
Complete Solutions
Graded A+
True - Answer: Data entry is the same in QuickBooks whether you use accrual or cash basis accounting



True - Answer: Always back up your company file to a location NOT on the same hard drive as the
original file



False - Answer: The cash basis accounting means the sale transaction is recorded when the sale is made,
and expenses are recorded when they are incurred



False - Answer: QuickBooks for Mac has the same basic look as the Windows version, but the functions
are different



False - Answer: Leann works for a nonprofit organization. At a past job she used QuickBooks CANNOT be
used for nonprofits



False - Answer: Rahim is having trouble managing his small business's finances. His friend is encouraging
him to purchase QuickBooks because, "You don't have to know anything about accounting. QuickBooks
does all the work and prevents you from having any problems." Is what Rahim's friend is saying true or
false?



True - Answer: The QuickBooks working file has the .QBW extension and is the company file.



False - Answer: The working QuickBooks company file, with the .QBW extension, is a compressed file