QuickBooks Multiple Choice 2

If you regularly invoice a customer for similar amounts or services, the best way to handle this in QB is to:

• Use a sales receipt

• Find a previous invoice and edit it

• Memorize the invoice

• Enter all invoices in advance with future dates

With QB, you can see exactly how a form will print before printing it.

• True

• False

The best way to illustrate the main difference between an Invoice and a Sales Receipt in QB?

• When you have Invoiced a customer, you will use the Receive Payments window in QB to enter that payment.

• Invoicing a customer is like ordering something to be delivered through the mail. Alternatively, the Sales Receipt is used when a customer orders something on the spot and wants it delivered later.

• An invoice is used when you are billing a customer for purchases that they are gong to pay for later. Alternatively, the Sales Receipt is used when a customer is paying on the spot, in person.

• When using a Sales Receipt, since payment is made at that time, the Sales Receipt collects and records the payment (whether cash, cheque or credit card).

Once you have selected either 'Accrual' or 'Cash' basis for your accounting report, you cannot change that setting:

• False

• True

You are preparing the accounting records for four different companies. QB requires that you should:

• Open only one company at a time.

• Open each company in a separate window.

• Have a separate installation of QB for each file.

• At least have two companies at any one time.

The Accounting formula is

• Liabilities = Assets

• Equity = Assets + Liabilities

• Liabilities = Assets - Equity

• Assets + Equity = Liability

A Balance Sheet is

• A financial summary of a company over the past year.

• A summary of a company's revenue and expenses.

• A summary of a company's receipts and payments for a specific accounting period.

• A financial snapshot of a company at a specific point in time.

The difference between "Cash" and "Accrual" basis accounting is

• You receive a bill for your water charges on June 15 that is due on June 30. You pay the bill on July 31. In Accrual-basis accounting you would record this is due (June 30), not when you paid it.

• You receive a bill for your water charges on June 15 that is due on June 30. You pay the bill on July 31. In Cash-basis accounting you would record this transaction in your accounting system when you paid the bill (July 31), not when you received it.

• Cash-basis accounting is when you record business transactions based upon when the money is paid out or received, regardless of when the transaction occurred. Accrual -basis accounting is when you record business transactions based upon when the transaction occurred, regardless of when the money was received or paid out.

• that most accountants feel that the accrual method of accounting provides a truer financial picture of a business.

The ability to turn the functionality to handle Inventory on or off is handled through what component of QB?

• Preferences

• Cash or Accrual Basis

• Chart of Accounts

• Company Information

You need to restore a company file from a backup. What is the second step?

• Choose Open or Restore Company.

• Make sure the Homepage is open.

• Click the Backup menu.

• Select Restore a backup copy, click next and follow the steps.