QuickBooks MCQs
QuickBooks MCQs
These QuickBooks multiple-choice questions and their answers will help you strengthen your grip on the subject of QuickBooks. You can prepare for an upcoming exam or job interview with these QuickBooks MCQs.
So scroll down and start answering.
1: Can we see % of change of balance sheet items from last year to current year?
A. You can export data in excel and make the comparison.
B. You can do it after customizing the software.
C. No
D. Yes, you can compare.
2: Where does Quickbooks apply a customer's payment, by default, if no invoice number is indicated?
A. The largest invoice
B. The most recent invoice
C. The oldest invoice
3: True or False: Voiding an invoice is the same as deleting it.
A. False
B. True
A. False. Subcontractors doesn't have to fill out any form, as they are not employees of the Company.
B. False. W-2's & W-3's are for employees only. Subcontractors must fill out the W-9 form.
C. True, as W-3's are subcontractors way of showing taxes etc.
5: What is an QuickBooks Accountants Copy?
A. Its a Quickbooks data file that allows the accountant prepare the client's tax return using the QuickBooks data.
B. Its a Quickbooks data file that allows the accountant to add and make changes to a client's data file and then send the file back to the client so that the changes can be merged with the client's data file.
C. Its a Quickbooks data file that allows the accountant to see the activity but not to make any changes.
D. Its a Quickbooks data file that is the same as a back-up file.
6: What must be done to add sales tax to an invoice?
A. In the customer section go to create invoice and then add sales tax.
B. Sales Tax must be activated in the Preferences and a sales tax item to the item list.
C. The software always has sales tax on the invoice. Nothing has to be done.
D. Check the box that says - Sales Tax on the invoice
7: What is the shortcut action that results from pressing Ctrl+M?
A. Memorizes a transaction
B. Displays the memorized transaction list
C. Creates and displays a Quick Report on the selected transaction
D. Displays the Register window
8: What are different formats of importing data in Quick Books?
A. IIF & Web Connect File
B. IIF , Timer Activities, Web Connect file & Data files
C. IIF , Timer Activities, Web Connect file & Excel files
D. Only Web Connect file
E. None of above
9: True or False: Sales tax is reported to the state annually.
A. False. It depends on the amount of income a company makes per month. Some report monthly, quarterly or annually.
B. True, they are reported on April 15th of the upcoming year.
C. False. It must be reported at the end of the month.
10: To print the trial balance:
A. Select Chart of Accounts icon, Print Report
B. Select Report Center, Accountant & Taxes, Trial Balance
C. Select Company Center, Print Tral Balance
D. From the Company Section of the Home Page, select Trial Balance icon
11: True or False: Sales order can be viewed in report form by using Print Preview Command.
A. True
B. False
12: Intuit only has 2 templates for your company, and you must pick either Products or Services for your template.
A. True. You don't need more than 1 way of invoicing etc, so you can pick either products or services.
B. False. Intuit also offers Packing Slip template, but you can't use services or products, so you have to choose wisely which 1 you want to use.
C. True, because QB's doesn't want to confuse you.
D. False. Intuit offers at least 9 different templates you can choose from, with an option to create your own if you don't find one that suits you.
E. True. You have to either sell products, or you can offer services such as counseling, but that's it.
13: When you go to list, Customer & Vendor Profile list, can you change the customer message from here?
A. No
B. Yes
14: How do you write off bad debt by using cash basis accounting?
A. Cash basis accounting recognizes income at the time an invoice is created and therefore when an invoice is deemed as noncollectable it is written off the books as a “bad debt expense”. The income may have been recognized in one year and written off as a b
B. Cash basis accounting does not recognize income until payment has been received. To have a bad debt expense you first have to recognize income. On cash basis accounting an invoice deemed as noncollectable is removed from your P&L by reducing gross income
15: True or False: Only the Company Administrator is allowed to turn time tracking off and on.
A. False
B. True
16: In which formats you can import customer data to customer center?
A. You cannot import data to create customer list.
B. You need to create QIB format to import data in the same fields.
C. Only CSV and Excel files can be imported.
D. You can do it by creating a notepad file.
17: What is one way to make an account inactive?
A. Right click and select 'Make Account Inactive'
B. Ctrl-I to make the account inactive
C. Ctrl-D to delete the account
D. Add the account to the Inactive Account List
18: What type of Quickbooks file has an extension of .QBA ?
A. Accountant's review copy (working copy)
B. Configuration file
C. Intuit Interchange Format file
D. Loan Manager Data
19: Can Quickbooks generate reports on cash basis?
A. Yes
B. No
20: True or False: You cannot undo a bank reconciliation once it has been done.
A. True
B. False
21: True or False: If you wanted to add or change the terms on an invoice that wasn't originally set up for that customer, you have to go to the Customer Profile and change it there before you can enter it on the invoice.
A. False, you can enter any terms on an invoice and QuickBooks will ask if you want to update the Customer Profile with the new terms for this customer.
B. False, you have to go to the Vender Profile list to change the terms on an invoice.
C. True, you can't change the terms without changing the Customer Profile first.
22: Where can you find answers to questions regarding Quickbooks?
A. All the answers are correct
B. Help tab in the Program itself
C. Quickbook study guides
D. Youtube
E. Intuit
23: What is an example of a recurring template?
A. Automatically allocating unbilled charges to group invoices
B. A scheduled recurring check template for the same monthly loan payment
C. Invoice automation reminders
D. By selecting a vendor, Quickbooks fills in the full transaction
24: Is it possible to accept credit card payments through a mobile phone and synchronize the transactions with QuickBooks?
A. It is possible but you cannot synchronize the data with QuickBooks.
B. You can accept only through QuickBooks online
C. No, it is not possible.
D. Yes, we can do that with Go payment Application.
25: What will increase the inventory balance?
A. Entering Credit Card payment
B. All of these
C. Entering Bills
D. Writing Checks
26: True or False: Creating the company file is the last thing you do when you set up your financial records in Quickbooks.
A. True
B. False
27: True or False: You must have a purchase order in place in order to monitor and manage partial order receipt.
A. True
B. False
28: Are subcontractors paid on an expense report when their work is finished?
A. Yes, because it's the only way to keep the books balanced.
B. No, they are vendors and are treated like any other vendor account.
C. No, they are paid by check per each days job that is done.
29: If you hire someone and they don't have their W-4 filled out, can they still work on the day you wanted them too?
A. No. You need all the info NOW, before they can even start work.
B. Yes. the W-4 info can be filled in at a later date, but not TOO much later from when the employee is employed.
C. Yes. But they can only work a couple hours daily until they get their form filled and turned in.
30: True or False: QBP preference options control whether or not a decimal point will be required when entering a financial amount.
A. True
B. False
31: The shortcut to Open Invoices is:
A. Ctrl + I
B. Ctrl + J
C. Ctrl + C
D. Ctrl + O
E. Ctrl + A
32: What is a Quickbooks Audit Trail?
A. The set of default T accounts that are affected with each entered transaction
B. A report of what changes were made to accounts before the closing date
C. A summary of transactions and list of who entered them, when and in what file location
D. A report of what changes were made to accounts after the closing date
33: What type of account is undeposited funds?
A. Asset
B. Expense
C. Liabilities
34: What is the shortcut action that results from pressing Crtl+T?
A. Displays the Write Checks window
B. Displays the memorized transaction list
C. Inserts a line into a list of items or expenses
D. Undoes your last action Ñ usually
35: Can the Profit & Loss report be found in the Chart of Accounts?
A. Yes, it shows under a liability if its a loss and an asset if its a profit.
B. No, the Profit & Loss report can be found under Reports. It's not an account that affects the Balance Sheet, so it will NEVER show on the Chart of Accounts.
C. Yes, the Profit & Loss report is listed under Capital/Equity account.
36: What expense account is created automatically when you turn multicurrency on?
A. Exchange Gain/Loss
B. Realized Gain/Loss
C. Other Income/Loss
37: True or False: Creating a service or professional invoice works basically the same way as creating a product invoice.
A. True: You just fill in fewer fields.
B. False: They they are nothing alike.
38: What happens if you press T in a date field?
A. Subtracts one day from the date shown
B. Changes the date to the first day in the year
C. Changes the date to the last day in the year
D. Replaces the date shown with today's date
A. False. In fact, you have better control and protection keeping your account private and NOT do business online.
B. True. That way the bank gets paid for you using their online service.
40: Can a Balance Sheet Standard account report be modified to include all Income and Expense accounts?
A. No
B. Yes
41: Can one switch from Peachtree accounting to QuickBooks?
A. Yes, but with programming.
B. No.
C. Yes, but only a QuickBooks developer can do this.
D. Yes, with a conversion tool.
42: True or False: You must be in multi-user mode to set a closing date.
A. False
B. True
43: True or False: Under the Report Center there is a reporting category entitled "Budgets."
A. False
B. True
44: Which of the following QuickBooks utilities is used to check for data file integrity?
A. Verify Data
B. Restore Data
C. Rebuild Data
D. Back Up Data
45: How many users can use a company file at the same time?
A. 4
B. 5
C. 10
D. Version dependent
E. 7
46: Can a company transmit their payroll tax payments via Quickbooks?
A. If the IRS requests it.
B. Yes, but only using QuickBooks "Assisted" Payroll services.
C. If you have the internet version.
D. Only with the professional version.
47: What happens if you press + in a date field?
A. Replaces the date shown with todayÕs date
B. Adds one day to the date shown
C. Enters tomorrow's date
D. Changes the date to the first day in the year
48: When you have an invoice, and you receive payment from the customer, you enter it under Bank Deposit.
A. No, you enter it under Sales Receipts.
B. Yes, it's the quickest way to put money into the company bank account.
C. No, you enter it under Customers, Receive Payments, where you list the customer name, amount etc.
49: True or False: Sales Receipts are a combination Invoice and Receive Payment.
A. True
B. False
50: What can you do with a vendor credit?
A. All listed answers are correct.
B. You can keep the credit to use later
C. You can request a refund of your money.
D. You can apply the credit to unpaid bills.
51: What form do you use to record a sale?
A. Credit Memo
B. Invoice
C. Bill of Lading
D. Bill
E. Purchase Order
52: If you entered charges against a customer, but you no longer use that vendor, can you just delete this vendor name out of the vendor list?
A. Yes, you can delete any unused vendors you want, as long as it hasn't been used more than 10 times.
B. Yes, it doesn't matter how many times you used that vendor, if you don't want to use them any more, just delete them from the Vendor List.
C. No, if you enter even 1 entry against a vendor, you can not delete the vendor name, but you CAN hide it so the vendor name no longer shows on the Vender List.
53: True or False: You can create a bank using the chart of accounts.
A. False
B. True
54: What is NOT a Quickbooks Item type?
A. Inventory Part
B. Non-Inventory Part
C. Group
D. Service
55: Is a subcontractor considered to be an employee?
A. Yes, they are employees.
B. No, they are vendors.
C. They are considered an expense account.
56: When setting up Quickbooks for the first time, a grocery retailer would most likely opt for an Accrual based Accounting System over Cash because....?
A. It doesn't matter really and most choose accrual for tax purposes because the balance sheets would reflect the same picture at year end after adjustment entries are made.
B. Accrual based accounting recognizes revenue when it is earned not when cash is received giving management a better idea of profits and sales performance.. This helps identify expenses for high-volume retailers with large inventories and many vendors who o
C. They wouldn't. Cash Based Accounting is less efficient, but easier to adjust too and allows retailers leeway when it comes to inventory adjustment entries and expense recognitions. Plus it helps hide surges in sales and losses by spreading them out.
A. .QBR
B. .QBB
C. .QBM
D. .QBA
58: True or False: You cannot memorize or print multiple reports.
A. False
B. True
A. Sales
B. Customers & Receivable
C. Accountant & Taxes
D. Company & Financial
60: What is the shortcut action that results from pressing Ctrl+D
A. Displays the Customer: Job List window
B. Deletes check, invoice, transaction, or item from the list
C. Displays the Create Invoice window
D. Displays the Find window
61: What happens if you press M in a date field?
A. Changes the date to the first day in the year
B. Changes the date to the last day in the month
C. Changes the date to the last day in the year
D. Changes the date to the first day in the month
62: True or False: A QuickBooks company file can be used by multiple users at the same time.
A. False
B. True
63: What type of Quickbooks file has an extension of .IIF ?
A. Intuit Interchange Format file
B. Timer backup file.
C. Accountant's review copy (import file)
D. Business Planner file
64: The shortcut to open Chart of Accounts is:
A. Ctrl + 4
B. Ctrl + A
C. Ctrl + J
D. Ctrl + B
E. Ctrl + 5
65: True or False: The correct accounting equation is assets = liabilities + Owners Equity
A. True
B. False
A. False. Enter the sale as a Sales Receipt where you have an option to enter their name or just enter in the dollar amount of the sales received for the customer.
B. There isn't an account for this kind of transaction.
C. True, how else would you account for the money?
67: True or False: If you select more than one bill to pay from the same vendor, Quickbooks automatically combines those payments into one check.
A. False
B. True
68: Can you link quickbooks directly to your bank account?
A. Yes
B. No
69: Can you email the income statement and balance sheet reports directly from QuickBooks?
A. There is no feature for email.
B. Yes
C. No
D. You can export the data in pdf and then email as an attachment.
70: Can we generate an outstanding dues report for customer by setting up the limit?
A. Yes, you can see the outstanding by setting up limits.
B. We can customize it by exporting it in Excel.
C. We can see whole list irrespective of amount due.
D. No
71: Can you accept a credit card payment directly in QuickBooks using your PC or mobile phone?
A. No
B. Yes
72: Can Quickbooks maintain an inventory of parts needed to assemble a product, or just the finished products?
A. Only with advance inventory version
B. Just for finished products
C. These options are only available in the 2012 version
D. QuickBooks offers both these options
73: True or False: The navigation bar gives you access to the Quickbooks Centres and Homepage.
A. False
B. True
74: True or False: QuickBooks offers several graphs that can not only show business statistics, but can also show where the information originated from using QuickZoom.
A. True. You may have to go through many layers, but you WILL find the original entries to where the report got its info from..
B. False. You have to use Excel if you want to get graph info of any kind.
C. True, but graphs are only for Sales.
75: Does Quickbooks provide comparison of key business metrics with peers?
A. Yes, it is part of the "Trends" feature.
B. No, you cannot compare data with peers.
76: If a name was entered incorrectly, and you have activity on that name, can you delete it and start all over again using the correct name?
A. No. You can change the name or merge the info under the new name, but once any transaction is made, the name etc, can't be deleted.
B. True. Hide it and start over.
C. True. There's nothing you can do with mistakes on names except to delete them and start over again.
77: Can we set up the text alerts on phone through QuickBooks.
A. No
B. You cannot link it with phone.
C. You can only go for online version.
D. Yes it is possible.
78: What is a use of purchase order information?
A. Compare goods received to the goods ordered
B. Review vendor delivery performance
C. All of these
D. Quantify outstanding commitments
79: After a QuickBooks report is transferred to Excel, can you make changes to the spreadsheet?
A. Yes, just unlock the cells.
B. Yes, like any other Excel file.
C. Yes, but only by opening the spreadsheet in the 2010 MSO version.
D. No, you need do the changes on QuickBooks.
E. No, because its a QuickBooks file.
80: What does Ctrl+N do?
A. Edits an item
B. Duplicates an item
C. Adds a new item
D. Prints a new invoice
E. Deletes an item
81: True or False: You must be in single-user mode to set a closing date password.
A. False
B. True
82: Does QB's offer a way to give a customer discounts?
A. Yes. But only if the customer deserves to have a discount.
B. No. You can only write an adjustment for an amount if you want to give the customer a discount.
C. No. Discounts would mean you will be losing money.
D. Yes. Under Receive Payment, you can record the discount amount .
83: Can a company have multiple credit card accounts?
A. No
B. Depends on the company
C. Yes
84: Is it possible to run aging reports of AP and AR at any date or it is always as of current date.
A. It is not possible to generate report with past date.
B. You can generate them only on the last day of the month.
C. It is possible to run them as on any date.
D. You can always run as of current date.
85: What is the shortcut action that results from pressing Ctrl+J
A. Creates and displays a Quick Report on the selected transaction
B. Displays the Customer: Job List window
C. Displays the Register window
D. Memorizes a transaction
86: You can use the QuickZoom on any report to see where the original source document came from.
A. False. There are no easy ways to find out where a document originated from.
B. False. QuickZoom works only on Paid Invoices.
C. True, but it will take a long time. It will be easier to find the invoice by going through the Customer/Vender list, to find what you are looking for.
D. True. This is the best way to quickly find the source document in case any questions arise concerning the transaction.
87: True or False: You can skip the EasyStep Interview and enter a minimum amount of information to get started.
A. True
B. False
88: What type of Quickbooks file has an extension of .LMR ?
A. Business Planner file
B. Loan Manager Data
C. Intuit Interchange Format file
D. Configuration file
89: True or False: You cannot view the Profit & Loss Statement to the previous year Profit & Loss Statement.
A. True
B. False
90: Can I install Quickbooks on a Macintosh computer?
A. No
B. Only on the snow-leopard operating system
C. Yes
D. Only on operating systems 10.4 or above
E. Only on operating systems 9.5 or above
91: What, if any, step or steps need to be taken to create a cash flow projection?
A. All of these
B. Project and adjust your cash receipts
C. Determine your beginning cash balance and enter business expenses
D. Review and adjust accounts payable
92: What is the shortcut action that results from pressing Ctrl+I
A. Memorizes a transaction
B. Displays the Create Invoice window
C. Displays the Customer: Job List window
D. Creates and displays a Quick Report on the selected transaction
93: True or False: Journal entries are automatically posted to general ledger accounts when saved?
A. True
B. False
94: True or False: You cannot customize the chart of accounts.
A. False
B. True
95: True or False: There is a report that will show you when your monthly expense are due.
A. True
B. False
96: Is it possible to assign the right of master administrator to someone in company?
A. Yes, but with limited access.
B. No, it cannot be delegated.
C. Yes
A. False. Once an entry is made against an employee, it can't be deleted, but it CAN be inactivated, until you want it to show back on the list when they return.
B. True - the software will allow you to delete anything.
C. True - This will allow the bookkeeper to process employee payroll only for the active employees.
98: Why is undeposited funds showing a negative value on the balance sheet ?
A. Undeposited funds can show a negative value on the balance sheet if a payment is deposited with a date that pre-dates the payment.
B. No checks to deposit.
C. All the funds were transferred to your bank account.
D. The Undeposited Funds Account was overdrawn.
99: What is an allowance account as related to inventory valuation?
A. It is based on a perpetual inventory system
B. It is based on shrinkage
C. It is a contra-asset account created to reflect a reduction in inventory value
D. Is is based on obsolescence
100: Can you install QuickBooks on more than one computer?
A. Yes
B. No
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