1. Which form should be used to record customer prepayments (deposits)?

a. Record Deposits

b. Create Sales Receipts

c. Write Cheques

d. Receive Payments

2. How many days after the invoice date is the full amount of an invoice due if the terms

of sale are 1/10, n/30?

a. 1 day

b. 10 days

c. 30 days

d. Immediately

3. What discount would be applied for early payment of an invoice with sales terms of 1/10, n/30?

a. 1% b. 2% c. 10% d. 30%

4. What type of account is the Sales Discounts account? a. Contra-Revenue

b. Revenue

c. Contra-Expense

d. Asset

5. Which form should be used to enter a transaction involving a Purchase Discount?

a. Make General Journal Entries

b. Pay Bills

c. Enter Bills

d. Receive Bills

6. What form should be used to enter Vendor prepayments?

a. Write Cheques

b. Enter Bills

c. Purchase Orders

d. Pay Bills

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7. What are the steps for turning on Sales Estimates in a QuickBooks company file?

a. Open the Company menu, then choose Company Information and select the

Estimates checkbox

b. Open the Company Snapshot, then select the Estimates checkbox

c. Open the Edit menu, then choose Preferences. From the Jobs and Estimates

Company Preferences tab, click Yes under Do You Create Estimates?

d. From the Customer Center, select Sales Preferences, and then click the Yes button

under Estimates.

8. Which of the following represents the journal entry created when a credit is applied to a customer account?

a. Debit Bank Chequing

Credit Accounts Receivable

b. Debit Accounts Receivable

Credit Bank Chequing

c. Debit Revenue

Credit Accounts Receivable

d. No journal entry is created

9. What happens to the customers account in the Accounts Receivable ledger when a customer prepayment is entered for a sales estimate?

a. The account will be debited

b. The account will be credited

c. The account will be locked

d. The entry will have no effect on the account

10. How is an estimate made inactive?

a. Open the estimate and deselect the Estimate Active checkbox.

b. From the Estimates List, right-click on the estimate and choose Inactive.

c. From the Customer Center, delete the estimate from the Active List.

d. Estimates are made inactive by default as soon as they are used to generate an

invoice.

11. Which form should be used to record credit card purchases?

a. Enter Bills

b. Enter Credit Card Charges

c. Enter Purchase Orders

d. Credit Card Purchases

12. Which type of account is used to record credit card purchases? a. Expense

b. Asset

c. Liability d. Equity

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13. Which icon should you select from the Home window when reconciling and paying the business credit card bill?

a. Statements

b. Credit Card Charges

c. Reconcile

d. Pay Bills

14. Finance charges processed on overdue customer accounts are recorded in QuickBooks as:

a. New customer invoices

b. Credit memos on the customer accounts

c. Notes in the customer record

d. Additional charges on the original overdue invoice

15. Any customer payment on account should first be applied to:

a. Any overdue invoice

b. The most recent invoice

c. The invoice with the most current due date

d. Any outstanding finance charges

16. Which of the following reports should be printed out and used when reconciling a bank account?

a. Balance Sheet Detail

b. General Ledger Report for the Bank account

c. Transaction Journal

d. Trial Balance

17. Which of the following can be edited once a reconciliation has been recorded?

a. Cheques cleared

b. Deposit amounts

c. Deposit dates

d. Service charge amounts

18. What happens when a date is entered in QuickBooks that is past the closing date assigned to the company data file?

a. Year-end reports are automatically printed

b. A new company data file is created

c. Income and expense amounts are automatically transferred to the Retained Earnings account

d. Customer and Vendor accounts are set to zero

19. What should be entered in the ending balance field of a bank account reconciliation?

a. The closing or final balance from the bank statement

b. The total of all service and interest charges from the bank statement

c. The final balance for the bank account in the general ledger

d. The total of all uncleared cheques and deposits from the general ledger

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20. How would you make a correction to a previous tax remittance after the form has been filed with the Tax Authority?

a. Click the Adjust Return button from the File Sales Tax form

b. Find the appropriate File Sales Tax form and select Revert from the Edit menu c. Use the Previous button to display the tax remittance form and make the

appropriate corrections

d. Correct the amounts in the registers for the relevant tax accounts and adjust the

next return for the amount of the error.

21. If the Require Accounts option is turned off, sales transactions entered without a specified account will be posted to:

a. Revenue

b. Equity

c. Uncategorized Income

d. Uncategorized Equity

22. Which account type should be chosen for account used to record customer credit card receipts?

a. Bank

b. Bank Credit Card

c. Credit Card

d. Accounts Receivable

23. How are opening balances added for an expense account?

a. Using the Enter Opening Balances button on the Add New Account form

b. Using the Historical Information field on the Add New Account form

c. As an adjusting entry after the account has been created

d. By right-clicking the account in the Chart of Accounts and selecting Add Balance

24. How should the opening balances of contra-accounts be entered?

a. As a negative value

b. With a dollar sign

c. As a positive value

d. With parentheses around the value

25. Under which preference heading would you find the option to use account numbers?

a. Desktop View

b. Accounting

c. General

d. Integrated Applications

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26. What is the name of the item that is automatically added to the Item List when Finance Charge preferences have been set up?

a. Interest

b. Charges

c. Cust Chg

d. Fin Chg

27. The default due date assigned for bills is:

a. The end of the month

b. 30 days after receipt

c. Immediately

d. 10 days after receipt

28. Which type of account would normally be linked to items used to record merchandise purchased?

a. Liability b. Asset

c. Revenue d. Expense

29. By default, what are the items on the Item list sorted by?

a. Catalog number

b. Rate

c. Name

d. Unit of measure

30. Which item type should you choose for items such as finance charges or delivery and setup fees?

a. Service

b. Additional Fee

c. Non-Inventory Part

d. Other Charge

31. Employer payroll contributions are entered into which type of account?

a. Asset

b. Expense

c. Revenue

d. Retained Earnings

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32. What happens when the employee year-to-date amounts for statutory deductions reach the legislated annual amount limit?

a. The employer is required to turn off automatic deductions

b. The deductions are recorded into a separate account and then refunded to the

employee

c. The program automatically stops deducting those amounts

d. The government will send out a reminder to the employer to stop making

deductions

33. What is the employer premium amount for Employment Insurance (EI)?

a. 1.4 times the employee premium

b. An amount matching the employee premium

c. 2.2 times the employee premium

d. 50% of the employee premium

34. What is the employer contribution amount for Canada Pension Plan (CPP)?

a. 1.4 times the employee contribution

b. An amount matching the employee contribution

c. 2.2 times the employee contribution

d. 50% of the employee contribution

35. What type of account is the Employee Advances account? a. Asset

b. Liability c. Equity d. Expense

36. Payroll taxes are remitted to the:

a. Minister of Finance

b. Provincial Revenue Agency

c. Receiver General of Canada

d. Workers Compensation Board

37. How can you review a payroll journal entry?

a. Use the Previous and Next buttons in the Payroll Entry form

b. Select the Adjust Liabilities icon in the Employee Center

c. Bring the entry up in the General Journal

d. Use the Previous and Next buttons in the Write Cheques form

38. How can you void a paycheque if it was issued with an error?

a. Choose Void Pay Cheque from the Edit menu

b. Right-click the pay cheque in the Employee Center and select Void

c. Click the Void Paycheque icon in the Home window and select the appropriate

transaction to void

d. Paycheques cannot be voided

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39. How should vacation time be entered for an employee who receives regular hourly pay?

a. Type the amount of vacation pay in the Employee Summary

b. Click the Vacation button and enter the total amount of vacation pay

c. Choose Vacation Hourly Rate and enter the number of vacation hours

d. Choose the Vacation Pay icon in the Employee Centre

40. The report prepared for employees who have terminated their employment with the company is the:

a. Employee Earnings Summary

b. Employee Withholding Report

c. Employee TD1 Review List Report

d. Record of Employment Report

41. Which method of inventory valuation does QuickBooks use?

a. FIFO

b. Specific Invoice

c. LIFO

d. Average Cost (Weighted Average)

42. What type of account is the Inventory Losses account?

a. b. c. d.

43. If a.

b. c. d.

Liability Expense Contra-asset Asset

an error is made when adjusting inventory, it can be corrected by:

Using the Previous and Next buttons to display the original adjustment and then editing the incorrect entry

Completing a second adjustment that reverses and corrects the original adjustment Deleting the original adjustment and entering a new adjustment

Recording a sales or purchase invoice to increase or decrease the inventory amount

44. How do you cause QuickBooks to record a refund rather than a credit memo on the Create Credit Memos/Refunds form when processing a sales return?

a. Click the Refund button

b. Change the default bank account to Bank - Refund

c. Click the Use Credit to button and select Give Refund

d. Change the customer name to Refund

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45. When there is not enough of the component items on hand to build an assembly item, the Build Assemblies form will be marked:

a. Pending

b. Incomplete

c. To-Do d. Warning

46. Which of the following reports would display the number of items on order?

a. Inventory Valuation Detail Report

b. Item Detail Report

c. Physical Inventory Worksheet

d. Inventory Stock Status by Item Report

47. Which icon in the Company Section of the Home page should you click to adjust for inventory losses?

a. Adjust Quantity / Value on Hand

b. Inventory Activities

c. Enter Items

d. Receive Inventory

48. Before customizing an invoice form, you must:

a. Delete previous transactions that used the form

b. Link all required accounts to the form

c. Create a copy of the form

d. Remove all account associations

49. Which of the following accounts could be used in an inventory transaction, but not a service transaction?

a. Revenue

b. Accounts Receivable

c. Bank - Chequing

d. Cost of Goods Sold

50. What should you do at the end of every session?

a. Print the Sales reports

b. Change the session date

c. Rename the company data file

d. Back up the company data file