Quickbooks Test 1 Flashcards

Accounts Receivable

• Represents values customers owe the business, typically from open invoices.

Difference Between Customer and Job

• A job is a project or sub-customer under a customer, used for tracking profitability separately.

Types of Items

• Includes Inventory, Non-Inventory, Service, and Other Charges.

Accounts Payable

• Total amount owed to vendors from open bills.

Exporting Quickbooks Reports

• To export, pull the desired report, click Excel, and then select "Create new Worksheet".

Enter Bills vs. Write Checks

• Enter Bills record expenses recognized on the billing date, while Write Checks is for immediate expense payments.

Petty Cash and Cash on Hand

• Defined as an account to manage cash payments that aren't directly deposited into a bank.

Undeposited Funds

• Covers all payments received but not marked as deposited in Quickbooks.

Reconciliation Limits

• Accounts Receivable cannot be reconciled in Quickbooks.

Checking Reconciled Status

• A checkmark in the bank account register indicates reconciliation.

Home Icon Functionality

• Clicking the Home icon shows the Home Screen with workflow icons while keeping other windows open.

Modifying Report Filters

• Filters can be modified by clicking "Customize Report" and selecting the Filters Tab.

Sales Order

• A non-posting transaction that logs sales before product or service delivery, useful for back-orders.

When Not to Use Write Check Function

• It is inappropriate for entering bills that were previously recorded in the Enter Bills module.

Recording Customer Prepayment

• Record a prepayment by creating a Sales Order and then using "Record Deposit".

Double Clicking Transactions in Reports

• Double clicking an amount takes you to the specific transaction for viewing or editing.

Inventory Item Posting

• Posts to Inventory Asset Account when purchased and to Income and Cost of Goods Sold when sold.

Excel and Quickbooks Interaction

• It is not possible to send reports from Excel back to Quickbooks.

Switching to Multi-User Mode

• Multi-User Mode is activated via "File: Switch to Multi-User Mode".

Deleting Items

• Items can be made inactive instead of deleted, preserving past financial records.

Setting Today's Date

• Press T to jump to today's date in any transaction's date section.

Recording Payments from Clients

• Use "Receive Payment" to apply payments to multiple open invoices at once.

Pre-Payment to Vendor

• Create a Purchase Order and then Write Check for the pre-payment to accounts payable.

New Company File Setup Considerations

• Preferences can be changed, but interview questions cannot be retrieved after initial setup.

Chart of Accounts

• A list of all accounting accounts, including Income, Expenses, Assets, Liabilities, and Equity.

Accrual Basis vs. Cash Basis

• Accrual Basis recognizes income when earned, regardless of payment; Cash Basis records it only when paid.

Bank vs. Credit Card Reconciliation

• Both processes are similar but consider outstanding checks for bank accounts.

Customizable Reports

• Invoices, Estimates, Sales Orders, and other forms can have logos and other custom elements.

Primary Reports for Financial Health

• Balance Sheet and Profit & Loss reports are essential to assess business financial health.

Billable Time and Expenses

• Refers to expenses and time spent that can be invoiced to clients for reimbursement.

Recording Inventory Purchases

• Use a Purchase Order to accurately record inventory purchases.

Quickbooks Usage for Company Activities

• Profit and Loss Report tracks company sales and expenses.

Transaction Types: Posting vs. Non-Posting

• Estimates and Purchase Orders are classified as non-posting transactions.

Memorized Transactions Function

• Allows users to save and automatically input specific transactions in the future through reminders.

Items Usage in Quickbooks

• Items are essential in transactions to specify the type of product or service being sold or purchased.### Bill Payment in Quickbooks
• Each bill must be paid with a separate check; combined payments are not allowed.
• Utilize the "Pay Multiple Bills" function found in the Bills menu for batch processing.
• Input each bill using the "Enter Bills" function first. Then access "Pay Bills" to select and pay open bills, with Quickbooks automatically calculating the total amount due.

Analyzing Financial Reports

• Look for unusual balances, such as negative expense amounts, indicating potential errors.
• Monitor consistency in numbers that should be relatively stable month-to-month, flagging any irregular months for investigation.
• Calculate and analyze the gross margin (Cost of Goods Sold divided by Total Sales/Income) to confirm that the gross margin percentage remains consistent with expectations.

Understanding Subaccounts

• A subaccount functions as a detailed division within a parent account, allowing for better organization and reporting. Subaccounts can be collapsed or expanded in reports for a clearer view.
• Subaccounts help provide insights into the performance of parent accounts by detailing various transactions associated with them.

Quickbooks Key Functions

• In Quickbooks, the "Tab" key navigates to the next cell or field, while the "Enter" key is used for "Save and Close" actions.
• Both keys streamline data entry processes by ensuring efficient navigation and confirmation within the application.

Test your knowledge of key Quickbooks concepts with this flashcard quiz. Focus specifically on understanding Accounts Receivable and related terminology. Perfect for beginners looking to master Quickbooks basics.