1. The quantity of inventory can be change by:

a.Selling an item by creating an invoice.

b.Entering a "Bill" to receive items into inventory.

c.Accepting a return/refund for a customer using the "Credit Memo" form.

d.All of the above

QUESTION 2

1. The Bill is a non-posting transaction. This means that until you receive against a purchase order on a purchase transaction like a cheque, the Bill will not post to your General Ledger.

True

False

QUESTION 3

1. Which of the following inventory item on the Products and Services list, that doesnottrack quantity?

a.Inventory

b.Non-Inventory

c.Service

d.Bundle

QUESTION 4

1. A category is a means of classifying the products you sell to customers.

True

False

QUESTION 5

1. When you enter a "Purchase Order" in QuickBooks for inventory items costing $2,000, which of the following journal entry is made to the account register (general ledger).

a.Debit Inventory $2,000 and credit Accounts Payable $2,000.

b.No journal entry is made, since the purchase order is a non-posting transaction.

c.Debit Cost of Goods Sold $2,000 and credit Inventory $2,000.

d.Debit inventory $2,000 and credit Bank - Chequing $2,000.

QUESTION 6

1. Cost of Goods Sold is an account that reflects the cost of materials and goods held in inventory and then sold. When you sell an item from your inventory, Cost of Goods Sold increases by the amount you paid for that item when you purchased it.

True

False

QUESTION 7

1. Which of the following best describe QuickBooks On-Line method to cost inventory?

a.The last units purchased (Last In) to be the first units sold (First Out) and QuickBooks will adjust your assets and Cost of Goods Sold (COGS) accordingly.

b.The average cost of an inventory item, equals the total cost of the items currently in stock, divided by the number in stock.

c.The first units purchased (First In) will be the first units sold (First Out) and QuickBooks will adjust your assets and Cost of Goods Sold (COGS) accordingly.

d.The next units purchased (Next In) to be the first units sold (First Out) and QuickBooks will adjust your assets and Cost of Goods Sold (COGS) accordingly.

QUESTION 8

1. A bundle is a way of grouping products and services that you often sell together. Bundles save time when you create sales transactions. Instead of entering each product or service as a separate line item, you just enter the bundle itself.

True

False

QUESION 9

1. In which of the following situation(s) would you want to adjust the inventory manually?

a.Your inventory item was damaged in the warehouse.

b.An inventory item was taken out to use as a sample to show to your customer.

c.You would like to adjust your records in QuickBooks to match your physical inventory count at year end.

d.All of the above

QUESTION 10

1. The Reorder Point is the maximum quantity of a particular inventory item that you want to have in stock at any given time.

True

False

QUESTION 11

1. After setting up classes, you must ensure that every income or expense transactions that you complete includes a class type. QuickBooks labels each transaction with the class you choose and then reports these classes in the Profit & Loss report.

True

False

QUESTION 12

1. When your company's sales exceed a certain level, e.g. $30,000 annually, you are required to register to collect the HST or GST.

True

False

QUESTION 13

1. Which of the following isnotincluded in the design option, when you are customizing a form?

a.When in doubt print it out.

b.Get choosy with your font.

c.Splash on some drawings.

d.Dive in with a template.

QUESTION 14

1. "Non-Category" column includes transactions that have not been assigned a class. You should review these transactions and add a class to each of these transactions. If you have a lot of information in this column, your reports may not be accurate.

True

False

QUESTION 15

1. QuickBooks makes it easy to communicate with your customers. You can email forms directly from QuickBooks making it easy for your customer view and pay their invoices.

True

False

QUESTION 16

1. Which of the following would not show up on a "Goods and Services / Harmonized Sales Tax Return"?

a.Installment and other annual filer payments.

b.Adjust Quantity/Value of inventory on hand

c.Adjustments (Sales)

d.Input tax credits (ITCs)

QUESTION 17

1. Which of the following form is not available to setup in the email default messaging?

a.Credit Memo

b.Purchase Order

c.Estimates

d.Refund Receipts

QUESTION 18

1. At the end of each month, QuickBooks automatically closes out your income and expense accounts to the Retained Earnings account. Therefore, you cannot make journal entries using the Journal Entry window.

True

False

QUESTION 19

1. Which form is not included in the new custom form style list?

a.Sales Receipts

b.Estimate

c.Invoice

d.Bill

QUESTION 20

1. Filing sales tax is a two-part process. First, prepare your sales tax return in QuickBooks. Second, close your filing period in QuickBooks and then record the payment to the Canada Revenue Agency (CRA).

1. True
2. False