Gmetrix QB Concepts Quiz

What is the purpose of an Accounts Payable account?

• To track how much money a company owes its vendors.

• To track how much money a company receives from its customers.

• To generate a report of all transactions.

• To categorize assets based on liquidity.

What does an Accrual Report reflect?

• All transactions.

• Only cash transactions.

• Only credit transactions.

• Only vendor transactions.

How is an Asset categorized?

• By liquidity: current, fixed, and other.

• By size: small, medium, and large.

• By type: tangible and intangible.

• By value: high, medium, and low.

What is the function of an Audit Log in QuickBooks?

• To track all changes made and which user made them.

• To generate financial statements.

• To reconcile bank statements.

• To calculate taxes owed.

What does a Balance Sheet reflect?

• Assets, liabilities, and equity.

• Profit and loss.

• Cash flow.

• Sales and expenses.

What is the role of a Bank in financial transactions?

• To take loans, track cash, and provide financial services.

• To issue credit cards.

• To audit financial statements.

• To manage payroll.

What is Bank Reconciliation?

• Comparing bank statements to transactions in QuickBooks.

• Generating a balance sheet.

• Calculating interest on loans.

• Issuing credit memos.

What does a Bill represent?

• The amount of money owed for goods or services.

• A credit transaction.

• A cash receipt.

• A financial statement.

What does COGS stand for?

• Cost of Goods Sold.

• Cost of General Services.

• Cost of Gross Sales.

• Cost of Government Services.

What is a Credit Card used for?

• To borrow funds based on agreed-upon interest charges.

• To track cash transactions.

• To issue invoices.

• To reconcile bank statements.