QuickBooks: Chapter 1 Questions and
Answers Passed with 100%
what are the 3 types of quickbooks files? ✔✔data, portable, and backup
which file should we work in? ✔✔portable
define data file ✔✔"QBW"- to enter data or
...
QuickBooks: Chapter 1 Questions and
Answers Passed with 100%
what are the 3 types of quickbooks files? ✔✔data, portable, and backup
which file should we work in? ✔✔portable
define data file ✔✔"QBW"- to enter data or create reports
define backup file ✔✔(.QBB)- a condensed, stable version of the data file and restore into a
.QBW file before using
define portable file ✔✔.QBM- very condensed, helps move your quickbooks to another
computer and restore before using
what are the option that come with backup files? ✔✔accountant's copy and backup cop
what is an update? How is it done? ✔✔renewing software and an update on a screen pops up and
you have to click accept
What does it mean to restore a backup file? When should you do this? How do you do this?
✔✔to save/backup important financial information. You should do this weekly or more often.
You hit file and select open/restore company or it can be automated.
What are 3 types of forms in QB? When you fill these out what does QB automatically do for
you? ✔✔bills, invoices, checks. It will recorded debits and credits behind the scene
What is a balance sheet? What type of accounts does this report on? ✔✔analyzes net worth of a
business. Asset, liability, and equity
What is a profit loss and report? What type of accounts does this report on? ✔✔Analyzes
operating profit or loss. Expense and income.
Define Cash accounting ✔✔revenues and expenses are recognized when the cash changes hand
Define accrual accounting ✔✔revenues and expenses are recognized when transaction occurs
Is Cash or accrual accounting more often used? ✔✔accrual
Define chart of accounts ✔✔a listing of every account
What is the accounting equation? must be true ✔✔Assets= liability + ownerś equity (has to be
balanced)
Define double-entry accounting ✔✔every transaction creates a debit in accounts and credit in
accounts
What are debits and credits in accounting terms? What always must be true? ✔✔Debits on left
side and credits on right side. they must always be equal
Define Home page ✔✔common tasks shown as icons
What are the 5 regions that the home page displays? ✔✔vendors, customers, employees,
bankings, and company
Define Icon Bar ✔✔you can select activities and available services
Define net income ✔✔revenues- expenses (increase in owner's equity)
Define net loss ✔✔expenses exceed revenue (decrease in owner's equity)
What does income do at the end of each fiscal year automatically with net income and loss?
✔✔resets it to zero
define job costing ✔✔track all revenue and expense specifically related to that job, so it can look
back and see how profitable the job was
define classes ✔✔allows management to separately track revenue and expenses for each store
define general ledger ✔✔the summarize of all transactions
What are the 5 main account types? ✔✔liability, expense, income, equity, and asset
What are the 5 types of QB available? ✔✔online, pro, premier, accountant, and enterprise,
What 2 types of QB offer industry specific versions? ✔✔premier and enterprise
Define outstanding payable ✔✔bill for expense not yet paid
define outstanding receivable ✔✔sold and invoiced someone that has yet to pay
What are the 5 ways to enter information and transactions? ✔✔home page, icon bar, calendar,
centers, and snapshots
Define lists ✔✔stores information that is used again and again (2 types: menu based and center
based)
define registers ✔✔they allow you to view and edit transactions in a single window (expense and
income)
define items ✔✔used to track products and services
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