Chapter 4 Flashcards
(24 cards)
By default, when setting up a new customer, QBO assumes the customer is…
taxable.
Which of the following new items being added to the Products/Services list would be considered a non-inventory item for a landscaping company?
A custom-ordered tree requested by the home owner.
Products or items you buy or sell but don’t need to track quantities for should be set up as which of the following in QBO?
Non-inventory
In the Project 4 Homework Assignment, what terms were included on the invoice to The Red Rock Diner?
Net 30
Setting up products and services will…
let you track sales by product and services, enable adding products and services to sales forms (invoices, expenses, sales receipts and others), and offer standard terminology on sales forms.
Your company designs and builds custom housing decks. A potential client wants to know how much a specific project will cost. You present that information on a/an…
estimate.
What does the payment term Net 15 mean?
The customer has 15 days to completely pay the invoice.
When adding a new customer to QBO, which statement is true about the Display Name field?
The Display Name field is what appears on reports.
Which of the following comments about a Credit Memo is true?
A Credit Memo reduces a customer’s current open balance as soon as it is created.
Your company has a new, not-for-profit customer. What area on the customer setup record do you select to set the sales tax status?
Additional Info
In the Project 4 Homework Assignment, how many checks were deposited in the bank deposit?
Three
When creating a new item in the Products/Services list, for which type of item is the “Income account” field required?
Inventory items and Service items.
Which statement about setting up payment Terms for a new Customer in QBO is false?
You must specify payment terms when setting up a new customer.
In the Project 4 Homework Assignment, what is the amount of sales tax on the invoice to The Red Rock Diner?
$4.81
You are setting up Products and Services in QBO. For which items is the initial quantity on hand field available?
Inventory items only
In the Project 4 Homework Assignment, what is the total amount of the deposit going to the bank?
$2,542.08
Which of the following statements is not correct when it comes to creating Invoices in QBO?
Customer address is required on Invoices but not on Sales Receipts.
Compared to terms used on invoices, terms used on bills…
come from the same list of terms.
In the Project 4 Homework Assignment, what was the original message on the invoice before you added onto it?
Thank you for your business and have a great day!
A sales receipt is essentially a combination of which two transactions? (Select two answers)
Invoice and Receive payment
You decide to offer a 10% discount to students who purchase items from your store. Which do you use?
Discounts
What are the four different types of products and services that can be created in the Products/Services list?
Bundle, Inventory, Non-inventory, and Service
When setting up a customer account, which of the following fields must be unique?
Display Name
Which of the following is false about sales tax on Quickbooks?
When a taxable service is sold to a non-taxable customer, Quickbooks calculates and adds tax automatically to the invoice or receipt.
