Certification Practice Questions

Question 1

Which of the following would you not include in the chart of accounts?

A) Checking account
B) Vendor record
C) Depreciation Expense
D) Accounts Payable

Answer 1

B) Vendor record

Question 2

Checking, savings, and petty cash should be set up as which of the following account types in QuickBooks?

A) Expense
B) Other current asset
C) Bank
D) Equity

Answer 2

C) Bank

Question 3

True/false: Once you have set up the chart of accounts, you cannot add, delete or modify accounts.

Answer 3

False

Question 4

Which of the following activities cannot be accessed from the Customers & Jobs list in the Customer Center?

A) Create statements
B) Assess finance charges
C) Enter credit card charges
D) Receive payments

Answer 4

C) Enter credit card charges

Question 5

True/false: You can delete list items that are used in transactions.

Answer 5

False

Question 6

What does the ending balance in a QuickBooks bank account register represent?

A) Only transactions that have been printed
B) All transactions entered in the register, including checks that haven’t yet been printed

Answer 6

B) All transactions entered in the register, including checks that haven’t yet been printed

Question 7

When would you not want to use the Write Checks window when paying bills?

A) When paying sales tax
B) When paying payroll taxes
C) When using a handwritten check
D) When paying bills you track with Accounts Payable
E) None of the above
F) A, B, and D

Answer 7

F) A, B, and D

Question 8

Which of the following would likely be considered a long-term liability?

A) Vehicle loan
B) Accounts payable
C) Rent
D) Credit card account

Answer 8

A) Vehicle loan

Question 9

True/false: QuickBooks lets you save sales forms as PDF files.

Answer 9

True

Question 10

On which of the following can you NOT use price levels?

A) Invoices
B) Sales receipts
C) Credit memos
D) Purchase orders

Answer 10

D) Purchase orders

Question 11

True/false: Invoice letters and Reminder statements are two methods in QuickBooks that provides customers with information about overdue invoices and allows them to assess finance charges.

Answer 11

True

Question 12

QuickBooks supports which of the following types of payment scenarios?

A) Down payments for products or services
B) Overpayments from customers
C) Partial payments from customers
D) All of the above

Answer 12

D) All of the above

Question 13

Which of the following is an asset?

A) Accounts Payable
B) Accounts Receivable
C) Company delivery van
D) Both A and B
E) Both B and C

Answer 13

E) Both B and C

Question 14

True/false: Choosing a company organization associates a tax form with your business in the QuickBooks file.

Answer 14

True

Question 15

Products you sell would appear on which of the following lists?

A) Vendor list
B) Employee list
C) Chart of Accounts
D) Item list

Answer 15

D) Item list

Question 16

True/false: All income and expense accounts have a register associated with them in QuickBooks

Answer 16

False

Question 17

Retained Earnings is defined as which of the following?

A) The amount of money that a business retains for paying its employees
B) The earnings from non-essential business services
C) $5.85
D) The accumulation of a company’s net income or loss from its start date

Answer 17

D) The accumulation of a company’s net income or loss from its start date

Question 18

True/false: When receiving payment at the time of sale, you create a sales receipt in QuickBooks

Answer 18

True

Question 19

If a wood door costs $120.00 and you set the rounding option to 1.00 minus .11, what price would appear on an invoice for the wood door?

A) $120.00
B) $500
C) $119.89
D) $119.11

Answer 19

C) $119.80

Question 20

True/false: QuickBooks allows you to print deposit slips that you can take to the bank.

Answer 20

True

Question 21

True/false: When you make a payment (from the checking account) in the Pay Bills window, you can see the transactions in the checking and accounts payable registers.

Answer 21

True

Question 22

You paid a vendor $1,000 through the Pay Bills window (using the Checking account). QuickBooks automatically creates a journal entry that:

A) Deletes the bill.
B) $500
C) Shows $1,000 as a Debit in Accounts Payable and shows $1,000 as a Credit in the Checking account.
D) Shows $1,000 as a Debit in Accounts Payable and shows $1,000 as a Credit in the Accounts Receivable.

Answer 22

C) Shows $1,000 as a Debit in Accounts Payable and shows $1,000 as a Credit in the Checking account.

Question 23

In which report category would you find the list of open invoices?

A) Company & Financial
B) $500
C) Customers & Receivables
D) List

Answer 23

C) Customers & Receivables

Question 24

True/false: Forms, lists and registers are the three main ways you enter data in QuickBooks.

Answer 24

True

Question 25

True/false: During the EasyStep Interview, QuickBooks creates income and expense accounts based on your company's industry.

Answer 25

True

Question 26

True/false: If you are tracking bills with Accounts Payable and have already entered a bill, you should pay the bill by writing a check from the Write Checks window

Answer 26

False

Question 27

True/false: Enter bills and Pay bills are the two steps involved in using the accounts payable features in QuickBooks.

Answer 27

True

Question 28

True/false: You use the accounts payable account to track money that you owe vendors.

Answer 28

True

Question 29

True/false: QuickZoom is the tool that allows you to drill down on summary reports and graphs in QuickBooks.

Answer 29

True

Question 30

Which of the following statements is true? A) A debit decreases a liability account balance. B) Equity decreases if liabilities increase. C) In a transaction, the total debits must equal the total credits. D) All of the above.

Answer 30

D) All of the above.