Accounting Fundamentals

Question 1

Debits are the same as adding to a general ledger account and credits are the same as subtracting from a general ledger account. True or False?

Answer 1

False

Question 2

What type of transaction is most likely the source of this general ledger transaction? A debit to cash for $100, a credit to Accounts Receivable for $100.
A. The recording of a payment to a vendor
B. The recording of a customer invoice
C. The recording of a payment from a customer
D. Taking money from petty cash to pay for the teams lunch

Answer 2

C. The recording of a payment from a customer

Question 3

The results of exporting a batch appear on the accounting screen in the batch activity feed. If there are errors you’ll see an export errors link that will display error detail. True or False?

Answer 3

True

Question 4

A purchase order is treated just like a vendor invoice in an accounting system; it will create a balance due to the vendor and counter that with an increase in cost of goods sold. True or False?

Answer 4

False
A purchase order does not generally impact the General Ledger. That happens when the actual items ordered are received and you record the invoice from the vendor.

Question 5

There are two methods of accounting. The method recommended for businesses involves using accounts like AR and AP to allow you to look forward to anticipated revenue and expenses. This give you a better ability to forecast and plan. What is this accounting method called?
A. Forecast accounting
B. Bookkeeping
C. Cash basis accounting
D. Accrual basis accounting

Answer 5

D. Accrual basis accounting

Question 6

To make finding and analyzing the contents of a batch easier, it is recommended that you separate different transaction types (invoices, payments, etc.) into their own batches. True or false?

Answer 6

true

Question 7

If you have batched a series of invoices and then realize that one of those invoices needs to have some changes made to it, you can correct the invoice in the following situations. Select all that answers that apply.
A. This cannot be done, once an item is batched it cannot be unbatched
B. If the invoice is Batched, but has not been posted, you can unbatch the item that needs to be corrected.
C. If the invoice has been batched posted and exported, you can unexport, the unpost. The item needing correction can now be unbatched.
D. If the invoice is batched and the batch has been posted but exported you can unpost it then unbatch the item needing correction.

Answer 7

B. If the invoice is Batched, but has not been posted, you can unbatch the item that needs to be corrected.
D. If the invoice is batched and the batch has been posted but exported you can unpost it then unbatch the item needing correction.

Question 8

A customer invoice with a negative balance is referred to as a:
A. Reversing entry
B. Credit memo
C. Refund
D. Accrual

Answer 8

B. Credit memo

Question 9

What type of transaction is most likely the source of this General Ledger transaction? A credit to accounts payable for $350, a debit to cost of goods sold-materials for $350.
A. Buying supplies for the office
B. The recording of a customer invoice
C. Paying a vendor invoice or bill
D. The recording of a vendor invoice or bill

Answer 9

D. The recording of a vendor invoice or bill

Question 10

After exporting a batch, in the batch activity feed on the accounting screen, you can only access the export error link if you:
A. Have reporting permission to view the “sync object” report template
B. Have reporting permissions that allow you to view the accounting category
C. Are assigned to an accounting reporting role
D. Are assigned to an accounting user role

Answer 10

A. Have reporting permission to view the “Sync object” report template

Question 11

If you were not careful in naming your batches, you can go to the accounting screen and change the names to make them easier to review. True or false?

Answer 11

False
Batch names cannot be changed once created. It’s best practice to create batch names that will make identifying the batch and its content clear.

Question 12

If you record an invoice in your accounting system for a job that the customer has not yet paid for, the value of the sale will be recorded in an income account. The balance due to you by the customer is recorded in:
A. Undeposited funds
B. Accounts receivable
C. Fixed Assets
D. Accounts payable

Answer 12

B. Accounts receivable

Question 13

Which of the following represents a list of general ledger accounts that would be considered assets?
A. Cost of goods sold, commissions, utilities, rent
B. Bank accounts, accounts receivable, inventory, petty cash
C. Sales-service, sales-equipment, coupons and discounts
D. Accounts payable, credit card accounts, vehicle loans, deferred revenue

Answer 13

B. Bank accounts, accounts receivable, inventory, petty cash

Question 14

Whether you are using quickbooks or intacct for your accounting, the steps of preparing and sending transactions from ST are the same and happen in this order.
A. Batch, commit, send
B. Post, batch, export
C. Save, batch, send
D. Batch, post, export

Answer 14

D. Batch, post, export

Question 15

In ST, business units can be used to represent:
A. Liabilities
B. Payroll categories
C. Inventory Warehouses and trucks
D. Departments

Answer 15

D. Departments

Question 16

What type of transaction is most likely the source of this General Ledger transaction? A debit to inventory asset for $300, a credit to accounts payable for $300.
A. Recording a vendor invoice or bill for the purchase of items tht will be placed in inventory
B. Selling an inventory item to customer
C. Using an inventory item on a job

Answer 16

A. Recording a vendor invoice or bill for the purchase of items that will be placed in inventory

Question 17

Which federal taxes are included in a company’s payroll tax deductions?
A. Social Security and Medicare
B. State withholdings tax
C. Worker’s compensation tax

Answer 17

A. Social Security and Medicare

Question 18

You have been asked to do some research in to the cost of running a radio ad for your company. You ran a radio ad last year and you have reports of how many jobs and total income it generated. By comparing the cost of the ad to the expected income, you can estimate your:
A. Gross profit
B. Total Sales
C. Cost of Good Sold
D. Return of investment

Answer 18

D. Return of investment

Question 19

Which of the financial document shows you the operating expenses, direct costs and revenues of a company during a specific time period?
A. Statement of cash flow
B. The balance sheet
C. The income statement
D. The general ledger

Answer 19

C. The income statement

Question 20

Of the following, which 3 are categories of general ledger accounts?
A. Payroll
B. Taxes
C. Equity
D. Expense
E. Assets
F. Loaded Labor

Answer 20

Equity
Expense
Assets

Question 21

What is something you can do to help protect your company from customers successfully disputing charges with their credit card company for properly performed work?
A. Don’t deposit credit card payments for two weeks
B. Require customers to sign a “Work performed to my satisfaction/agree to pay” statement on invoices
C. Add “No refunds” to all of your invoices
D. Have your customers read your terms and conditions while the tech does the work

Answer 21

B. Require customers to sign a “Work performed to my satisfaction/agree to pay” statement on invoices

Question 22

To make finding and analyzing the contents of a batch easier, it is recommended that you separate different transactions types (invoices, payments, etc.) into their own batches. True or False?

Answer 22

True
By organizing your batches by transaction type, finding specific batched items will be easier

Question 23

A customer invoice with a negative balance is referred to as a:
a. Credit memo
b. Reversing entry
c. Accrual
d. Refund

Answer 23

A. Credit memo

Question 24

If a customer successfully disputes a credit card charge, the processor will hold you responsible for the amount. What is this situation called?
A. Chargeback
B. Seller’s interest
C. The vigorish
D. Seller’s fee

Answer 24

A. Chargeback

Question 25

After exporting a batch, in the Batch Activity Feed on the accounting screen, you can only access the Export Error link if you:
A. are assigned to an accounting reporting role
B. Have reporting permissions that allow you to view the accounting category
C. Have reporting permission to view the “Sync Object” report template
D. Are assigned to an accounting user role

Question 26

Select the three types of general ledger accounts that are found on the balance sheet?
A. Assets
B. Revenue
C. Expense
D. Taxes
E. liabilities
F. Equity

Answer 26

Assets
Liabilities
Equity

Question 27

What type of transaction is most likely the source of this GL transaction? A debit to inventory asset for $300, a credit to accounts payable for $300
A. Selling inventory item to a customer
B. Recording a vendor invoice or bill for the purchase of items that will be placed in inventory
C. Using an inventory item on a job

Answer 27

B. Recording a vendor invoice or bill for the purchase of items that will be placed in inventory

Question 28

If you record an invoice in your accounting system for a job that the customer has not yet paid for, the value of sale will be recorded in an income account. The balance due to you by the customer is recorded in:
A. Accounts payable
B. Fixed assets
C. Accounts receivable
D. Undeposited funds

Answer 28

C. Accounts receivable