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QBO (ACG) Quizzes (1)
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QBO (ACG) Quizzes (1)
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QBO (ACG) QuizzesQBO Help and Support: - ANS-Is accessed through the ? icon.
What type of legal entity do many entrepreneurs use and why? - ANS-LLC due to its tax
advantages and the limited liability aspect to owners.
The QBO Create (+) icon lists various transactions that can be created. It is commonly used for
all of the following types of transactions except: - ANS-IRS Income Tax
Why is understanding what type of legal entity a business uses important when initially setting
up an accounting system? - ANS-A company's type of legal entity impacts the equity accounts
and the tax form a business files. The tax form a business files greatly impacts the type of
financial information an accounting system must track.
Accounts Receivable is: - ANS-Amounts owed from customers.
Which transaction type does not appear on the Create (+) screen? - ANS-Budgeting
The balance sheet summarizes what a company owns and what it owes. What account types
are on the balance statement? - ANS-Assets, Liabilities, and Owners' Equity (or Stockholders'
Equity).
Net income is calculated by: - ANS-Net Income = Revenues - Expenses
The main financial statements of a business include: - ANS-Balance Sheet, Profit & Loss
Statement, and the Statement of Cash Flows
QBO is able to display account numbers in the Chart of Accounts by: - ANS-Once in the Chart
of Accounts use the Gear icon, select Account and Settings > Advanced > Check Enable
account numbers > Check Show account numbers > Save
To enter account numbers into QBO: - ANS-Select Accounting in the Navigation Bar and use
the Edit Pencil.
All of the following are true regarding Owners' Equity except: - ANS-Owners' Equity accounts
represent the net worth of a business, and are only increased by an investment in the business.
Profit and Loss Statement includes the following account types: - ANS-Revenues and
Expenses.
, Which of the following is correct regarding what a Customer Transaction includes? -
ANS-Entering invoices, Receiving customer payments, Entering estimates, Entering credit
memos for reductions to customer accounts, Entering sales receipts, and Entering refund
receipts
Which one of the following statements best describes a transaction? - ANS-Transactions are
exchanges between a business and other parties.
Revenues are: - ANS-Increased with credits and decreased with debits.
Which of the following is true regarding debits and credits? - ANS-Whether a debit or credit
increases or decreases an account depends on the type of account.
Assets are: - ANS-Increased with debits and decreased with credits.
Employee Lists in QBO online are used to: - ANS-Collect information about employees for
payroll purposes including name, Social Security number, and address.
All of the following are true regarding Customers List in QBO except: - ANS-It collects
information about customers, such as future sales revenue potential.
What determines whether a company can pay its bills on time? - ANS-Adequate cash flow
Why are bank reconciliations a good internal control? - ANS-Bank reconciliations compare
actual assets existing at the bank with accounting records.
Which statement best describes a bank reconciliation? - ANS-It is the process of comparing, or
reconciling, the bank statement with a company's accounting records for the cash account.
Select the answer that best describes how to View the Check Register? - ANS-Select
Accounting from the Navigation Bar, and from the Chart of Accounts window select View
Register.
Timing differences on a bank reconciliation include all of the following except: - ANS-Bank
Errors
What impact will a Deposit in Transit and an Outstanding Check have on a company's
accounting records after a reconciliation is completed? (will cash have to increase or decrease
based on the reconciling item) - ANS-
What are the four main ways QBO records money out? - ANS-Expense, Check, Bill > Pay Bills,
and Purchase Order >Bill> Pay Bills.
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