QBO Certification Flashcards by Amber De Groot

Which of the following does not appear on the QuickBooks Online Navigation Bar?

Transactions
Settings
Expenses
Reports

settings

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The QBO SatNav, which assists with understanding and navigating QuickBooks Online, contains which of the following main processes?

Accountant Settings
QBO Transactions
Ask My Accountant
None of these

QBO Transactions

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Since you enjoy providing QBO services to Mookie The Beagle™ Concierge, you consider providing QBO services to more clients. If you decide to operate your QBO accounting business as a sole proprietorship, which tax return should you file?

Form 1065
Form 1120
Schedule C attached to Form 1040
Form 1120

Schedule C attached to Form 1040

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When you are assigning account numbers to accounts in Mookie The Beagle™ Concierge Chart of Accounts, which account number range typically would identify liability accounts?

1000 to 1999
2000 to 2999
3000 to 3999
4000 to 4999

2000 to 2999

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When Cy, owner of Mookie The Beagle™ Concierge, inquiries about how you were able to display account numbers in the QBO Chart of Accounts, you provide which of the following instructions?

From the Navigation Bar, select Accounting > Chart of Accounts tab > Accounts > Account Numbers > Enable account numbers.

Select + New icon > Chart of Accounts > Accounts > Account Numbers > Display account numbers.

Select Gear icon > Account and Settings > Advanced > Edit Pencil > Enable account numbers > Show account numbers.

From the Navigation Bar, select My Accountant > Chart of Accounts tab > Accounts > Display account numbers.

Select Gear icon > Account and Settings > Advanced > Edit Pencil > Enable account numbers > Show account numbers.

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If Cy, owner of Mookie The Beagle™ Concierge, asks you for a report that shows him what the business earned last month, which QBO report would you prepare for Cy?

Cash Flow Forecast
Statement of Cash Flows
Profit and Loss Statement
Balance Sheet

Profit and Loss Statement

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TF: One advantage of the QBO Customers List is that you can enter customer information for Mookie The Beagle™ Concierge once and re-use the same information with multiple transactions.

True

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When you pay bills for Mookie The Beagle™ Concierge, what type of transaction is it?

Vendors and Expenses Transactions

Employees and Payroll Transactions

Customers and Sales Transactions

Other Transactions

Vendors and Expenses Transactions

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Expense accounts are increased by:

Credits

Debits

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If you wanted to conveniently view the deposits, checks, and transfers related to the Mookie The Beagle™ Concierge QBO Checking account, which of the following would you use?

QBO Check Register
QBO Audit Log
QBO Recurring Transactions
QBO Sales Register

QBO Check Register

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TF: When you are advising Cy, owner of Mookie The Beagle™ Concierge, you should recommend that he uses one Checking account for Mookie The Beagle™ Concierge and a separate Checking account for Cy’s personal banking transactions.

True

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TF: When you connect Xafra Cyber’s bank accounts and credit card accounts with QBO, you can download expenses automatically from the bank or credit card company into QBO.

true

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If you record a sales transaction for Mookie The Beagle™ Concierge when a customer pays at the time of sale and you select Deposit to: Payments to Deposit, which of the following sequences is correct?

Invoice > Receive Payment > Checking account

Invoice > Receive Payment > Payments to Deposit account > Checking account

Sales Receipt > Checking account

Sales Receipt > Payments to Deposit account > Checking account

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When you record a customer sale for Mookie The Beagle™ Concierge in QBO using the Sales Receipt form, if you selected Deposit to: Checking, then funds are recorded in the Mookie The Beagle™ Concierge:

Petty Funds account
Payments to Deposit account
Checking account
Sales Expense account

Checking account

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TF: When entering Vendors and Expenses Transactions in the QBO company, Mookie The Beagle™ Concierge, you can use the + New icon.

true

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If uncollectible accounts are large enough to have a material effect on Mookie The Beagle™ Concierge financial statements, you should advise Cy, the owner, to use which method of accounting for uncollectible accounts?

Direct-write Off method
Allowance method
Bad Debt Yardstick method
None of these

Allowance method

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If you need to record a payment made at the time Xafra Cyber makes purchase by check, which QBO form should you use? Select all options that apply.

Expense form
Check form
Invoice form
Bill form

Expense form
Check form

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When Carlos, the owner of Xafra Cyber, provides you with a receipt for office technology he purchased with payment to be made after the product is delivered, which QBO form could you use to record this transaction?

Invoice Credit form
Expense form
Bill form
Check form

Bill form

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When you create a QBO Products and Services List for Mookie The Beagle™ Concierge, you can use the list to record information about products and services that the business buys and sells.

True

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When you are creating a QBO Products and Services List for Xafra Cyber, which product and service type should you use for products the company buys and tracks the quantities?

Service
Bundle
Inventory
Non-inventory

Inventory

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If you are recording a sale for Mookie The Beagle™ Concierge when the customer will pay later, which QBO form should you use?

Purchase Order
Sales Receipt
Invoice
Bill

Invoice

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Mookie The Beagle™ Concierge can use the QBO Time Tracking feature to track time for:

Contractors
Employees
Owners
All of the choices are correct

All of the choices are correct

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If Mookie The Beagle™ Concierge uses a QBO Payroll Subscription, the employee pay stub calculates Net Pay as:

The total amount the employee has earned

The amount deducted for health insurance

The federal and state taxes withheld

Gross pay less deductions and withholdings

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Which payroll tax form must Mookie The Beagle™ Concierge provide to employees before the end of January?

Form W-2
Form W-3
Form 940
Form 944

Form W-2

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When you are preparing adjusting entries for Xafra Cyber, when should you record the adjusting entries in QBO? After the adjusted trial balance is prepared Before the trial balance is prepared After the trial balance is prepared After the balance sheet is prepared

After the trial balance is prepared

When Carlos, owner of Xafra Cyber, questions you about why you make adjusting entries, you explain to Carlos that Xafra Cyber uses the _________ basis of accounting which attempts to record revenue in the accounting period when it is earned regardless of when the cash is received. Accrual Profit Cash Depreciation

Accrual

An example of an accrued revenue for Mookie The Beagle™ Concierge that might require you to make an adjusting entry at the end of the accounting period would be: Interest expense that has been incurred but not paid nor recorded Interest expense that has been incurred and paid Interest revenue that has been earned but not yet received nor recorded Interest revenue that has been earned and paid

Interest revenue that has been earned but not yet received nor recorded

If a company uses the cash basis of accounting, a sale is recorded when: The bill is sent to the customer. The goods or services are provided to the customer. The customer places an order. Cash is collected from the customer.

Cash is collected from the customer.

If Carlos, owner of Xafra Cyber, wants to track user access to QBO and which transactions were entered or modified by specific users, which of the following reports should he use? Journal report Audit Log report General Ledger report Trial Balance report

Audit Log report

When Carlos, owner of Xafra Cyber, requests a report that provides information to assist him in evaluating which customers are less likely to pay their bill, which report would you prepare for Carlos? Sales by Product/Service Summary Accounts Payable Aging Accounts Receivable Aging Profit and Loss Summary

Accounts Receivable Aging

Which of the following does not appear on the QuickBooks Online Navigation Bar? Reports Expenses Owners Sales

Owners

Which of the following categories does not appear on the QuickBooks (+) New screen? Banking Customers Other Vendors

Banking

How do you access QBO Account and Settings? (+) New icon Gear icon Search icon Help icon

Gear icon

What are two ways that we can access and view the Chart of Accounts in QBO? **Note: Check all that apply** From the Navigation Bar select Transactions From the (+) New icon select Other > Chart of Accounts From the Gear icon select Chart of Accounts From the Home Page select Chart of Accounts

From the Navigation Bar select Transactions From the Gear icon select Chart of Accounts

On the QBO SatNav, QBO transactions include which of the following? Sales Expenses Banking All of these choices are correct

All of these choices are correct

Financial statements include which of the following two? **Note: Check all that apply** Income statement Statement of cash flows Cash flow forecast Physical inventory worksheet

Income statement Statement of cash flows

Which of the following legal entities can use QuickBooks Online? Sole proprietorship Partnership S corporation All of these choices are correct

All of these choices are correct

Match the following legal entities with the federal tax return the entity files. Partnership C Corp S Corp Sole proprietorship

Partnership: 1065 C Corp: 1120 S Corp: 1120S Sole Proprietorship: 1040 Schedule C

Which federal tax return does an LLC (Limited Liability Company) file? Form 1040 Schedule C Form 1065 Form 1120S It depends upon how the LLC chooses to be treated for tax purposes.

It depends upon how the LLC chooses to be treated for tax purposes.

QuickBooks Online Settings to set up a new company include which of the following two? **Note: Check all that apply** Chart of Accounts Reconciliation Settings Company Settings Tax Settings

Chart of Accounts Company Settings

Select two from the following. To display the Chart of Accounts (COA): **Note: Check all that apply** From the Navigation Bar, select Transactions From the Navigation Bar, select Customers > Chart of Accounts From the (+) New icon, select Chart of Accounts From the Gear icon, select Chart of Accounts

From the Navigation Bar, select Transactions From the Gear icon, select Chart of Accounts

The Chart of Accounts displays: Account Name Account Type Detail Type All of these choices are correct

All of these choices are correct

To display account numbers on the Chart of Accounts in QBO: From the Navigation Bar, select Transactions > Chart of Accounts > Enable Account numbers > Show account numbers From the (+) New icon, select Other > Chart of Accounts > Account Numbers From the Gear icon, select Chart of Accounts > Account Numbers From the Gear icon, select Account and Settings > Advanced > Enable account numbers > Show account numbers

From the Gear icon, select Account and Settings > Advanced > Enable account numbers > Show account numbers

Registers in QBO: Display more detailed information about accounts Display all transactions for the account Display a running balance for the account All of these choices are correct

All of these choices are correct

To view a register: Display the Chart of Accounts, then select View Register From the Navigation Bar, select Register From the Gear icon, select Register From the (+) New icon, select Register

Display the Chart of Accounts, then select View Register

To inactivate an account in the Chart of Accounts: Display the Chart of Accounts, then select Delete Display the Chart of Accounts, then select View Register drop-down arrow, select Make Inactive From (+) New icon, select Chart of Accounts, select Delete None of the choices are correct

Display the Chart of Accounts, then select View Register drop-down arrow, select Make Inactive

An example of an Asset account is: Mortgage Payable Sales Taxes Payable Equipment None of the choices are correct.

Equipment

What are assets? Net worth of a company Amounts paid to owners Resources that a company owns with future benefit Amounts owed to others and are future obligation

Resources that a company owns with future benefit

Accounts used for only one year are called: Temporary accounts Short-term assets or liabilities Supply accounts Estimate accounts

Temporary accounts

In QuickBooks Online, information about transactions can be entered in onscreen forms, such as: Check Invoice Purchase Order All of these choices are correct

All of these choices are correct

Which the following two items are displayed in the QBO Navigation Bar? **Note: Check all that apply** Sales Expenses Adjusting Entries Products and Services

Sales Expenses

Which of the following two items transactions are considered Vendors and Expenses transactions? **Note: Check all that apply** Invoice Receive Payment Pay Bills Check

Pay Bills Check

To enter transactions in QBO: From the Navigation Bar, select Reports From the (+) New icon, select transaction to enter From the Gear icon, select transaction to enter From the Navigation Bar, select Home

From the (+) New icon, select transaction to enter

QBO Lists include: Chart of Accounts Customers List Vendors List Employees List All of these choices are QBO Lists

All of these choices are QBO Lists

Two ways to update QBO Lists are: **Note: Check all that apply** Before entering transactions While entering transactions After entering transactions

Before entering transactions While entering transactions

Which of the following QBO features can be used to save a transaction that will be re-used in the future? Saved transactions (+) New icon Recurring transactions None of the choices are correct.

Recurring transactions

Access the Recurring Transactions List from the: Navigation Bar > Transactions Navigation Bar > Expenses (+) New icon None of the choices are correct

(+) New icon marked as right answer, but it's not correct... correct answer would be "Navigation Bar > Transactions" or "gear icon"

Which two of the following are correct when double-entry accounting journal entries are used to record what is exchanged in a transaction? **Note: Check all that apply** The amount received is recorded with a credit. The amount received is recorded with a debit. The amount given is recorded with a debit. The amount given is recorded with a credit.

The amount received is recorded with a debit. The amount given is recorded with a credit.

The Checking Register: Tracks company purchase orders and vendors Tracks company invoices and customers Records all transactions affecting the Checking account Lists all accounts and their account numbers

Records all transactions affecting the Checking account

TF: A company should always use the same checking account for business transactions and for the owner’s personal transactions to streamline recording transactions.

false

If we are paying a bill immediately when we receive products or services, we can use the Expenses onscreen form when we pay with: Cash Check Credit Card All of these choices are correct

All of these choices are correct

Examples of money going out that can be recorded using the Expense or Check onscreen forms include all of the following except: Rent expense Payroll expense Insurance expense Legal Services expense

Payroll expense

Examples of money going out that should not be recorded using a Check or Expense onscreen form include: Paychecks to employees Payroll taxes Sales taxes Bills already entered using the Bills onscreen form All of these choices are correct

All of these choices are correct

Ways to record money out using QBO include: Enter Bill > Pay Bills Check Expense Purchase Order > Bill > Pay Bills All of these choices are correct

All of these choices are correct

Ways to record money coming into QBO include: Customer Sales using Sales Receipts Customer Sales using Invoices and Receive Payments Bank Deposit All of these choices are correct

All of these choices are correct

To record a bill payment that is made immediately with a credit card when the product or service is received, use the following onscreen form: Bill Check Pay Bills Expense

Expense

Differences between the balance the bank reports on the bank statement and the balance the business shows in its accounting records usually arise for which two of the following reasons? **Note: Check all that apply** Adjusting entries have been made twice Errors (bank errors or company errors) Timing differences between when the bank records and when the company records an item Closing entries have been made

Errors (bank errors or company errors) Timing differences between when the bank records and when the company records an item

When reconciling a bank account, which of the following is not considered a timing difference (difference between the bank balance and the book balance)? Interest earned Deposits in transit Errors Unrecorded chargeS

Errors

When a sale is recorded on an invoice, QBO records a: Debit (increase) to cash Credit (increase) to owner’s contribution Debit (increase) to accounts receivable Credit (increase) to accounts payable

Debit (increase) to accounts receivable

To enter a sales transaction with payment to be received later: From the Navigation Bar, select Vendors From the Navigation Bar, select Expenses From the (+) New icon, select Invoice From the Gear icon, select Sales Transactions

From the (+) New icon, select Invoice

When a customer purchases products or services but does not pay at the point of sale, which of the following could you use? A sales receipt An invoice A purchase order A reminder

An invoice

We can update the Customers List at which two of the following points? **Note: Check all that apply** Before entering transactions While entering transactions After entering transactions

Before entering transactions While entering transactions

Which two of the following are Customers and Sales transactions? **Note: Check all that apply** Invoice Receive Payment Pay Bills Check

Invoice Receive Payment

When preparing a Sales Receipt, if we select Deposit to the Payments to Deposit account, then we must: Create a Bank Deposit to move the customer payment from Payments to Deposit to the Checking account No further action is required Create a second Sales Receipt depositing the amount to the Checking account Create a subsequent Invoice depositing the amount to the Checking account

Create a Bank Deposit to move the customer payment from Payments to Deposit to the Checking account

When preparing a Sales Receipt, if we select Deposit to a Checking account, then we: Create a Bank Deposit to move the customer payment from the Checking account to the Payments to Deposit account No further action is required Create a second Sales Receipt depositing the amount to the Checking account Create a subsequent Invoice depositing the amount to the Checking account

No further action is required

Which of the following reports provides information about which customers owe money to a business? Profit & Loss Balance Sheet Statement of Cash Flows Accounts Receivable Aging

Accounts Receivable Aging

Accounts Receivable (A/R) are: Amounts totaling the net worth of a company Amounts paid to owners Amounts that customers owe your business Amounts owed to others and are future obligations

Amounts that customers owe your business

To enter Vendors and Expenses transactions: From the Navigation Bar, select Customers From the Navigation Bar, select Expenses > New Transaction From the Gear icon, select Vendors From the Gear icon, select Expense Transactions

From the Navigation Bar, select Expenses > New Transaction

To enter an Expense transaction: From the Navigation Bar, select Customers From the Navigation Bar, select Sales From the (+) New icon, select Expense From the Gear icon, select Vendor transactions

From the (+) New icon, select Expense

QuickBooks considers all of the following to be vendors except: Utility companies Suppliers of inventory and supplies Tax agencies such as the IRS Customers purchasing products

Customers purchasing products

We can update the Vendors List at which two of the following points? **Note: Check all that apply** Before entering transactions While entering transactions After entering transactions

Before entering transactions While entering transactions

The Bill form is used to record which one of the following transactions? Owners' investment Services received but not yet paid Products sold to customers Cash purchases of supplies

Services received but not yet paid

Which of the following activities, and the QBO form used to record it, is incorrect? Receive products, Customers List Order products, Purchase Order Record inventory information, Products and Services List Sell products and bill customers, Invoice

Receive products, Customers List

Which of the following reports tracks past-due bills and bills that are due shortly? Profit & Loss Statement of Cash Flows Accounts Payable Aging Accounts Receivable Aging

Accounts Payable Aging

Accounts Payable (A/P) are: Amounts totaling the net worth of a company Amounts paid to owners Amounts that customers owe your business Amounts owed to others that are obligations

Amounts owed to others that are obligations

When a purchase is recorded as a bill, QBO records a: Debit (increase) to cash Credit (increase) to owner’s contribution Debit (increase) to accounts receivable Credit (increase) to accounts payable

Credit (increase) to accounts payable

To enter Customers and Sales transactions: From the Navigation Bar, select Transactions > Customers From the Navigation Bar, select Transactions > Expenses > New Transaction From the (+) New icon, select the appropriate customer transaction From the Gear icon, select Expense Transactions

From the (+) New icon, select the appropriate customer transaction

QuickBooks considers all of the following to be vendors except: Utility companies Suppliers of inventory and supplies Tax agencies such as the IRS Customers purchasing products

Customers purchasing products

Which of the following is a vendors transaction? Purchase Order Invoice Make deposit Receive Payment

Purchase Order

We can update the Products and Services List at which two of the following points? **Note: Check all that apply** Before entering transactions While entering transactions After entering transactions

Before entering transactions While entering transactions

Types of products and services on the Products and Services List include: Service Non-inventory Inventory All of these choices are correct

All of these choices are correct

Which of the following products and services types track quantities? Service items Inventory items Non-inventory items None of the choices are correct

Inventory items

The Purchase Order form is used to record which one of the following transactions? Owner investments Services received but not yet paid Products sold to customers Products ordered from vendors

Products ordered from vendors

Indicate two of the following that show the order in which the following onscreen vendor transaction forms typically should be prepared. **Note: Check all that apply** Expense > Pay Bills Purchase Order > Bill > Pay Bills Bill > Pay Bills Invoice > Pay Bills

Purchase Order > Bill > Pay Bills Bill > Pay Bills

Recording a purchase of products using QBO involves all of the following steps except: Create invoice to bill vendors for purchases Create purchase order to order items from vendors Receive bill and record obligation to pay vendor later Pay bill entered previously

Create invoice to bill vendors for purchases

Use the Pay Bills form only for: Bills that have been entered using the Bill form Bills that have been entered using the Expense form Bill that have been entered using the Check form Bills that have never been entered in QBO

Bills that have been entered using the Bill form

A company is not required to withhold payroll taxes for: Employees paid by the hour Salaried employees Out-of-state employees Independent contractors

Independent contractors

A payment to a stockholder is recorded as a(n): Employee paycheck Vendor payment Distribution or dividend None of the choices are correct

Distribution or dividend

When using QBO time tracking, you can record: Time billable to a specific vendor Time billable to a specific customer How many shipments of inventory items were received Number of purchase orders from each supplier

Time billable to a specific customer

Which one of the following is not a payroll liability? Property taxes Unemployment taxes State income taxes withheld Federal income taxes withheld from employee paychecks

Property taxes

QuickBooks Online permits you to track employee time using which one of the following? **Check All That Apply** Time Entry Paycheck Contractor List Monthly Timesheet

Time Entry

The employer must match which one of the following taxes paid by an employee? State Income Medicare Federal Income Federal Unemployment

Medicare

All of the following are payroll liabilities owed to outside agencies except: Net Pay Federal Income taxes State Income taxes Unemployment taxes

Net Pay

Net Pay calculations include: Gross pay minus deductions for federal and state income taxes and unemployment taxes Gross pay minus federal and state income taxes, but not FICA taxes Gross pay plus deductions for FICA taxes and federal and state income taxes Gross pay minus deductions for FICA taxes and federal and state income taxes

Gross pay minus deductions for FICA taxes and federal and state income taxes

QBO Payroll Service can: E-file payroll tax forms E-pay payroll taxes from your company checking account Direct deposit employee paychecks All of these choices are correct.

All of these choices are correct.

Payroll liabilities include two of the following types of amounts: **Note: Check all that apply** Amounts withheld from employee paychecks that must be paid to third parties, such as federal income tax withheld Payroll tax expenses owed by the business, such as unemployment tax Net paycheck amount paid to employees Net paycheck amount paid to employees Correct Contractor payments Contractor payments Correc

Amounts withheld from employee paychecks that must be paid to third parties, such as federal income tax withheld Payroll tax expenses owed by the business, such as unemployment tax

QuickBooks Online uses which basis of accounting? Accrual Cash Both cash and accrual Neither cash nor accrual

Both cash and accrual

At the end of an accounting period, adjusting entries are made to: ensure a profit. bring the accounts up to date. debit or credit the checking account. prove that debits equal credits.

bring the accounts up to date.

Sales are recorded under cash basis accounting when: the goods or services are provided regardless of whether the payment is collected from customers. the costs are incurred to earn the revenue. the cash is collected from customers. the bookkeeper has time to record the transactions.

the cash is collected from customers.

Sales are recorded under accrual basis accounting when: the goods or services are provided regardless of whether the payment is collected from customers. the costs are incurred to earn the revenue. the actual cash is collected from customers. the bookkeeper has time to record the transactions.

the goods or services are provided regardless of whether the payment is collected from customers.

The Journal entry to update the Office Supplies account for office supplies used is which of the following types of adjusting entry? Prepaid item Unearned Revenue Accrued Expense Accrued Revenue Not an adjusting entry

Prepaid item

The Journal entry to update the accounts for interest earned but not recorded is which of the following types of adjusting entries? Prepaid item Unearned Revenue Accrued Expense Accrued Revenue Not an adjusting entry

Accrued Revenue

The Journal entry to update the accounts for customer subscriptions that are prepaid but not yet earned is which of the following types of adjusting entries? Prepaid item Unearned Revenue Accrued Expense Accrued Revenue Not an adjusting entry

Unearned Revenue

The Journal entry to update the accounts for customer services provided but not yet recorded is which of the following types of adjusting entries? Prepaid item Unearned Revenue Accrued Expense Accrued Revenue Not an adjusting entry

Accrued Revenue

The Journal entry to record payment of cash for office supplies is which of the following types of adjusting entries? Prepaid item Unearned Revenue Accrued Expense Accrued Revenue Not an adjusting entry

Not an adjusting entry

The Journal entry to update the accounts for rent expense recorded that has not expired is which of the following types of adjusting entries? Prepaid item Unearned Revenue Accrued Expense Accrued Revenue Not an adjusting entry

Prepaid item

The physical inventory worksheet is used when: inventory items are physically placed in the warehouse the computer network goes down taking a physical count of inventory on hand All of these choices are correct.

taking a physical count of inventory on hand

The Balance Sheet lists: Assets, Revenues, and Owners' Equity Assets, Liabilities, and Owners’ Equity Revenues, Expenses, and Net Income Revenues, Liabilities, and Net Income

Assets, Liabilities, and Owners’ Equity

Which of the following is correct? Statement of Cash Flows is reported on a particular date Income Statement is reported on a particular date Balance Sheet is reported on a particular date Balance Sheet is reported for a specific time period

Balance Sheet is reported on a particular date

QuickBooks Online uses which basis of accounting? Accrual Cash Both Accrual and Cash Neither Accrual nor Cash

Both Accrual and Cash

The Profit and Loss Statement lists: Assets, Revenues, and Owners’ Equity Assets, Liabilities, and Owners' Equity Revenues, Expenses, and Net Income Revenues, Liabilities, and Net Income

Revenues, Expenses, and Net Income

Management reports include: Customer Profitability reports Accounts Receivable Aging reports Accounts Payable Aging reports Inventory reports All of these choices are correct.

All of these choices are correct.

Which of the following is a Customer report? Accounts Receivable (A/R) Aging Accounts Payable (A/P) Aging Open Purchase Orders None of these choices are correct.

Accounts Receivable (A/R) Aging

The Audit Log tracks: additions to our QBO records. modifications to our QBO records. deletions to our QBO records. All of these choices are correct.

All of these choices are correct.

Which of the following reports can improve internal control by tracking unauthorized changes to accounting records? Cash Budget Cash Forecast Audit Log Journal

Audit Log

TF: QuickBooks Online is updated dynamically, on an ongoing basis.

true

When you are assigning account numbers to accounts in Mookie The Beagle™ Concierge Chart of Accounts, which account number range typically would identify revenue (income) accounts? 1000 to 1999 2000 to 2999 3000 to 3999 4000 to 4999

4000 to 4999

Which of the following is not an appropriate subaccount for an Insurance Expense account? Auto Insurance Expense Liability Insurance Expense Renter Insurance Expense Office Supplies

Office Supplies

If Cy, owner of Mookie The Beagle™ Concierge, asks you to prepare a Profit and Loss Statement, which of the following accounts types should appear on that report? Assets, Revenues, Expenses and Liabilities Assets, Revenues, and Owners' Equity Expenses, Liabilities, and Owners' Equity Revenues and Expenses

Revenues and Expenses

Revenues are increased by: Debits Credits

Credits

Banking activities that you can use QuickBooks Online to record for Mookie The Beagle™ Concierge include: Bank transfers Bank checks Bank deposits All of the choices are correct.

All of the choices are correct.

When viewing the Mookie The Beagle™ Concierge QBO Check Register, if the check mark (✔) column shows a C for an entry, this indicates: The bank transaction is Cleared The bank transaction is Cancelled The bank transaction is Confirmed The bank transaction is Corrected

The bank transaction is Cleared

If you need to record a transaction for Mookie The Beagle™ Concierge when a customer pays its accounts receivable with a check, you should use which of the following QBO forms to record the transaction? Expense form Invoice form Receive Payment form Sales Receipt form

Receive Payment form

TF: If we have already set up Projects linked to Customers in QBO for Xafra Cyber, we can convert Projects to Sub-customers.

false

Although Cy, owner of Mookie The Beagle™ Concierge, hopes that all customers will pay for services provided, Cy wants to know how you account for bad debts if customers are not able to pay. You tell Cy there are the following two methods that you can use to account for bad debts. **Select all options that apply.** Direct Write-off method Allowance method Accounts Receivable Reconciliation method Accounts Payable Reconciliation method

Direct Write-off method Allowance method

If you need to record a vendor transaction for Mookie The Beagle™ Concierge when the product or service is received from the vendor and Mookie The Beagle™ Concierge promises to pay the vendor later, you should use which of the following QBO forms to record the vendor transaction? Check form Expense form Bill form Invoice form

Bill form

Carlos, owner of Xafra Cyber, asks you about the usefulness of the Accounts Payable Aging report. Which of the following is not true regarding the Accounts Payable Aging Report? It summarizes the amount Xafra Cyber is owed by customers. It provides information to track amounts Xafra Cyber owes its vendors. It summarizes Xafra Cyber’s accounts payable balances by age of the account. It tracks when amounts are due by Xafra Cyber to vendors, including past due balances.

It summarizes the amount Xafra Cyber is owed by customers.

When entering the purchase and sale transactions related to inventory for Xafra Cyber, you should use all the following QBO Lists except: Multiple Choice The Vendors List The Customers List The Products and Services List The Credit List

The Credit List

If Cy, owner of Mookie The Beagle™ Concierge, informs you that he recently ordered new inventory from a vendor, which QBO form should you use to record this? Invoice Receive Payment Sales Receipt Purchase Order

Purchase Order

If you are recording a sale for Mookie The Beagle™ Concierge when the customer will pay later, which QBO form should you use? Purchase Order Sales Receipt Invoice Bill

Invoice

For Mookie The Beagle™ Concierge, what determines if a Vendor appears in both the Vendors List and the Contractors List? **Select all options that apply.** In the Vendors List, you must identify the vendor as a Contractor by selecting Track Payments for 1099 In the Vendors List, you must enter a Tax ID Number for the vendor In the Customers List, you must mark the vendor as taxable for sales tax purposes In the Customers List, you must mark the vendor as exempt for sales tax purposes

In the Vendors List, you must identify the vendor as a Contractor by selecting Track Payments for 1099 In the Vendors List, you must enter a Tax ID Number for the vendor

Which payroll tax form is Mookie The Beagle™ Concierge required to file that summarizes the amount of Federal Income Tax, Social Security, and Medicare withheld from employee paychecks for the year? Form W-3 Form 940 Form 941 Form 944

Form 944

TF: In QBO, when you are viewing journal entries, QBO always lists all Debits before all Credits in the entry.

false

If Mookie The Beagle™ Concierge needs you to make adjusting entries for Prepaid Items, such as office supplies, this type of adjusting entry typically affects: An Expense account and an Asset account A Revenue account and an Asset account A Revenue account and a Liability account An Expense account and a Liability account

An Expense account and an Asset account

An example of an accrued expense for Mookie The Beagle™ Concierge that might require you to make an adjusting entry at the end of the accounting period would be: Interest expense that has been incurred but not paid nor recorded Interest expense that has been incurred and paid Interest revenue that has been earned but not yet received nor recorded Interest revenue that has been earned and paid

Interest expense that has been incurred but not paid nor recorded

If Mookie The Beagle™ Concierge uses the accrual basis of accounting, a sale is recorded when: Mookie The Beagle™ Concierge sends a bill to the customer. Mookie The Beagle™ Concierge provides the goods or services to the customer. The customer places an order with Mookie The Beagle™ Concierge. Mookie The Beagle™ Concierge collects cash from the customer.

Mookie The Beagle™ Concierge provides the goods or services to the customer.

When Carlos, owner of Xafra Cyber, asks you to explain what are considered assets, a correct answer would be: What Xafra Cyber owes What Xafra Cyber owns What is left after Xafra Cyber liabilities are satisfied What Xafra Cyber has an obligation to pay in the future

What Xafra Cyber owns

Which of the following is not correct regarding a 1099? A vendor's Tax ID Number is required to complete the 1099. The 1099 Forms are required to be sent to the SEC to maintain compliance as a registered public company. QuickBooks Online can assist in tracking amounts and preparing 1099s for appropriate vendors. The 1099 Forms are commonly prepared by all businesses every year.

The 1099 Forms are required to be sent to the SEC to maintain compliance as a registered public company.

Which payroll tax form summarizes the amount of federal incomes tax, Social Security, and Medicare withheld from employee paychecks for the year? Form 940 Form 941 Form 944 Form W-3

Form 944

Federal Form 941

Employer's Quarterly Federal Tax Return, reports income taxes, Social Security tax, and Medicare tax withheld from employee paychecks, as well as the employer's share of Social Security and Medicare taxes. (employers owe $1,000-50,000; form 941 and schedule B for above $50,00)

Federal Form 944

Employer's Annual Federal Tax Return, is an IRS form used by the smallest employers to report and pay federal income tax withheld, Social Security, and Medicare taxes once a year, rather than quarterly. (employers owe $1,000 or less)

Federal Form 940

Employer's Annual Federal Unemployment (FUTA) Tax Return, is an IRS form used by employers to report and pay their annual federal unemployment tax liability. This tax, along with state unemployment taxes, funds unemployment compensation for workers who have lost their jobs.

When matching bank or credit card downloaded transactions to a transaction already recorded in QuickBooks Online, what are the possible actions that appear in the Action column? Add, Delete, or Match. Add, Change, or View. Add, Match, or View. Change, Delete, or Match.

Add, Match, or View.

The Direct Write-off method for accounting for bad debts: Transfers the amount in the customer’s account receivable to the debit expense at the time the customer’s account becomes uncollectible. Is not used for tax purposes. Estimates bad debts and establishes a reserve for uncollectible accounts. All of the choices are correct.

Transfers the amount in the customer’s account receivable to the debit expense at the time the customer’s account becomes uncollectible.

Adjusting entries for Accrued Revenues typically affect: An Expense account and an Asset account. A Revenue account and an Asset account. A Revenue account and a Liability account. An Expense account and a Liability account.

A Revenue account and an Asset account.

Which report provides information to assist in evaluating which customers have been profitable in the past? Sales by Product/Service Summary Income by Customer Summary Accounts Receivable Aging Accounts Payable Aging

Income by Customer Summary

Which Navigation Bar selection displays credit card balances? Sales Invoices Banking Expenses

Banking

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