QuickBooks Chapter 7 Test Latest 2023 Rated A+

QuickBooks Chapter 7 Test Latest 2023 Rated A+ In a sole proprietorship, equity is what shareholders have invested in the company ✔✔False Amortization is the process of a balance increasing over time ✔✔False Treating ...

QuickBooks Chapter 7 Test Latest 2023 Rated A+ In a sole proprietorship, equity is what shareholders have invested in the company ✔✔False Amortization is the process of a balance increasing over time ✔✔False Treating bad debt as a discount is recommended because it reduces sales tax liability ✔✔False A fixed asset is something you DON'T plan to use up or turn into cash within the next year ✔✔True When the fiscal year ends, you must manually transfer your net income/loss into the Retained Earnings account ✔✔False The Loan Manager tracks the principle and interest payments without having to set up separate amortization schedules ✔✔True If you've made an error in charging sales tax, you will NOT be able to correct that error; you must make up the difference yourself ✔✔False Accumulated Depreciation is a contra account and a fixed-asset account ✔✔True Credit memos used to write off bad debt are applied to the original invoice ✔✔True The Loan Manager pulls information from your Long Term Liability or Other Current Liability accounts ✔✔True Which account does QuickBooks create for you so you have a working balance sheet account from the start? ✔✔Opening Balance Equity What QuickBooks feature allows you to easily enter repeated transactions? ✔✔Memorizing Transactions Why should you use the QuickBooks Loan Manager? ✔✔It includes a "what if" tool that allows you to experiment with loan scenarios What is the term for when an owner takes money out of the company? ✔✔Draw What can you choose when memorizing transactions? - Not to be reminded and to have the transaction - To have QuickBooks automatically enter the transaction based on a set schedule - To be reminded about the transaction ✔✔All of these options Which of these is a way to record petty cash? ✔✔The Write Checks method What account is credited when you use an Other Charge item to route bad debt to an expense account? ✔✔Accounts Receivable Which statement about fixed assets is true? - Businesses use fixed assets to promote the main operations of the business - Fixed assets are depreciable - Fixed assets are usually land, buildings, furniture, and vehicles ✔✔All of these options Sayid is entering the purchase of a new truck for the company. He starts the transaction; selects the correct account; and enters the date, vendor, and amount before realizing the he did not fist create the fixed asset item for the new truck. Does Sayid have to cancel the transaction and start over? ✔✔No; he can create the fixed asset item while entering the transaction Tax a business collects is considered a current .. until paid ✔✔liability What tool shows how much money a company has set aside for sales tax? ✔✔The Sales Tax Liability report While getting ready to remit her sales taxes, Jackie notices that the incorrect tax jurisdiction has been used for a certain customer. How can Jackie correct the problem? ✔✔She can go back to the original transactions and choose the correct tax item or group Jasmine is considering purchasing a backhoe for her construction business. What QuickBooks tool can help Jasmine consider and compare different loan options? ✔✔Loan Manager What If Scenarios What QuickBooks tool allows you to see a prediction of future revenue for your business? ✔✔The Cash Flow Projector - Other Current Asset: Assets you plan to use or convert to cash within a year - Fixed Asset: Assets you don't plan to convert to cash within a year - Long Term Liability: Loans you don't plan to pay off within the next year - Equity: The owner's investment in the company ✔✔Match each balance sheet account type to its description - Retained Earnings: Where net income/loss is transferred at the end of the fiscal year - Owner's Equity: Amount of owner investment in the company - Opening Balance Equity: Offset account for initial balances when starting a company - Sales Discount: Not an equity account ✔✔Match each equity account to its description