QuickBooks Chapter 07 Questions and Answers Rated A+

QuickBooks Chapter 07 Questions and Answers Rated A+ 1. A period that the company uses for accounting purposes and preparing financial statements. a. First quarter. b. Fourth quarter. c. Fiscal year. d. End of year ...

QuickBooks Chapter 07 Questions and Answers Rated A+ 1. A period that the company uses for accounting purposes and preparing financial statements. a. First quarter. b. Fourth quarter. c. Fiscal year. d. End of year. e. None. ✔✔Fiscal year. 2. A software design that emphasizes separating the functions of a program into independent, interchangeable components is called: a. A user interface. b. The operating system. c. Web-delivered software. d. Modules. e. All ✔✔Modules. 3. The accounts shown on the balance sheet are called: a. Permanent accounts. b. Temporary accounts. c. Transaction entries. d. Customized accounts. e. All. ✔✔Permanent accounts. 4. Accounts that are closed as the end of the year are called: a. Permanent accounts. b. Temporary accounts. c. Balance sheet accounts. d. Trial balance accounts. e. All. ✔✔Temporary accounts. 5. How do you access Account and Settings? a. Plus sign for Settings menu. b. Magnifying-glass for search. c. Question mark for printing. d. Gear icon. e. All. ✔✔Gear icon. 6. A list report with amounts can be exported and customized using: a. The balance sheet. b. A template. c. Some apps. d. Excel. e. All. ✔✔Excel. 7. The purpose of an adjusting entry is a/an: a. Accurate Profit and Loss statement and Balance Sheet. b. Create menu (+) > Credit Card Credit. c. Gear > Account and Settings > Advanced. d. Gear > Manage Users. e. None. ✔✔Accurate Profit and Loss statement and Balance Sheet. 8. The purpose of closing the books is to transfer: a. Drawing to Sales. b. Cost of Goods Sold to Accounts Payable. c. Checking to Accounts Receivable. d. Net income to Retained Earnings e. None. ✔✔Net income to Retained Earnings 9. Before completing work in Chapter 7, display the: a. Export the October 1 trial balance to Excel. b. Save the November 30 trial balance as a PDF file. c. October 1 through December 31 trial balance. d. All. e. None. ✔✔October 1 through December 31 trial balance. 10. When does QB Cloud record adjusting entries? a. Every month. b. End of the quarter. c. Weekly. d. All. e. None. ✔✔End of the quarter. The purpose of an adjusting entry is: A) Revenue was earned but not recorded. B) Expenses incurred but not recorded. C) To show the prepaid expense for one month. D) Customer paid in advance of receiving goods or services. E) All of the above. ✔✔All of the above. Adjusting entries are made on the: A) 15th of every month. B) First day of the new year, meaning January 1. C) Last day of the month, quarter, or year. D) Adjusting entries are rarely recorded for a company. E) All of the above. ✔✔Last day of the month, quarter, or year. On January 1 of the new year, this account shows Net Income: A) Sales. B) Cost of Goods Sold. C) Common Stock. D) Retained Earnings E) None of the above. ✔✔Retained Earnings On January 1, the Profit & Loss statement shows the following account balances: A) The same as on December 31 of the previous year. B) Zero. C) The same as the Balance Sheet accounts. D) The same as the Statement of Cash Flows accounts. E) None of the above. ✔✔Zero. The Exercise 6-2 December trial balance shows account balances before: A) Recording expenses. B) Adjustments. C) Additional Common Stock investment. D) Before bills are paid. E) None of the above. ✔✔Adjustments. Record adjusting entries on the: A) Customer payments window. B) Vendor payments window. C) Check window. D) Journal Entry window. E) None of the above. ✔✔Journal Entry window. When depreciating Computer Equipment, this method was used: A) Double-declining balance. B) Computer Equipment is not depreciated. C) Straight-line. D) Average. E) None of the above. ✔✔Straight-line. This report lists each account on the chart of accounts with a minus sign in front of credit balances. A) December 31 Journal. B) Adjusted Trial Balance. C) EOY Profit and Loss statement. D) Transaction Detail by Account. E) All of the above. ✔✔Transaction Detail by Account. After adjustments are journalized and posted, the report(s) updated is/are: A) Trial Balance. B) Profit and Loss. C) Balance Sheet. D) Statement of Cash Flows. E) All of the above. ✔✔All of the above. In Chapter 7, when the Balance Sheet date is changed to January 1: A) The Balance Sheet has zero account balances. B) Net income is shown as Retained Earnings. C) Depreciation expense has an $800.00 balance. D) The Balance Sheet is the same on December 31 and January 1. E) None of the above. ✔✔Net income is shown as Retained Earnings.