MULTI-CURRENCY MULTIPLECHOICE TEST Test Questions FIRST NAME LAST NAME Your Email 1. What Window in QuickBooks Online Activates The Multi-Currency Feature a. The Reports Windowb. The Account Setting (Company Settings) Windowc. The Chart Of Accounts Windowd. The Projects Window 2. What will happen to the QuickBooks Online Account When the Multi-currency feature is activated? a. Specific currencies will be added to the list of currenciesb. All customers and vendors will be assigned a currencyc. New Reports will be added to the Q.B.O. report listd. Download the exchange rates for the daily transactions 3. After Activating the multi-currency feature, what steps do YOU need to do to prepare the account for transactions in a different currency? a. Assign the proper currency to customers and vendorsb. Add data fields to the transaction windows to chose the proper currencyc. Add the multi-currency window to the accountd. None of the above 4. Assuming the dollar is the “home currency”, why would there be an increase in the account that records “GAINS ON CURRENCY EXCHANGE” for a particular transaction? a. A bill to a vendor was made after the currency decreasedb. An invoice for that currency was made before the currency increased against the dollar and then it was paid by the customerc. An unpaid bill that was recorded before the currency increased was paid in fulld. None of the above 5. What accounts in the chart of accounts will be created automatically when you have your first transaction with a particular foreign currency a. A bank account in the foreign currencyb. An income and expense account in that foreign currencyc. Accounts receivable and/or accounts payable account in that currencyd. All of the abovee. None of the above 6. If your company receives payment for an invoice that needs to be converted to the home currency as part of the transaction, and there is an exchange fee and/or transfer fee, what account acts as an “intermediary” so the 2 steps of this transaction can be recorded a. The bank account in the foreign currencyb. The accounts receivable in the foreign currencyc. The income related income accountd. Undeposited funds 7. When receiving payment in a foreign currency, what must you input into your QuickBooks Online account. a. A separate “bank” type of account in the chart of account to track and record the balance of the amount that you have of that currencyb. An “income” and “expense” type of account to track the income and expense in the foreign currencyc. Both “A” and “B” above.d. Neither “A” nor “B” 8. What is the reason to do a “home currency adjustment” a. To make the balances of the accounts in the foreign currency correct before the next transactionb. To make the balances of open invoices in a foreign currency up to date so we can record the invoice paymentc. To make it easier for customers to pay in the foreign currency more quickly and without a feed. To make all balances in the foreign currency up to date on a specific date to report accurate financial statements 9. What is the result in your QuickBooks Online records after making a home currency adjustment? a. A newly recorded realized gainb. A newly recorded unrealized gainc. Neither a gain or a lossd. None of the above
