Chap 4 Quiz Flashcards
The Checking Register:
Multiple Choice
- Tracks company purchase orders and vendors
- Tracks company invoices and customers
- Records all transactions affecting the Checking account
- Lists all accounts and their account numbers
Records all transactions affecting the Checking account
In the Check Register, the term “split” indicates the payment is split between two or more:
Multiple Choice
- Purchase orders
- Invoices
- Checks
- Accounts
Accounts
Deposits other than customer payments are entered using:
Multiple Choice
- Receive Payments
- Pay Bills
- Bank Deposit
- All of these choices are correct
Bank Deposit
If we are paying a bill immediately when we receive products or services, we can use the Expenses onscreen form when we pay with:
Multiple Choice
- Cash
- Check
- Credit Card
- All of these choices are correct
All of these choices are correct
Examples of money going out that can be recorded using the Expense or Check onscreen forms include all of the following except:
Multiple Choice
- Rent expense
- Payroll expense
- Insurance expense
- Legal Services expense
Payroll expense
Examples of money going out that should not be recorded using a Check or Expense onscreen form include:
Multiple Choice
- Paychecks to employees
- Payroll taxes
- Sales taxes
- Bills already entered using the Bills onscreen form
- All of these choices are correct
All of these choices are correct
Ways to record money out using QBO include:
Multiple Choice
- Enter Bill > Pay Bills
- Check
- Expense
- Purchase Order > Bill > Pay Bills
- All of these choices are correct
All of these choices are correct
Ways to record money coming into QBO include:
Multiple Choice
- Customer Sales using Sales Receipts
- Customer Sales using Invoices and Receive Payments
- Bank Deposit
- All of these choices are correct
All of these choices are correct
To record a bill payment that is made immediately with a credit card when the product or service is received, use the following onscreen form:
Multiple Choice
- Bill
- Check
- Pay Bills
- Expense
Expense
Identify the order in which the following steps should be completed in order to connect a bank or credit card account to QBO for automatic downloads.
- Select Banking from the Navigation Bar
- Select Accounting to add the bank or credit card account to the Chart of Accounts
- Select Add Account from the Bank and Credit Cards window
- Select Accounting to add the bank or credit card account to the Chart of Accounts
- Select Banking from the Navigation Bar
- Select Add Account from the Bank and Credit Cards window
A company should always use the same checking account for business transactions and for the owner’s personal transactions to streamline recording transactions.
T/F
False.
Differences between the balance the bank reports on the bank statement and the balance the business shows in its accounting records usually arise for which of the following two reasons: (Check all that apply)
Check All That Apply
- Closing entries have been made
- Errors (bank errors or company errors)
- Adjusting entries have been made twice
- Timing differences between when the bank records and when the company records an item
- Errors (bank errors or company errors)
- Timing differences between when the bank records and when the company records an item
One of the objectives of reconciling bank statements is:
Multiple Choice
- To update the bank’s records
- Update accounting records with unrecorded items
- To record monthly adjusting entries
- To update the Chart of Accounts
Update accounting records with unrecorded items
When reconciling a bank account, which of the following is not considered a timing difference (difference between the bank balance and the book balance)?
Multiple Choice
- Interest earned
- Deposits in transit
- Errors
- Unrecorded charges
Errors
