QuickBooks Certification Exam Study Guide

Why would you hide or collapse sub accounts on a report?

To temporarily hide unnecessary detail and hide parent accounts

What should you do after you click save & close on a customer credit memo?

Choose between retained as an available credit, give a refund or apply to an invoice

Which of the following CAN be memorized in quickbooks?

check

Which is NOT shown on the payroll summary report on quickbooks?

information necessary to complete your state unemployment tax form

The bank notified you that a customer's check you deposited has bounced. The customer did not have sufficient funds to cover the check. What should you do?

Record a transaction to show the customer owes you the money and that the checking balance decreased by that same amount

Suppose you always want all reports to show a specific size and color,how do you set standard preference in quickbooks so you don't have to customize each report?

Click the edit menu and select preferences then click the reports and graphs group to set preferences

Suppose you want to restrict which users can access customer credit card numbers. How do you do this?

Give the user access to sales and accounts receivable but do not check the complete credit card numbers

Which of the following is a possible reason for a bank reconciliation discrepancy?

The beginning balance calculated by quickbooks does not match last months ending balance

which of the following statements is TRUE regarding Undeposited funds?

It is an account used to record payments before you make a deposit

Which accounts are affected when you enter Time in quickbooks?

Accounts receivable

Workers who require a W2 tax form at the end of the year should be added to which of the following lists?

Employee

If you have customized report that you use each month, which feature lets you run the

Memorize Report

What is the primary reason for setting a closing date in Quickbooks?

To restrict users from deleting, editing or adding transactions to last year

Your new employee earned an annual salary of $40,000. How do you enter this into quickbooks?

Enter 40,000 in the payroll info window

What steps must you complete to use the payroll center to pay payroll liabilities

set deposit frequencies

Name the section of the balance sheet

Assets, Liabilities, Equity

When you create a new company file, quickbooks asks for your start date. What is the best definition of the start date in quickbooks?

The day you chose to start recording the finacial records in quickbooks

Which of the following statements is NOT true regarding entering and paying bills in quickbooks?

If you use the enter bills window to record a bill, do not use the write checks window or check register to pay that same bill

How do you use a different forms template when creating a new transaction? (i.e. Invoice)

Open the form, click the templates drop down list and select the appropriate form

How do you change the report basis, accrual vs. cash for just one report?

Click the modify report button on the report and then choose accrual or cash on the display pad

How would you track customer birth in quickbooks?

Add a custom field to the customer list

How do you change text in the header/footer of a report?

Click the modify report button on the report and the change the header footer tab

Where can you see a thumbnail sample of each report in quickbooks along with a description of what the report tells you?

Report center

What transaction in quickbooks should you use if your customer pays you when you provide the goods or sevices?

Sales receipt

How can you ensure that invoice detail does not appear on a customer statement?

Uncheck the show invoice item detail on statements box in the create statements window

What is the purpose of backing up in quickbooks?

To protect against data loss from file corruption or a hard file crash

Which of the following is NOT true regarding merging entries?

quickbooks allows you to merge an expense account with an Income account

When a transaction is changed, what information does the Audit Trail report provide.

who changed the transaction?

the date the transaction was changed

the time the transaction was changed

How do you add or delete columns on a report.

Click the modify report button and on the display tab check add or uncheck remove columns

When should you use the items tab on a bill or check?

When you purchase inventory parts

When you are setting up a service item, what happens if you select the box next to this "service is performed by a subcontractor or partner"?

quickbooks provides fields so you can track purchase and sales information for that item

Which of the following statements is NOT true regarding single user and multi-user mode?

Only the administrator is allowed in the file when it is in single user mode

Which of the form templates cannot be customized in quickbooks?

checks

The product information window shows you the version and release of quickbooks you have along with other information about the company file. How do you access the product information window?

Press the F2 key

When should you set up a non-inventory item type?

for something you buy but dont sell

for something you sell but dont buy

for something you buy and sell but do not need track the quantity on hands

Which of the following statements is TRUE regarding items?

When you purchase or sell and item, the value of the purchase or sales flows to the account and therefore the financial statements you selected when you set up the item

Which report shows how much you owe for sales tax?

Sales tax liabilitiy

Which report is also known as an income statement and summarizes income and expenses for a month

Profit & loss standard

When making your payroll tax deposit, how can you add IRS interest and/or penalties?

Click the expense tab and enter the appropriate account and amount of interest and penalties

Which of the following is a reason to create a new company file?

To start over when a company file has many errors that are beyond repair

When you enter a purchase order for inventory, which accounts are affected?

None. Because purchase orders are non-posting transactions

After quickbooks sets up a chart of accounts in the easy step interview, which of the following is TRUE?

It is possible to add more accounts later

Which of the following is TRUE regarding general journal entries?

General journal entries require a good understanding of debits and credits and should not be used by non-accountants

Which of the following statements is TRUE regarding how you record a debit card transaction in quickbooks?

Use the write checks window or check register and type debit in the check number field

When can you delete a check from quickbooks without voiding it?

You entered a check in quickbooks but haven't printed it yet. You realized the purchase was actually made using a credit card. The check was really used

What tool do you use to move your logo to a form?

layout designer

What is the reason for not being able to delete a list entry?

The entry has been used in a transaction

How do you move list entries to a different location on the list?

Click on the diamond to the left of the name and then drag the name up or down the list

Assume that quickbooks is now in single user mode. What does this mean?

Only one user can access the data file

Which of the following statements is TRUE regarding vendor credit memos?

Vendor credit memos reduce what you owe the vendor

What is a required field when creating a new Quickbooks Company File?

Company name

Where can you find the preference that will display your icon in color?

Desktop View, My Preference

Where can you find the option to add specific icons to the Home Page?

Company Preference

How many Admin users can you have in one QuickBooks files?

1

Which user/s have the capability to change their password?

All Users

What functions does the Layout Designer allow you to do?

Add text boxes to your template

Can you have 2 of the exact same template name in the Templates list?

No

What type of items are set up to handle bounced checks?

Other Charges

When reconciling an account, what would make a beginning balance different from the statement's beginning balance?

A prior reconciled entry was modified or deleted

Which payroll subscription allows you to prepare State and Federal Payroll Tax Forms within QuickBooks?

Enhanced

You suspect that someone has changed a transaction. What report should you run?

Audit Trail Report

How do you create a memorized group of reports?

Open MEMORIZED REPORT LIST and then click MEMORIZED REPORT> NEW GROUP

How do you move columns on a report?

Move your cursor over the column heading, and when it becomes a hand, click and drag the column to the desired position.

What happens if you click "Collapse" on a report?

QuickBooks hides Subaccounts and only show Parent Accounts.

When should you use a sales receipt in QuickBooks?

To record a customer payment at the time of sale.

What happens if you double-click on a Dimond on a report column?

Nothing

You have customized and then memorized a report. What does QuickBooks save when memorizing a report?

Report headers, Filters, and columns but not the actual transaction

What is the easiest way to organize your memorized reports?

Create a report group

How do you display or print a batch/group of reports quickly?

Choose REPORTS> PROCESS MULTIPLE REPORTS

Suppose you have a subcontractor who receives a 1099 from your company. Which list should you add them to?

Vendor List

You successfully reconciled the checking account last month. This month, when you begin to reconcile the same account, you notice that the beginning balance calculated by QuickBooks is different from the beginning balance according to the bank. How can this happen?

Someone changed or deleted a cleared transaction

How do you combine or merge two list entires?

Rename the unwanted list entry to match the name of the list entry you want to merge into.

What options do you have after you create a credit memo in QuickBooks?

1. Retain as an available credit

2. Give a refund

3. Apply to invoice

When should you NEVER delete a check?

You printed a check, and the check number has been used.

How do you use Write Checks to pay Payroll Liabilities so your reports are accurate?

You can't

You've customized an invoice and are ready to use it, but when you open the invoice, QuickBooks display the default Intuit Invoice. how do you change it?

On the Invoice, click Template drop-down arrow and select your customized invoice.

If the computer that houses your QuickBooks data Crashes, What should you do?

Restore a backup copy of your company file

What can you do in the Reports & Graphs Preferences (Edit>Preferences)?

1. Change the summary basis (Accrual or Cash) for all reports.

2. Change format option like font, color,and size.

3. Set which date to use for aging reports.

How do items affect financial statements?

When you purchase or sell an item, the value of the purchase or sale flows to the account you selected when you set up the item.

Which is Not a good reason to enter a general journal entry?

To avoid using the built-in forms ( e.g., checks and invoice)

Suppose you work for a pet store and have to track the name of each customer's pet. How would you do this in QuickBooks?

Add a Custom field to the customer list

How can you open a QuickBooks report in Microsoft Excel?

Click the Excel button on the top of any Quickbooks reports.

Your company sells unique items to every customer( they never sell the same service or product twice). What item(s) should you set up in QuickBooks?

Set up a generic item and edit the description and price each time.

What is the purpose of the Audit Trail report?

To track any changes and deletion to transactions, as well as track which user makes the change or deletion.

Which is an example of when to use a Non-inventory Part?

When you buy and sell the item but don't need to track quantity-on-hand information.

How do you customize a report (e.g., change the information QuickBooks displays, change the title, etc.)?

Click the Customize Report button on the report.

You sent a QuickBooks report to Excel and made some changes. How do you import the changes back to QuickBooks?

You can't import changes in Excel back to QuickBooks.

Your company has to return some goods to a vendor. How do you record the vendor credit in QuickBooks?

Click Enter Bills and then click Credit on top of the bill

How do you make a column on a report wider?

Click the Dimond to the right of the column and drag it to the right.

You accidentally entered the same customer twice in the Customer Center (with slightly different spelling). How do you merge these two entries?

Edit the unwanted list entry. Change the name to match the name you want to merge into. Click OK. Then Click yes when prompted to merge the names.

The bank notified you that a customer's check you deposited has bounced (the customer did not have sufficient funds to cover the check). What should you NOT do?

Delete the customer's payment from the deposit.

Your company just hired a subcontractor to work 40 hour per week on a job. Which list should you add this person to?

Vendors

Which of the following editions of QuickBooks support multiple users?

All versions support multiple users.

What is the quickest way in QuickBooks to find an invoice from months. Click help and search for the invoice by date?

Open an invoice and click the Find button.

The computer that houses your QuickBooks data crash. What should you do in QuickBooks to make sure you always have access to your data?

Create a back up of your company file and store it separately from the computer.

How do you make an item on the item list inactive?

Open the Item list. Click to select the appropriate item. Then click the bottom-left Item button and select Make Item Inactive.

How do you pay payroll liabilities in QuickBooks?

Select the payments you want to make from the Pay Scheduled Liabilities list in the Payroll Center. Then click View/Pay.

How do you hide subaccounts on a report?

Click the Collapse button

The company file you are working on is a mess. You decide to start a new file. To save time, you want to keep all the lists and preferences and just delete the transactions. How do you do this?

Click the File menu and select Utilities>Condense Data from the menu. Then choose the All transactions option.

When you run a Profit & Loss on the accrual basis, What does QuickBooks include as income?

All sales