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Student name:__________
MULTIPLE CHOICE – Choose the one alternative that best completes the statement or
answers the question.
1)
How do you access the screen to add a user and password?
A) Company Menu > Set Up Users and Passwords > Set Up Users
B) Edit Menu > Preferences > Employees
C) Employees > Employee Center
D) Company Menu > Company Information
2)
What does the Chart of Accounts list?
A) Assets, liabilities and owner’s equity accounts
B) Income and expense accounts
C) Owner’s contributions
D) All the choices are correct
3)
Which account below is not an Expense account?
A) Utilities
B) Insurance
C) Accounts Receivable
D) Advertising
4)
What are assets?
A) Net worth of a company
B) Resources that a company owns with future benefit
C) Amounts paid to owners
D) Amounts owed to others and are future obligations
5)
The Income Statement:
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A) Lists the accounts and account numbers
B) Lists a companyโs assets
C) Summarizes the results of a companyโs operations, listing income and expenses
D) Summarizes what a company owns and what it owes
6)
Which of the following is a temporary account?
A) Building
B) Utilities Expense
C) Accounts Payable
D) Accounts Receivable
7)
An example of a non-posting account is ________.
A) Accounts Payable Account
B) Purchase Orders Account
C) Inventory Account
D) Accounts Receivable Account
8)
To add a new account to the Chart of Accounts:
A) From the Chart of Accounts window, select Account > New
B) From the Company menu, select New Account
C) From the Home Page, select Account > New
D) From the Lists Menu, select New > Account
9)
What is the purpose of a non-posting account?
A) To calculate income.
B) To track information necessary for the accounting system.
C) To calculate expenses.
D) To identify ownerโs equity.
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10)
Which of the following is considered a permanent account?
A) Income accounts
B) Expense accounts
C) Asset accounts
D) None of the choices are correct
11)
A companyโs office building is classified as what account type?
A) Expense
B) Ownerโs Equity
C) Fixed Asset
D) Income
12)
Which of the following is not considered an asset account in QuickBooks?
A) Inventory
B) Rent Expense
C) Accounts Receivable
D) Office Furniture
13)
To re-sort the Chart of Accounts, first display the Chart of Accounts window, then:
A) Click on the Company heading bar
B) Click File > Sort
C) Click Account > Re-sort List
D) Right click > Sort by Name
14)
Balance Sheet accounts are also called:
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A) Permanent accounts
B) Temporary accounts
C) Equity accounts
D) None of the choices are correct
15)
Income Statement accounts are also called:
A) Equity accounts
B) Permanent accounts
C) Temporary accounts
D) None of the choices are correct
16)
Non-posting accounts:
A) Track information required for the accounting system
B) Do not appear on the Balance Sheet
C) Do not appear on the Income Statement
D) All the choices are correct
17)
The different types of business ownership are:
A) Sole proprietorship
B) Partnership
C) Corporation
D) All the choices are correct
18)
Which of the following accounts is an asset?
A) Mortgage Payable
B) Accounts Payable
C) Checking
D) Unearned Revenue
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19)
Which of the following is a liability?
A) The amount an owner withdraws from a company
B) An amount a company owes
C) A resource a company owns
D) An amount an owner invests in the company
20)
Which of the following increases ownerโs equity?
A) Dividends
B) Business losses
C) Business expenses
D) Business profits
SHORT ANSWER. Write the word or phrase that best completes each statement or
answers the question.
21)
Required:
Briefly explain the difference between a permanent and a temporary account.
22)
Required:
Briefly explain the purpose and benefits of limiting user access in QuickBooks, providing at
least one example of the type of employee for which limiting user access might be appropriate.
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23)
Required:
Briefly explain the purpose of account numbers as used in a Chart of Accounts. List three
advantages of using account numbers.
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Answer Key
Test name: QuickBooks 2
1) A
2) D
3) C
4) B
5) C
6) B
7) B
8) A
9) B
10) C
11) C
12) B
13) C
14) A
15) C
16) D
17) D
18) C
19) B
20) D
21) Temporary accounts (revenues, expenses, and withdrawals or
dividends) hold information for a particular accounting period. They are
closed to zero at the end of the period. Permanent accounts retain their
balances throughout the operation of the company.
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22) By limiting user access in QuickBooks, it is possible to give access
to specific employees to specific tasks. This improves security and
ensures that employees do not have access to confidential financial
information, yet are still able to complete their assigned QuickBooks
tasks. For example, an employee responsible for accounts receivable
could be given access to accounts receivable and accounts receivable
reports, but not have access to accounts payable or payroll.
23) Account numbers serve the purpose of uniquely identifying specific
accounts. Each account is assigned a unique number for the Chart of
Accounts. Advantages of using account numbers for a Chart of Accounts
include:
1.Each account can be uniquely identified, avoiding duplicate,
repetitive accounts that have slightly differently spellings.
2.When entering transactions, accounts numbers can be used to save
time.
3.Account numbers can be used as a coding system so the account
number also identifies the type of account.
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