QuickBooks Quiz - How Well Do You Know QuickBooks Accounting?

Accounts Payable is the correct answer because it is the account used to show what your company owes. This account represents the amount of money that your company owes to its creditors or suppliers for goods or services that have been purchased on credit. It is a liability account that reflects the company's outstanding debts and is typically used to track and manage payments to be made in the future.

When a customer enters a shop and pays in cash for various retail items, the shop should issue a Cash Sales Receipt. This receipt serves as proof of the transaction and includes details such as the items purchased, their prices, the total amount paid, and the date of the transaction. It helps both the customer and the shop keep track of sales and serves as a record for future reference or in case of any disputes or returns.

The correct answer is to transfer the money into a bank account. Undeposited funds accounts are temporary holding accounts where money is kept before it is deposited into a bank account. Therefore, it is necessary to eventually transfer the money from the undeposited funds account into a bank account for proper record-keeping and to ensure that the funds are secure and available for use.

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A subcontractor is considered a vendor because they provide goods or services to a company as part of a larger project. They are not employees of the company, but rather independent entities that the company hires to complete specific tasks or projects. The company pays the subcontractor for their services, similar to how they would pay a vendor for goods or services rendered. Therefore, the correct answer is vendor.

To determine if an invoice was paid in QuickBooks, you can open the invoice and check if the word "PAID" is stamped on it. This indicates that the invoice has been marked as paid.

Accounts receivable is the correct answer because it represents the amount of money that is owed to a company by its customers or clients for goods or services that have been provided on credit. It is an asset account that shows the company's outstanding invoices and the amount of money that is expected to be received in the future. This account is important for tracking and managing the company's cash flow and determining its overall financial health.

To quickly open the Write Checks window, you can use the keyboard shortcut CTRL + W. This shortcut allows for faster navigation and eliminates the need to manually search for the Write Checks window in the software. By pressing CTRL + W, users can quickly access the Write Checks window and proceed with their tasks efficiently.

To create a new bank account, you would use the Chart of Accounts List. The Chart of Accounts List is a comprehensive list of all the accounts used in a company's accounting system, including bank accounts. This list allows you to categorize and track different types of accounts, such as assets, liabilities, income, and expenses. By selecting the Chart of Accounts List, you can easily add a new bank account to your company's financial records and manage it accordingly.

The correct answer is "Receive payments form." When a customer sends a check for payment, you need to record this transaction using the receive payments form. This form allows you to document the payment received and update the customer's account accordingly. It helps you keep track of the payment and ensures accurate record-keeping for your financial records.

When a business receives cash from sales, it is typically collected in a temporary holding account called the Undeposited Funds Account. This account serves as a temporary storage for cash until it is deposited into the bank. Once the cash is deposited, it will be transferred from the Undeposited Funds Account to the appropriate bank account, such as the Checking Account or Savings Account. Therefore, the correct answer is Undeposited Funds Account.

The file that is used when working with QuickBooks is the .qbw file. This file format is specifically designed for QuickBooks and contains all the data and information necessary for the software to function properly. It is the main file that is opened and accessed when using QuickBooks for tasks such as creating and managing financial records, generating reports, and performing other accounting functions.

To record a customer's purchase on credit, you should create an invoice. An invoice is a document that outlines the details of the transaction, including the items purchased, their quantities, prices, and any applicable taxes or discounts. It serves as a record of the sale and provides the customer with a formal request for payment. By creating an invoice, you can accurately track the customer's outstanding balance and ensure timely payment.

To verify whether a certain bill was paid by the company, you need to look in the Enter Bills form. This form contains all the bills that have been entered into the system, including the ones that have been paid. By checking this form, you can find the specific bill in question and determine whether it has been paid or not. The other options mentioned, such as the Accounts Receiver ledger, items list, and invoice form, may provide related information but may not specifically indicate whether the bill has been paid.

The Customer Message field is used to communicate information directly to the customer on the invoice, while the Memo field is used for internal comments that are meant to appear on customer statements. This allows for clear and effective communication with customers while also providing a space for internal notes and reminders. The answer suggests that it is important to differentiate between these two fields in order to effectively convey information to customers and keep internal records organized.