__________ are the summaries of the financial information of a company.

Select one:

a. Financial statements

b. Special journals

c. General journals

d. Bank statements

Question 2

At the end of the month in a manual accounting system, transactions are posted from the general journal to the

Select one:

a. income statement.

b. balance sheet.

c. trial balance.

d. general ledger.

Question 3

In accounting, a business event or activity involving money is called

Select one:

a. posting.

b. a journal.

c. a transaction.

d. accounting.

Question 4

In the No Company Open window, the options include

Select one:

a. Create a new company, Open an existing company, and Back up a company file.

b. Create a new company, Open or restore an existing company, and Open a sample file.

c. Create a new company, Restore an existing company, and Back up a company file.

d. Create a new company, Delete an existing company, and Edit an existing company.

Question 5

In which level of operations in QuickBooks do you enter bills, write checks, create invoices, and receive payments?

Select one:

a. Reports

b. Activities

c. Lists/Centers

d. New Company Setup

Question 6

__________ is the process of recording, summarizing, and presenting a company's financial information.

Select one:

a. Financing

b. All of the choices are correct.

c. Accounting

d. Reconciling

Question 7

Lists and Centers in QuickBooks are generally used for

Select one:

a. displaying and printing an assortment of reports.

b. recording data about customers, vendors, and employees.

c. backing up the QuickBooks company file.

d. recording daily business activities.

Question 8

Operations conducted by QuickBooks can be organized into four categories, or levels. Which of the following is not one of the four levels of operation, according to the description in Chapter 1?

Select one:

a. Closing Process

b. Reports

c. Activities

d. Lists/Centers

Question 9

The document in which financial activities are initially recorded chronologically is the

Select one:

a. trial balance.

b. general ledger.

c. income statement.

d. general journal.

Question 10

The first level of operation within QuickBooks

Select one:

a. is creating and setting up a new company file.

b. preparing the financial statements.

c. involves recording transactions.

d. involves updating the appropriate accounting reports.

Question 11

The general ledger is

Select one:

a. a special journal.

b. one of a company's financial statements.

c. a backup file.

d. the document in which transactions are summarized by account.

Question 12

The main menu bar in QuickBooks includes

Select one:

a. Company, Customers, Vendors, Employees, Banking, and Reports menus.

b. New Company, Open or Restore Company, and Back Up Company menus.

c. the company name and the Home page.

d. only the File and Help menus.

Question 13

The most common financial statements are the

Select one:

a. income statement and the balance sheet.

b. trial balance and the general ledger.

c. customer report and the vendor report.

d. general ledger and the general journal.

Question 14

The multi-user mode in QuickBooks allows up to __________ users to access a company file at the same time.

Select one:

a. five

b. three

c. two

d. The number is limited only by the number of user licenses purchased.

Question 15

The name of the open company file appears in the

Select one:

a. main menu bar.

b. left icon bar.

c. home page bar.

d. title bar.

Question 16

The purpose of the trial balance is to confirm that the __________ is in balance.

Select one:

a. general journal

b. balance sheet

c. general ledger

d. special journal

Question 17

To change the company name, click __________ from the main menu bar and then click My Company from the drop-down menu.

Select one:

a. Edit

b. Company

c. Lists

d. File

Question 18

To facilitate the recording of similar transactions in a manual accounting system, which special journals are typically used?

Select one:

a. purchases journal, sales journal, cash receipts journal, cash payments journal

b. general journal and cash journal

c. company journal, customer journal, vendor journal

d. general journal, general ledger, check register

Question 19

To switch to other versions or editions of QuickBooks while in the Premier Accountant Edition, click __________ from the main menu bar and then click Toggle to Another Edition from the drop-down menu.

Select one:

a. File

b. Accountant

c. Company

d. Edit

Question 20

To update QuickBooks, click __________ from the main menu bar and then click Update QuickBooks Desktop from the drop-down menu.

Select one:

a. Accountant

b. Company

c. File

d. Help

Question 21

To view the edition and release number of QuickBooks, use the

Select one:

a. Accountant menu.

b. F3 function key or Ctrl + 2 on the keyboard.

c. Company menu.

d. F2 function key or Ctrl + 1 on the keyboard.

Question 22

What are the four levels of operation within QuickBooks as defined in Chapter 1?

Select one:

a. New Company Setup, Lists/Centers, Activities, and Reports

b. Transactions, Lists/Centers, Activities, and Reports

c. Transactions, Journals, Ledgers, and Reports

d. New Company Setup, Lists/Centers, Transactions, and Reports

Question 23

When making a backup copy of a company file, QuickBooks automatically assigns the extension __________ and condenses the file.

Select one:

a. .QFB

b. .BQB

c. .QBB

d. .QQB

Question 24

When restoring a backup copy in QuickBooks, what happens if you try to restore a file with a name that already exists?

Select one:

a. The existing file is overwritten without warning.

b. A warning appears asking you whether you want to replace the existing file.

c. The backup is restored to the chosen name but with a "1" appended to the file name.

d. A warning appears, and you are forced to type in a new name.

Question 25

When the No Company Open window is displayed, what information is contained in the list box?

Select one:

a. a series of hyperlinks to help topics

b. a list of previously opened company files

c. instructions for starting and running the Help tutorial

d. report templates that can be used when creating a new company file

Question 26

Which is the proper flow of financial information through an accounting system?

Select one:

a. financial statements, general journal, general ledger, trial balance

b. trial balance, general journal, general ledger, financial statements

c. general ledger, general journal, trial balance, financial statements

d. general journal, general ledger, trial balance, financial statements

Question 27

Which of the following are the only two options available on the main menu bar when the No Company Open window is showing?

Select one:

a. Accountant and Company

b. File and Help

c. Preferences and Reports

d. View and Lists

Question 28

Which of the following commands is not available from the File drop-down menu?

Select one:

a. Open or Restore Company

b. New Company

c. Back Up Company

d. Convert Company from Another Program

Question 29

Which of the following common business activities requires recording in a company's accounting records?

Select one:

a. purchasing and selling merchandise

b. processing payroll

c. All of these activities require recording.

d. paying bills

Question 30

Which of the following extensions is automatically assigned to a company file that has been restored in QuickBooks?

Select one:

a. .QBN

b. .QBB

c. .QBW

d. .QBR

Question 31

Which of the following information is not available in the Product Information window?

Select one:

a. user licenses

b. expiration date

c. product number

d. license number

Question 32

Which of the following is an available option at the When do you want to save your backup copy? page of the Create Backup window?

Select one:

a. All of the choices are correct.

b. Save it now and schedule future backups

c. Only schedule future backups

d. Save it now

Question 33

Which of the following is an equity account?

Select one:

a. Cash

b. Retained Earnings

c. Fees Earned

d. Inventory

Question 34

Which of the following is not a correct statement?

Select one:

a. You change the company name in the My Company window. The company name then appears in the title bar and in the heading of reports.

b. QuickBooks automatically assigns a .QBW file name extension to denote the working copy of a company file.

c. You do not have to use the Restore command to open a backup copy of a company file.

d. Restoring a backup file is a two-step process: first, determine which backup copy to open; second, indicate where to restore the backup copy to.

Question 35

Which of the following is not an asset account?

Select one:

a. Accounts Receivable

b. Cash

c. Inventory

d. Capital and Drawing

Question 36

Which of the following is not an option at the What type of file do you want to open or restore? page of the Open or Restore Company window?

Select one:

a. Convert an Accountant's Copy Transfer File

b. Use a different version or edition of QuickBooks to open or restore

c. Open a company file

d. Restore a company file

Question 37

Which of the following is true of reports created in QuickBooks?

Select one:

a. Management reports, accounting reports, and financial statements can be generated.

b. All reports can be customized according to the user's needs.

c. All of the choices are correct.

d. Data entered in Lists and Centers will be automatically updated in the reports.

Question 38

Which statement about QuickBooks is false?

Select one:

a. Multi-user mode is a setting that allows up to five users to access a company file at the same time, each on their own computer.

b. Single-user mode is a setting that allows only one user on a single computer to access a company file.

c. A company file is automatically backed up when you exit the program.

d. QuickBooks allows you to restore from a portable file.

Question 39

Which statement is not correct?

Select one:

a. In accounting, every transaction that involves money must be recorded.

b. QuickBooks identifies transactions by business function: vendors, customers, employees, and banking.

c. In QuickBooks, daily business activities are recorded in special journals.

d. Behind the scenes in QuickBooks, the software updates the appropriate accounting reports.

Question 40

With a computerized accounting software package, as business activities are recorded,

Select one:

a. transactions are considered final and cannot be changed.

b. the company file is backed up.

c. the general journal entry is automatically recorded in future periods as a recurring transaction.

d. all necessary reports are instantly prepared.