ANSWER THE FOLLOWING QUESTIONS IN THE SPACE PROVIDED BEFORE THE
1. Accrual-basis accounting matches the income from the period and the expenses for the period in order to determine the net income or net loss for the period.
2. In QuickBooks Pro, the Journal is called the book of final entry.
3. An account may be deleted at any time.
4. In a sole proprietorship, an owner=s name is added to the Vendor List for recording withdrawals. T
5. Additional investments made by an owner may be cash or non-cash items.
6. QuickBooks Pro keeps a Journal of every transaction recorded.
7. QuickBooks Pro keeps the last two bank reconciliation reports in memory.
8. Once an account has been used in a transaction, no changes may be made to the account name.
9. Anything entered as a service charge or as interest earned during a bank reconciliation will be entered automatically when the reconciliation is complete.
10. A Balance Sheet is prepared to prove the equality of debits and credits.
WRITE THE LETTER OF THE CORRECT ANSWER IN THE SPACE PROVIDED BEFORE
THE QUESTION NUMBER.
1. To close a period, you must have a(n)
A. transaction password
C. entry password
D. a user assigned as closing
2. When an account name such as Acars@ is changed to Aautomobiles,@ all related subaccounts such as car Adepreciation@
A. need to be changed to Aautomobile depreciation@
B. are automatically changed to Aautomobile depreciation@
C. cannot be changed
D. must be deleted and re-entered
3. The report that proves Assets = Liabilities + Owner=s Equity is the
A. Trial Balance
B. Income Statement
C. Profit and Loss Statement
D. Balance Sheet
4. If the adjusting entry to transfer net income/retained earnings into the owner=s capital account is made prior to the end of the year,