1. When setting up a company file in QuickBooks, what does the Start Date signify?

A) The date the business was created

B) The first date of the companys fiscal year
C) The date the company purchased QuickBooks
D) The date from which you will be entering transactions in QuickBooks
2. In QuickBooks, linking income and expense accounts with tax lines does which of the following?
A) Helps keep your company profitable
B) Helps in preparing income taxes
C) Helps keep track of sales taxes you owe
D) Both B and C
3. Which of the following forms and windows could potentially be populated with information from the
Vendor list?
A) Purchase orders
B) Bills
C) Write Checks
D) All of the above
4. A customer has three warehouses and you are installing an overhead door at each location. The best
way to track this in QuickBooks would be to:
A) Set up each location as a separate customer
B) Set up a separate job for each location under the customer
C) Enter all work as one order under the customer
D) Use a custom field to track each location
5. Products you sell would appear on which of the following lists?
A) Vendor list
B) Employee list
C) Chart of Accounts
D) Item list
6. Which of the following might affect a bank account reconciliation?
A) Interest
B) Depreciation
C) Service charges
D) Both a and c
E) All of the above
7. When would you not want to use the Write Checks window when paying bills?
A) When paying sales tax
B) When paying payroll taxes
C) When using a handwritten check
D) When paying bills you track with Accounts Payable
E) None of the above
F) Both a and b
G) a, b, and d

8. Equity type accounts would be used to track which of the following?

A) Capital investments
B) Draws
C) Retained Earnings
D) All of the above
9. Which of the following would likely be considered a long-term liability?
A) Vehicle loan
B) Accounts payable
C) Rent
D) Credit card account
10. Which of the following tasks can you perform in the Pay Bills window?
A) Enter a partial payment on an outstanding bill
B) Make a payment using a credit card
C) Pay all outstanding bills
D) All of the above
11. You paid a vendor $1,000.00 through the Pay Bills window (using the Checking account). QuickBooks
automatically creates
A) Journal entry that: a Deletes the bill.
B) Shows $1,000.00 as a Credit in Accounts Payable and shows $1,000 as a Debit in the Checking
account.
C) Shows $1,000.00 as a Debit in Accounts Payable and shows $1,000 as a Credit in the Checking
account.
D) Shows $1,000.00 as a Debit in Accounts Payable and shows $1,000 as a Credit in the Accounts
Receivable
12. Once youve customized a preset report to meet your needs, how can you save your settings so you
dont have to customize the report each time you run it?
A) Choose Save Settings from the Report menu
B) Choose save Setting from the File menu
C) Click Memorize on the button bar
D Click Modify, and then choose Memorize
13. You placed an order with a vendor for inventory parts. The items have arrived, but you have not
received the bill yet. Which option should you choose from the Vendors menu?
A) Enter bills
B) Receive items and enter bill
C) Receive items
D) Enter bills for items received

14. You complete a physical inventory and discover that you have five more of a particular item than
show in QuickBooks. How do you update the inventory records in QuickBooks?

A) Complete the physical inventory worksheet

B) Enter an item receipt
C) Adjust the quantity using the Adjust Quantity/Value on Hand window
D) None of the above

15. Which of the following are QuickBooks payroll item types?

A) Compensation
B) Paid Time Off
C) Retirement Benefits
D) All of the above

16. In which report category would you find a list of open invoices?
A) Sales
B) Company & Financial
C) List
D) Customers & Receivables
17. Using cash basic accounting:
A) Income is not recorded until the customer pays the invoice.
B) Income is recorded even customer does not pays the invoice.
C) Income and expenses are recognized when transactions are created.
D) An expense is recorded when you pay a bill.
E) Both A and D
18. You can pay vendors by:
A) Recording a transaction in the check register.
B) Using Write Checks to record and print a check without using Accounts Payable.
C) Using Enter Bills to record a transaction using Accounts Payable and then using Pay Bills to pay open
bills.
D) All of the above
19. Which statement is true?
A) When you pay a bill, QuickBooks records the payment in a bank account (or credit card account)
and the Accounts Payable Account.
B) Bill payments increase the balance in your bank account and Accounts Payable account.
C) You apply discounts when you enter a bill.
D) You must use items to fill out a bill.
20. Which QuickBooks feature should you use to categorize income and expenses that span different
customers, vendors, accounts, and time periods?
A) Jobs
B) Class tracking
C) Customer types

D) Job types
E) All of the above
21. What should you do if the Beginning Balance field in the Begin Reconciliation dialog box doesnt
match the beginning balance on your bank statement?
A) Record a bank fee to make up the difference.
B) Record an adjustment to change the beginning balance in QuickBooks to match the bank statements
beginning balance.
C) Use the Discrepancy Report and/or Previous Reports to see what changed since the last
reconciliation. Fix the problem and then restart the reconciliation.
D) Enter a statement charge to adjust the beginning balance.
22. If a transaction amount in QuickBooks doesnt match the amount on your bank statement, which
method should you use to correct the amount?
A) On the Banking menu, choose Edit Transaction.
B) In the accounts register window, edit the transactions amount.
C) In the Reconcile window, click Go To, and then edit the transactions amount.
D) Ask the bank to change the amount in their records.
E) Both A and B
F) Both B and C
23. If you purchase products specifically for a customer or job, which type of item should you create for
those products?
A) Service item
B) Non-inventory Part item
C) Inventory item
D) Group item
24. Which type of transaction applies only to inventory?
A) Purchase order
B) Item receipt
C) Bill
D) Invoice
25. In an invoice, you can automatically markup billable expenses using the Markup Account option on
which tab of the Choose Billable Time and Costs window?
A) Items tab
B) Expenses tab
C) Time tab
D) All of the above

26. How can you determine whether or not a check has been cleared in QuickBooks?
A) A checkmark displays in the bank account register
B) The word cleared is stamped on the check in QuickBooks
C) All of the above
D) None of the above

27. Which sales form(s) should you use if a customer doesn't pay its balance in full?
A) Invoice
B) Sales receipt
C) Statement
D) Both A and C
E) All of the above
28. What method should you use to write off bad debt?
A) Create an item and account for bad debt and use them to create a credit memo that you can apply
to the past due invoice.
B) Void the past due invoice.
C) Create a credit memo for the bad debt amount and add it to a statement for the customer.
D) All of the above
29. When you sell an inventory item, which account(s) decrease in value?
A) Inventory income account
B) Inventory asset account
C) Cost of goods sold account
D) Expense account

30. Allow you to view and edit transactions in a single window.

A) Registers
B) Reports
C) Ledgers
D) Items