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NAME KEY

EXAM CHAPTERS 1-4—KEY EXAM 1

QUICKBOOKS® PRO 2009:

A COMPLETE COURSE

EXAM CHAPTERS 1-4

TRUE/FALSE

ANSWER THE FOLLOWING QUESTIONS IN THE SPACE PROVIDED BEFORE THE QUESTION NUMBER.

T 1.A new customer may be added “on the fly.”

T 2.Credit memos are prepared to record a reduction to a sale on account.

F 3.An Accounts Receivable report summarizes sales by item.

F 4.In a sole proprietorship an owner’s name is added to the vendor list for recording withdrawals.

F 5.Once a transaction has been saved, it may not be deleted.

F 6.The Accounts Payable Register keeps track of all checks written in the business.

T 7.Accrual basis accounting matches the income from the period and the expenses for the period in order to determine the net income or net loss for the period.

F 8.A customer’s payment on account is immediately recorded in the checking account.

F 9.The restore button is marked with an X.

T 10.It is possible to duplicate a check in QuickBooks Pro.

T 11.The Alt key + a letter may be used to access the drop-down menus on the menu bar.

F 12.The QuickBooks backup (.qbb) file is used to record transactions.

F 13.QuickBooks Home Page appears beneath the title bar and has a list of drop-down menus.

T 14.When a correction for a transaction is made, QuickBooks Pro not only changes the form used to record the transaction; it also changes all journal and account entries for the transaction to reflect the correction.

T 15.There are various methods of giving QuickBooks Pro commands including use of QuickBooks Home Page, the menu bar, and keyboard shortcuts.

F 16.A Vendor Balance Summary report shows each transaction for a vendor.

F 17.The bank statement ending balance will always match the ending balance of the checking account.

T 18.A missing check report lists any duplicate check numbers or gaps between check numbers.

F 19.A Sales Item List stores information about products you purchase.

T 20.Anything entered as a bank service charge or as interest earned will be entered automatically when the bank reconciliation is complete.

MULTIPLE CHOICE

WRITE THE LETTER OF THE CORRECT ANSWER IN THE SPACE PROVIDED BEFORE THE QUESTION NUMBER.

A 21.The Journal shows .

A.all transactions no matter where they were recorded

B.only those transactions recorded in the journal

C.only transactions recorded in account registers

D.only those transactions that have been edited

C 22.Changes to the chart of accounts may be made .

A. at the beginning of a fiscal period

B. before the end of the fiscal year

C. at any time

D. once established the chart of accounts may not be modified

B 23.As soon as a bill is received, .

A.a check is written but it is not printed until the bill is due

B.it is entered as a bill

C.a check is written and printed

D.QuickBooks Pro deducts the amount due from the checking account

A 24.To permanently remove the Date Prepared, Time Prepared, and Report Basis from the heading of a report you .

A.change the Report Preferences

B.modify the Header on the individual report

C.it cannot be removed

D.once you remove it from a report header, it never shows up again

C 25.If the adjusting entry to transfer net income/retained earnings into the owner’s capital account is made prior to the end of the year, the Balance Sheet shows .

A.Retained Earnings

B.Net Income

C.both Net Income and Retained Earnings

D.none of the above because the income/earnings has been transferred into capital

B 26.QuickMath displays .

A.a calculator

B.adding machine tape

C.a calculator with adding machine tape

D.none of the above

D 27.A closing date is assigned .

A.after all passwords have been assigned

B.at the beginning of the year

C.by entering a closing transaction

D.at the end of the accounting period to be closed

C 28.To enter a cash sale, a(n) is completed.

A. debit

B. invoice

C. sales receipt

D. bank deposit

C 29.When a bill is deleted, .

A.the amount is changed to 0.00

B.the word “Deleted” appears as the Memo

C.it is removed without a trace

D.a bill cannot be deleted

B 30.QuickBooks Pro uses graphs to illustrate information about .

A. the chart of accounts

B. sales

C. the cash account

D. supplies

D 31.When a report is printed in , it is printed on paper 11 inches wide and 8½ inches long.

A.wide orientation

B.portrait orientation

C.fit to one-page wide orientation

D.landscape orientation

B 32. allow(s) you to make a closer observation of transaction details and/or amounts.

A.Graphs

B.QuickZoom

C.Invoices

D.The Balance Sheet

B 33.To add your name to a QuickBooks Company name, you use the .

A.Edit menu

B.Company menu

C.Company Preferences

D.Chart of Accounts

B 34.If a bill is recorded in the Enter Bills window, it is best to pay the bill by .

A.writing a check

B.using the Pay Bills window

C.using petty cash

D.allowing QuickBooks Pro to generate the check automatically five days before the due date

C 35.A correction to a bill that has been recorded can be made on the bill or .

A.not at all

B.on the Accounts Payable Graph

C.in the Accounts Payable Register

D.none of the above

B 36.The Items List contains .

A.a list of inventory items used for purchases from vendors

B.a list of sales items used for billing

C.both A and B

D.none of the above

D 37.At the end of the year, QuickBooks Pro automatically puts the net income for the year in the account.

A.owner’s capital

B.owner’s investment

C.owner’s net income

D.retained earnings

A 38.When using QuickAdd to add the bank to a list for an automatic payment, the bank is classified as .

A.other

B.a vendor

C.a customer

D.accounts payable

D 39.A QuickBooks register .

A.is prepared for every balance sheet account

B.contains records of all activity for an account

C.can be used to record transactions

D.all of the above

A 40.The Report contains the balances of all the customers on account.

A.Customer Balance Summary

B.Customer Detail Summary

C.Customer Summary

D.Accounts Receivable Detail

FILL-IN

IN THE SPACE PROVIDED, WRITE THE ANSWER THAT MOST APPROPRIATELY COMPLETES THE SENTENCE.

41.To verify the company being used in QuickBooks Pro, you check the title bar heading .

42.QuickBooks Pro records transactions on actual business forms. Sales on account are recorded on invoices , and cash sales are recorded on sales receipts .

43.A report may be exported to Excel for working with “what if” scenarios.

44.Petty Cash is identified as a(n) Bank account type, so it will be placed at the top of the chart of accounts along with checking and savings accounts.

45.A check written to the owner for working in the business is considered a(n) withdrawal .

46.The Journal shows all transactions in the traditional debit/credit format.

47.The Receive Payments icon is clicked to record the receipt of a payment on account.

48.When you have accessed the Vendor Center, the keyboard shortcut to edit or modify a vendor’s record is Ctrl+E .

49.Additional investments by an owner may be cash or noncash items.

50.When you Void an invoice the amount is changed to 0.00.