chapter 4 quicks books
CHAPTER 4
END-OF-CHAPTER QUESTIONS
TRUE/FALSE
ANSWER THE FOLLOWING QUESTIONS IN THE SPACE PROVIDED BEFORE THE
QUESTION NUMBER.
T
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.
F
2. In QuickBooks Pro, the Journal is called the book of final entry.
F
3. An account may be deleted at any time.
F
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.
T
6. QuickBooks Pro keeps a Journal of every transaction recorded.
T
7. QuickBooks Pro keeps the last two bank reconciliation reports in memory.
F
8. Once an account has been used in a transaction, no changes may be made to the account name.
T
9. Anything entered as a service charge or as interest earned during a bank reconciliation will be entered automatically when the reconciliation is complete.
F
10. A Balance Sheet is prepared to prove the equality of debits and credits.
MULTIPLE CHOICE
WRITE THE LETTER OF THE CORRECT ANSWER IN THE SPACE PROVIDED BEFORE
THE QUESTION NUMBER.
B
1. To close a period, you must have a(n)
A. transaction password
B. administrator
C. entry password
D. a user assigned as closing
.
B
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
D
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
C
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,
END-OF-CHAPTER QUESTIONS
TRUE/FALSE
ANSWER THE FOLLOWING QUESTIONS IN THE SPACE PROVIDED BEFORE THE
QUESTION NUMBER.
T
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.
F
2. In QuickBooks Pro, the Journal is called the book of final entry.
F
3. An account may be deleted at any time.
F
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.
T
6. QuickBooks Pro keeps a Journal of every transaction recorded.
T
7. QuickBooks Pro keeps the last two bank reconciliation reports in memory.
F
8. Once an account has been used in a transaction, no changes may be made to the account name.
T
9. Anything entered as a service charge or as interest earned during a bank reconciliation will be entered automatically when the reconciliation is complete.
F
10. A Balance Sheet is prepared to prove the equality of debits and credits.
MULTIPLE CHOICE
WRITE THE LETTER OF THE CORRECT ANSWER IN THE SPACE PROVIDED BEFORE
THE QUESTION NUMBER.
B
1. To close a period, you must have a(n)
A. transaction password
B. administrator
C. entry password
D. a user assigned as closing
.
B
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
D
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
C
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,