Question

1. Which of the following statements is not true?

a. As part of the Easy Step Interview, the user enters the first month of the fiscal year.

b. The conversion date is always the first day of the fiscal year.

c. The Easy Step Interview process is part of a Detailed Start.

d. Users with minimal accounting knowledge can use the Express Start method to set up a new company.

2. When amounts owed to vendors at the conversion date are entered through Add/Edit Multiple List entries, the underlying journal entry will include a debit to:

a. Opening Balance Equity.

b. uncategorized income.

C. accounts payable.

d. uncategorized expenses.

3. When inventory is set up through Add/Edit Multiple List Entries, the resulting journal entry is dated:

a. using the actual entry date.

b. using the as of date entered in the setup.

c. using the start date.

d. using the date of the first day of the most recent fiscal year.

4. Which of the following statements is true?

a. All accounts to be used by the company must be selected as part of the Easy Step Interview process.

b. Item quantities entered through Add/Edit Multiple List Entries can't be edited later.

c. Although contact information (address and phone number) can be added later, the Company Name must be entered on the first screen of the Easy Step Interview.

d. The new .QBW file is created immediately after the first screen (company information) is completed in the Easy Step Interview.

5. Add/Edit Multiple List Entries can be used for all of the following lists except:

a. service items.

b. chart of accounts.

c. inventory items.

d. vendors.

Answer 1

Solution1: b

The conversion date need not always be the first day of the fiscal year. The last day of the previous fiscal year may also be used if the business has been operating for a while.

Solution 2:d

Every transaction involves a debit and a credit. When the amount owed to vendors are saved without selecting an account, it would be posted to uncategorised expense account which would be automatically created.

Solution 3:b

When inventory is set up through add/edit multiple list entries, the journal entry is dated using the as of date entered in the setup.

Solution 4:a,c and d are correct

a) All the accounts used by the company, which would facilitate tracking of money used in the business, should form part of the Easy Step Interview process.

b) Add/ Edit Multiple List entries option is available under the 'Lists' menu.

c) The name of the company, contact information,Tax ID and legal name of the company are the required details on the first screen. The name of the company must be entered on the first screen of the Easy Step Interview whereas the other information can be filled later by using 'Modifying Company Info'.

d) Upon selection of 'create company' option on the first screen, Quick Setup dialogue box appears and navigates to the folder where the file is to be saved. On saving the file, a new .QBW file is created.

Solution 5: b

Add/Edit Multiple List Entries can be used for service items, inventory items, vendors and customers.