QuickBooks Chapter 5 Questions and Answers Passed with 100%

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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 T... his 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 [Show More]

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