QuickBooks Chapter 1 Test Latest Update with Verified Solutions

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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 [Show More]

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