Question 1

Which of the following is NOT true regarding accounts receivable?

Accepted Answer

A)  Accounts receivable arise from credit sales where we debit account receivable and credit sales.
B)  The risk is that a customer may break their promise to pay resulting in a bad debt or uncollectible account.
C)  It is important to track accounts receivable to determine if accounts are collected in a timely manner.
D)  Due to a company's prescreening activities,it is generally not that important to track the receivable after the credit sale.E) A) and C)
F) A) and D)

Question 2

In QBO,the user will use a Delayed Credit and Delayed Charge when:

Accepted Answer

A)  Delayed Credit - record a sale to a customer on account to be paid in the future. Delayed Charge - record a pending expense to be paid at a future date.
B)  Delayed Credit - record a credit or reduction in the amount charged to a customer at a future date. Delayed Charge - record a refund to a customer at a future date.
C)  Delayed Credit - record a pending credit to a customer occurring at a specified future date. Delayed Charge - record a pending charge to a customer occurring at a specified future date.
D)  Delayed Credit - record a product or service provided to the customer at a specified future date. Delayed Charge - record a pending charge to a customer occurring at a specified future date.E) All of the above
F) A) and D)

Question 3

Which of the following is NOT true regarding the Allowance method?

Accepted Answer

A)  The uncollectible accounts expense is estimated in advance of the write-off.
B)  The estimate can be calculated as a percentage of sales or as a percentage of accounts receivable.
C)  The method should be used if uncollectible accounts have a material effect on a company's financial statements.
D)  This method is used for tax purposes.E) B) and C)
F) None of the above

Question 4

When using the Navigation Bar in QBO to enter in sales transactions,a user must perform the following:

Accepted Answer

A)  Select Sales and click on the drop-down arrow for New transaction.Next,select the type of transaction and complete the online form.
B)  Select Create (+) and click on the drop down arrow for New transaction.Next,select the type of transaction and complete the online form.
C)  Select Sales and select New transaction from the Customer transactions shown.
D)  Select Create (+) and select New transaction from the Customer transactions shown.E) None of the above
F) B) and D)

Question 5

In QBO,the following two ways exist for updating the Customers List:

Accepted Answer

A)  Delayed charges and Delayed credit.
B)  Before entering transactions and After entering transactions.
C)  Before entering transactions and While entering transactions.
D)  While entering transactions and Delayed charging of transactions.E) A) and B)
F) A) and D)

Question 6

Updating the Customers List While entering transactions is accomplished by:

Accepted Answer

A)  Select the Gear icon and then choose a customer drop-down arrow > + Add new and entering the new customer information.
B)  Using the screen where we enter the transaction by choosing a customer drop-down arrow > + Add new and enter the new customer information.
C)  Select the Create (+) and then choose a customer drop-down arrow > + Add new and enter the new customer information.
D)  Select the Gear icon and then the Create (+) will allow the user to choose a customer drop-down arrow > + Add new and enter the new customer information.E) A) and B)
F) None of the above

Question 7

Customers pay their outstanding balances in the following ways except:

Accepted Answer

A)  Credit Card
B)  Online
C)  Barter
D)  Customer CheckE) B) and D)
F) All of the above C

Question 8

Which two QBO lists will be used when entering customer sales related transactions?

Accepted Answer

A)  Customers List,and Products and Services List.
B)  Banking List,and Invoices List.
C)  Customers List,and Sales List.
D)  Credit List,and Products and Services List.E) All of the above
F) A) and D)

Question 9

Which is true regarding the collectability of accounts receivable?

Accepted Answer

A)  A company should establish a credit policy after they have an issue with a customer not paying.
B)  An accounts receivable aging report is not always helpful when monitoring receivables and collectability.
C)  Newer accounts receivable balances should be monitored more since it is less likely the customer will pay.
D)  Generally,the older the account,the less likely the customer will pay the bill.E) A) and D)
F) A) and C) D

Question 10

What are the two different methods for accounting for bad debts:

Accepted Answer

A)  Direct Write-off method and Allowance method
B)  Accounts Receivable method and Direct Write-off method
C)  Accounts Receivable Reconciliation method and Allowance method
D)  Direct Write-off method and Accounts Receivable Reconciliation methodE) None of the above
F) B) and C)

Question 11

The following process is used to update a Customers List Before entering transactions:

Accepted Answer

A)  At the Navigation Bar click on Customers,then select Sales and New customer.Editing an existing customer or entering a new customer can be performed by either selecting Edit or New transaction.
B)  At the Navigation Bar click on Sales,then select Customers and New customer.Enter a new customer by selecting New transaction.Editing a customer must be performed in a different screen using the Gear icon.
C)  At the Navigation Bar click on Sales,then select Edit customers.Editing an existing customer or entering a new customer can be performed by either selecting Edit or New transaction.
D)  At the Navigation Bar click on Sales,then select Customers and New customer.Editing an existing customer or entering a new customer can be performed by either selecting Edit.E) All of the above
F) C) and D)

Question 12

All of the following are true regarding QBO Customers List except:

Accepted Answer

A)  It allows the user to collect information about the customer and reuse the information without re-entering.
B)  It is a time-saving feature.
C)  It contains past sales transactions and allows us to estimate future intended sales.
D)  It collects information about a customer such as: name,address and contact information.E) A) and D)
F) None of the above

Question 13

What is the mechanism a company uses to track Accounts Receivable to ensure company's pay on time?

Accepted Answer

A)  Accounts Receivable Reconciliation.
B)  Accounts Receivable List.
C)  Accounts Receivable Aging Report.
D)  Cash to Receivables Reconciliation.E) B) and D)
F) B) and C)

Question 14

All of the following are true regarding the Products and Services List except:

Accepted Answer

A)  It collects information about the products and services sold to customers.
B)  New products must be entered twice to confirm the initial information is correct.
C)  It is a time-saving feature.
D)  QBO uses four types of products and services: Inventory,Non-inventory,Service,and Bundle.E) All of the above
F) A) and B) B

Question 15

What is NOT a difference between the Allowance method and the Direct-write Off method?

Accepted Answer

A)  The Direct Write-Off method is used if bad debts have a material impact on the financial statements.
B)  Direct Write-Off is used for tax purposes.
C)  The Allowance method estimates bad debts and establishes a reserve for uncollectible accounts.The Direct Write-off method records bad debt expense at the specific time a customer's account becomes uncollectible.
D)  In both methods,an uncollectible account credits accounts receivable,however,what is debited is different depending on what method is used.E) B) and D)
F) C) and D)

Question 16

In QBO,when is a sales transaction recorded on an invoice?

Accepted Answer

A)  The product or service is provided to the customer and the customer pays immediately.
B)  An estimate of the cost of products or services is needed for the future.
C)  The product or service is provided to the customer and the customer promises to pay later.
D)  A credit or reduction in the amount charged to the customer is needed to be communicated.E) A) and B)
F) All of the above

Question 17

What are the two main ways to record customers and sales transactions using QBO?

Accepted Answer

A)  Customer Sales using Sales Receipts and Customer Sales using Invoices.
B)  Customer Sales using Credit Memos and Customer Sales using Invoices.
C)  Customer Sales using Sales Receipts and Customer Sales using Payment Receipts.
D)  Customer Sales using Sales Receipts and Customer Sales using Estimates.E) B) and C)
F) None of the above

Question 18

How can an estimate of the uncollectible accounts expense be estimated in advance of the write-off using the Allowance method?

Accepted Answer

A)  Cash sales plus a percentage of credit sales.
B)  As a percentage of credit sales or as a percentage of accounts receivable.
C)  As a percentage of cash sales or a percentage of credit sales.
D)  As a percentage of newer receivables with little or no consideration of older receivable balances.E) B) and D)
F) A) and B)

Question 19

In QBO,what is the difference between a Sales Receipt and an Invoice?

Accepted Answer

A)  A Sales Receipt records a sales transaction when the customer pays at the time of sale (when the products or services are provided to the customer) .An Invoice is recorded when the product or service is provided to the customer and the customer promises to pay later.
B)  A Sales Receipt records when the product or service is provided to the customer and the customer promises to pay later.An Invoice records a sales transaction when the customer pays at the time of sale when the product or service is provided to the customer.
C)  A Sales Receipt records a sales transaction when the customer pays at the time of sale (when the product or services are provided to the customer) .An Invoice records when the product or service is provided to the customer and the customer determines that they are not able to pay.
D)  A Sales Receipt records a sales transaction when the customer pays at the time of sale (when the product or service is provided to the customer) .An Invoice is used to record a pending charge to a customer that will occur at a future date.E) All of the above
F) None of the above

Question 20

What is accounts receivable?

Accepted Answer

A)  Amounts a customer owes our business from a credit sale where the customer promises to pay later.
B)  Amounts a customer has already paid us and the receivable represents discounts we will pay our customers at a later date.
C)  Amounts a customer will pay us at a later date only if we provide a service or product to them.
D)  Amounts we must return to our customer if they pay us within a specified period of time.E) All of the above
F) B) and C)

Exam 5: Customers and Sales

Which of the following is NOT true regarding accounts receivable?

Correct AnswerverifiedShow Answer

In QBO,the user will use a Delayed Credit and Delayed Charge when:

Correct AnswerverifiedShow Answer

Which of the following is NOT true regarding the Allowance method?

Correct AnswerverifiedShow Answer

When using the Navigation Bar in QBO to enter in sales transactions,a user must perform the following:

Correct AnswerverifiedShow Answer

In QBO,the following two ways exist for updating the Customers List:

Correct AnswerverifiedShow Answer

Updating the Customers List While entering transactions is accomplished by:

Correct AnswerverifiedShow Answer

Customers pay their outstanding balances in the following ways except:

Correct AnswerverifiedC

Which two QBO lists will be used when entering customer sales related transactions?

Correct AnswerverifiedShow Answer

Which is true regarding the collectability of accounts receivable?

Correct AnswerverifiedD

What are the two different methods for accounting for bad debts:

Correct AnswerverifiedShow Answer

The following process is used to update a Customers List Before entering transactions:

Correct AnswerverifiedShow Answer

All of the following are true regarding QBO Customers List except:

Correct AnswerverifiedShow Answer

What is the mechanism a company uses to track Accounts Receivable to ensure company's pay on time?

Correct AnswerverifiedShow Answer

All of the following are true regarding the Products and Services List except:

Correct AnswerverifiedB

What is NOT a difference between the Allowance method and the Direct-write Off method?

Correct AnswerverifiedShow Answer

In QBO,when is a sales transaction recorded on an invoice?

Correct AnswerverifiedShow Answer

What are the two main ways to record customers and sales transactions using QBO?

Correct AnswerverifiedShow Answer

How can an estimate of the uncollectible accounts expense be estimated in advance of the write-off using the Allowance method?

Correct AnswerverifiedShow Answer

In QBO,what is the difference between a Sales Receipt and an Invoice?

Correct AnswerverifiedShow Answer

What is accounts receivable?

Correct AnswerverifiedShow Answer

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C

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D

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B

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