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134 Cards in this Set
- Front
- Back
Used to track income and expenses for separate segments of the business
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classes
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Starting in 2011 what editions of Quickbooks can produce a balance sheet by class report
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Premier and Enterprise
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If Class is enabled is the user forced to class when making a journal entry?
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No
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In a retail environment what might class be used to report
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departments
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Are classes used to analyze customers, vendors, or sales items?
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No, those are able to be analyzed without having to use classes
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Where is class turned on in QuickBooks?
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Preferences/'Acccounting/Company
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Is it possible to establish subclasses in Quickbooks
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Yes
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When class is turned on what forms is a class field added to?
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invoices, checks, bills, credit card charges, and other forms.
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What accounts are automatically set up by quickbooks?
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Accounts Receivable, Inventory Asset, Undeposited Funds
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When does QB automatically set up the Accounts Receivable account?
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During the Easy Step interview or the first time an invoice is created
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When does QB automatically set up the Invnetory Asset account?
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When the first inventory part or inventory assembly is created in a company.
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Name the 5 asset account types of balance sheet accounts in QuickBooks?
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Bank
Accounts Receivable Other Current Asset Fixed Assets Other assets |
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Name the 5 liability account types of balance sheet accounts in QuickBooks?
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Accounts Payable
Credit Card Other current liability Long Term Liability Equity |
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Name the 5 P&L Account Types
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Income
Cost of Goods Sold Expenses Other Income Other Expenses |
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What is the Chart of Accounts
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A chart of accounts is a complete list of a company's accounts and their balances
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What are the accounts that appear on the balance sheet called?
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Balance Sheet accounts
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Who are the 5 system stakeholders?
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Client,
Government Customer /Vendor Financial Institution Accountant/Advisor |
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What is the account number
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The account number of the account
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What is the account name?
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The name of an account in your chart of accounts
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What is the account description>
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A brief description of the account
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What is the account opening balance?
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The opening balance of the accouun
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How do you use the remind me to order checks flag in the account?
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Whatever number you enter when that check is written the user is alerted to order checks
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How does Track reimbursed Expenses flag work?
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When checked the expenses incurred in this account update an associted income account as well
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When should you create an account in the chart of accounts?
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if you want to see the account listed on your Statement of Financial Income and Expense or on your Statement of Financial Position.
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When should you create an item vs. an account?
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you can create items to track detailed revenue and expense information
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What are the three main attributes of an account?
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- Broad category of income and expenses
- Appears on financial statements |
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What are the two main attributes of an item?
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- provide detailed revenue info
Appear in item list and used to create sales and purchasing documents |
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Where will you find a list of the preset quickbooks chart of accounts
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In the EasyStep Interview
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Can Quickbooks separate income statements by division using classes?
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Yes
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With which version does Quickbooks Premier and Enterprise provide Balance Sheets by class?
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2011
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Does class tracking allow you to create a balance sheet by class report?
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Yes
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Does class tracking allow you to breakdown income and expense by department in one report?
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Yes
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Does class tracking allow you to track segments of a business independantly of customers and vendors?
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Yes
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What is a customer in QuickBooks?
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Anyone who pays for good or services
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If you are using jobs should you enter a starting balance for the customer?
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If you are going to track separate jobs for this customer, do not enter an opening balance. QuickBooks calculates and tracks the overall balance for this customer from the balances you enter for the individual jobs
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What is another way other than entering the starting balance for a customer?
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Create an invoice representing what the customer owes which will be reflected as the customer balance.
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What would you use to capture special information about your customers that is not provided?
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The custom fields.
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What is a vendor?
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The people or companies from whom you buy goods and services as well as banks and tax agencies
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What are the three ways to enter a Vendor starting balance?
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In the open balance filed on the vendor list, by entering a single invoice reflecting total owed, entering an invoice for each open invoice
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What is the account field used for in the vendor list?
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to record the client's account number with the vendor. QuickBooks puts this information in the Memo field of checks that pay bills from this vendor
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What is an employee?
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QuickBooks defines an employee as someone your client gives a W-2 form to at the end of the year
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What is the custom service rate on the employee list used for?
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Determining how much a job will be charged per hour for employees labor
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What characters are used to bracket reference information not to be displayed that will not be printed on the paycheck
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{ }
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What are customer types useful for?
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Customer types are useful for grouping customers into categories like commercial/Residential/Industrial or wholesale/retail
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Customer types should be used for different purposes?
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False, use them for one purpose
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What are the two ways you can access the lists like the Customer type list and the Job type list?
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From the list menu or while adding or editing customer, jobs, etc.
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What is the definition of an item?
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anything that a company buys, sells, or resells in the course of business, such as products, shipping and handling charges, discounts, and sales tax (if applicable).
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What are the ten item types in quickbooks?
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Assembly, Sevice,
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How do items help in QuickBooks?
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- Easier to fill out sales forms with default descriptions, costs, taxability etc.
- Facilitate accounting for sales and purchases with default revenue and expense accounts - Provide ability to track quantities purchase and sold - provide the ability to create subtotals and discounts |
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What is a "service" item type used for?
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For chargin customers for labor provided either the production of an assembly or directly as a sales order item
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What does Job Costing provide?
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The ability to track and manage the costs incurred for a job and the profitability
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What are reimbursable expenses?
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Reimbursable Expenses are expenses incurred on a job that will be invoiced back to the customer for reimbursement. The process of reimbursable expenses includes the tracking of expenses related to a specific job. The job expenses are then transferred to an invoice for customer payment of the expense
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What is the difference between Job Costing and Reimburseable expenses?
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simply that with job costing, the expenses are not directly billed to the customer for payment. In essence, the tracking of reimbursable expenses is job costing plus billing customers directly for job expenses.
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Where is the flag set for reimburseable expenses and markup established?
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Under preferences/time and expenses/company tab
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How does QuickBooks handle reimburseable expenses when the track reimbursed expenses as income is off?
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The income posts directly to the original expense account as a credit, reducing the expense amount
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How does QuickBooks handle reimburseable expenses when the track reimbursed expenses as income is on?
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The income received is tracked in an income account. This will show as two entries on the Profit and Loss. When the expense is reimbursed on an invoice for this type of expense, QuickBooks records the customer's payment in the income account.
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When is a good date to use as a start date when setting up QuickBooks?
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Beginning of fiscal year is best, othewise start of the month.
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Should you use the last day of the previous period or the first day of the new period as the starting date?
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The last day of the previous period
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How many simultaneous user are supported by QuickBooks Pro?
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5
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How many simultaneous user are supported by QuickBooks Enterprise?
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30
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What do you do to give other users access to th data on the primary computer?
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Turn on "Host multiuser access" on the primary computer
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What is a license?
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a legally binding contract that allows individuals to use copyrighted materials within a fixed set of limitations
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Where is the QuickBooks enduser license agreement (EULA)?
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on the
Help menu, search for “license agreement.” A link to Read the QuickBooks Software License Agreement appears in the lower window |
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What can you do with a multi-user license?
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Install the Software on the number of computers equal to a number of user licenses you purchased
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When setting up payroll what can you do to make it easier to enter multiple employees?
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Create employee defaults to add new employees
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What are the five methods for entering an opening balance during setup
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EasyStep Interview
Journal Entries Forms (like invoices and bills) Registers Lists |
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What are the limitations of using Journal entries for entering opening balances?
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- Cannot use to record inventory quanitities
- Can enter only one AR or AP transaction per journal entry so you need to make multiple entries |
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When entering the "lump sum" balances for customer, vendors, and inventory what does the client lose?
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The detail for the original transaction is lost and the offsetting transaction is to uncategorized income or expense
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Once a customer or Vendor has been set up or used in a transaction can you still use the List method to enter the opening balance?
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No, you must use one of the other methods
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When do you use the opening balance equity account?
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When you use registers to enter beginning balances (except retained earnings which has not register)
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What do you need to do after you have entered all account balances
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Make a journal entry to transfer amounts from opening balance equity to retained earnings accounts
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When a client needs more detailed information than an opening balance would provide when setting up a system what method should be used?
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Forms
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When does QB create the Opening Balance Equity Account
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First time the open balance for a balance sheet account is entered in QBs
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If a file is password protected who is the only person who has unlimitted access to all areas?
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Administrator
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Whatl allows tracking of segments of the business without using subaccount in the Chart of Accounts?
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Classes
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What is used to categorize the businesses customers in a way that is meaningful?
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Customer types
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What feature lets you enter payroll info that employees have in common for reuse when entering other employee info?
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Employee Default
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When exporting and importing QuicBooks data what format does the program use?
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IIF
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What is an item in QuickBooks?
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Anything that a company buys, sells, or resells
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What are Job Types used for?
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Classifying jobs so that you can group and subtotal similar jobs on reports
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What are maintenance releases?
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An update to an existing version of QuickBooks to implement fixes
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What is Multi-user mode?
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The mode that lets more than one person work on quickbooks at the same time
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What is NASBA
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National Association of State Boards of Accountancy
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What is Opening Balance Equity
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Opening balance for a balance sheet when QuickBooks is first setup
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What is the Start Date?
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The date a business chooses as the starting point for its financial records in QuickBooks. This is the date at which QuickBooks has complete information—the balance for each balance sheet account must be correct as of the start date. The start date can be in the past if you enter historical records; it can be the current date; or it can be a future date if the client's preference is to enter information gradually.
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What are vendor types?
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A feature that lets you categorize vendors in ways that are meaningful to the business
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What are the limitations of using Journal entries for entering opening balances?
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- Cannot use to record inventory quanitities
- Can enter only one AR or AP transaction per journal entry so you need to make multiple entries |
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When entering the "lump sum" balances for customer, vendors, and inventory what does the client lose?
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The detail for the original transaction is lost and the offsetting transaction is to uncategorized income or expense
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Once a customer or Vendor has been set up or used in a transaction can you still use the List method to enter the opening balance?
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No, you must use one of the other methods
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When do you use the opening balance equity account?
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When you use registers to enter beginning balances (except retained earnings which has not register)
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What do you need to do after you have entered all account balances
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Make a journal entry to transfer amounts from opening balance equity to retained earnings accounts
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When a client needs more detailed information than an opening balance would provide when setting up a system what method should be used?
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Forms
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When does QB create the Opening Balance Equity Account
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First time the open balance for a balance sheet account is entered in QBs
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If a file is password protected who is the only person who has unlimitted access to all areas?
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Administrator
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Whatl allows tracking of segments of the business without using subaccount in the Chart of Accounts?
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Classes
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What is used to categorize the businesses customers in a way that is meaningful?
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Customer types
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once your QuickBooks data file is completely set up, "Opening Balance Equity" should what value?
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Zero. If it is not zero, go back to your client's original Trial Balance and locate the discrepancies before moving on.
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What are historical transactions?
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Transactions that took place before the start date selected
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In what order should historical transactions be entered?
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In sequential order because they often rely on the previous transaction
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How will account balances be affected if all historical transactions are not yet entered?
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Account Balances will be incorrect
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In what order should historical transactions be entered?
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Sales and Account Receivables
Vendor and Accounts Payable Summarized Payroll Historical Bank & Credit Card Bank Reconciliation |
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How should sales tax that is owed to the state on the opening date be handled?
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Enter in the opening balance for the Sales Tax liability account.
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After the sales tax opening balance is established how does QuickBooks maintain the proper balance?
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Using the sales tax information associated with the sales form
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If Sales Tax payable isn't on the Chart of Account List what does that mean?
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You haven't set up the account
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What is a tax agency?
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A governmental agency to whom tax needs to be paid
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What does QuickBooks do with a depreciation amount when it is entered?
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Subtracts it from the cost of the asset
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What are the seven reports used to verify correct setup?
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Balance Sheet
Profit and Losss Report Open Invoice Report Unpaid Bills Report Inventory Valuation Report Payroll Liabilities Report Payroll Summary Report |
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If company information changes need to be made after the Easystep interview where is it done?
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Company Information Window
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Why should Accounts Receivable historical transactions be entered before others?
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To insure the invoices are in place to receive the payments
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What are used to turn certain features on and off and control the behavior of the program?
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preferences
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What are the two categories of preferences in QuickBooks? ,
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Personal and Company
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Who can setup and change company preferences?
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Administrator and External Accountant
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What does the quickbooks coach do on the home page?
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Guides users through the flow and provides tips on when and how to do each task. It shows and describes features tat have been turned on
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What does the account balances window show on the home page?
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Quick access to bank and credit card by displaying balances with ability to click down to account
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Where is information entered that QuickBooks uses to track about customers, vendors, employees and items
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Custom Fields
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How many custom fields can be added to a particular list?
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Seven on each, 15 total for all lists
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What capabilities does the Basic Customization window allow?
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adding of logo, color scheme, font, and the ability to add/remove/change company information
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What does the Layout designer allow the user to do?
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Move and resize the objects
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Where does QuickBooks store templates in the Template list?
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In the Templates list
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Does changing the template form alter the transaction?
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No. even if a field is removed quickbooks still stores the information with the original transaction
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How does the user initiate the customization process on a form?
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By clicking the customize icon on the top right of the form
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What special powers does the administrator have?
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Add new users
Deleting existing users Change a user's access priviliges Import and export data Change company preferences Change company information Set or edit closing dates Create and accountant copy Clean up a data file |
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What if the administrators password is lost?
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Contact Intuit for password removal service options
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When using "Selected areas of QuickBooks" what levels of access are available in each area?
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No access
Full access Selected access |
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Does QuickBooks zero out account balances and roll them forward to retained earnings when you close a period?
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No, It simple restricts access to the closed period
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How do you assure that changes are not made to a period after it is changed?
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By setting a password
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Where do you set the password and close date to restrict access to the closed period?
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Preferences, Accounting, company preferences
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What tool can be used to see if changes have been made on or before the closing date?
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View the closing date exception report
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What tool is available to research transaction history
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QuickBooks audit trail
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Does QuickBooks online have an activity log?
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Yes
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Can the QuickBooks audit trail be turned off?
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No. For security reasons it can not be turned off
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What fields trigger an audit trail record
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Name,account,amount, quantity cl
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How many total custom fields are provided by Enterprise editions
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30
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Does QuickBooks allow an administrator set the audit trail to print without saving?
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Yes so an employee could print a document and not save so their would be no record of the event
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