HOME FINANCE MULTIPLECHOICE TEST Test Questions FIRST NAME LAST NAME Your Email 1. What account type is "cash on hand” (in wallet)? a. Expenseb. Incomec. Equityd. Bank 2. If you pay from your bank account to a credit card to decrease the balance, where do you record the payment? a. The “Check” windowb. The “Expense” windowc. Either a or bd. Neither a nor b 3. How many accounts change when you make monthly payments to a loan that accumulates interest? a. 2 → Bank Account and Interest Expenseb. 2 → Bank Account and Loan balance long term liabilityc. 3 → Bank account, Interest expense and Loan balanced. 4 → Bank Account, Loan Balance, Interest Receivable and Interest Expense 4. How can you get QuickBooks Online to enter transactions automatically? a. Use “recurring” transactionsb. Use the calendar / Use the reminder listc. Record all expected transactions in advanced. Use the reminder list 5. How can you find all the checks you wrote to 1 individual? a. Use the transaction list by vendor reportb. Use the trial balancec. Make a journal entryd. None of the above 6. How can you find a transaction after you have already recorded it? a. Yes, but not the best answerb. Yes, but not the best answerc. Yes, but not the best answerd. All of the above 7. How can you display separate profit and loss reports where one profit and loss report shows only things that you will include on your taxes and the other shows everything? a. Customize the reports and save them to the icon barb. Upgrade your QuickBooks so you can have superior reportsc. Download the 2 separate reports from the Internetd. Use class tracking 8. Record a check to record all the tax payments that your boss sent in on your behalf a. Record a deposit for the refund you expectb. Make a W-2 adjustment for the number of mounts on the W-2 to include the taxes and the gross that you should have recorded when you were receiving each paycheckc. Make a journal entry for the amount of refund you expectd. Record a check to record all the tax payments that your boss sent in on your behalf 9. If each paycheck you received as an employee, you previously recorded only the net amount and left out the taxes and the gross amount, what would you need to do at the end of the year to make your annual profit and loss statement accurate? a. Record a check to record all the tax payments that your boss sent in on your behalfb. Record a deposit for the refund you expectc. Make a W-2 adjustment for the number of mounts on the W-2 to include the taxes and the gross that you should have recorded when you were receiving each paycheckd. Make a journal entry for the amount of refund you expect 10. When you make a monthly loan payment, how can you make sure that the proper amount of the loan payment goes to interest expense? a. Split the check by putting the interest amount into the liability account and the amount that pays down the balance goes to interest expenseb. Make the check payable to a trust fund and record the transfer on the day it paysc. Make a journal entry to include all 3 accountsd. None of the above 11. What account type is the account that represents the money owed on a long-term loan? a. Fixed Assetb. Long Term Liabilityc. Other Current liabilityd. Other Expensese. Accounts Payable 12. What account type represents the account that shows the balance of money owed to you if you lend money to a friend? a. Fixed Assetb. Long Term Liabilityc. Other Expensesd. Accounts payablee. None of the above 13. For a transaction where you deposit money into a retirement fund or withdraw money from a retirement fund, how many accounts in your chart of accounts will change for each retirement funds transaction? a. 1b. 2c. 3d. 4e. 5
