Test answers for Quick Books Pro 2008 Test 2015-16

17 Answered Test Questions:

1. How can you set up QuickBooks: Pro or higher so that time data for salaried employees is transferred to the payroll automatically?

Answers:

• Select the "Use time data to create paycheck" checkbox on the Payroll tab of the employee's record

• Set up employee defaults

• Use the Select Billable Time and Costs window

• All of the above

2. You hire an employee who will work as a staff member, but also provide outside services to your company unrelated to his/her job. How is this best handled in Quickbooks?

Answers:

• Create an employee and segregate what he/she does as an employee and as a contractor

• Create a vendor and enter separate invoices for employee and for contractor

• Create 2 vendors, one for employee wages and one for contract work

• Create an employee for his/her regular wages, and a Vendor for his/her contract work

3. Which of the following reports shows how a specific month's actual results compare with the budget for that month; how the year-to-date actual results compare with the year-to-date budget; and how much of the annual budget has been achieved?

Answers:

• Budget Overview

• Budget Comparison

• Profit & Loss Budget Performance

• All of the above

4. Which of the following reports contains all the information about paychecks and the employer's related payroll expenses?

Answers:

• Payroll summary

• Payroll liability balances

• Payroll item listing

• Payroll wage summary

5. How would you best describe the use of the Opening Balance Equity Account during the setup process?

Answers:

• It does not have a role during the setup process

• It is used to track asset account balances

• It is used as the clearing account for each opening balance entry

• It is applicable only if the client uses payroll

6. How can you track deposits that clients make to vendors?

Answers:

• Track deposits as negative balances in accounts payable

• Record the deposit in the Enter Bills window

• Neither of the above

7. How do you check the version and release number of a QuickBooks for Windows desktop file?

Answers:

• Choose Company Information from the Company menu

• Press Ctrl+1

• Choose about QuickBooks from the Help menu

• Choose Preferences from the Edit menu

8. How can you prevent users from changing transactions from prior periods?

Answers:

• Set the Access Prior Periods preference to No

• Set a closing date in the file and assign a password to the closed period

• QuickBooks automatically denies access to transactions from prior years

• None of the above

9. Which of the following QuickBooks utilities is used to check for data file integrity?

Answers:

• Restore Data

• Verify Data

• Rebuild Data

• Back Up Data

10. A base unit in QuickBooks is usually defined as:

Answers:

• the smallest unit of measure used in business while buying, tracking, and selling an item

• the smallest unit of measure for an item to be tracked in inventory

• the most common unit of measure used in business

• the largest unit of measure used in business

11. How should sales tax liabilities be adjusted in QuickBooks?

Answers:

• Click the Adjust button in the Pay Sales Tax window to enter the adjustment before creating the checks.

• Use sales orders that affect the Sales Tax Payable account.

• Show the adjustments in the detail section of the sales tax payment check.

• Create sales tax items with negative rates for special adjustments.

12. Which of the following resources can be used to find manual changes of reconciled status in bank account entries?

Answers:

• Audit trail report

• Transaction history report

• Find feature

13. For which of the following reports can you use the Financial Statement Designer to filter account balances by Customer: Job?

Answers:

• Balance sheet standard

• Income statement

• Statement of cash flows

• All of the above

14. Which of the following reports can be used to find checks in numeric order?

Answers:

• Cash disbursement journal report

• Missing checks report

• Transaction journal report

15. After setup, which report should be run to verify the accounts receivable details as on the opening date?

Answers:

• Open invoices

• Profit and loss

• Sales by customer summary

• Deposit details

16. If a client miscalculated a fixed tax (like Medicare), how would you correct this discrepancy in After-the-Fact Payroll?

Answers:

• Adjust Federal Withholding

• Adjust Social Security

• Adjust Net Pay

17. Which of the following questions should be asked to determine whether QuickBooks is the right software for a client?

Answers:

• How many items, vendors, and customers does the company track?

• Does the company require an inventory method other than the average cost method such as FIFO or LIFO?

• How many people should be able to access the company data file simultaneously?

• All of the above

76 NOT Answered Yet Test Questions:

(hold on, will be updated soon)

18. Which of the following is a step involved in setting up QuickBooks to track 1099 information?

Answers:

• Turn on the Tax: 1099 preference

• Link 1099 categories to QuickBooks accounts

• Designate which vendors should receive 1099s

• All of the above

19. The Sales Department has asked for your help to do an analysis. They want to see what specific customers are buying. What would be the best starting point?

Answers:

• Customer Aging

• Profit & Loss Detail by Month

• Sales by Customer Detail

• Deposit Details

20. Which edition will not support a client's need to combine financial reports from different locations?

Answers:

• QuickBooks Enterprise Solutions: Retail Edition

• QuickBooks Enterprise Solutions: Professional Services Edition

• QuickBooks Enterprise Solutions: Accountant Edition

• QuickBooks: Premier Accountant Edition

21. The opening balances of which of the following accounts can be recorded while setting up the chart of accounts?

Answers:

• Bank

• Accounts receivable

• Accounts payable

• All of the above

22. Which of the following is NOT the parts of tracking a NSF check in QuickBooks?

Answers:

• Finding the deposit that includes the original check, changing the account to accounts receivable, and applying the credit in Receive Payments.

• Entering the bank service charge in the account register as of the date it was assessed.

• Entering a statement charge in the customers register for the fee you charge for bad checks.

23. In which of the following formats does QuickBooks support data import?

Answers:

• Intuit Interchange Format (IIF)

• Microsoft Excel (.xls)

• Comma-separated value (.csv)

• All of the above

24. The option for downloading updates from within QuickBooks is _____.

Answers:

• Share downloads

• Update immediately

• Update automatically

• All of the above

25. Which of the following functions does the QuickBooks items perform?

Answers:

• Calculating amounts on sales forms

• Allowing you to create a customized chart of accounts

• Linking sales and purchase transactions to the chart of accounts

• Allocating paychecks to customers' jobs

26. You hire someone as a 1099 contractor. Which module would you enter the person to track what is paid to him/her?

Answers:

• Vendors

• Employees

• Customers

• Company

27. What must happen to make the Budgets & Forecasts category of reports most useful?

Answers:

• The month has to be closed

• The company needs a year of sales history

• A budget and/or forecast has/have to be established

• Bank reconciliations must be complete

28. Which of the following activities does QuickBooks support?

Answers:

• Track billable versus non-billable time

• Track payroll costs by job, class, or type of work

• Accumulate sick and vacation pay in hours

• All of the above

29. What does using the Item tab on checks and bills allow you to do?

Answers:

• Track costs for products and services as well as Customer Job profitability

• Track revenue for products and services as well as Customer Job profitability

• Ensure that the line "no item" appears on job profitability reports

• None of the above

30. Which of the following editions allows toggling among different editions of QuickBooks without having all the editions installed?

Answers:

• Retail Edition

• Contractor Edition

• Professional Services Edition

• Accountant Edition

31. Which of the following does the client-ready 941/940 report not show?

Answers:

• Wages

• Tax payments

• Payroll expenses

• Accrued taxes

32. Which of the following statements is true?

Answers:

• You can create the accountant's copy file using QuickBooks Simple Start.

• You can use the Premier Accountant Edition to work on the accountant's copy.

• Files are created in Enterprise Solutions.

• The accountant's copy files are backwards compatible between 2007 and 2008.

• The portable company files are backwards compatible between versions 2008 and 2006.

33. Why do you need to use the Receive Payments feature in Customers rather than book receipts directly to the bank?

Answers:

• It serves the same purpose as a deposit in Banking

• In order for it to reflect on the customer's account

• Because of the limited functionality of Quickbooks

34. Which of the following transactions will appear as Accounts Receivable on a cash-basis balance sheet?

Answers:

• Finance charges on overdue invoices

• Inventory held on consignment

• Payments received as deposits on future projects

• Refund checks for inventory returns applied against credit memos

35. When clients have customers who are also vendors, what is the best way to offset accounts payable against accounts receivable?

Answers:

• Use the QuickBooks trade-off feature

• Create a bank account through which you can clear the payable and the receivable

• Use a single journal entry

• Use multiple journal entries

36. Under which of these circumstances would a Journal Entry be most appropriate?

Answers:

• While expensing the monthly prepaid expenses

• While entering a new invoice

• While giving a customer a credit

• While booking an adjustment for the bank reconciliation

37. To which of the following items you cannot assign the units of measure?

Answers:

• Discount

• Group

• Service

• Inventory Assembly

38. If a payment has been made out of the wrong bank account but the check has not yet been printed, what is the best way to correct it in Quickbooks?

Answers:

• Go to the transaction in the wrong account, click on it, and change the bank account in the selection box.

• Delete the transaction and re-enter it

• Print the check, put a stop payment on it at the bank, and shred it

• Print the check and mail it to the customer, and let it be figured out in the bank reconciliation process

39. Which report(s) could you run to see the reversing journal entry QuickBooks makes when voiding a check from a prior period without affecting the prior period financials?

Answers:

• Adjusting journal entries

• Transaction journal

• Prior period changes

• Voided checks

40. Which of the following can be used to enter opening balances in QuickBooks?

Answers:

• Journal entries

• Forms

• Lists

• All of the above

41. In QuickBooks, what is the main tool you can use to monitor the accrual and payment of state and local sales taxes?

Answers:

• Open invoice report

• Quick reports

• Sales tax liability report

• Item listing report

42. While automatically deducting money for loan repayments from the employee paychecks, what should be checked at the end of each calendar year?

Answers:

• Employee Loans account setup

• Loan deduction limit

• Loan Repayment item account mapping

• All of the above

43. In which QuickBooks window would you record the amount and payment terms for money that a client owes a vendor?

Answers:

• Enter Bills

• Write Checks

• Create Purchase Orders

• Pay Bills

44. What does QuickBooks do so that you don't have to restate the financials when voiding a check from a prior period?

Answers:

• Changes the check amount to zero, marks it void, and enters a memo about the related journal entries.

• Creates a journal entry dated the same as that of the check.

• Creates a reversing journal entry as of the current system date that does not change the prior year's financial statements while allowing you to reconcile the bank account.

• All of the above.

45. What report would an auditor want to see?

Answers:

• Balance Sheet

• Profit & Loss

• Cash Flow Statement

• All of the above

46. Which of the following statements is true regarding the Fixed Asset Manager?

Answers:

• It is an add-in application available in QuickBooks: Premier Accountant and Enterprise Solutions Accountant Edition.

• It calculates depreciation for up to six asset bases.

• It posts depreciation journal entries to QuickBooks.

• All of the above.

47. What information needs to be checked before adding a loan to the Loan Manager?

Answers:

• Confirm that the liability accounts and expense accounts to track the loan are set up in the chart of accounts.

• Confirm that any accounts necessary for tracking escrow are set up in the chart of accounts.

• Confirm that all transactions for the loan liability and interest accounts are up to date.

• All of the above.

48. Which of the following is not a common mistake clients make while recording and depositing payments as identified in this module?

Answers:

• Customer payments not grouped into deposits

• Customer payments entered directly in the Receive Payments window

• Payments or credits not applied against invoices

• Undeposited Funds overlooked while making deposits

49. Why is it important to include the customers' email address in their Customer set up?

Answers:

• So you do not have to keep record in your email program

• It enables Quickbooks to email a statement, invoice, credit memo or other document to the customer

• It is not possible for you to proceed without an email address in the profile

50. Which report would you recommend for clients who want to know which customers made the maximum purchases from them?

Answers:

• Sales by customer detail

• Sales by customer summary

• Income by customer detail

• A/R aging summary

51. Which of the following balance sheet accounts doesn't have an account register?

Answers:

• Retained earnings

• Opening balance equity

• Payroll liabilities

• Owner's capital

52. Which of the following can help you recreate information about deleted transactions by providing debit and credit details for the original transactions?

Answers:

• Audit trail report

• Deleted transactions report

• Voided/deleted transaction history report

• None of the above

53. In which list do you enter the sales tax rates?

Answers:

• Vendor list

• Sales Tax list

• Item list

• Sales Tax Payable list

54. Collecting accounts receivable depends on what other activity happening first?

Answers:

• A customer being determined as delinquent

• A purchase order being issued

• An invoice being generated

• A quote being generated

55. In the Working Trial Balance, what does 0.00 for each column indicates?

Answers:

• The Working Trial Balance report basis is set to Cash

• There was no activity for that account in the current period

• Total debits equal total credits

• None of the above

56. Which of the following can be done in the Financial Statement Designer?

Answers:

• Quick Zoom to edit source transactions

• Customize Statements to report on net income before and after tax

• Export Customized Templates for use with other clients

• All of the above

57. Which of the following tasks is not allowed while working in the accountant's copy?

Answers:

• Entering general journal transactions.

• Adding new items to the Payroll Item list.

• Creating new reports.

• Making adjusting entries.

58. If a bank reconciliation does not balance even after reviewing the transactions, what is the best option?

Answers:

• Book an adjustment to Misc Expense regardless of the amount in order to force it to balance

• Leave it unbalanced and assume it will clear the following month

• Tell your supervisor there is an accounting error and someone needs to find it

• Unclear all transactions and begin again

59. Which of the following transactions should not be recorded in the Transfer Funds window?

Answers:

• Money going to or from Sales Tax Payable

• Money going to or from Accounts Receivable

• Money going to or from Accounts Payable

• All of the above

60. Where does the column headings come from in the After-the-Fact Payroll window?

Answers:

• Employee defaults

• Payroll items

• Employee items

• Prior paychecks

61. Which of the following cannot be recorded by using a journal entry?

Answers:

• Bank account transactions

• Inventory quantities

• Fixed assets

• Lines of credit

62. Which of the following inventory valuation methods does QuickBooks support?

Answers:

• Average cost

• FIFO (first in first out)

• LIFO (last in first out)

• All of the above

63. A client asked you to review last year's records. You ran the year-end balance sheet and the A/R aging details report as of last year. You prepared both reports using the accrual basis, and the balance sheet looks fine. However, the accounts receivable balance on the balance sheet is very different from the total on the A/R aging details report. What is the problem?

Answers:

• There are unapplied payments or credits

• The A/R report shows the current opening balance

• The client made several former customers inactive

• Customer payments remain in Undeposited Funds

64. Which of the following Premier editions doesn't allow setting up of billing rate levels for different employees?

Answers:

• Accountant Edition

• Contractor Edition

• Professional Services Edition

• Retail Edition

65. In QuickBooks: Pro and higher, what type of item should be used to capture both income and expenses information for work performed by subcontractors?

Answers:

• Service item

• Subcontractor item

• Subtotal item

• Other Charges item

66. What item type should you set up to track customer down payments?

Answers:

• Deposit item

• Discount item

• Payment item

• Service item

67. Where can you find the User's Guide and the Getting Started Video for the Financial Statement Designer?

Answers:

• QuickBooks Help menu

• Financial Statement Designer Help menu

• QuickBooks Learning Center

• All of the above

68. To which of the following items can units of measure be assigned?

Answers:

• Inventory Part, Inventory Assembly, Non-Inventory Part, and Other Charges

• Inventory Part, Inventory Assembly, Non-Inventory Part, Group, and Service

• Group, Discount, Subtotal, Inventory, Service, and Inventory Assembly

• Payment, Group, Discount, Service, and Other Charges

69. Why would you export a customer list to Excel when you can manage it within Quickbooks?

Answers:

• Working with Excel is easier

• The list can always be uploaded back to Quickbooks after editing in Excel

• It looks better in Excel

• You need to provide the information to someone who does not have Quickbooks and/or you do not want to provide them with the full Quickbooks data file

70. Why would a company choose to use account numbers?

Answers:

• To be able to organize their accounts by GL code rather than alphabetically

• It is required by GAAP

• It can grant access to GL accounts only with an account number

• It is required by the IRS

71. While entering individual historical transactions during setup, which transactions should be entered first?

Answers:

• Bank transactions

• Accounts receivable transactions

• Accounts payable transactions

• Payroll transactions

72. Which item type has information in the Current Availability window?

Answers:

• Discount

• Non-Inventory Part

• Inventory Part

73. You run a client's balance sheet on cash basis, but the balance in the Sales Tax Payable account does not change. What can be the cause?

Answers:

• Sales tax preferences are set to accrual

• Sales tax was paid using a regular check

• Adjustments to Sales Tax Payable were entered as journal entries

• Credit memos for taxable items were not properly applied

74. Which of the following methods can you use to value inventory in QuickBooks?

Answers:

• Double declining balance

• Last in, first out (LIFO)

• First in, first out (FIFO)

• Average cost

75. Which of the following "standard" accounting reports must be created by modifying another report in QuickBooks?

Answers:

• Income statement

• Journal entry listing

• General ledger

• Audit trail

76. What might cause a difference to show up between a client's Sales Tax Payable liability account and the sales tax payable amount showing on the Pay Sales Tax window?

Answers:

• The company purchased a large taxable item on credit.

• Sales tax was adjusted retroactively when you marked items taxable that a client had mistakenly marked as not taxable.

• The client erroneously paid the wrong tax agency.

• The client is paying sales tax with regular checks and posting the payment to the sales tax payable account instead of using the Pay Sales Tax window to create the payment.

77. Why would one choose to create multiple Jobs under 1 customer rather than just create specific invoices?

Answers:

• It is required in Quickbooks. Quickbooks is not able to invoice for different items

• It gives the user greater abilities such as financial reporting by job, and ability to close specific jobs when complete.

• Customers require it

• It is legal requirement

78. A client's bank balance is different from the balance shown on the balance sheet. What is the problem?

Answers:

• The register contains post-dated checks

• A reconciled transaction was manually unreconciled

• A memorized transaction

• An NSF check

79. In QuickBooks: Premier Accountant Edition, what permission must the users have in order to view the Working Trial Balance?

Answers:

• Sensitive Financial Reporting

• Sensitive Accounting Activities

• Year-End Accounting Activities

• None of the above

80. Which of the following needs to happen in order for sales tax to be calculated for a line item on an invoice or sales receipt?

Answers:

• The sales tax code assigned to the line item on the form must be a taxable code.

• There must be a taxable code in the Customer Tax Code field on the sales form.

• The sales tax rate assigned to the form must be higher than 0%.

• All of the above.

81. Which of the following is a method you can use to track customer prepayments, deposits or retainers in QuickBooks?

Answers:

• Entering payments in the Prepayments window

• Setting up a separate liability account to track the funds

• Both of the above

82. Which of the following describes a method for handling shared payroll expenses?

Answers:

• Link the employee deduction payroll item to an expense account. Then record the employee and employer-paid portions on a regular bill or check.

• Add the company-paid portion to the payroll liability check.

• Both a and b

• None of the above

83. What is the standard number system for a chart of accounts?

Answers:

• 1 revenue, 2 expenses, 3 assets, 4 liabilities, 5 equity

• 1 equity, 2 expenses, 3 revenue, 4 liabilities, 5 assets

• 1 assets, 2 liabilities, 3 equity, 4 revenue, 5 expenses

• 1 liabilities, 2 assets, 3 expenses, 4 revenue, 5 equity

84. Which report would you run to find the net purchases from each vendor regardless of how payments were recorded in QuickBooks?

Answers:

• Inventory valuation summary

• Expenses by vendor summary

• Unpaid bills detail

• Purchases by vendor summary

85. Your company receives a miscellaneous check as a rebate on office supplies purchased. How would this be entered in Quickbooks?

Answers:

• Create a customer, an invoice, then as a receipt of payment for that customer

• Using Banking - Make deposits with the item booked to Miscellaneous Revenue

• Make a Journal Entry

• Add to employee check who purchased the supplies

86. If a company's tax form is recorded incorrectly, then where should the corrections be made?

Answers:

• Easy Step Interview

• Company Information Window

• Preferences

• All of the above

87. If a company wants a quick look at their financial performance for the month, what report would be best to run?

Answers:

• Profit & Loss Detailed

• Profit & Loss Standard

• Balance Sheet Standard

• Profit & Loss by Job Summary

88. Which of the following cannot be included as a component of an assembly item?

Answers:

• Other Charges items

• Inventory Assembly items

• Group items

• Service items

89. What field do you need to complete in the Enter Time/Single Activity or Weekly Timesheet windows in order to transfer time to employee paychecks?

Answers:

• Customer Job

• Service Item

• Payroll Item

• Other Charges Item

90. Which of the following doesn't describe a measurement set?

Answers:

• A measurement set is a group of measurement units that are multiples of the base unit.

• A unit of a measurement set defines the default units used when purchasing, selling, and shipping items.

• A measurement set can be shared by all items that use the same base unit.

• A measurement set consists of units of measure related by type (count, area, weight, length, time, and so on).

91. Do all vendors need their profiles complete before paying?

Answers:

• Yes, without all of the data, Quickbooks will not allow entry

• Yes, without all of the data, Quickbooks will allow entry but not payment

• No, Quickbooks will allow payment to be generated, although all the data should be entered

• No, there's no reason beyond the payee name to bother entering addresses & contact information

92. What report should be used to check the taxable status of the existing product and service items as well as the rates and agencies associated with the Sales Tax items?

Answers:

• Quick Reports

• Open invoice report

• Sales tax liability report

• Item listing report

93. Money is transferred from one bank account to another. What is the best way to handle this transaction?

Answers:

• Banking - Transfer Funds

• Journal Entry

• AP Debit & Credit memos

• Write a check in Quickbooks from the outgoing account and deposit it in the receiving account