Chapter 4

1. How are accounts organized in the Chart of Accounts by default? a. Numerically by account number b. Chronologically by creation date c. Alphabetically within their account type d. Numerically by account balance

2. Which form of business organization should you choose when creating a company if you are not sure which form applies? a. Sole proprietorship b. Non-profit c. Corporation d. Other

3. How can the opening balance of an account be edited once an account is created? a. Using the Account Register b. From Edit Account on the Activities list c. From the Account Information option on the Edit menu d. Using Opening Balances from the Company menu

4. Items that are not purchased, held in stock or tracked as inventory are known as: a. Sales Tax items b. Service items c. Zero-Inventory items d. Non-Inventory Part items

5. Who can change the settings on the Company Preferences tabs? a. The owner of the company b. Any user who can access the file c. The accounting manager d. The user indicated as an Administrator or External Accountant of the company file

6. Which of the following should you use to add General Ledger accounts when setting up a company? a. Company Snapshot b. Chart of Accounts c. Company Information from the Company menu d. Item List from the Lists menu

7. Which account is used as the offsetting account when opening balances are entered for Vendors? a. Uncategorized Expenses b. Opening Balances Equity c. Uncategorized Revenue d. Vendor Expenses

8. Which of the following accounts could be deleted? a. An account associated with a payroll item b. An account that has a current balance c. An account associated with transactions that have been closed d. An account with no current balance that has not been used in a transaction

9. What is the keyboard shortcut for deleting an account? a. DEL key b. Ctrl + D c. Ctrl + DEL d. Ctrl + T

10. Depreciation is a(n): a. Asset account b. Liability account c. Contra-asset account d. Expense account