Chapter 6 Flashcards
(21 cards)
Why would a company use account numbers in a Chart of Accounts?
To reduce possible confusion on which account should be used and To indicate if the account is an asset, liability, income, expense, etc.
A Balance Sheet shows…
assets, liabilities, and equity at specific point in time.
Ledger Reports may only be prepared based on fiscal years.
False
In the Project 6 Homework Assignment, using the Profit and Loss reports you printed/saved, what is the total amount difference in Net Income?
$3,546.58
Which statement below describes accounting on an accrual basis?
Recording revenue when it is earned, even if the payment is not collected from the customer yet.
A Balance Sheet will illustrate that the Fundamental Accounting Equation is in balance.
True
In the Project 6 Homework Assignment, using the cash basis Profit and Loss report you printed/saved, Craig’s Design and Landscaping has lost money so far this year.
True
A Profit and Loss report shows…
income and expenses during a specific time period.
Which of the following will require a display name to be entered when recording a Journal Entry?
Accounts Receivable account
In the Project 6 Homework Assignment, what is the balance of Accounts Receivable (A/R) on the cash basis Balance Sheet you printed/saved?
$0.00
In the Project 6 Homework Assignment, what was the difference for Total Assets between the Accrual and Cash basis reports you printed/saved?
$5,877.77
Other Income and Other Expense accounts will appear on Profit and Loss reports without having to be specifically added.
True
After setting a Closing Date of 6/30/20xx, you select the option to “Allow changes after viewing a warning”. Which statement is correct?
Anyone can change a transaction that occurred before 6/30/20xx but will receive a warning before they can save it.
Which financial statement provides information about the current financial health of a business?
Profit and Loss Report
In the Project 6 Homework Assignment, using the accrual basis Balance Sheet report you printed/saved, Craig’s Design and Landscaping is owed more money from Customers than it owes to Vendors (A/P vs A/R).
False
True
There is a mandatory system for assigning numbers to Chart of Accounts if you choose to use numbers.
False
Your accountant has completed all the year-end accounting work and submitted your final financial statements to the bank and other external agencies as required. What can you do to help prevent the users from modifying transactions that have occurred in the past?
Open Account and Settings and enter a closing date as of the end of completed year.
When creating a Journal Entry, after the amount has been entered in the debit field, QBO will automatically enter the balance in the credit field.
True
Which of the following statements is true about a Journal Entry?
Date and Journal Entry Number are entered automatically.
Which types of accounts are listed on a Balance Sheet?
Equity and Assets
Which of the following is NOT true about a QBO Journal Entry?
You can only use Balance Sheet account types on a Journal Entry.
