QuickBooks Chapter 7 Questions and Answers 100% Verified

QuickBooks Chapter 7 Questions and Answers 100% Verified The owner's drawing account should be transferred to capital each week. ✔✔False Even if entered elsewhere, all transactions are recorded in the Journal. ✔✔True ...

QuickBooks Chapter 7 Questions and Answers 100% Verified The owner's drawing account should be transferred to capital each week. ✔✔False Even if entered elsewhere, all transactions are recorded in the Journal. ✔✔True You must access the General Journal in order to close a period. ✔✔False If Show All is selected, inactive accounts will not appear in the Chart of Accounts. ✔✔False When you reconcile a bank statement, anything entered as a service charge will automatically be entered as a transaction when the reconciliation is complete. ✔✔True Once an account has been used, the name cannot be changed. ✔✔False The adjusting entry for depreciation may be made in the Depreciation account register. ✔✔True At the end of the year, QuickBooks transfers the net income into retained earnings. ✔✔True A withdrawal by an owner in a partnership reduces the owner's capital. ✔✔True As with other accounting programs, QuickBooks requires that a formal closing be performed at the end of each year. ✔✔False To print a Reconciliation Report that lists only totals, select _________. A. none B. summary C. detail D. complete ✔✔summary The report that proves debits equal credits is the ________ . A. Sales Graph B. Balance Sheet C. Profit & Loss Statement D. Trial Balance ✔✔Trial Balance If reports are prepared for the month of January, net income will appear in the ________. A. Profit & Loss Statement B. Balance Sheet C. both A and B D. neither A nor B ✔✔C. both A and B A. Profit & Loss Statement B. Balance Sheet In QuickBooks, you export reports to Microsoft® Excel in order to ________. A. print the report B. explore "what if" scenarios with data from QuickBooks C. prepare checks D. all of the above ✔✔B. explore "what if" scenarios with data from QuickBooks QuickBooks uses the ________ method of inventory valuation A. LIFO B. average cost C. FIFO D. Actual Cost ✔✔average cost If a transaction is recorded in the Journal, it may be viewed ________. A. in the Journal B. in the register for each balance sheet account used in the transaction C. by preparing an analysis graph D. in both A and B ✔✔in both A and B A. in the Journal B. in the register for each balance sheet account used in the transaction Entries for bank collections of automatic payments ____. A. are automatically recorded at the completion of the bank reconciliation B. must be recorded after the bank reconciliation is complete C. should be recorded when reconciling the bank statement D. should be recorded on the first of the month ✔✔should be recorded when reconciling the bank statement The account(s) that may be reconciled is (are) ________. A. Checking B. Credit Card C. both A and B D. the Customer list account ✔✔C. both A and B A. Checking B. Credit Card The closing entry for a drawing account transfers the balance of an owner's drawing account into the ________ account. A. Retained Earnings B. Net Income C. Owner's Capital D. Investment ✔✔Owner's Capital A Balance Sheet that shows amounts for each account type but not for individual accounts is the ________ Balance Sheet. A. Standard B. Summary C. Detail D. Comparison ✔✔Summary 1. _____-basis accounting matches income and expenses against a period, and _____-basis accounting records income when the money is received and expenses when the purchase is made or the bill is paid. ✔✔Accrual/Cash The _________ proves that Assets = Liabilities + Owners' Equity. ✔✔Balance Sheet In a partnership, each owner has a share of all the _____ and _______ based on the percentage of his or her investment in the business or according to any partnership agreements. ✔✔Asset/Liabilities In order to close a period, a closing ______ must be provided. ✔✔Date No matter where transactions are recorded, they all appear in the _______ . ✔✔Journal