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QuickBook Questions

1.The Chart of Accounts is the list of accounts such as assets, liabilities, equity, revenues and expenses, which the company intends to use.

True or False

2. The General Ledger and Subsidiary Ledger are the same.

True or False

3. In QB, what is your menu choice to customize custmer payment terms.

A. Lists - Customer & Vendor Profile Lists - Terms

B. Edit - Preferences

C. Customizing the Chart of Accounts List

D. Easy Step Interview

4. The option for making accounts numbers active is

A. Account numbers

B. dimmed account type

C. Edit - preferences

D. Lists- customer & vendor profile lists - terms

5. The type of accounting method used when you recognized revenues when earned and expenses when incurred is referred to as

A. Cash basis of accounting

B. Accrual basis of accounting

C. Tax basis of accounting

D. Corporate basis of accounting

6. Which ledger account would have a subsidiary ledger account attached to it?

A. Accounts Receivable

B. Accounts Payable

C. Inventory Account

D. All accounts listed would have a subsidiary account.

7. If a customer account is listed as 2/10 Net 30 days, you are not allowing any discounts for early payment.

True or False

8. If you change your reports to cash basis from accrual basis, this change will not affect the information displayed on the report.

True or False

9. A trial balance will list all accounts and their balances for a business. This report will give you the Dr or Cr balance of these accounts; however, this report will not tell you if you entered the amounts in the correct accounts.

True or False

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Trinidad TremblayLv2

28 Sep 2019

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Related questions

Multiple Choice:

21. All the following are true regarding Quotesexcept:

a. Quotes post entries to general ledger accounts

b. Quotes can be transferred to create an invoice

c. Quotes can be linked to customer jobs

d. Quotes can be linked to items

22. If a customer was overcharged for theservices, the customer's invoice can be reduced by posting a:

a. Sales invoice

b. Customer receipt

c. Debit memo

d. Credit memo

23. On the statement of cash flows, the cashflows from operating activities section would include:

a. Receipts from the issuance of capital stock

b. Receipts from the sale of investments

c. Payments for the acquisition of investments

d. Net income

24.The Income Statement will include thefollowing accounts:

a. Revenues less Expenses (ordered largest to smallest amount)with Other Expenses listed last
b. Revenues less Expenses (ordered smallest to largest amounts.With Miscellaneous Expenses listed last

c. Revenues less Expenses (ordered in alphabetical order) withOther Expenses listed last

d. Revenues less Expenses (order is not important)

25. The Statement of Cash Flows answers all ofthe following except:

a. Where the receipts come from

b. Where the cash payments were used for

c. What the overall change in cash was

d. If there will be enough cash to pay the currentliabilities

26. On the Navigation Bar, make the followingselections to enter a sales invoice:

a. Customers & Sales Navigation Center, click on theCustomers icon and select View and Edit Customers

b. Customers & Sales Navigation Center, click on the SalesInvoices icon and select Set up Invoice Defaults

c. Tasks; Purchases/Receive Inventory

d. Customers & Sales Navigation Center, click on the SalesInvoices icon and select New Sales Invoice

27. The following would be included in theheading of an income statement:

a. Title of the statement

b. Name of the business

c. Period of time covered by the statement

d. All of the above

. 28. A departmentalized accounting systemprovides information that can be used to:

a. Custom design departmental statements

b. Evaluate profitability and cost effectiveness

c. Evaluate current assets

d. Modify PCA's standard forms

29. In Peachtree, information about a sale isrecorded in the:

a. Purchase window

b. Inventory window

c. Purchases/Receive Inventory window

d. Sales/Invoicing window

30. The sample company, Bellwether GardenSupply, uses which method of posting?

a. Batch posting

b. Real-time posting

c. Cash basis posting

d. Accrual basis posting

jadekoala82

QUESTION 21 A journal entry for a $75 payment for Rent expensewas posted as a debit to Salary expense and a credit to Cash. Thiserror will cause which of the following conditions on the trialbalance? A. The sum of the credits will equal the sum of thedebits. B. The sum of the debits will exceed the sum of the creditsby $75. C. The sum of the credits will exceed the sum of the debitsby $150. D. The sum of the debits will exceed the sum of thecredits by $150.

QUESTION 22 The business receives cash from a customer that isowed to the company "on account," based on services rendered to thecustomer previously. How does the collection of the cash affect theaccounting equation? A. Assets increase; owner's equity increases.B. Assets increase; liabilities increase. C. Assets decrease;owner's equity decreases. D. One asset increases; one assetdecreases

QUESTION 23 A business completes service to a client and sendsout a sales invoice. The amount will be collected from the customerat a later time. Which of the following would be TRUE at the timewhen the invoice is sent out? A. Total assets will decrease. B. Netincome will increase. C. Owner's equity will decrease. D. Totalliabilities will increase.

QUESTION 24 Which of the following accounts increases with adebit? A. Cash B. Interest Payable C. Accounts Payable D. Smith,Capital

QUESTION 25 The Accounts Receivable account of Nuptials Inc. isshown below. Accounts Receivable Dr Cr 26,000 3,500 5,000 Calculatethe ending balance of the account. A. $33,500 debit B. $31,000,debit C. $3,500, credit D. $27,500, debit

QUESTION 26 The following transactions for the month of Marchhave been journalized and posted to the proper accounts. Mar. 1Martinez invested $9,000 cash in his new design services business.Mar. 2 Paid the first month's rent of $800. Mar. 3 Purchasedequipment by paying $3,000 cash and executing a note payable for$5,000. Mar. 4 Purchased office supplies for $750 cash. Mar. 5Billed a client for $10,000 of design services completed. Mar. 6Received $8,000 on account for the services previously recorded.What is the balance in Cash? A. $13,250 B. $12,450 C. $15,450 D.$14,000

QUESTION 27 Which of the following sequences states the order inwhich a trial balance lists accounts? A. Equity â Assets âLiabilities B. Liabilities â Assets â Equity C. Assets â Equity âLiabilities D. Assets â Liabilities â Equity

QUESTION 28 Which of the following statements is FALSE? A. Atrial balance shows total amounts for assets, liabilities, andequity. B. A trial balance is created before the balance sheet isprepared. C. A trial balance presents data in debit and creditformat, but a balance sheet does not. D. A trial balance showstotal debits and total credits.

QUESTION 29 A promise received from a business's customers topay for goods and services that they received from the business iscalled a(n): A. revenue. B. account receivable. C. account payable.D. expense.

QUESTION 30 You can evaluate the economic resources, debt, andoverall financial position of a company in which of the followingfinancial statements? A. Income statement B. Balance sheet C.Statement of owner's equity D. Statement of cash flows

QUESTION 31 A book holding all of the accounts is called the: A.income statement. B. journal. C. ledger. D. balance sheet.

QUESTION 32 Which of the following groups of accounts BOTHnormally have a debit balance? A. Assets and Liabilities B.Liabilities and Owner's equity C. Revenues and Expenses D. Assetsand Expenses

QUESTION 33 A business buys $500 of supplies on account. Whichaccount is debited? A. Supplies B. Cash C. Service revenue D.Accounts payable

Billâs Lawn Care Mini Practice Part 4

In June, Bill commented to you that he could never figure outhis bank statement, âit never matches the

balance in my accounting recordsâ he tells you. So you explainthat a bank reconciliation is a tool used

to balance the bank statement to the accounting books. He givesyou his bank statement for June, 2014

(shown below). The general ledger shows a balance for theaccount cash of $14,319.00 on June 30,

2014 (detail transactions below). Billâs business only has onechecking account and no other cash

accounts.

Bill has begun to have problems collecting some of his creditaccounts and is considering writing off a

couple of customer account balances. He asks you how these baddebts should be recorded and has

asked you to begin recording bad debt using the allowance methodfor June, 2014. Selected account

balances at the end of June, 2014 are:

Sales $7,200

Sales on Credit $2,900

Accounts Receivable $3,200

As a result of increased focus on collecting accountsreceivable, Bill has decided to extend credit for one

customer, Alan Jones, who owes Billâs Lawn Care $500. Bill andAlan have agreed to a 90-day 6% note

for $500 issued on June 5, 2014.

Instructions:

1. Using the bank statement and the general ledger, prepare abank reconciliation for Billâs Lawn

Care as of June 30, 2014. Record the necessary journal entriesto adjust the books for the

appropriate reconciling items. Start with Page 6 for the journalentries. Explanations are

optional.

2. Using the information given above, calculate the amount ofbad debt using:

Using the chart of accounts, record the journal entry for baddebt expense for Billâs Lawn Care

using the percentage of sales on credit method.

3. Using the note receivable information above and the chart ofaccounts, record the following

entries in the general journal (continue these entries on Page6):

a. Percentage of Sales on Credit = 1.5%

b. Percentage of Accounts Receivable = 1%

a. Receipt of the note in payment of the accounts receivablebalance.

b. Adjusting entry at the end of June, 2014 for the notereceivable. (Round interest

calculations to two decimals)

c. Assume that Alan pays the note and interest in full on thedue date, record the necessary

journal entry. Assume that interest has been accrued at the endof each month.

d. Assume that Alan defaults on the note and interest on the duedate, record the necessary

journal entry. Assume that interest has been accrued at the endof each month.

CHECKING ACCOUNT DETAIL:

DATE	TRANSACTION TYPE & NUMBER	AMOUNT	BALANCE
BEGINNING BALANCE			$12,850.00
6/2/2014	CHECK #1570	226.00	12,624.00
6/5/2014	CHECK #1571	83.00	12,541.00
6/6/2014	EFT #43	127.00	12,414.00
6/10/2014	DEPOSIT #104	1,550.00	13,964.00
6/15/2014	CHECK #1572	145.00	13,819.00
6/15/2014	CHECK #1573	185.00	13,634.00
6/20/2014	DEPOSIT #105	885.00	14,519.00
6/24/2014	EFT #44	143.00	14,376.00
6/28/2014	CHECK #1574	87.00	14,289.00
6/28/2014	CHECK #1575	95.00	14,194.00
6/30/2014	DEPOSIT #106	425.00	14,619.00
6/30/2014	CHECK #1576	155.00	14,464.00
6/30/2014	CHECK #1577	145.00	$14,319.00

BANK STATEMENT:

FIRST NATIONAL BANK
ACCOUNT SUMMARY JUNE 30, 2014
BEGINNING BALANCE	$12,850.00
PAYMENTS	$1,021.00
DEPOSITS	2,440.00
FEES	20.00
ENDING BALANCE	$14,249.00
PAYMENTS
DATE	REFERENCE	AMOUNT
6/5/2014	1570	$266.00
6/9/2014	1571	83.00
6/10/2014	43	127.00
6/19/2014	1572	145.00
6/28/2014	1573	185.00
6/28/2014	NSF	120.00
6/30/2014	1575	95.00
TOTAL PAYMENTS		$1,021.00
DEPOSITS
DATE	REFERENCE	AMOUNT
6/11/2014	104	$1,550.00
6/23/2014	105	885.00
6/30/2014	INTEREST	5.00
TOTAL DEPOSITS		$2,440.00
FEES
6/30/2014	SVC CHG	$20.00
TOTAL FEES		$20.00

Additional Information: Check #1570 waswritten for $266.00, but was recorded incorrectlyin the general ledger. The check was for fuel.

Billâs Lawn Care

Chart of Accounts

Classification	Account Number	Account Name
ASSETS	101	Cash
	110	Accounts Receivable
	112	Allowance for Doubtful Accounts
	115	Notes Receivable
	116	Interest Receivable
	120	Supplies
	130	Prepaid Insurance
	140	Inventory
	150	Equipment
	155	Accumulated Depreciation â Equipment
LIABILITIES	201	Accounts Payable
	220	Notes Payable
	225	Interest Payable
OWNERâS EQUITY	301	Ownerâs Capital
	305	Ownerâs Drawings
	310	Income Summary
REVENUES	401	Lawn Service Revenue
	410	Sales Revenue
	415	Sales Returns and Allowances
	420	Interest Income
COST OF GOODS SOLD	501	Purchases
	505	Purchase Returns and Allowances
EXPENSES	620	Supplies Expense
	630	Fuel Expense
	640	Repair and Maintenance Expense
	650	Advertising Expense
	660	Insurance Expense
	670	Depreciation Expense
	680	Interest Expense
	690	Bad Debt Expense
	695	Miscellaneous Expense