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Questions and Answer

LESSON 1 (Getting started) d. Equity

7. Which of the following best describes a

1. List the three main ways you enter data in
balance sheet?
QuickBooks: Forms, lists, register
a. A summary of a company’s finances over
2. List three ways to access features in
the past year
QuickBooks. Menu bar, Icon Bar, Centers,
Home page b. A financial snapshot of a company at a
specific point in time
3. What bookkeeping method does
QuickBooks use to create most reports? c. A summary of a company’s revenue and
Accrual, but you can see any report expenses for a fiscal year
(except transaction reports) on a cash basis
by changing the reporting preference d. None of the above

4. Which of the following would you not LESSON 2 (Setting-up)

include in the Chart of Accounts?
1. During the EasyStep Interview
a. Checking account QuickBooks creates income and expense
b. Vendor record accounts based on your company’s Industry

c. Depreciation expense 2. When setting up a company file in

QuickBooks, what does the Start Date
d. Accounts payable signify?

5. Which of the following is an asset? a. The date the business was created

a. Accounts Payable b. The first date of the company’s fiscal year

b. Accounts Receivable c. The date the company purchased

QuickBooks
c. Company delivery van
d. The date from which you will be entering
d. Both a and b transactions in QuickBooks
e. Both b and c 3. Which of the following as the start date?
6. Checking, savings and petty cash should a. The first day of the current fiscal period
be set up as which of the following account
types in QuickBooks? b. The last day of the previous fiscal period

a. Expense 4. True or false: Once you have set up the

Chart of Accounts you cannot add, delete or
b. Other current asset modify accounts.
c. Bank a. True
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Questions and Answer

b. False c. Write Checks

5. Before working in QuickBooks you need d. All of the above

to enter an opening balance for each
account.
6. True or false: Choosing a company
organization associates a tax form with your
business in the QuickBooks file.
3. Which of the following activities cannot
be accessed from the Customers & Jobs list
in the Customer Center?
a. Create statements

a. True b. Assess finance charges

b. False c. Enter credit card charges

7. In QuickBooks, linking income and d. Receive payments

expense accounts with tax lines does which 4. On which tab of the Edit Customer
of the following? window would you enter a customer’s
a. Helps keep your company profitable payment terms (for example, Net 30 4.
Days)?
b. Helps in preparing income taxes
a. Address Info
c. Helps keep track of sales taxes you owe
b. Additional Info
d. Both b and c
c. Payment Info
LESSON 3 (Working with d. Job Info
Lists)
5. A customer has three warehouses and
1. How many custom fields can you set up you are installing an overhead door at each
for items? location. The best way to track this in
QuickBooks would be to:
a. 4
a. Set up each location as a separate
b. 5 customer

c. 7 b. Set up a separate job for each location

under the customer
d. 20
c. Enter all work as one order under the
2. Which of the following forms and
customer
windows could potentially be populated
with information from the Vendor list? d. Use a custom field to track each location

a. Purchase orders 6. Products you sell would appear on which

of the following lists?
b. Bills
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Questions and Answer

a. Vendor list 1. What does the ending balance in a

QuickBooks bank account register
b. Employee list represent?
c. Chart of Accounts a. Only transactions that have been printed
d. Item list b. All transactions entered in the register,
7. A subcontractor would appear on which including checks that haven’t yet been
of the following lists? printed

a. Vendor list 2. What preference allows you to have

QuickBooks prefill the amount from the
b. Employee list previous transaction with a payee?

c. Customers & Jobs list a. Automatically prefill last amount for this
payee
d. Item list
b. Automatically prefill last amount for this
8. Name at least three lists on which you
name
can merge items.
c. Automatically recall last transaction for
a. Chart of Accounts
this name
b. Item
d. Automatically recall previous transaction
c. Customer & Jobs for this payee

d. Vendor 3. What preference allows you to have

QuickBooks prefill the expense account
e. Employee from previous transactions with a vendor?

f. Other Names a. Automatically prefill last account for this

vendor
9. True or false: You can delete list items
that are used in transactions. b. Prefill accounts for vendor based on past
transactions
a. True
c. Automatically recall last transaction for
b. False
this vendor

d. Prefill accounts for this payee based on

the last transaction

4. True or false: All income and expense

accounts have a register associated with
LESSON 4 (Working with them in QuickBooks.
Bank Accounts)
a. True
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Questions and Answer

b. False. Only balance sheet accounts a. When paying sales tax

(excluding Retained Earnings) have
registers associated with them b. When paying payroll taxes

5. Reconciling is the process of making sure c. When using a handwritten check

that your checking account record matches d. When paying bills you track with
the bank’s record. Accounts Payable
6. How can you determine whether or not a e. None of the above
check has been cleared in QuickBooks?
f. Both a and b
a. A checkmark displays in the bank
account register g. a, b and d

b. The word Cleared is stamped on the LESSON 5 (Using Other

check in QuickBooks
Accounts in QuickBooks)
c. All of the above
1. Accumulated depreciation is typically set
d. None of the above up as what type of account in QuickBooks?
7. True or false: If you are tracking bills a. A subaccount of a fixed asset account
with Accounts Payable and have already
entered a bill, you should pay the bill by b. A subaccount of a current asset account
writing a check from the Write Checks
c. A subaccount of a liability account
window.
d. An expense account
a. True
2. Equity type accounts would be used to
b. False. You should use the Pay Bills
track which of the following?
window to write the check
a. Capital investments
8. Which of the following might affect a
bank account reconciliation? b. Draws

a. Interest c. Retained earnings

b. Depreciation d. All of the above

c. Service charges 3. Which of the following would likely be

considered a long-term liability?
d. Both a and c
a. Vehicle loan
e. All of the above
b. Accounts payable
9. When would you not want to use the
Write Checks window when paying bills? c. Rent
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Questions and Answer

d. Credit card account c. Credit card

4. Retained earnings is defined as which of d. All of the above

the following?
4. True or false: QuickBooks lets you save
a. The amount of money that a business sales forms as PDF files.
retains for paying its employees
a. True
b. The earnings from non-essential business
services b. False

c. The amount of interest saved from paying
off a loan early
d. The accumulation of a company’s net
income or loss from its start date
5. Which of the following would not
decrease the value of a company’s equity?
a. The company paying corporate dividends
b. The company incurring a net loss for the
fiscal year
c. An owner drawing money out of the
company
5. If you regularly invoice a customer for
similar items or services, you can memorize
the invoice to save time.
6. From which list (or lists) does
QuickBooks get the information for A, B,
and C in the graphic below?
a. Customers & Jobs List
b. Customers & Jobs list (if associated terms
with the customer); Terms list
c. Item List

d. The company taking a loan out to

purchase a new asset

LESSON 6 (Entering Sales

Information)
1. When receiving payment at the time of
sale, you create a sales receipt in 7. List the item types used in the line item
QuickBooks. area of the invoice above.

2. When customers are returning items, you Inventory Part, Subtotal, Discount and
record the return on a credit memo Service

3. In QuickBooks you can record payments 8. On which of the following can you not
made using which of the following? use price levels?

a. Cash a. Invoices

b. Check
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Questions and Answer

b. Sales receipts 1. A company has set up three different jobs

c. Credit memos
d. Purchase orders
9. QuickBooks Pro allows you to assign
price levels to which of the following?
a. Specific customers
b. Individual line items on sales forms
for a single customer. The customer writes
one check to make a partial payment on
open balances for all three jobs. In
QuickBooks, that payment...
a. Must be applied to the first invoice for the
first job for the customer
b. Must be applied to the most recent
invoice for the customer

c. Both a and b c. Can be applied to any combination of

invoices and jobs for the customer
d. None of the above
d. Cannot be applied to any invoices or jobs
10. If a wood door costs $120.00 and you set
for the customer until full payment is
the rounding option to 1.00 minus .11, what
received
price would appear on an invoice for the
wood door? 2. QuickBooks supports which of the
following types of payment scenarios?
a. $120.11
a. Down payments for products or services
b. $120.89
b. Overpayments from customers
c. $119.89
c. Partial payments from customers
d. $119.11
d. All of the above
11. Which of the two methods described in
this lesson for providing customers with 3. True or false: You can enter a customer
information about overdue invoices allows payment directly in the customer register.
you to assess finance charges?
a. True
a. Invoice letters
b. False. You must enter payments in the
b. Reminder statements Receive Payments window .

4. The Undeposited Funds account acts like

a cash drawer and is used to hold funds
until you deposit them into a bank account.

LESSON 7 (Receiving 5. True or false: QuickBooks allows you to

print deposit slips that you can take to the
Payments & Making
bank.
Deposits)
a. True
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Questions and Answer
b. False
LESSON 8 (Entering and
Paying bills)
1. You use the Accounts Payable account to
track money that you owe to vendors.
2. List the two steps involved in using the
accounts payable features in QuickBooks:
a. Enter bills
b. Pay bills
3. When you make a payment (from the
checking account) in the Pay Bills window,
you can see the transactions in the Checking
and Accounts Payable registers.
4. True or false: When tracking accounts
payable in QuickBooks, the Enter Bills
window is the only place you can enter
bills and vendor credits.
a. True
b. False, you can also enter bills and vendor
credits directly in the Accounts Payable
register, which may allow for faster data
entry .
5. You paid a vendor $1,000 through the Pay
Bills window (using the Checking account).
QuickBooks automatically creates a journal
entry that:
a. Deletes the bill.
b. Shows $1,000 as a credit in Accounts
Payable and $1,000 as a debit in the
Checking account.
c. Shows $1,000 as a debit in Accounts
Payable and $1,000 as a credit in the
Checking account.
d. Shows $1,000 as a debit in Accounts
Payable and $1,000 as a credit in Accounts
Receivable.
LESSON 9 (Analyzing
Financial Data)
1. Quick Zoom is the tool that allows you to
drill down on summary reports and graphs
in QuickBooks.
2. When can you generate a Quick Report?
a. Only when viewing an active customer or
account
b. Only when viewing a list, register, or
form
c. Only at the end of the current fiscal
period
d. Only when viewing balance sheet
accounts
3. In which report category would you find
a list of open invoices?
a. Company & Financial
b. Sales
c. Customers & Receivables
d. List
4. Report filters let you set custom criteria
for the transactions you want to include in a
report.
5. Once you’ve customized a preset report
to meet your needs, how can you save your
settings so you don’t have to customize the
report each time you run it?
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Questions and Answer
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 then choose Memorize
6. True or false: Once you’ve exported
report data to Excel, you can send modified
data back to QuickBooks.
a. True
b. False
LESSON 10 (Setting up
Inventory)
1. True or false: The Purchase Orders
account does not affect the balance sheet or
income statement
a. True
b. False
2. 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 bills
c. Receive items
d. Enter bills for items received
3. You complete a physical inventory and
discover that you have five more of a
particular item than shown 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
4. Which of the following provide you with
a list of all purchase orders created in a file?
a. Quick Report on the Purchase Orders
account
b. Purchase Orders List report
c. Open Purchase Orders
d. All of the above
LESSON 11 (Tracking and
Paying Sales Tax)
1. Which of the following statements is
false?
a. You can set up both taxable and non-
taxable items
b. You can associate different sales tax rates
with different customers
c. QuickBooks automatically sets up your
sales tax rates based on the city and state
you enter in the Company Information
window.
d. All of the above
2. Use a sales tax group item to combine
multiple sales tax items into one amount on
sales forms.
3. Which of the following can you use to
determine your sales tax liability?
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Questions and Answer

a. Sales Tax Payable Account register a. Payroll Liabilities

b. Pay Sales Tax window b. Payroll Expense

c. Sales Tax Liability report 3. Which of the following are QuickBooks

payroll item types?
d. All of the above
a. Wage
4. To correctly effect sales tax liability, you
should make payments to tax collecting b. Addition
agencies from which QuickBooks window?
c. Deduction
a. Write Checks
d. All of the above
b. Pay Sales Tax
4. What report would you run to determine
c. Either a or b how much you owe in payroll taxes?
Payroll Liabilities Balance
d. None of the above
5. What QuickBooks feature would you use
5. In what part of the program do you to make setting up payroll easier when a
assign sales tax codes and items to number of employees have the same hourly
customers? wage, pay period, and base deductions?
a. In the Sales Tax Code list a. Tax tables
b. On the Customer tab of the New or Edit b. Employee defaults
Item window
c. Payroll items
c. On the Additional Info tab of each
customer’s record in the Edit Customer d. Assisted payroll
window
6. True or false: Payroll schedules are
d. None of the above required to run payroll in QuickBooks.

a. True

b. False, you can still run payroll using

Special Payroll in the Payroll Center
LESSON 12 (Doing payroll
7. Payroll schedules help you do which of
with QuickBooks) the following?

1. What is required in order for QuickBooks a. Group employees with the same pay
to calculate payroll? Tax tables frequency

2. Which two accounts are typically linked b. Write bonus checks

to payroll items?
c. Prepare termination checks
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Questions and Answer

d. Pay payroll tax liabilities d. None of the above

LESSON 13 (Estimating and 5. What QuickBooks feature would you use

to charge customers as you complete
Process Invoicing) various phases of a job?

1. QuickBooks tracks estimates using what a. Progress invoicing

kind of account?
b. Phased invoicing
a. Posting
c. Partial invoicing
b. Non-posting
d. None of the above
2. True or false: QuickBooks allows you to
create multiple estimates for a single LESSON 14 (Tracking Time)
customer.
1. List ways to enter time in QuickBooks.
a. True
a. Enter directly in the Use Weekly
b. False Timesheet or Time/Enter Single Activity
window
3. Which of the following is not an option
when creating an invoice from an estimate? b. Stopwatch feature in the Time/Enter
Single Activity window
a. Create an invoice for the entire estimate
2. For which of the following can the time
b. Create an invoice for a percentage of the
tracking features in QuickBooks not be
entire estimate
used?
c. Create an invoice for selected items or
a. Notifying you that more staffing is
different percentages of each item
required for a given project
d. None of the above
b. Tracking the cost of an employee’s gross
4. You prepared an estimate for a customer pay by job
and were subsequently awarded the
c. Providing hours worked on an
contract. How would you change the job
employee’s paycheck
status from Pending to Awarded?
d. Invoicing customers based on time spent
a. Create the invoice from the accepted
on a job
estimate — this changes the status
automatically 3. Which report would you use to determine
how many hours were spent on each
b. Use the Job Status drop-down list in the
activity and whether or not the customer
customer’s record
had been billed for the time?
c. Use the Job Status drop-down list in the
a. Time by item
Create Estimates window
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Questions and Answer

b. Time by name f. Estimate

c. Time by job summary g. Sales Order (available only in Premier

d. Time by job detail
4. When paying owners or partners, you
should use an equity account to track the
payment.
5. which of the following is a step involved
in the process for invoicing a customer for
time worked?
a. Select the customer’s name in the Create
Invoices window
b. Click Add Time/Costs
and higher)
2. True or false: The column order on
QuickBooks forms is fixed and cannot be
changed.
a. True
b. False
3. You use the Layout Designer window to
move and resize fields on forms.
4. You can add fields from which of the
following lists to QuickBooks Letters?

c. In the Choose Billable Time and Costs a. Customers & Jobs

window, click to select the items you want
to transfer to the invoice b. Employee

d. All of the above c. Vendor

d. All of the above

5. True or false: You can convert an existing

Microsoft Word document into a
QuickBooks Letter to which you can add
QuickBooks data.
LESSON 15 (Customizing
a. True
forms and Writing
b. False
QuickBooks letters)
1. List three forms that can be customized in
QuickBooks:

a. Invoice

b. Sales Receipt

c. Credit Memo

d. Statement

e. Purchase Order