A bill from a vendor is considered a(n)

Select one: a. receivable. b. debit. c. asset. d. liability.

Question 2 Question text A cash purchase is recorded by

Select one: a. debiting Cash and crediting Asset/Expense. b. debiting Cash and crediting Accounts Payable. c. debiting Accounts Payable and crediting Cash. d. debiting Asset/Expense and crediting Cash.

Question 3 A reduction of Accounts Payable as the result of a return or an allowance by a vendor is referred to as

Select one: a. a debit memo. b. a credit memo. c. partial payment. d. a kickback.

Question 4 A transaction entered in the __________ will not be tracked through Accounts Payable or Vendor reports.

Select one: a. Enter Bills window (Credit option selected) b. Write Checks window c. Pay Bills window d. Enter Bills window (Bill option selected)

Question 5 Can you enter a new vendor in the Enter Bills window? If yes, how? If no, what must you do?

Select one: a. No, you must go back to New Company Setup to add a new vendor. b. No, you must return to the Vendor Center to add the vendor. c. Yes, you can click < Add New > at the VENDOR drop-down list. d. Yes, you can click Ctrl + N while in the Enter Bills window.

Question 6 Each of the following is a Vendors & Payables report except

Select one: a. Unpaid Bills Detail. b. Vendor Balance Detail. c. Average Days to Pay Summary. d. Vendor Contact List.

Question 7 For non-item purchases, such as expenses and non-inventory assets, the __________ at the Enter Bills window is used.

Select one: a. Credit button b. Select PO button c. Expenses tab d. Items tab

Question 8 For transactions recorded in the Write Checks window, __________ is the default credit posting account.

Select one: a. Retained Earnings b. Accounts Receivable c. Notes Payable d. Cash

Question 9 In a manual accounting system, all purchases of goods and services on account are first recorded in a multicolumn

Select one: a. purchases journal. b. general ledger. c. chart of accounts list. d. special ledger.

Question 10 In business, a __________ is someone from whom a company buys goods or services, either on account or for cash.

Select one: a. vendor b. purchaser c. customer d. client

Question 11 In QuickBooks' Pay Bills window, the Account field allows the user to

Select one: a. select the method of payment. b. enter the customer account number issued by the vendor. c. indicate the vendor account number into which the payment will be transferred. d. choose a bank account from which to make the payment.

Question 12 In QuickBooks, the __________ Center serves as the accounts payable subsidiary ledger for the company being paid.

Select one: a. Payroll b. Chart of Accounts c. Vendor d. Item

Question 13 In QuickBooks, the Pay Bills window is used to

Select one: a. enter an invoice for goods or services purchased on account. b. set up recurring bills. c. record the receipt of an outstanding accounts receivable. d. record the payment of an outstanding accounts payable.

Question 14 In QuickBooks, what should you do before entering transactions for a vendor?

Select one: a. delete the previous transactions for the vendor b. look up the vendor's tax identification number c. establish a file for the vendor in the Vendor Center d. pay all outstanding balances due

Question 15 In the Pay Bills window, the user has the option of doing all the following except

Select one: a. indicating the payment date that will appear on the check. b. selecting a payment method. c. sorting bills by due date, discount date, and vendor. d. paying multiple vendors with one check.

Question 16 In the Unpaid Bills Detail report, what is the purpose of the vertical dotted bar before each column heading?

Select one: a. It can be clicked to sort the report on the chosen column. b. It can be double-clicked to drill down to the source of the data. c. It can be clicked and dragged to change the column width. d. It represents a stylistic element of the report design.

Question 17 In the upper left corner of QuickBooks' Enter Bills window, there are options labeled Bill and Credit. When would you use the Credit option?

Select one: a. to create an invoice for a customer b. to enter a credit memo from a vendor c. to pay a credit card bill d. to establish a credit account for a customer

Question 18 QuickBooks cannot delete a vendor that has

Select one: a. a balance or that has been part of a transaction for the fiscal period. b. an active tax ID. c. granted the company a charge account. d. been established for more than one year.

Question 19 QuickBooks' Enter Bills window is equivalent to the __________ in a manual accounting system.

Select one: a. balance sheet b. general ledger c. purchases journal d. special ledger

Question 20 QuickBooks uses the default __________ account from the Chart of Accounts to post all open bill liabilities.

Select one: a. Cash - Operating b. Notes Payable c. Retained Earnings d. Accounts Payable

Question 21 Terms of Net 30 Days mean that Select one: a. payment is due within 30 days. b. payment is due on the 30th of the month. c. 30% of the bill is due upon receipt. d. the bill can be paid after 30 days.

Question 22 The list of all accounts a business uses is called the

Select one: a. general ledger. b. Customer Center. c. Chart of Accounts List. d. Vendor Center.

Question 23 The Pay Bills window is designed only for payments of __________ bills.

Select one: a. previously recorded b. recurring c. credit card d. overdue

Question 24 The Pay Bills window uses these two default general ledger posting accounts.

Select one: a. Accounts Payable and Cash b. Notes Payable and Accounts Payable c. Cash and Notes Payable d. Cash and Interest Income

Question 25 The Vendor Balance Detail report shows each of the following except

Select one: a. payments. b. credits. c. bills. d. due dates.

Question 26 This group of QuickBooks reports is especially useful in helping a company manage its liability payments, ensure timely and correct remittances, and control cash flow.

Select one: a. Sales reports b. Profit and Loss Statements c. Vendors & Payables reports d. Customers & Receivables reports

Question 27 To view the Journal report in QuickBooks, select __________ on the Reports menu and then click Journal.

Select one: a. Banking b. Sales c. Vendors & Payables d. Accountant & Taxes

Question 28 Unlike a purchase on account entered in the Enter Bills window, a cash purchase recorded in the Write Checks window does not use

Select one: a. a specific dollar amount. b. the Accounts Payable account. c. a Cash account. d. a vendor name.

Question 29 Use the Pay Bills window in QuickBooks to record a payment made in any of the following forms except

Select one: a. a cashier's check. b. an online payment. c. a check. d. a credit card.

Question 30 Vendor transactions are entered in all the following windows except the

Select one: a. Enter Bills window. b. Reference window. c. Pay Bills window. d. Write Checks window.

Question 31 What are the two subtabs in the Enter Bills window in QuickBooks?

Select one: a. Post Transaction and Expenses b. Reports and Post Transactions c. Expenses and Items d. Write Checks and Expenses

Question 32 What does QuickBooks do when you write a check in the Pay Bills window?

Select one: a. automatically increases (credits) the Accounts Receivable account b. automatically increases (credits) the Accounts Payable account c. automatically decreases (debits) the Accounts Payable account d. automatically decreases (debits) the Accounts Receivable account

Question 33 What happens when you insert a check mark in the Vendor is inactive box in the Edit Vendor window?

Select one: a. The vendor's name is no longer displayed in reports, but the vendor information is retained. b. The vendor is deleted from the Vendor Center. c. You can no longer enter transactions for the vendor, but the vendor will still be displayed in reports. d. The vendor's name is included in reports, and you can still enter transactions for the vendor.

Question 34 What is a purchase on account?

Select one: a. when a company receives a bill for goods or services from a vendor but plans to pay it at a later date b. when a company makes a purchase with a company credit card c. when an employee makes a company purchase with an individual credit card d. when a company makes a purchase with cash

Question 35 When entering vendor information in the New Vendor window, what happens if you exit the window before clicking OK?

Select one: a. Information for that vendor will be lost. b. Nothingthe information will be saved automatically. c. Information for all vendors will be lost. d. The information you entered in the last field will be lost.

Question 36 When setting up a new vendor in the Vendor Center, which is one of the default payment terms listed?

Select one: a. Net 120 b. 2.5% 15 Net 30 c. 5% 10 Net 30 d. Net 30

Question 37 When you enter a bill in the Enter Bills window, QuickBooks automatically updates all the following except the Select one: a. Customer Center. b. vendor's file in the Vendor Center. c. general ledger. d. Chart of Accounts List.

Question 38 Where are cash purchases recorded in QuickBooks?

Select one: a. Enter Bills window b. Accounts Payable account c. Write Checks window d. Pay Bills window

Question 39 Which of the following is not one of the items contained in the vendor's file?

Select one: a. payment terms b. vendor tax ID c. credit limit d. credit card information

Question 40 While reviewing reports, it is often helpful to see the originating transaction or document; you can do this by using a feature known as

Select one: a. roll up. b. zoom in. c. drill down. d. take apart.