Frannie Food Emporium

Question 1

Review Frannie's Food Emporium case study and answer the following question.

What are 2 steps that should be taken when setting up Retail Sales—Taxable?(Select all that apply)

• Select I purchase this product/service from a vendor, and enter Cost
• Choose Taxable - Standard rate as the Sales Tax category
• Enter the Sales Price/Rate
• Select I track quantity on hand for this product
• Specify the appropriate income account

Review Frannie's Food Emporium case study and answer the following question.

When setting up the Check item “Income Account” field, which account should be selected?

• Sales of Product Income
• Cash-Checking
• Sales Discount
• Undeposited Funds
• Cost of Goods Sold

Review Frannie's Food Emporium case study and answer the following question. 

When setting up the Retail Sales—Taxable Product/Service item’s Income Account field, which account should be selected?

• Sales of Product Income
• Cash-Checking
• Sales Discount
• Undeposited Funds
• Cost of Goods Sold

Question 4

What is one of the steps involved in creating a zero-dollar expense to assign job costs to a project?

• Use a purchase order for zero dollars
• Set up a Clearing account to record the transaction with the Account Type of Other Current Asset
• Use a Delayed Charge and offsetting Delayed Credit
• Put in a negative expense line without assigning a Customer
• Put in a positive expense line without assigning a Customer

Question 5

A customer made a payment by check in the amount of $365.33. The bank indicates the check was returned for insufficient funds. They are charging a $35 returned check fee.

Based on the training, what is one of the first steps that needs to be taken?

• Delete the payment received
• Create a delayed charge for the bounced check
• Delete the deposit and re-enter, excluding the bounced payment
• Create an invoice using a bounced check and bounced check fee item
• Create a credit memo for the amount of the invoice and bounced check fee

Question 6

A client has been using the Receive Payments screen to record payments on account from customers before jobs have been completed and invoices created.

At the financial period end, which steps should be taken to account for these credit balances within Accounts Receivable, assuming they are operating on an accrual basis?

• Create invoices to clear the credits. Receive payments with a zero total, and match the credits to the invoices
• Create a journal entry to debit Accounts Receivable, and credit a liability account within the Balance Sheet. Once saved, the journal entry should be reversed at the beginning of the next period
• Create a journal entry to credit Accounts Receivable for each customer, and debit another asset account within the Balance Sheet. Once saved, the journal entry should be reversed at the beginning of the next period
• Create a journal entry to debit Accounts Receivable, and credit unearned income within the Profit & Loss. Once saved, the journal entry should be reversed at the beginning of the next period

Question 7

When reconciling control accounts like Prepayments or Deposits, which value should be in the ending balance field?

• The total balance of deposits held, if we are reconciling the deposit account
• The total balance of prepayments, when reconciling prepayments
• Zero, leaving unused values as the unreconciled items
• A combination of the values of prepayments and deposits

Question 8

Read the Chen Automotive scenario and answer the following question.

Upon review, how would you recommend the prepayment be recorded?

• Continue handling the prepayment in the same way
• Enter a bill for only 75% of the inventory
• Create a bill and post to purchases until inventory arrives
• Set up a Vendor Prepayment account and item, and use that
• Enter a purchase order against Accounts Payable

Question 9

A client has several suppliers they purchase their materials from, and most of the suppliers require part or all payments to be made at the time of order. You advise your client to set up a Prepayments account that can be reconciled each month.

How should this account be set up?

• Set up a Service item called Prepayments
• Set up a Liability account called Prepayments
• Set up an Asset account called Prepayments
• Set up an Expense account called Prepayments

Question 10

A customer wants to add additional work to their original estimate.

What are 2 ways to record this change?(Select all that apply)

• Delete the original estimate
• Create an additional estimate
• Open the original estimate and add a line
• Change the status of the original estimate to Amended

Question 11

Where can you turn on Price Rules in QuickBooks Online?

• Gear icon > All lists > Price Rules
• Gear icon > Account and Settings > Advanced > Automation > Turn on Price Rules
• Gear icon> Account and Settings > Sales > Products and Services > Turn on Price Rules
• Sales > Customers > Turn on Price Rules

Question 12

Your client wants to offer a 20% discount to their wholesale customers.

Which 2 features of QuickBooks Online will they need to use to set this up?(Select all that apply)

• Delayed Charges
• Price Rules
• Projects
• Customer Types

Question 13

Your client turned on the Tips function in QuickBooks Online and specified that their team will be getting tips. They then created their first sales transaction with a tip on it.

Which 2 statements are true?(Select all that apply)

• The tip amount posts to an Other Current Liability Account
• The tip amount posts to an Income Account
• The Tips account can be changed
• The sales transaction type was an invoice
• Your client must be using QuickBooks Online Plus or Advanced

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