QuickBooks Quiz Chapter 6 (2022/2023)
Already Passed
What are the two methods of New Company Setup in QuickBooks? ✔✔Detailed Start and
Express Start
What is the QuickBooks EasyStep Interview window designed to do? ✔✔
...
QuickBooks Quiz Chapter 6 (2022/2023)
Already Passed
What are the two methods of New Company Setup in QuickBooks? ✔✔Detailed Start and
Express Start
What is the QuickBooks EasyStep Interview window designed to do? ✔✔helps you create and
set up a new company file
In addition to selecting the method of New Company Setup, what is the QuickBooks Setup
window designed to do? ✔✔allows you to enter information on customers, vendors, service
items, and inventory part items
After completing the EasyStep Interview and QuickBooks Setup windows ✔✔you then take the
information and customize it, update it, and prepare the company file for the accrual basis of
accounting
In a manual accounting system, a company's records are set up by creating ✔✔a Chart of
Accounts and general ledger.
In QuickBooks, a company's records are set up by doing all of the following except
✔✔preparing an income tax return
To create a new company file, you choose ____ from the main menu bar, then click ____.
✔✔File, New Company
When you choose to create a new company file in QuickBooks, which is the first window that
appears? ✔✔QuickBooks Setup window
If you choose the Detailed Start method of New Company Setup, which window are you then
moved to? ✔✔EasyStep Interview window
Although you can leave the EasyStep Interview window before finishing, it is advisable not to
leave before ✔✔saving the company file.
You can activate the Next button in the EasyStep Interview window using the keyboard by
pressing ✔✔Alt + N.
Why are there two company name fields on the Enter your company info page of the EasyStep
Interview window? ✔✔The first is the "doing business as" company name, and the second is the
legal company name.
The purpose of the Select your industry type page of the EasyStep Interview window is to
✔✔recommend preferences and a Chart of Accounts List typical of your business.
In QuickBooks, you could password protect all of the following except ✔✔access to all types of
Windows files on your computer.
The start date in QuickBooks page of the EasyStep Interview window is used to identify the date
the company ✔✔began using QuickBooks.
On which page of the EasyStep Interview do you review the recommended accounts for your
business? ✔✔Review income and expense accounts page
Which of the following Lists/Centers is partially set up when you use the EasyStep Interview
window to create a new company file? ✔✔Chart of Accounts List and Item List
Which of the following Lists/Centers is not set up or updated when you use the QuickBooks
Setup window to enter information for a new company file? ✔✔EasyStep List
Which system default accounts are created by QuickBooks as part of EasyStep Interview and
QuickBooks Setup? ✔✔accounts receivable, accounts payable, sales tax payable, opening
balance equity, owners equity
Which item is set up on the Item List as part of the EasyStep Interview? ✔✔sales tax
Which items are set up on the Item List when using the QuickBooks Setup window to enter
information? ✔✔service items and inventory part items
What journal entries are recorded in the Journal report when using the QuickBooks Setup
window to enter information? ✔✔accounts receivable, inventory asset, accounts payable
As inventory part items with balances are entered in the QuickBooks Setup window and recorded
on the Item List, a journal entry is recorded in the Journal report to record a debit to ____ and a
credit to ____. ✔✔Inventory Asset, Opening Balance Equity
As customers with balances are entered in the QuickBooks Setup window and recorded in the
Customer Center, a journal entry is recorded in the Journal report to record a debit to ____ and a
credit to ____. ✔✔Accounts Receivable, Uncategorized Income
As vendors with balances are entered in the QuickBooks Setup window and recorded in the
Vendor Center, a journal entry is recorded in the Journal report to record a debit to ____ and a
credit to ____. ✔✔Uncategorized Expenses, Accounts Payable
If in error, you do not enter an opening balance for a customer, vendor, or inventory part item in
the QuickBooks Setup window ✔✔you delete the customer, vendor, or inventory part item, and
then reenter it in the QuickBooks Setup window with the opening balance
Which account will not have balances on the Trial Balance report immediately after the EasyStep
Interview and QuickBooks Setup is completed ✔✔Owners Draw
Which accounts appear on the Profit & Loss Standard (Income Statement) report immediately
after the EasyStep Interview and QuickBooks Setup is completed? ✔✔Uncategorized Income
and Uncategorized Expenses
Which is not part of Customizing the Chart of Accounts List for the sample company in Chapter
6? ✔✔adding a description to each account.
By default, QuickBooks uses ____ account numbers. ✔✔no
Until you activate the account numbers option in QuickBooks, ✔✔account numbers cannot be
added because there is no account number field in the Edit Account window.
To activate the account number option in QuickBooks, open the Preferences window, which can
be accessed by clicking ____ on the main menu bar. ✔✔Edit
Which icon in the Preferences window do you click in order to activate the Use Account
Numbers feature? ✔✔Accounting
Three accounts are automatically created by QuickBooks when a new company is designated as
a sole proprietorship. One of the accounts is Opening Balance Equity. What are the other two
accounts? ✔✔Owners Draw and Owners Equity
What do the following accounts have in common: Accounts Receivable, Inventory Asset, Cost of
Goods Sold, and Sales Tax Payable? ✔✔They are all QuickBooks system default accounts.
When you view a system default account in the Edit Account window, the account type
✔✔appears gray-shaded, or dimmed.
You can change the ____ and ____for a system default account. ✔✔account name and account
number
When you add an inventory part to the Item List, QuickBooks looks for which two accounts with
which to associate it? ✔✔Inventory Asset and Cost of Goods Sold
What happens if QuickBooks cannot find the default account associated with an activity you are
trying to record? ✔✔It will create it.
To customize the list of payment terms in QuickBooks, begin by clicking Lists and then
✔✔Customer & Vendor Profile Lists.
When adding a new account to the Chart of Accounts List, what happens if you enter an account
number that is already being used? ✔✔A warning to that effect will appear and you can be
returned to the New Account window to make a correction.
The basis of accounting that requires the recording of revenue when earned and the recording of
expenses when incurred regardless of cash receipts or cash payments. ✔✔accrual
To complete the New Company Setup, three journal entries are recorded. What are those journal
entries. ✔✔Record opening balances for accounts other than Inventory, Accounts Receivable
and Accounts Payable, and reverse the balances in Uncategorized Income and Uncategorized
Expenses.
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