quickbooks studyguide

what is a billing address?

the billing address is the specific address where a company receives mail and is usually linked to financial data such as credit cards and bank statements.

what is a shipping address?

the address where product may be shipped to or from. it could be where inventory is stored.

what is depreciation?

is the reduction of value of an asset such as a delivery vehicle. to journalize the entry you would: DR depreciation expense, CR accumulated depreciation.

what are billable costs?

companies will often times pass on the costs to their customers. to do so: go to Account Settings/Expenses tab, toggle on Make Expenses and Items billable.

what is true about merging vendors?

• after two vendors are merged, the action cannot be undone

• to begin merging two vendors, edit the vendor record you want to keep

what is true about quickbook payments?

• quickbook payments allow you to accept payments directly from customers

• quickbook payments accepts cash, credit cards, debit cards, checks, and automated bank transfers

what goes on a balance sheet?

assets, liability and owner’s equity

what do balance sheets provide?

information about the current financial state of a business

what goes on a profit and loss statement?

income/revenue, expenses, net income

what do profit and loss statements provide?

changes in revenue and expenses

what is a transaction list by vendor report?

allows you to compare prices for the products and services each vendor provides to your company

why should you connect your online bank accounts to quickbooks?

• to help prevent data entry errors

• ensure that your data remains secure

what does net 15 mean?

customer must pay the invoice full in 15 days of the invoice date

what occurs when you delete a transaction?

a transaction is erase completely

what occurs when you void a transaction?

allows you to still view the original transaction/invoice

what are two methods you can use to upload a receipt to quickbook online?

• upload the image directly from your Google Drive

• email an image directly to QB Online

how to reduce amount loyal customers owe?

decreases by 10% with Discounts Feature in QB

what can you do with bank feeds?

• match transactions in QB to imported bank information

• create a Receive Payment transaction if invoices are open

• create a Pay Bills transaction if the bills are unpaid

which field in a customer account must be unique?

display name

what can you customize in a quickbooks online report?

• date range

• the accounting method (accrual/cash)

what 4 types of products and services appear on a quickbooks sales form?

• bundle

• inventory

• non-inventory

• service

true or false: the unbilled Costs by Job report displays the unbilled expense

true

true or false: if you clear the Billable check box for a cost, it is no longer business expense

false

true or false: you can change the billable status of a cost by selecting or clearing the Billable check box on the check

true

how to display two date ranges side-by-side in QB Online reports?

use “Compare another period” feature

what are the three types of recurring transactions?

scheduled, reminder, unscheduled

true or false: cash flow statements can show a business’s assets, liabilities, and equity

false

true or false: cash flow statements summarize the cash flowing in and out of a business

true

true or false: cash flow statements are divided into 3 sections of operations, investments, and financing

true

true or false: cash flow statement is another name for income statement, which some companies use for accrual accounting

false

what are the two reasons you should set up the services and products list in QBO?

• to track sales by product and service

• to add each product and service to invoices, sales receipts, expenses, and other sales forms

which financial accounts can you connect to QBO?

• business credit card

• paypal

• savings

what is the benefit for setting up products and services in QBO?

ensures the sales tracking of products and services on reports

what to do with a damaged check?

if you are using it to pay a bill before the vendor can deposit it, you should Void the original bill payment check

what to do with vendor credits?

CR cost of product to Vendors Credits, CR Refunds Income Account

true or false: you can create new payments terms from the New Customer form

true

true or false: you must specify payment terms when setting up a new customer

true

true or false: if you do not select payment terms for a customer, QBO assigns the default invoice terms

false

what are 1099 workers?

independent contractors that pay their own employment taxes. they define when, how, and where they will work.

true or false: your QBO account includes free access to all the apps in QB App Store

false

true or false: the QB App Store is available directly from QBO Plus

true

true or false: apps that are not compliant with Intuit requirements will not connect to or sync with your QBO company account

true

what is the difference between recording expenses on checks and credit card expenses?

• checks: DR expense account, CR AP

• CC: DR expense account, CR CC AP

what do you need to do when transferring money from business savings to business checking account to pay bills?

• match the checking account transaction to a savings account transaction (double-entry)

• mark the savings account transaction as a transfer

what lists can you import into QBO Plus from Import Data Screen?

Products and Services

what does an audit log do?

displays transactions that affect your company file, includes the associated user and any changes made to the settings

how to record a new transaction from a receipt (expense)?

1. select receipts (Expense) tab

2. upload an image of the receipt to QBO

3. select the receipt to create the expense

4. match the expense to the bank feed transaction

what does QBO Plus have?

• provides inventory tracking

• allows up to 5 user licenses

• provides project profitability tracking

• includes Payroll support at an additional cost

what item requires initial quantity on-hand field when setting up Products and Services?

inventory items only

purpose of classes?

track transaction by departments in a company

purpose of projects?

track job costs and income

purpose of locations?

track transactions by city or region