QuickBooks Chapter 1 Test Latest
Update with Verified Solutions
Data entry is the same in QuickBooks whether you use accrual or cash basis accounting ✔✔True
Always back up your company file to a location NOT on the sa
...
QuickBooks Chapter 1 Test Latest
Update with Verified Solutions
Data entry is the same in QuickBooks whether you use accrual or cash basis accounting ✔✔True
Always back up your company file to a location NOT on the same hard drive as the original file
✔✔True
The cash basis accounting means the sale transaction is recorded when the sale is made, and
expenses are recorded when they are incurred ✔✔False
QuickBooks for Mac has the same basic look as the Windows version, but the functions are
different ✔✔False
Leann works for a nonprofit organization. At a past job she used QuickBooks CANNOT be used
for nonprofits ✔✔False
Rahim is having trouble managing his small business's finances. His friend is encouraging him to
purchase QuickBooks because, "You don't have to know anything about accounting.
QuickBooks does all the work and prevents you from having any problems." Is what Rahim's
friend is saying true or false? ✔✔False
The QuickBooks working file has the .QBW extension and is the company file. ✔✔True
The working QuickBooks company file, with the .QBW extension, is a compressed file ✔✔False
In QuickBooks, portable files must be restored before use ✔✔True
The active window will always appear at the top of the Open Window List ✔✔True
The act of decompressing a QuickBooks portable file is called: ✔✔Restoring
When are transactions saved in QuickBooks? ✔✔As they are entered (automatically)
What accounting method records income when a sale is made and records an expense when it is
incurred? ✔✔Accrual Basis
What can you do with QuickBooks? (Run payroll for employees, Process sales transactions and
cash receipts, Run end-of-period financial reports) ✔✔All of these options
Which of these QuickBooks tasks do/does NOT take place behind the scenes? ✔✔Both lists and
reporting
Which of these describes the GAAP consistency principle? ✔✔The company uses the same
accounting principles and methods from year to year
Omar is setting up his company in QuickBooks and selects the accrual basis of accounting. How
will his business record income and expenses? ✔✔Income is recorded when sales are made;
expenses are recorded when incurred
Keith has been using QuickBooks for several years. The system has recently been performing
slowly, and Keith is worried that his company file is corrupted. What can Keith do to check the
integrity of his file? ✔✔Create a backup file
What do the arrows on the QuickBooks Home page indicate? ✔✔The workflow to follow when
executing tasks in QuickBooks
Rasha is working in QuickBooks as a heavy storm begins. Her building is notorious for losing
power during storms, so she wants to save her company file right away. How should she do this?
✔✔There is no need to save because QuickBooks automatically saves all actions
Elise's business has hundreds of transactions every day, and her accountant has suggested she
back up her QuickBooks company file to secure her data. With so many daily transactions, how
often should Elise back up her company file? ✔✔Daily
If you've already been using QuickBooks, what does it do automatically when you start it? ✔✔It
opens the last company file that was open when you exited QuickBooks
What prior accounting knowledge should you have before using QuickBooks? ✔✔A basic
knowledge of debits and credits, and what happens behind the scenes
Company File: A decompressed, regular file for carrying out daily transactions
Backup File: A compressed copy of your data that can be stored online
Portable Company File: A compressed copy of your data; great for sending via email
Transaction Log File: Helps to recover any data entered after the last backup
Network Data File: Contains important configuration data; should not be deleted ✔✔Match each
QuickBooks file type to its description
Behind the Scenes: The accounting QuickBooks performs when a transaction is recorded
Activities: What the user enters on forms such as invoices or bills
GAAP: Principles generally accepted in the accounting world ✔✔Match these accounting terms
to their descriptions
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