1

1.Below are the two steps used to track accounts payable in QuickBooks, the third step is optional.

a)Deferred Charges - Enter Bill - Print Bill Payment Cheques

b)Enter Bill - Pay Bill - Print Bill Payment Cheques

c)Receive Inventory - Enter Bill - Pay Bill

d)Deferred Charges - Receive Inventory - Enter Bill

2

1.The benefits to tracking accounts payable are:

a.You can keep track of what you owe suppliers at any time by reviewing the AP reports.

b.It helps you avoid entering duplicate bills for the same vendor.

c.It gives you the ability to track expenses in the correct period.

d.All of the above

3

1.If you need to keep track of Accounts Payable, each of your suppliers must be set up on the Suppliers list.

a)True

b)False

4

1.Exclusive of Tax is when the price or cost of items shown in the Amount column includes sales tax (gross price). Sales tax is included in each of the amounts (line, subtotal, and total) of the sales form.

a)True

b)False

5

1.QuickBooks uses the Suppliers list to store information about the people and companies. Setting up your suppliers on the Suppliers list allows you to keep track of how much you spend with each supplier over a period of time. Which of the following information is not likely to be found on the list?

a.Terms

b.Credit Limit

c.Billing Rate

d.Default expense account

6

1.QuickBooks includes settings to help you avoid making duplicate entries in your Accounts Payable. To turn this setting on click on:

a.Gear, Account and Setting, Advanced, Other Preferences.

b.Expense (Left), Suppliers, Gear, Other Preference

c.Accountant Tools, Tool, Reports Options, Other Preference

d.Gear, Lists, All Lists, Suppliers, Other Preference

7

1.Use the cheque form if you are writing a cheque to pay your supplier, it must be accompanied by a bill. This could include recording a handwritten cheque or one a cheque to be printed later.

a)True

b)False

8

1.Which of the following arenotpotential payment methods on the 'Pay Bills' form, Payment Account (Detail Type) in QuickBooks?

a.Money Market

b.Rents Held in Trust

c.Cheque payment

d.Payment in kind

9

1.After paying bills, the A/P Aging Report will reflect the payments made and lower your Accounts Payable balance.

a)True

b)False

10

1.The Bill No. field is an important because QuickBooks Online lets you search for this number. This makes it easy to find information about Supplier bills in the accounting system.

a)True

b)False

11

1.The Balance sheet accounts track your assets, liabilities, and equity. Your balance sheet is a snapshot of your company's financial position at any point in time.

a)True

b)False

12

1.Which of the following wouldnotlikely be considered a "Current Asset"?

a.Inventory

b.Computer

c.Reimbursable expense

d.Accounts Receivable

13

1."Accumulated depreciation" is typically what kind of account in QuickBooks?

a.A subaccount of a fixed asset account

b.A subaccount of a current asset account

c.An expense account

d.A subaccount of a liability account

14

1.If your business is buying or selling goods and services outside of Canada you may choose to enable the multicurrency feature in QuickBooks. After it's enabled QuickBooks create and stores a list of currencies on the Currency List.

a)True

b)False

15

1.When setting up balance sheet accounts you need to enter the Default Tax Code and opening balances. The opening balance field is used when you're setting up a new account in the Chart of Accounts and cannot be adjusted after the setup.

a)True

b)False

16

1."Retained Earnings" is:

a.The accumulation of a company's net income or loss from its start date

b.The amount of money that a business retains for paying employees

c.The earnings from non-essential business services

d.The amount of interest saved from paying off a loan early

17

1.Which of the following would not decrease the value a company's equity?

a.Net loss for the fiscal year

b.Paying corporate dividends

c.Owner draws money out of company

d.Company takes out a loan to purchase an asset

18

1.It is not necessary to setup the fixed asset accounts before you record the purchase the equipment. When you enter the purchase transaction using a bill, cheque or expense transaction, you can setup the fixed accounts at the same time.Entering the purchase transaction using this method will add a balance to the fixed asset account.

a.Net loss for the fiscal year

b.Paying corporate dividends

c.Owner draws money out of company

d.Company takes out a loan to purchase an asset

19

1.You can customize the display of the Chart of Accounts by clicking the Gear icon on the Chart of Accounts. Select the columns to display or deselect the columns to remove them from the Chart of Accounts.

a)True

b)False

20

1. In QuickBooks, the general category of expenses is called a "parent account." The more detailed categories that are grouped under the parent account are called subaccounts. Subaccounts let you track several related types of income or expenses independently yet keep them all under the "umbrella" of a single parent account

a)True

b)False