chapter 4 quicks books

Topics: Income statement, Balance sheet, Generally Accepted Accounting Principles Pages: 5 (1027 words) Published: October 15, 2014
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, the Balance Sheet shows .
A. Retained Earnings
B. Net Income
C. both Net Income and Retained Earnings
D. none of the above because the income/earnings has been transferred into capital

D

5. The type of Profit and Loss Report showing year-to-date transactions instead of totals Profit and Loss Report.
for each income and expense account is a(n)
A. Standardized
B. YTD Comparison
C. Prev Year Comparison
D. Detailed

C

6. A bank statement may
.
A. show service charges or interest not yet recorded
B. be missing deposits in transit or outstanding checks
C. both of the above
D. none of the above

A

7. The Journal shows
.
A. all transactions no matter where they were recorded
B. only those transactions recorded in the Journal
C. only transactions recorded in account registers
D. only those transactions that have been edited

D

8. A backup disk
.
A. is a duplicate of the company data
B. is prepared in case of emergencies or errors on current disks C. must be restored before information can be used
D. all of the above

A

9. An error known as a transposition can be found by
during reconciliation
A. dividing the amount out of balance by 9
B. dividing the amount out of balance by 2
C. multiplying the difference by 9, then dividing by 2
D. dividing the amount out of balance by 5

.

C

10. The type of Balance Sheet Report showing information for today and a year ago is a(n)
Balance Sheet.
A. Standard
B. Summary
C. Comparison
D. Detailed

FILL-IN
IN THE SPACE PROVIDED, WRITE THE ANSWER THAT MOST APPROPRIATELY COMPLETES THE SENTENCE.
1. Bank reconciliations should be performed on a(n)

monthly

2. Export of report data between QuickBooks Pro and
perform Awhat if@ scenarios.

Excel

3. An owner=s paycheck is considered a(n)

basis and

can be made in order to

withdrawal .

4. The two types of reporting are

basis.

accrual

cash

basis.

5. The Cash Flow Forecast Projected Balance column shows...
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