1. Each year employees are sent Form ______ to summarize gross wages and tax withholdings

for the year.

A. 1099

B. W-2

C. W-3

D. W-4

2. A company is required to withhold payroll taxes for:

A. Employees

B. Vendors

C. Subcontractors

D. All the choices are correct

3. All of the following automatically calculate payroll tax withholdings in QuickBooks except:

A. Basic Payroll

B. Assisted Payroll

C. Enhanced Payroll

D. All of the choices automatically calculate payroll tax withholdings

4. To turn on QuickBooks time tracking feature, the following steps must be completed:

A. Select QuickBooks Menu > Time Tracking

B. Select Edit > Preferences > Time and Expenses > Time Tracking

C. Select Employees > Payroll > Time Tracking

D. Select Employees > Payroll and Employees > Time Tracking

5. Which one of the following is paid by both the employee and company?

A. Federal income taxes

B. State income taxes

C. FICA

D. All the choices are correct

6. Which of the following is not a payroll report:

A. Form W-2

B. Form 1065

C. Form 944

D. Form 941

7. Which tax form summarizes payments made to subcontractors?

A. Form 940

B. Form 1022

C. Form 1099

D. W-28. Which of the following ways to track time is not supported by QuickBooks?

A. Time Single Activity

B. Weekly Timesheet

C. Time clock

D. Online Timesheets

9. What is the purpose of Federal Form 941?

A. Summarize the amount of unemployment tax paid and due by the company

B. Summarize the amount of federal income tax, Social Security, and Medicare

withheld from employee paychecks for the quarter

C. Summarize the amount of federal income tax, Social Security, and Medicare

withheld from employee paychecks for the year

D. Summarize all your W-2 forms

10. The order of the steps in the accounting cycle includes:

A. Adjusted Trial Balance, financial reports, adjusting entries, Trial Balance

B. Adjusted Trial Balance, adjusting entries, financial reports, Trial Balance

C. Trial Balance, adjusting entries, Adjusted Trial Balance, financial reports

D. Trial Balance, financial reports, adjusting entries, Adjusted Trial Balance

11. What is an asset?

A. What remains after the liabilities are satisfied

B. What a company owes

C. What a company owns

D. The excess of revenues over expenses

12. An accounting period may be:

A. One quarter

B. One month

C. One year

D. All the choices are correct

13. Adjusting entries should be made:

A. Before preparing an Adjusted Trial Balance

B. After preparing financial statements

C. After preparing an Adjusted Trial Balance

D. Before preparing a Trial Balance

14. To prepare a Trial Balance, select:

A. Reports Center > Accountant & Taxes

B. Company Center > Company & Financials

C. Reports Center > Company & Financials

D. Company Center > Accountant & Taxes15. To print an Adjusted Trial Balance, select:

A. Reports Center > Accountant & Taxes

B. Company Center > Company & Financials

C. Reports Center > Company & Financials

D. Company Center > Accountant & Taxes

16. Prepaid items for which adjusting entries may be necessary include all of the following

except:

A. Prepaid insurance

B. Prepaid Rent

C. Accrued Interest

D. Office Supplies

17. Adjusting entries for unearned items typically include which of the following related types

of accounts:

A. Revenue and Liability accounts

B. Revenue and Asset accounts

C. Expense and Liability accounts

D. Expense and Asset accounts

18. Adjusting entries for prepaid items typically include which of the following related types of

accounts:

A. Revenue and Liability accounts

B. Revenue and Asset accounts

C. Expense and Liability accounts

D. Expense and Asset accounts

19. To prepare the Profit & Loss report, select:

A. Reports Center > Company & Financials

B. Reports Center > Accountant & Taxes

C. Company Center > Company & Financials

D. Company Center > Accountant & Taxes

20. Examples of management reports for internal decision making include all of the

following except:

A. Form 1099

B. Cash Budget

C. Cash Forecast

D. Accounts Receivable Aging Summary

21. To prepare the entire Journal, select:

A. Reports Center > Accountant & Taxes > Journal

B. Company Center > Company & Financials > Journal

C. Reports Center > Company & Financials > Journal

D. Company Center > Accountant & Taxes > Journal22. Which one of the following classifications is found on the Statement of Cash Flows?

A. Cash Flows from Operating Activities

B. Cash Flows from Purchasing Activities

C. Cash Flows from Owner's Activities

D. Cash Flows from Selling Activities

23. What is owner's equity?

A. What a company owes

B. What remains after liabilities are satisfied

C. What a company owns

D. None of the choices are correct

24. On the Statement of Cash Flows, cash inflows and outflows to and from investors and

creditors are categorized as cash flows from:

A. Investing activities

B. Financing activities

C. Owner activities

D. Operating activities

25. The Profit & Loss Statement lists:

A. Assets and Expenses

B. Assets and Liabilities

C. Net Income and Owner's Equity

D. Income and Expenses

26. The Statement of Cash Flows lists:

A. Operating, Investing, and Financing Activity

B. Assets, Liabilities, and Owner's Equity

C. Income, Expenses, Liabilities

D. Gains, Losses, and Net Income

27. The Income Tax Preparation report:

A. Summarizes income and expenses that should be listed on a business income

tax return

B. Lists the assigned tax line for each account

C. Provides detailed information about the income and expenses

D. All the choices are correct

28. Providing information to external users for decision making is the purpose of which of the

following?

A. Management reports

B. Tax forms

C. Financial statements

D. Inventory reports29. Providing information to internal users for decision making is the purpose of which of the

following?

A. Management reports

B. Tax forms

C. Financial statements

D. Vendors list

30. Cash inflows and outflows related to acquisition and disposal of long-term assets are

categorized as cash flows from:

A. Investing activities

B. Financing activities

C. Sales activities

D. Operating activities

31. Which tax form would you select for a Subchapter S corporation?

A. Form 1120

B. Form 1120S

C. Form 1040

D. Schedule S

32. To create a new company data file in QuickBooks, use the:

A. Company Menu > New Company

B. Company section of the Home Page > New Company

C. File Menu > New Company

D. File Menu > Open or Copy Company

33. When setting up a new company, QuickBooks automatically creates:

A. Customers List

B. Vendors List

C. Chart of Accounts

D. Employee List

34. To edit an account in the Chart of Accounts:

A. From the Company Center > Edit Chart of Accounts

B. From the Chart of Accounts window > Account > Edit Account

C. From the Chart of Accounts window > Account > New Account

D. From the Company Menu > New Account

35. Which icon does not appear in the Vendors section for service companies that do not sell

inventory?

A. Purchase Orders

B. Pay Bills

C. Enter Bills

D. All the choices are correct

36. The Vendors List contains information about:

A. Addresses, contacts and phone numbers of customers

B. Addresses, contacts and phone numbers for suppliers

C. Quantities and prices of items on hand

D. All the choices are correct

37. Which tax form would you select for a Corporation?

A. Form 1120

B. Form 1120S

C. Form 1065

D. Form 1040S

38. An account's tax line determines where QuickBooks lists the account balances on the:

A. Income Statement

B. Statement of Cash Flows

C. Income Tax Summary Report

D. Balance Sheet

39. QuickBooks creates a Chart of Accounts for your company based on:

A. Fiscal or calendar year

B. Industry type

C. Federal ID Tax number

D. Company address

40. The following are examples of possible memorized transactions except:

A. Rent payments

B. Special order for a customer

C. Insurance payments

D. Utility bills

41. Sales on account are recorded using the _________ window.

A. Make Deposits

B. Sales Receipts

C. Create Invoices

D. Receive Items

42. When creating a budget in QuickBooks, you can:

A. Create a budget that increases each monthly amount by a specific percentage

B. Create a budget from previous year's actual data

C. Create a budget from scratch

D. All the choices are correct43. Which QuickBooks feature would you use to prepare a bid for a potential customer?

A. Progress Billing

B. Enter Bills

C. Estimates

D. Invoice

44. A credit card payment received against/on an open invoice would be recorded using the:

A. Statements icon in the Customers section of the Home Page

B. Invoices icon in the Customers section of the Home Page

C. Receive Payments icon in the Customers section of the Home Page

D. Credit Card icon in the Banking section of the Home Page

45. The audit trail lists:

A. All deleted transactions

B. All changes to transactions

C. User ID of person entering transactions

D. All the choices are correct

46. To create an audit trail report:

A. Select Reports Center > Accountant & Taxes > Audit Trail

B. Select Reports Menu > Company & Financials > Audit Trail

C. Select the Audit Trail icon in the Company Center

D. Select the Audit Trail report from the Company section of the Home Page

47. For long-term projects that are to be billed as each stage of the project is complete, the

QuickBooks _________ feature should be used.

A. Progressive Projects

B. Long Term Projects

C. Progress Billing

D. Projects Billing

48. In QuickBooks, budget types include:

A. Profit & Loss

B. Balance Sheet

C. All the choices are correct

D. None of the choices are correct

49. Progress Invoicing is turned on by going to Edit > Preferences > ____________

A. Bills

B. Jobs and Estimates

C. Sales and Customers

D. Time and Expenses50. If the Estimates icon does not appear on your screen in QuickBooks, select:

A. Edit Menu > Preferences > Jobs and Estimates > Company Preferences

B. Customers Menu > Jobs > Estimates

C. Company Menu > Estimates > Preferences

D. Company Menu > Preferences > Estimates

51. The Allowance Method for bad debts:

A. Should be used if uncollectible accounts have a material effect on the

company's financial statements used by investors and creditors

B. Complies with GAAP

C. Estimates bad debt expense and establishes an allowance or reserve for

uncollectible

D. All the choices are correct

52. Which of the following accountant versions can be used with QuickBooks Online?

A. QuickBooks Desktop Accountant

B. QuickBooks Pro Accountant

C. QuickBooks Online Accountant

D. QuickBooks Enterprise Accountant

53. Which of the following accountant versions can be used with QuickBooks Desktop?

A. QuickBooks Desktop Accountant

B. QuickBooks Pro Accountant

C. QuickBooks Online Accountant

D. QuickBooks Enterprise Accountant

54. Which one of the following QuickBooks versions changes on an ongoing basis with changes

rolled out throughout the year?

A. QuickBooks Desktop

B. QuickBooks Pro

C. QuickBooks Online

D. QuickBooks Enterprise

55. Which one of the following Accountant versions changes on an ongoing basis with changes

rolled out throughout the year?

A. QuickBooks Desktop Accountant

B. QuickBooks Pro Accountant

C. QuickBooks Online Accountant

D. QuickBooks Enterprise Accountant

56. Which one of the following QuickBooks versions are issued new once a year?

A. QuickBooks Online

B. QuickBooks Online Accountant

C. QuickBooks Online Plus

D. QuickBooks Desktop57. Advantages of using QuickBooks Desktop versus QuickBooks Online include the following:

A. Anytime, anywhere access through a browser

B. Additional features, functionality, and versions for specific industries

C. Ability for accountant to access client QuickBooks using a browser

D. None of the choices are correct

58. Advantages of using QuickBooks Online versus QuickBooks Desktop include the following:

A. Anytime, anywhere access through a browser

B. Additional features, functionality, and versions for specific industries

C. User control over backups and access to backup data files

D. None of the choices are correct

59. Which of the following QuickBooks is designed for mid-size companies:

A. QuickBooks Online

B. QuickBooks Pro

C. QuickBooks Premier

D. QuickBooks Enterprise

60. When setting up a new employee, where do you get their filing status and allowances

information?

A. Form W-9

B. Form W-4

C. Form W-3

D. Form W-2