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QuickBooks Practice Test Questions and Verified Answers 2025.
During the Advanced Setup, you can turn on and off which features in the EasyStep Interview? a. Sales taxes b. Inventory c. Progress Invoicing d. All of the above ✔✔ALL of the above During the Advanced Setup, you can set up a password for which of the following users during the EasyStep Interview? a. Administrator b. External Accountant c. You cannot setup passwords during the EasyStep interview d. All users ✔✔administrator When setting up a new company through the Advanced Setup, some company information is optional and some is absolutely required. Which of the following
pieces of information does QuickBooks require you to enter during the EasyStep Interview? a. Company name b. Company password c. Tax ID d. All of the above ✔✔company name How do you set up multiple businesses in QuickBooks (assuming each business files a separate tax return)? a. Purchase a separate QuickBooks license for each company you need to set up. b. Use the Advanced Setup to go through the EasyStep interview for the oldest c. Use the Advanced Setup to go through the EasyStep interview for each company d. Use the Advanced Setup to go through the EasyStep Interview for the largest company first, and then choose File > Add a separate business at the end of the
a. There is no Start Date in the EasyStep Interview. b. The date the company bought QuickBooks. c. 1911 d. The date you want to begin tracking the company's finances in QuickBooks. ✔✔The date you want to begin tracking the company's finances in QuickBooks. How do you restore a company file from a backup copy? a. Choose File > Back Up. Then click the Restore from Backup button. b. Choose File > Utilities > File Operations > Restore. c. Choose File > Open or Restore Company. Select Restore a backup copy and click Next. Choose Local or Online Backup and click Next. Select the file to restore and click Open. Choose where to restore the file to and click Save. d. Click the Restore icon on the Home page.
click Next. ✔✔Choose File > Open or Restore Company. Select Restore a backup copy and click Next. Choose Local or Online Backup and click Next. Select the file to restore and click Open. Choose where to restore the file to and click Save. Which of the following is NOT a backup option in QuickBooks? a. Manually back up the file. b. Automatically back up the data file when closing QuickBooks. c. Schedule an unattended backup d. All of the above are QuickBooks backup options. ✔✔All of the above are QuickBooks backup options. Why would you restore a data file from the backup file? a. You wish to review the company data as it stood at an earlier date.
If you choose to remove transactions as of a specific date from the "Condense Data" window, what does QuickBooks do? a. Removes all payroll transactions that occurred on that date. This is a great way to fix the mistakes a new person made on a particular day. b. Removes all transactions while leaving lists, preferences, and service subscriptions intact. c. Changes the company's start date. d. Deletes all transactions, as well as user passwords and access privileges. ✔✔Removes all transactions while leaving lists, preferences, and service subscriptions intact. What happens when you press F2 in QuickBooks? a. Nothing, because function keys are not designed to work with QuickBooks. b. QuickBooks opens the Help.
c. QuickBooks opens the Product Information window which includes version and company file information. d. QuickBooks closes all windows. ✔✔QuickBooks opens the Product Information window which includes version and company file information. When would you enter a journal entry? a. To correct errors (if you have a strong accounting background) b. For year-end adjustments c. To enter depreciation d. All of the above ✔✔All of the above If the computer that houses your QuickBooks data crashes, what should you do? a. Restore a back up copy of your company file
When entering a journal entry, what happens if the debits don't equal the credits? a. QuickBooks sends the difference to an adjustment account. b. QuickBooks will not allow you to record the transaction. c. QuickBooks asks you what to do with the "unequal" amount. d. Nothing. QuickBooks records the transaction as is. ✔✔QuickBooks will not allow you to record the transaction. What do the diamonds mean on certain lists (for example, the diamonds to the left of each Customer:Job)? a. You are not allowed to delete that entry. b. You can click on the diamond and move the list entry to a different location on the list. c. There are open transactions related to the list entry.
d. You cannot move the list entry. ✔✔You can click on the diamond and move the list entry to a different location on the list. If you moved a list entry up or down, what happens when you add a new entry to the list? a. QuickBooks adds new list entries to the bottom of the list, regardless of alphabetic order b. QuickBooks adds new list entries in alphabetic order. c. QuickBooks adds new list entries to the top of the list, regardless of alphabetic order d. QuickBooks asks you how to sort new list entries. ✔✔QuickBooks adds new list entries to the top of the list, regardless of alphabetic order What is the maximum number of names that can be included on the Names lists in QuickBooks Pro or Premier? a. 10,
a. Rename the unwanted list entry to match the name of the list entry you want to merge into. b. Open the list entry you want to get rid of and click Merge. c. From the bottom of the list, click the Activities menu and select Combine Entries. d. You cannot combine or merge two list entries. ✔✔From the bottom of the list, click the Activities menu and select Combine Entries. Can you delete a list entry (for example, an item)? a. Yes, if the list entry is not used in any transactions or is not part of another list entry (for example, a group item). b. No, if the list entry is used in any transactions or is part of another list entry (for example, a group item). c. Both A and B are correct.
d. No, you can never delete a list entry. ✔✔Both A and B are correct. Suppose you own a company that repairs bicycles. What item type should you use for "bicycle repair"? a. Inventory Part b. Non-inventory Part c. Other Charge d. Service ✔✔Service Which of the following is NOT an Item Type? a. Inventory Part
a. You can track the actual quantity of goods or services you sell. b. They can save you time by automatically entering a description and price on forms. c. They allow you to track a lot of detail without cluttering your Chart of Accounts. d. All of the above. ✔✔All of the above What item type should you use for inventory that you assemble from other items and then sell? a. Group b. Inventory Part c. Inventory Assembly d. Non-inventory Part ✔✔Inventory Assembly
You've just been hired by a bakery that sells delicious cup cakes. When they buy ingredients (flour, eggs, milk, and sugar), they use the Expense tab and assign the costs to a Cost of Goods Sold account. You need to set up an item for cakes. What item type should you use? a. Group b. Inventory Part c. Inventory Assembly d. Non-inventory Part ✔✔d What account (on the Chart of Accounts) is affected when you sell an item? a. The account you selected when you set up the item. b. Other Income account.
You can set up an item to affect different accounts (based on whether it's a sale or purchase) by selecting "This service is performed by a sub-contractor or partner." What transaction should you enter if a customer returns a damaged product or, in the case of a service, complains so much you decide to offer a refund? a. Debit Memo b. Credit Memo c. Customer Return d. Check or Bill ✔✔Credit Memo On the Home Page, click Refunds and Credits. This decreases the amount owed by the customer and reverses the sale. When would you create an estimate in QuickBooks?
a. When you want to send a billing statement b. When a customer requests a bid, quote, or proposal c. When a customer loses an invoice and needs a second copy d. When a customer pays for goods and services at the time of sale ✔✔When a customer requests a bid, quote, or proposal When you invoice for time and costs, where does QuickBooks get the billable time or costs? a. QuickBooks places a "Time/Costs" stamp on the invoice, but you must manually enter the line items on the invoice. b. From billable time entered on bills and checks.
