1. What lists can be imported from Excel spreadsheets, when setting up a QuickBooks Online company?

Transcription

1 QuickBooks Online Practice Test (with answers) 1. What lists can be imported from Excel spreadsheets, when setting up a QuickBooks Online company? A) Locations, Classes, Products and Services, and Vendors B) Chart of Accounts, Customers, Reports, and Recurring Transactions C) Chart of Accounts, Customers, Products and Services, and Vendors D) Transactions, Billable Expenses, Reports, and Chart of Accounts 2. Which of the following is TRUE regarding your chart of accounts, when setting up a new QuickBooks company? A) QuickBooks does not create a chart of accounts for you. This must be done manually. B) It is possible to add more accounts after starting a new company. C) New accounts can only be added during the new company startup process. D) Only income and expense accounts can be added after starting a new company. 3. What company information does QuickBooks ask for when you first create a new QuickBooks Online account? A) The date the company began operating B) The birth date of the owner C) The industry of the business D) A list of company employees 4. Where is the Company Settings page found in QuickBooks Online? A) Click the Company Settings icon on the home page B) Click the Global Create menu at the top of the screen and select Your Company C) Click the Company tab on the left side of the screen and select Company Settings D) Click the Company Menu at the top right and select Company Settings 5. What can you do to filter the home page so that it does not display sensitive financial information? A) Go to the Manage Users screen and set a user to view the screen in "Private Mode"

2 B) Navigate to the Reports Center and change the reports that are displayed on the home page C) Go to the Company Menu and turn on "Private Mode" D) Turn on "Private Mode" from the home page 6. Which of the following is TRUE regarding General Journal Entries? A) General Journal Entries require a good understanding of debits and credits and a great deal of care should be taken by non-accountants when entering them B) Enter a General Journal Entry when you are not sure which form to use C) General Journal Entries should NOT be used during year-end adjustments D) General Journal Entries should NOT be used to enter depreciation 7. Which of the following statements about Users is TRUE? A) You can add as many users as you want, but only one can use QuickBooks at a time B) Users must share a single login to the company file C) In addition to Regular or Custom users, you can also set up Reports only and Time Tracking only users D) An Accountant User counts towards your user license limit 8. When importing information from QuickBooks Desktop to QuickBooks Online you: A) Can choose which transactions you want to import. B) Have to import everything, and anything that is in your QuickBooks Online company during the import will be overwritten. C) Can only import your Customers, Vendors and Employees. No transactions are imported. D) Can NOT access your QuickBooks Desktop company file anymore. 9. Which of the following is TRUE regarding merging entries in lists? A) You can merge a customer and a vendor B) You can merge items and expenses C) You can merge an income account with another income account D) You can merge classes and locations

3 10. You just bought something from one of your customers and want to set them up as a vendor. What steps would you take to do that? A) Right click the name on the Customers List and select Vendor Too. B) Open the Customers list, select the customer and click Edit. Check the "Is Also Vendor" box to make them both a vendor and a customer. C) You cannot buy things from customers in QuickBooks Online. D) Open the Vendors list and create a new vendor. In the Display Name As field, enter the customer's name, but add something else to the name to make it unique. 11. How do you delete a particular product that you no longer sell? A) Click the Company Menu (gear icon) then click Products and Services. Select the product from the list and click Delete. B) It is not possible to delete a product after it has been used. C) Click the Company Menu (gear icon) then click Company Settings. Then click Sales from the list to the left, and select Delete Unused Products. D) Click the Company Menu (gear icon) then click Products and Services. Uncheck the box next to the product's name and click Save. 12. What does QuickBooks do when you make a customer that has an open balance, inactive? A) You cannot delete a customer with an open balance B) QuickBooks creates a credit memo and applies it to any open invoices which makes the balance zero C) QuickBooks deletes the open invoices which makes the balance zero D) QuickBooks moves the open balance to a new "Bad Debt" customer 13. Which of the following is NOT a list in QuickBooks Online? A) Employees B) Customers C) Other Names D) Vendors

4 14. How does QuickBooks distinguish which income accounts should be affected when you use a product on a sales form? A) You enter the income account in the Account Details area of the sales form. B) When setting up a product or service, you assign the income account. Later when you use the product on sales forms QuickBooks uses that account to record income. C) The product used on a sales form has no impact on your income accounts. D) Selling a product does not affect income. Instead, only the inventory quantity-on-hand is changed. 15. Which of the following statements is true regarding products and services you sell? A) Products and services can only be sold on invoices B) When selling a product for which you are tracking quantity on hand, QuickBooks reduces the quantity on hand on the Balance Sheet C) When you sell a product or service, the income from the sale flows to the account you selected when you set up the item D) A maximum of 10 products and services can be included on any individual sales transaction 16. You are setting up a product or service. What happens if you select the box next to "I purchase this product/service from a vendor"? A) QuickBooks provides fields so you can track purchase AND sales information B) QuickBooks sets up 1099 tracking for the product/service C) QuickBooks adds a new vendor for the product/service D) QuickBooks enable time tracking for the product/service 17. In which of the following situations should you use the Item Details area on a bill, check or expense? A) To split the purchase into multiple expense accounts B) When you want to add a memo to describe what was purchased C) To record the purchase of products or services, such as inventory parts D) All of the above

5 18. What is the proper procedure for entering a sale in which a customer purchased something from you and paid for the entire balance of the sale right away? A) Click the Global Create button, click Invoice and fill out the invoice for the sale. Then click Global Create again, click Receive Payment, and receive the payment against the invoice. B) Click the Global Create button, the click Bank Deposit. Enter the name of the customer, the income account to categorize the income from the sale, and the amount of the payment. Save the deposit. C) Click the Global Create button, click Sales Receipt, and fill out the information for the sale and payment. Then save the sales receipt. D) Click the Customers tab on the Navigation Bar, select the customer from the list, and click Enter Sale. Then fill out a sales receipt for the customer. 19. How do delayed charges affect a customer's balance? A) Delayed charges increase a customer's balance B) Delayed charges reduce a customer's balance C) Delayed charges have no effect on a customer's balance D) QuickBooks does not have delayed charges 20. Which of the following statements is true regarding Undeposited Funds in QuickBooks? A) When using online banking, Undeposited funds will always have a zero balance B) It is an account used to hold investments that haven't been sold C) It monitors payments made to vendors that haven't been deposited yet D) It is an account that holds money from payments until you make a deposit 21. What is a good reason to use the bank deposit screen to record sales? A) To get money into your bank account as quickly as possible B) Recording sales using a deposit screen is not possible. Sales must be recorded using an invoice or a sales receipt. C) To get detailed sales by customer reports later D) To record daily "lump sum" sales, when you aren't tracking sales for individual customers

6 22. What feature is used to set how long a customer has to pay an invoice? A) Terms B) Delayed Charges C) Classes D) Estimates 23. When creating a statement for customers, which of the following options is not available in QuickBooks Online? A) Balance Forward B) Open Item C) Overdue Balance Statement D) Transaction Statement 24. Which of the following statements is true about entering and paying bills in QuickBooks? A) If you record the bill in QuickBooks, you need to pay that bill by clicking the Global Create button and then Expense or Check depending upon how you paid that bill B) If you record the bill in QuickBooks, do not use an Expense or Check transaction to pay that bill C) You should enter the check or expense that pays the bill first, and then enter the bill for your records D) If you use Online Banking in QuickBooks, you can't pay bills that you entered in QuickBooks 25. In QuickBooks, what is the best transactions method to enter a business lunch paid for with the company debit card? A) Click the Global Create button and select Expense. Fill out the expense and use Debit Card as the payment method. B) Click the Global Create button and select Bill. Enter a bill for the meal. Then click the global create button again and select Pay Bills. Now enter the payment of the bill for lunch. C) Click the Global Create button and select Debit Card. Fill out the debit card charge and save the transaction. D) Click the Global Create button and select Check. Fill out the expense and save the transaction.

7 26. Entering a purchase order for inventory affects which accounts? A) Inventory assets and accounts payable B) Income and accounts payable C) Accounts payable only D) None, because purchase orders are non-posting transactions 27. Which of the following statements is true regarding vendor credit memos? A) Vendor credit memos are the same as Delayed Charges B) Vendor credit memos reduce what you owe the vendor C) Vendor credit memos are sent to you when your account is overdue D) Vendor credit memos increase what you owe the vendor 28. How do you deduct money from an employee's paycheck for health insurance? A) On the paycheck, in the Health Insurance column, enter the amount that should be deducted for the employee. B) When setting up an employee, or editing an employee, click to Edit the deductions and contributions. Then add information for the deduction and it will automatically be deducted during each pay period. C) On the paycheck, click the expenses tab and enter the amount of health insurance as a positive. As long as you use the appropriate liability account, QuickBooks knows to deduct the amount from the check. D) On the paycheck, reduce the gross wages by the amount you need to deduct. 29. Entering time into QuickBooks affects which account(s)? A) None because timesheets are non-posting entries B) Payroll expenses C) Employee payroll balances D) Payroll expenses and Employee payroll balances

8 30. How do you enter your new employee s annual salary of $60,000 into QuickBooks? A) Divide $60,000 by the number of pay periods (example: monthly) and manually enter this amount on each paycheck B) Divide $60,000 by the number of pay periods (example: monthly) and enter that amount in the Payroll Info tab C) When creating a new employee, under "How much do you pay this employee" select Salary, enter the amount, and select Year D) Divide $60,000 by the number of hours in a work year and enter that amount in "How much do you pay this employee" 31. How should you pay a health insurance company, after withholding employee funds for this? A) Click the Global Create Menu and select Bill, Expense or Check. In the Account Details area of the form, enter the appropriate Payroll Liability account or subaccount. Save the Bill, Expense or Check. B) Click the Vendors tab. Find the healthcare vendor from the list. Click the Action Menu, select Pay Liability, and fill out the payment information. C) Click Employees. Click the Payroll Liabilities button and select Pay Payroll Liabilities. Select the checkbox for the healthcare liability and click Create Payment. Fill out the payment information and click Save & Close. D) Click Taxes on the left-hand side of the screen and select Payroll Taxes. On the Payroll Taxes screen, under Liabilities, select the healthcare liability. Then click Create Payment and fill out the payment information. 32. How do you change the report basis (Accrual vs. Cash) for just one report? A) Double-click on the basis shown on the left side of the report, then choose Accrual or Cash B) Click the Customize button on the report and the choose Accrual or Cash in the Accounting Method area C) Right-click on the basis shown on the top right side of the report, then choose Accrual or Cash D) You cannot change the report basis for just one report 33. Which report shows you how much you owe for sales taxes? A) Sales Tax Revenue Summary B) 1099 Detail

9 C) Sales Tax Liability D) A/P Aging Summary 34. If you have a customized report that you use each month, what feature lets you run the report with updated data each month? A) Favorites B) Memorize report C) Save Customizations D) QuickReport 35. How can you tell QuickBooks to someone a copy of a report on a regular basis? A) Select Reports and go to My Custom Reports. Select the report on the list and click Edit. Then click "Set the schedule for this group". B) Select Reports and go to Recurring Reports. Select the report on the list and click Edit. Then click "Set schedule for this group". C) Click My Favorite Reports on the home page, and then click "Set Frequency". D) Click the "Print and Send" button and set the schedule for the report. 36. Why would you hide (or collapse) subaccounts on a report? A) You cannot hide subaccounts on a report. B) To send the report to Excel. You can only export a report that is collapsed. C) To the report. You can only a report that is collapsed. D) To temporarily hide unnecessary detail and only show parent accounts. 37. Which report tracks changes and deletions to transactions, as well as tracks which user made those changes? A) Company Snapshot B) The Audit Log report C) Company Overview D) Transaction Detail

10 38. Which report is also known as an income statement, and summarizes income and expenses for a period of time? A) Profit & Loss B) Balance Sheet C) Cash Flow Forecast D) Sales by Customer Summary 39. When Reconciling a bank account, which of the following could cause a "difference" or reconciliation discrepancy? A) You've recorded checks after the current bank statement ending date B) One of the transactions you've reconciled does not match the bank's records C) Reconciliation differences are not possible when using QuickBooks D) The bank reconciliation is on a "cash" basis instead of the "accrual" basis 40. What report contains the sections Assets, Liabilities, and Equity? A) Company Snapshot B) Profit and Loss C) Statements of Cash Flows D) Balance Sheet 41. What is the primary reason for setting a Closing Date in QuickBooks? A) To transfer current year net income to retained earnings B) To restrict users from deleting, editing, or adding transactions to a closed period, such as a previous fiscal year C) To delete prior year transactions D) To reduce company file size

11 42. Which of the following transactions can be made recurring? A) General Journal Entry B) Check C) Expense D) All of the above 43. New users are set up with one of the following levels of access: A) All, None, and Limited B) Accountant or Non-Accountant C) Admin, Billing Supervisor, Sales Rep, and Payroll Supervisor D) Owner, Manager, Employee, and Sub Contractor 44. How are invoices customized in QuickBooks Online? A) Click the Global Create button (plus button) and then select Invoice. Then click the Make Changes button and make any necessary changes. Save the invoice. B) Select the Company Menu (gear icon) and then click Company Settings. From the menu to the left, click Sales, and then "Customize Look and Feel." Make any changes and save. C) You cannot customize the appearance of invoices in QuickBooks Online. D) Select the Company Menu (gear icon), and then select Company Preferences. Click "Change invoice form." Make any changes and save. 45. What are two options in Company Settings, for categorizing sales and expenses into different locations and departments of a business? A) Departments and Locations B) Expenses and Income C) Classes and Locations D) Equity and Liability

12 46. How are sales reps tracked on sales forms? A) Enter each sales rep as a vendor and select them as the vendor on sales forms B) Navigate to Company Settings, and in the Sales category of settings, create a custom field for sales rep C) Use the Sales Rep field that appears as a default on all sales forms D) You cannot track sales reps in QuickBooks 47. Which of these forms is not customizable in QuickBooks Online? A) Check B) Invoice C) Estimate D) Sales Receipt