Finance 4340 Midterm Chapter Quizzes with 100% SOLUTION 2024 FINAL EXAM GRADED A+, Exams of Financial Accounting

Download Finance 4340 Midterm Chapter Quizzes with 100% SOLUTION 2024 FINAL EXAM GRADED A+ and more Exams Financial Accounting in PDF only on Docsity! Finance 4340 Midterm Chapter Quizzes with 100% SOLUTION 2024 FINAL EXAM GRADED A+ When setting up a new company in QBO, which of the following is helpful information you should know about the company? Select one: a. Does the company sell products, services or both? b. Does the company manufacture anything themselves? c. Do you have or plan to have multiple reporting entities (e.g. multiple stores)? d. Does the company collect sales tax? e. All of these are good questions to consider when setting up a new company. - SOLUTION e. All of these are good questions to consider when setting up a new company. During the setup process for a new QBO company file, QuickBooks automatically creates which of the following? Select one: a. Basic chart of accounts b. Employees c. Vendors d. Tax return - SOLUTION a. Basic chart of accounts During the setup process QBO automatically selects which method of accounting? Select one: a. Cash basis b. Modified cash basis c. Accrual d. Historical - SOLUTION c. Accrual After your QBO company is setup, where do you go to enable and show account numbers for accounts in your chart of accounts? Select one: a. Accounting on the navigation bar b. The on the icon bar then select Account and Settings and go to the Advanced tab c. Select on the navigation bar and select List d. The icon on the icon bar and select Chart of Accounts Feedback - SOLUTION b. The on the icon bar then select Account and Settings and go to the Advanced tab For each activity listed below, select the appropriate tab in the Account and Settings area where the action is located. Start using purchase orders Turn on warnings for duplicate check numbers Turn on custom transaction numbers for sales forms Turn on warnings for duplicate check numbers - SOLUTION Expenses Company Sales Advanced The pencil icon [] is used to do which of the following tasks in QBO? Select one: a. Import data. b. Print a report. c. Add a new user. d. Edit company settings in Account and Settings on the gear icon. - SOLUTION d. Edit company settings in Account and Settings on the gear icon. Which of the following functions are available in QBO? Select one: a. Tracking inventory b. Invoicing customers c. Paying bills d. All of the above functions are available in QBO. - SOLUTION d. All of the above functions are available in QBO. transaction type used to record bank deposit - SOLUTION deposit default general ledger account used to initially record cash received - SOLUTION undeposited funds transaction type used to record sales on account - SOLUTION invoice transaction type used to record credit given to customer - SOLUTION credit memo customer name appearing on invoices, sales receipts, or credit memos - SOLUTION customer name transaction type used for recording customer payments on account - SOLUTION payment A service item in QBO a. can be linked to more than one general ledger account. b. must be linked to one, and only one, general ledger account. c. can only be linked to an accounts receivable type account. d. can be, but doesn't need to be, linked to an account. - SOLUTION b. must be linked to one, and only one, general ledger account. The general ledger account Undeposited Funds in QBO represents ___________. a. all cash sales b. the balance in accounts receivable c. amount of cash, checks, or credit card payments received and recorded but not yet deposited d. None of the above - SOLUTION c. amount of cash, checks, or credit card payments received and recorded but not yet deposited The account that is credited when a credit memo is completed in QBO must have the account type _______________. a. Bank b. Accounts receivable c. Accounts payable d. Other current asset e. Other current liability - SOLUTION b. Accounts receivable The default account Undeposited Funds has the account type _________________. a. Bank b. Other current asset c. Other asset d. Other current liability e. Accounts receivable - SOLUTION b. Other current asset There is an underlying journal entry behind every completed form listed below except _________________. a. Invoice b. Credit memo c. Bank deposit d. Sales receipt e. None of the above answers is correct. - SOLUTION e. None of the above answers is correct. On the picture below, which tab would you select to set or edit the credit terms of a customer? Select one: a. Address b. Tax info c. Payment and billing d. Attachments e. Additional info - SOLUTION c. Payment and billing Which of the following sources of revenue should be set up as a service item in QuickBooks Online? Select all that apply. Select one or more: a. Amount charged for shampoo sold in a hair salon b. Amount charged for haircuts in a hair salon c. Amount charged for milk sold in a grocery store d. Amount charged for the review of a contract for a client in a law firm - SOLUTION b. Amount charged for haircuts in a hair salon d. Amount charged for the review of a contract for a client in a law firm Which of the following statements is not true? Select one: a. Service items can be grouped by category. b. The income associated with a service item can be edited. c. Descriptions entered for a service item will appear on sales forms. d. Multiple income accounts can be associated with a single service item. - SOLUTION d. Multiple income accounts can be associated with a single service item. On a sales receipt the account selected in the Deposit to field results in a _________ to that account. - SOLUTION Debit The account type for the Undeposited Funds account is Select one: a. Income b. Bank c. Cash d. Other current asset - SOLUTION d. Other current asset When selling services to customers on account, there are three common steps. i. Bank deposit ii. Create invoice iii. Receive payment Select the correct order for the steps listed above. Select one: a. i, iii, ii b. ii, iii, i c. iii, ii, i d. i, ii, iii Feedback - SOLUTION b. ii, iii, i The transaction type for recording customer refunds is ___________________. Select one: a. Check b. Customer Refund c. Refund Receipt b. using the Bill Payment transaction type c. using the Expense transaction type d. using Check, Bill Payment, or Expense transaction types - SOLUTION d. using Check, Bill Payment, or Expense transaction types Which of the following statements is true? a. You can only have one account with an account type of Accounts Payable in QBO. b. You can have multiple accounts payable accounts for use in recording vendor bills and tracking vendor balances in QBO but they must each have a different name and they must all have an Accounts Payable account type. c. You can have multiple accounts payable accounts in QBO but only the default Accounts Payable account created by Intuit can be used when entering bills or bill payments. d. Vendor balances cannot be tracked in QBO. - SOLUTION c. You can have multiple accounts payable accounts in QBO but only the default Accounts Payable account created by Intuit can be used when entering bills or bill payments. company's legal year - SOLUTION fiscal year status of a bank transaction marked as cleared during the reconciliation process - SOLUTION cleared date set by user; used to limit entry of transactions dated prior to that date - SOLUTION close date date of statement received from bank - SOLUTION statement ending date title of column in the credit card reconciliation screen listing all debits to the account being reconcile - SOLUTION payment status of bank transaction that has been marked as cleared as part of a completed reconciliation - SOLUTION reconciled transaction type used for recording an adjusting entry - SOLUTION journal entry title of column in the credit card reconciliation screen listing all credits to the account being reconciled - SOLUTION charge All transactions posted to an account being reconciled will appear on the bank reconciliation screen in QBO EXCEPT a. cleared transactions and uncleared transactions recorded through a general journal entry. b. cleared transactions. c. uncleared transactions. d. uncleared bill payment transactions. - SOLUTION b. cleared transactions. Which of the following accounts could be reconciled using the reconciliation tool in QBO? (Select all that apply. Assume all of the accounts listed were in the company's chart of accounts.) a. Cash (Bank account type) b. Prepaid Expenses (Other Current Asset account type) c. Accounts Payable (Accounts Payable account type) d. Unearned Revenue (Other Current Liability account type) - SOLUTION a. Cash (Bank account type) b. Prepaid Expenses (Other Current Asset account type) d. Unearned Revenue (Other Current Liability account type) The Journal report includes ____________. a. all accounting transactions no matter where (how) they were recorded b. only those accounting transactions recorded in the Journal Entry form c. only accounting transactions recorded through certain forms d. only accounting transactions NOT recorded in the Journal Entry form - SOLUTION a. all accounting transactions no matter where (how) they were recorded When a credit card statement is reconciled, a. the user can elect to create a bill for the statement balance. b. the user can elect to write a check for the statement balance. c. the user can elect to retain the balance in the credit card liability account. d. the user can elect any of the three options listed - SOLUTION d. the user can elect any of the three options listed On the first day of a new fiscal year, QBO automatically closes a. all temporary accounts. b. all revenue and expense accounts. c. all revenue, expense, and equity accounts. d. all revenue, expense, and dividend accounts. - SOLUTION b. all revenue and expense accounts. The Vendor Center can be accessed from which of the following? Select one: a. Icon bar b. Navigation Bar c. Dashboard d. Any of the above - SOLUTION b. Navigation Bar The name entered in the Company field of a vendor record __________________. Select one: a. appears in the address information box on checks, purchase orders, bills, and bill payments. b. acts as an identifier in QBO. c. must be different than the name entered in the Display name as field. d. must include the account number assigned by the vendor. - SOLUTION a. appears in the address information box on checks, purchase orders, bills, and bill payments. Sheff Industries uses cash to pay for any postage due when mail is delivered. When the transaction is entered in QBO, the transaction type normally used is Select one: a. Cash payment b. Bill payment c. Expense d. Check - SOLUTION d. Check On an Expense, who is the payee? a.The name of the credit card b. The name of the vendor or business that the product or service was purchased from c. The name of the credit card company. D. the payment of the statement balance or a bill for the statement balance must be recorded. - SOLUTION C. a check for full or partial payment of the balance can be recorded, a bill for the statement balance can be recorded, or the credit card balance can be left in the credit card liability account. If you select Finish Now on a reconciliation before the difference is zero what will happen to the difference? Select one: a. Nothing. Its stays there until the next month's reconciliation is performed. b. QBO automatically makes an adjustment to the account being reconciled for the amount of the difference. c. QBO automatically makes an adjustment to an account called Reconciliation Discrepancies for the amount of the difference. d. QBO saves the difference for you to find later. - SOLUTION c. QBO automatically makes an adjustment to an account called Reconciliation Discrepancies for the amount of the difference. During the month your company paid for gasoline for the company vehicles using the company credit card issued by First Bank. Match the journal entries that are prepared behind the scenes with the corresponding transaction or event that has occurred in QBO. Record purchases on credit card as an Expense Transaction. Reconcile the credit card account and enter a bill for payment later. Pay the credit card bill with a check - SOLUTION DR: Gasoline expense CR: Credit Card Payable DR: Credit Card Payable CR: Accounts Payable DR: Accounts Payable CR: Checking When a journal entry is saved in QBO, ________________. Select one: A. affected financial statements are not updated until the accounting period is closed B. all affected financial statements are automatically updated C. affected financial statements are not updated until a Journal report is printed D. only the trial balance report is automatically updated - SOLUTION B. all affected financial statements are automatically updated Changing the order of the accounts on the Profit & Loss report ______________. Select one: A. can be done by changing the account numbers B. can be done directly on the Profit & Loss report C. cannot be done D. can be done through Account and Settings - SOLUTION A. can be done by changing the account numbers Balance Sheet and Profit & Loss (income statement) reports can be accessed from the ___________ section on the standard reports tab of the report window. Select one: A. Business Overview B. Employees C. Who Owes You D. Payroll - SOLUTION A. Business Overview You have been asked to prepare the Profit & Loss (Income Statement) report for the month of January 2021. You generate the report and provide it to the Controller. The Controller tells you that the report looks wrong. You review the following selections you made when running the report. - SOLUTION - Look at Dates - Look to see ending balance is correct A mid-year closing date can be set in QBO by _________________ . Select one: A. selecting set closing date on the Dashboard B. changing the company's fiscal year end C. clicking Close the books in the Accounting section of the Advanced tab of Account and Settings D. either clicking set closing date on the Dashboard or by selecting set closing date in the Accounting section of the Advanced tab of Account and Settings Feedback - SOLUTION C. clicking Close the books in the Accounting section of the Advanced tab of Account and Settings The Supplies on hand account has a $485 balance on November 30. The actual cost of supplies on hand on November 30 is $295.An adjusting journal entry should be made in November as follows: Select one: A. DR Supplies expense $190; CR Supplies on hand $190 B. DR Supplies on hand $295; CR Supplies expense $295 C. DR Supplies on hand $495; CR Supplies expense $495 D. DR Supplies expense $295; CR Supplies on hand $295 - SOLUTION A. DR Supplies expense $190; CR Supplies on hand $190 A company's QBO software is updated _______________. Select one: a. when the user clicks the Update Program link b. automatically by Intuit c. either automatically or on demand depending on the setting selected by the user. d. When the user purchases a new version. - SOLUTION b. automatically by Intuit The search tool link is located ________________. Select one: a. on the navigation bar b. by clicking Search on the Dashboard c. in the top left corner of the QBO website d. on the icon bar - SOLUTION d. on the icon bar The chart of accounts can be accessed ____________. Select one: a. through a link on the gear menu. b. through a link on the Dashboard. c. Through a link on the +New menu. d. By clicking Sales on the navigation bar and selecting the Chart of Accounts . - SOLUTION a. through a link on the gear menu. Match the following form (transaction type) with the appropriate transaction description: Journal Entry Check modifying the level of detail included on a report - SOLUTION expand or collapse set of links to the left of the display area of the Dashboard - SOLUTION navigation bar type associated with each account to identify where it should appear in the financial statements - SOLUTION account type set of links on the bar above the display area of the Dashboard - SOLUTION icon bar QuickBooks Online can be accessed through ___________. a. Safari b. Internet Explorer c. Google Chrome d. Any of the above - SOLUTION d. Any of the above Which QBO account type should be selected when setting up the general ledger account "Buildings"? (Assume the buildings are used as the corporate headquarters.) a. Other asset b. Property, plant & equipment c. Asset d. Fixed Asset - SOLUTION d. Fixed Asset Invoice forms can be accessed ________________. a. in the +New menu b. on the Customers tab of Sales c. on the Get things done tab of the Dashboard d. Invoice forms can be accessed in all of the above locations. - SOLUTION d. Invoice forms can be accessed in all of the above locations. Which of the following statements is false? a. General ledger accounts can be added to QBO by users. b. You can have more than one account set up as an "Accounts receivable (A/R)" account type in QuickBooks Online. c. You cannot make an account of account type "Expenses" a sub-account of an account of account type "Cost of Goods Sold." d. The chart of accounts is considered a "list" in QBO. - SOLUTION c. You cannot make an account of account type "Expenses" a sub-account of an account of account type "Cost of Goods Sold." In QBO, the transaction type for recording a sale on account is _____________. a. Sale b. Sales receipt c. Bill d. Invoice - SOLUTION d. Invoice