QuickBooks Chapter 5 Questions and
Answers Passed with 100%
In the perpetual inventory system, the inventory quantity and values are updated ✔✔after each
purchase and sale of inventory items
This report shows all pur
...
QuickBooks Chapter 5 Questions and
Answers Passed with 100%
In the perpetual inventory system, the inventory quantity and values are updated ✔✔after each
purchase and sale of inventory items
This report shows all purchase information for each inventory item, including vendor name, cost
per unit, quantity purchased, and total cost. ✔✔Purchases by Item Detail
In the periodic inventory system, separate records __________ maintained for inventory items,
and the inventory account __________ adjusted for purchases and sales. ✔✔are not; is not
In addition to the Reports option on the main menu bar, QuickBooks also allows you print many
inventory reports from the __________ window. ✔✔Lists
Sales discounts are typically offered to customers to encourage ✔✔early payment of outstanding
invoices
When are you prevented from deleting an inventory item from the Item List? ✔✔when it has a
balance or has been part of a transaction during the current period
To record a cash purchase and receipt of an inventory item, begin by clicking __________ on the
main menu bar. ✔✔Banking
When using the Intuit Product Invoice template in the Create Invoices window to record a sale of
inventory on account, which of the following is not one of the default posting accounts?
✔✔Accounts Payable
Inventory adjustments resulting in an inventory reduction are posted to the Inventory Adjustment
account, which is a(n) __________ account. ✔✔cost of goods sold
This inventory report displays the on-hand status of each inventory item and whether it should be
reordered. ✔✔Inventory Stock Status by item
When an inventory item is sold for cash, the transaction is recorded in the __________ window.
✔✔Enter Sales Receipts
The Pay Sales Tax window is accessed from the __________ menu on the main menu bar.
✔✔Vendors
The COGS Account field in the New Item window indicates the account to which _________
should be posted. ✔✔Cost of goods sold
To record a sale of inventory on account, begin by clicking __________ on the main menu bar.
✔✔Customers
The Item List should include ✔✔all items sold by the company, including services
When adding inventory to the Items List in the New Item window, the default general ledger
posting account for the inventory balance sheet account is entered in the __________ field.
✔✔Asset Accounts
The Item List contains the following important piece of information for each product, except
✔✔preferred customer
The Adjust Quantity/Value on Hand activity window is used to record changes in the inventory
resulting from ✔✔items being lost, stolen, damaged, or spoiled.
Of the items and services offered by the fictional interior design firm in Chapter 5, which would
generally not be subject to a sales tax? ✔✔design services
In QuickBooks, the __________ serves as the inventory subsidiary ledger for the company.
✔✔Item List
What are the two types of inventory systems? ✔✔periodic and perpetual
Inventory item files are included in the ✔✔Item List
Sales of inventory items on account are recorded in the __________ window. ✔✔Create
Invoices
How does QuickBooks refer to an entry in the Item List that is sold as an inventory item?
✔✔Inventory Part
To record a receipt of payment within the discount period, click the Discounts and Credits button
in the __________ window. ✔✔Receive Payments
The Items tab of the __________ window is designed for purchases of inventory items on
account. ✔✔Receive Items and Enter Bills
If you accidentally delete an inventory item from the Item List, immediately click __________
and then Undo Delete Item. ✔✔Edit
To record a purchase and receipt of an inventory item on account, begin by clicking __________
on the main menu bar. ✔✔Vendors
On the Items tab of the Receive Items and Enter Bills window, the QTY field is where you enter
the ✔✔quantity of items purchased
Which of the following is not one of the choices available in the Type field of the Edit Item
window? ✔✔Shelf Number
The Cost field in the Edit Item window contains the ✔✔unit cost for the item
Before you can enter inventory transactions in QuickBooks, you must ✔✔establish a file for
each inventory item
Inventory items can be deleted from the Items List by ✔✔clicking Delete Item on the Item
button in the Item List window
In QuickBooks, the Pay Sales Tax window is used to record the ✔✔remittance of sales tax
collected from customers to the proper tax agency
Cash purchases of inventory items are recorded in the __________ window. ✔✔Write Checks
Prior to the availability of low-cost computers and accounting software, only businesses with
__________ goods used the perpetual system. ✔✔low-volume, high-cost
For inventory items in the Items List, the Income Account field indicates the general ledger
posting account for ✔✔revenue
In accounting terms, inventory refers to ✔✔the ready-made merchandise that is sold to
customers for a profit
For transactions in the Pay Sales Tax window, QuickBooks uses these default accounts: Sales
Tax Payable and ✔✔Cash
When a company is required to collect sales tax on an item sold, the tax amount is ✔✔added to
the invoice price of the product
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