QuickBooks Test

Time Tracking in QuickBooks cannot be used to complete which task?

TO FLAG WHEN YOU NEED MORE STAFF FOR A PROJECT

TO TRACK THE COST OF AN EMPLOYEE'S GROSS PAY BY JOB

TO PROVIDE THE HOURS AN EMPLOYEE WORKED ON A PAYCHECK

TO INVOICE A CUSTOMER FOR TIME SPENT ON THE JOB

Which two accounts are typically affected by Payroll Items when using the Payroll feature?

PAYROLL ACCRUALS AND PAYROLL TAXES

PAYROLL SALARY AND PAYROLL TAXES

PAYROLL LIABILITIES AND PAYROLL ACCRUALS

PAYROLL LIABILITIES AND PAYROLL EXPENSES

What is the easiest way to set up multiple companies, with the same owner, in QuickBooks?

USE THE ADVANCED/DETAILED SETUP TO GO THROUGH THE EASYSTEP INTERVIEW FOR EACH COMPANY, CREATING A SEPARATE COMPANY FILE FOR EACH.

USE THE ADVANCED/DETAILED SETUP TO GO THROUGH THE EASYSTEP INTERVIEW FOR THE OLDEST COMPANY, THEN CLICK FILE > ADD ADDITIONAL BUSINESS AT THE END OF THE INTERVIEW.

PURCHASE A SEPARATE QUICKBOOKS LICENSE FOR EACH COMPANY. YOU WILL CREATE DIFFERENT ICONS FOR EACH COMPANY ON YOUR DESKTOP.

SET UP CLASSES FOR EACH COMPANY WITHIN THE PARENT COMPANY FILE. THIS WILL ALLOW YOU TO PRINT FINANCIAL STATEMENTS FOR EACH COMPANY.

During the EasyStep Interview, which features can you turn on and off?

SALES TAXES, INVENTORY, AND PROGRESS INVOICING

PAYROLL, LISTS, AND PROGRESS INVOICING

JOBS, PAYROLL, AND LISTS

LISTS, INVENTORY, AND PROGRESS INVOICING

On your QuickBooks Home Page, which of the following features is NOT associated with the Employee section?

WRITE CHECKS

ENTER TIME > PAY PAYROLL LIABILITIES > PROCESS PAYROLL FORMS > PRINT LIABILITIES REPORT

PROCESS PAYROLL FORMS

PAY PAYROLL LIABILITIES

Which of the following would be considered a current asset?

MACHINERY AND EQUIPMENT

ACCUMULATED DEPRECIATION

CASH IN CHECKING

VEHICLE ASSET

What is the purpose of using subaccounts in the Chart of Accounts?

THEY OVERRIDE THE QUICKBOOKS GROUPING SO YOU CAN BETTER CUSTOMIZE YOUR CHART OF ACCOUNTS.

THEY ALLOW YOU TO TRACK DEPARTMENTS OR LOCATIONS IN A MORE EFFICIENT MANNER.

THEY ALLOW YOU TO TRACK FINANCES IN MORE DETAIL BY GROUPING ACCOUNTS LOGICALLY AND SHOWING A SUBTOTAL FOR THOSE ACCOUNTS.

THEY ALLOW YOU TO SHOW DIFFERENT ACCOUNT TYPES TOGETHER IN ONE SECTION OF A REPORT.

What is the best way to track bills in QuickBooks to manage your cash flow?

KEEP YOUR BILLS IN A FILE BY DUE DATE. EACH DAY, PREPARE CHECKS FROM THE WRITE CHECKS WINDOW FOR THE BILLS THAT ARE DUE.

ENTER A BILL AND THEN USE THE PAY BILLS WINDOW TO PREPARE CHECKS WHEN THE BILLS ARE DUE.

KEEP AN EXCEL WORKBOOK LISTING THE DUE DATES OF YOUR BILLS. USE THE WRITE CHECKS WINDOW TO PREPARE CHECKS WHEN THE BILLS ARE DUE.

ENTER A BILL AND THEN USE THE WRITE CHECKS WINDOW TO PREPARE CHECKS WHEN THE BILLS ARE DUE.

What basis of accounting is used to record revenues and expenditures into the period in which they were incurred?

ACCRUAL AND CASH

CASH

HYBRID

ACCRUAL

Where does QuickBooks get the billable time and costs information when you invoice for time and costs?

FROM THE BILLABLE COSTS UPLOADED FROM AN EXCEL WORKBOOK

FROM THE BILLABLE TIME ENTERED ON TIMESHEETS AND/OR BILLABLE COSTS ENTERED THROUGH CHECKS AND BILLS

FROM THE BILLABLE TIME ENTERED ON TIMESHEETS

FROM YOU MANUALLY ENTERING THE LINE ITEMS ON THE INVOICE

What does the Accounts Payable account track?

ALL OUTSTANDING CURRENT LIABILITIES

ALL OUTSTANDING LONG-TERM LIABILITIES

MONEY YOU OWE TO VENDORS

MONEY CUSTOMERS NEED TO PAY YOU

What is an effective way to restrict users from being able to change, delete, or add a transaction after reports have been run?

START A NEW COMPANY FILE AFTER EACH FISCAL YEAR END.

CHANGE THE FISCAL YEAR IN THE COMPANY INFORMATION WINDOW.

SET A CLOSING DATE.

SELECT "RESTRICT ENTRY AFTER THIS DATE" FOR EACH USER.

Why would you hide or collapse subaccounts on a report?

DOING SO TEMPORARILY HIDES DETAILS WHILE VIEWING ONLY THE PARENT ACCOUNTS.

SUBACCOUNTS CANNOT BE HIDDEN, AS THEY WILL BE LOST ONCE THE REPORT IS COLLAPSED.

IF YOU WANT TO EMAIL THE REPORT, THEN SUBACCOUNTS NEED TO BE COLLAPSED.

REPORTS CAN BE SENT TO EXCEL ONLY IN THE COLLAPSED FORMAT.

How do you add a new account to the Chart of Accounts from the Chart of Accounts window?

CLICK NEW > ACCOUNT.

CLICK ADD > ACCOUNT.

CLICK ADD > NEW ACCOUNT.

CLICK ACCOUNT > NEW.

What is the principal of a loan?

INDIVIDUAL TAKING OUT THE LOAN

TOTAL AMOUNT OF INTEREST ON THE LOAN

BANK PROVIDING THE LOAN

OUTSTANDING BALANCE

You are setting up QuickBooks for the first time for a company that was established in 2001. During the Advanced/Detailed Setup, what should you enter as the start date?

YOU DON'T NEED TO ENTER A START DATE. QUICKBOOKS WILL AUTOMATICALLY ASSIGN IT WHEN YOU BEGIN ENTERING DATA.

YOU DON'T NEED TO ENTER A START DATE. QUICKBOOKS AUTOMATICALLY ASSIGNED THE START DATE WHEN YOU CREATED THE COMPANY.

ENTER "JANUARY 1, 2001", SINCE THE COMPANY HAS BEEN IN BUSINESS SINCE 2001.

THE DATE ON WHICH YOU PLAN TO BEGIN USING QUICKBOOKS.

What is the best way to record a sale when the customer pays at the time of the sale?

CASH SALE JOURNAL ENTRY

INVOICE

STATEMENT

SALES RECEIPT

What are the main sections of the Profit and Loss report?

INCOME, EXPENSES, AND CASH

INCOME, COST OF GOODS SOLD, AND EXPENSES

INCOME, EXPENSES, AND ASSETS

ASSETS, LIABILITIES, AND STOCKHOLDER'S EQUITY

Only the administrator has the ability to do which of the following?

MERGE ENTRIES ON LISTS.

PREPARE PAYROLL.

ADD NEW USERS OR MODIFY THEIR ACCESS PRIVILEGES.

BACK UP THE DATA FILE.

What account does QuickBooks use to temporarily hold payments you receive from customers before you create your bank deposit?

CHECKS RECEIVED

CUSTOMER PAYMENTS

UNDEPOSITED FUNDS

CASH

Which of the following accounts would likely be considered a long-term liability?

CREDIT CARD

ACCOUNTS PAYABLE

MORTGAGE LOAN

PREPAID RENT

How can you display or print a batch or group of reports quickly?

CLICK BATCH REPORTS FROM THE HOME PAGE.

CREATE A MEMORIZED GROUP OF REPORTS.

YOU CANNOT DO THIS IN QUICKBOOKS.

CLICK REPORTS > PROCESS MULTIPLE REPORTS.

When you collect payment on an invoice, QuickBooks automatically creates a journal entry that will do what?

DEBIT CASH AND CREDIT ACCOUNTS RECEIVABLE.

CREDIT CASH AND DEBIT ACCOUNTS RECEIVABLE.

CREDIT CASH AND DEBIT ACCOUNTS PAYABLE.

DEBIT CASH AND CREDIT ACCOUNTS PAYABLE.

What happens when you void an invoice?

THE INVOICE NUMBER CAN'T BE USED AGAIN, AND THE INVOICE DETAILS CANNOT BE VIEWED.

THE INVOICE NUMBER CHANGES TO THE WORD VOID, AND THE INVOICE REMAINS AVAILABLE FOR REFERENCE WITH A ZERO BALANCE DUE.

THE INVOICE IS REMOVED, AND THE NEXT INVOICE WILL RECEIVE THE NUMBER OF THE VOIDED INVOICE.

THE INVOICE NUMBER CAN'T BE USED AGAIN, THE WORD VOID IS ADDED TO THE MEMO, AND THE INVOICE REMAINS AVAILABLE FOR REFERENCE WITH A ZERO BALANCE DUE.

Is it possible to merge two list entries?

NO. YOU CAN DELETE A LIST ENTRY, BUT YOU CANNOT MERGE THEM.

YES. YOU CAN RENAME THE UNWANTED LIST ENTRY TO MATCH THE NAME OF THE LIST ENTRY YOU WOULD LIKE TO MERGE INTO.

NO. YOU CANNOT COMBINE OR MERGE TWO LIST ENTRIES.

YES. FROM THE BOTTOM OF THE LIST, CLICK ACTIVITIES > COMBINE LIST NAME, AND THEN SELECT THE LIST ENTRIES YOU WOULD LIKE TO MERGE.

Which account should you set up to pay owners or partners in your company?

OWNER INCOME

OWNER OR SHAREHOLDER DRAW

OWNER EXPENSE

PAYROLL EXPENSE

You write a check through the Pay Bills screen to pay a previously entered invoice. What will QuickBooks automatically do?

DEBIT CASH IN CHECKING AND CREDIT ACCOUNTS PAYABLE.

DEBIT ACCOUNTS PAYABLE AND CREDIT SALES.

DELETE THE BILL.

DEBIT ACCOUNTS PAYABLE AND CREDIT CASH IN CHECKING.

Which accounts are affected when the timesheets function is used in QuickBooks to track employee hours?

PAYROLL PAYABLE AND PAYROLL EXPENSE WOULD BE AFFECTED.

PAYROLL EXPENSE AND CASH IN CHECKING WOULD BE AFFECTED.

EMPLOYEE BALANCE DETAIL WOULD BE AFFECTED.

NONE, BECAUSE TIMESHEETS ARE NON-POSTING ENTRIES.

When initially setting up a company through the Advanced/Detailed Setup, which information does QuickBooks require you to enter?

COMPANY NAME AND CHART OF ACCOUNTS

COMPANY NAME

COMPANY NAME, TAX ID, AND ADMINISTRATOR PASSWORD

COMPANY NAME AND ADDRESS

If you are tracking sales tax in QuickBooks, where will you find the reports needed to pay the taxing authorities?

SALES REPORTS

SALES TAX

TAX LIABILITY

VENDORS AND PAYABLES

For whom can you create a password during the Advanced/Detailed Setup?

THE ADMINISTRATOR

NO USERS

ALL USERS

THE EXTERNAL ACCOUNTANT

How do you record a debit card purchase in QuickBooks?

WAIT UNTIL YOU DO THE BANK RECONCILIATION AND ENTER ONE JOURNAL ENTRY FOR ALL OF YOUR DEBIT CARD PURCHASES.

USE THE ENTER BILLS WINDOW TO ENTER THE INFORMATION, THEN IMMEDIATELY GO TO THE PAY BILLS WINDOW AND PREPARE THE CHECK. PRINT THE CHECK FOR YOUR RECORDS, BUT YOU DO NOT NEED TO MAIL IT.

USING THE WRITE CHECKS WINDOW, IN THE NO. FIELD, TYPE "DEBIT." ENTER THE VENDOR NAME AND AMOUNT IN THE CHECK AREA.

PREPARE A JOURNAL ENTRY TO DEBIT THE EXPENSE ACCOUNT OF THE PURCHASE AND CREDIT CASH.

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Exam Type:	QuickBooks MCQ Skill Test
Questions Type:	Multiple Choice Questions
Total Questions:	32
Time Limit:	30 Minutes
Last Update	July, 2025

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