1. You need to switch someone from being an hourly W-2 worker to a salaried employee. How can you do that in QuickBooks?

1. Click Vendors and then double-click the vendor. Click the add to employees list button.
2. Click employees and double-click the employees name. Uncheck the box labeled use the time data to create paychecks and Save.
3. Click employees and double-click the employees name. Click payroll info and in the earnings section change their hourly information to salary and enter their salary in the amount field.
4. Click employees and double-click the employees name. Click employment info and then check the Salaried employee checkbox.

2. Which choice contains VALID reasons for an accountant to enter a general journal entry?

1. To enter depreciation, make year-end adjustments, correct errors, and to avoid using the built in forms (e.g. checks and invoices).
2. To enter depreciation, make year-end adjustments, and to avoid using the built-in forms (e.g. checks and invoices).
3. To make year-end adjustments, correct errors, and to avoid using the built-in forms (e.g. checks and invoices).
4. To enter depreciation, make year-end adjustments, and to correct errors.

3. Which three statements are correct related to credit memos?

1. Amounts issued on a credit memo can be issued as a refund to the customer account.
2. Amounts issued on a credit memo can be retained in the customer accounts and used to offset a future invoice.
3. Amounts issued on a credit memo can be immediately applied to an open bill from a vendor.
4. Credit memos reduce the overall balance due from a customer.
5. Credit memos always increase inventory balances.

4. Which of the following is NOT an advantage of entering a closing date?

1. You can restrict which users can edit transactions in a closed period.
2. QuickBooks warns you if you try to alter a transaction from a closed period, or enter a new transaction in a closed period.
3. You can assign a password to a closed period so that only those with the password can make changes to data in closed periods.
4. The closing date procedure moves your years Net income balance into Retained Earnings.

5. How do you enter opening balances into a new company file during the set-up process?

a. There isnt a way to do this during set up. An accounting professional can use Journal Entries and transactions to create opening balances later.

b. Use the Detailed Start and enter the balances in the Enter Opening Balance Wizard.

c. Use the Express Start and enter the balances in the Enter Opening Balance Wizard.

d. After you select Create Company File select Yes next to Would you like to enter opening balances?

6. What report displays the actions of each individual user in a company file?

1. User Log
2. There is no report for this, but you can see what each user has done in the window that QuickBooks opens when you select Company > Set up users and passwords
3. Audit Trail
4. Run the Transactions List by date report and then click customize report. Check the checkbox for last modified by and click Ok.