QuickBooks Practice Test (Sales)

Questions and Answers

What transaction should you enter if a customer returns a damaged product or complains so much you decide to offer a refund?

Customer Return

Check or Bill (correct)

Debit Memo

Credit Memo

When would you create an estimate in QuickBooks?

When you want to send a billing statement

When a customer pays for goods and services at the time of sale

When a customer requests a bid, quote, or proposal (correct)

When a customer loses an invoice and needs a second copy

When you invoice for time and costs, where does QuickBooks get the billable time or costs?

From payroll costs/expenses marked as billable on paychecks.

From billable time entered on timesheets and/or billable costs entered on checks and bills. (correct)

QuickBooks places a 'Time/Costs' stamp on the invoice, but you must manually enter the line items on the invoice.

From billable time entered on bills and checks.

When should you create an invoice in QuickBooks?

When a customer purchases goods or services but does not pay you at the time of the sale Signup and view all the answers

When should you use a Sales Receipt in QuickBooks?

To record a customer payment at the time of sale Signup and view all the answers

What is the purpose of Progress Invoicing?

To invoice from an estimate in increments Signup and view all the answers

When you create a statement and select 'All open transactions as of statement date,' what does QuickBooks show on the statement?

Open transactions as of the statement date Signup and view all the answers

What do you need to record in QuickBooks when a customer's check bounces?

All of the above Signup and view all the answers

You received 5 customer payments in the mail. At the bank, you deposit the 5 checks as one deposit. How do you show that the 5 checks were actually 1 deposit?

When you use the Receive Payments window, QuickBooks doesn't deposit the money in your checking account. After you record the 5 payments, click Record Deposits and select the 5 checks. Signup and view all the answers

What options do you have after you create a credit memo in QuickBooks?

All of the above Signup and view all the answers

Study Notes

Transaction Types in QuickBooks

Use a Credit Memo to record a customer's return of a damaged product or to process a refund; this applies when a service is not satisfactory.
Create an Estimate when a customer requests a bid or quote; this is an initial proposal for potential work rather than a finalized sale.
Billable time or costs for invoicing are derived from timesheets and checks marked as billable, ensuring accurate cost tracking.

Invoicing Guidelines

An invoice should be created when a customer purchases goods or services without immediate payment, allowing for a record of the sale for future payment tracking.
A Sales Receipt is utilized when a customer pays at the time of sale, confirming the transaction with an immediate record.
Progress Invoicing allows billing from an estimate in stages or increments, facilitating project-based invoicing.

Statements and Bounced Checks

When generating a statement with "All open transactions as of statement date," QuickBooks displays all open transactions relevant to that date.
A bounced check from a customer necessitates recording the owed amount along with any NSF (non-sufficient funds) fees incurred by the bank.

Payment Recording

If multiple payments are received and deposited as one amount, record them as separate transactions in the Receive Payments window, then consolidate when recording the deposit.
After creating a Credit Memo, it can be retained as credit, refunded to the customer, or applied to an existing invoice, providing flexibility in managing customer accounts.

Description

Test your knowledge of QuickBooks transactions related to sales with this practice test. Focus on understanding when to use debit memos, credit memos, and estimates. Perfect for anyone looking to enhance their QuickBooks skills in handling customer returns and refunds.