Here are 30 Computerized Accounting objective test questions, including

QuickBooks, with the correct answers indicated.

Computerized Accounting & QuickBooks Objective Test Questions

* Which of the following is NOT a typical advantage of computerized

accounting systems over manual systems?

a) Increased speed of transaction processing

b) Reduced risk of human error in calculations

c) Greater flexibility in report generation

d) Elimination of the need for internal controls

Answer: d) Elimination of the need for internal controls

* In a computerized accounting system, the process of entering financial

data into the system is often referred to as:

a) Reporting

b) Data entry

c) Analysis

d) Auditing

Answer: b) Data entry

* A General Ledger in a computerized accounting system is a collection of:

a) All invoices issued

b) All journal entries

c) All asset, liability, equity, revenue, and expense accounts

d) All payroll records

Answer: c) All asset, liability, equity, revenue, and expense accounts

* Which of the following would be an example of a “master file” in a

computerized accounting system?

a) Daily sales transactions

b) Employee details (name, address, pay rate)

c) Customer payment records

 d) Purchase orders

Answer: b) Employee details (name, address, pay rate)

* The primary purpose of a “chart of accounts” in a computerized

accounting system is to:

a) List all customers and vendors

b) Provide a structured list of all financial accounts used by the business

c) Track inventory levels

d) Generate financial statements automatically

Answer: b) Provide a structured list of all financial accounts used by the

business

* Which of the following reports is typically not generated directly from a

computerized accounting system?

a) Income Statement

b) Balance Sheet

c) Statement of Cash Flows

d) Marketing Strategy Report

Answer: d) Marketing Strategy Report

* The process of backing up data in a computerized accounting system is

crucial for:

a) Improving data entry speed

b) Protecting against data loss due

c) Enhancing report accuracy

d) Reducing software costs

Answer: b) Protecting against data loss

* EFT stands for:

a) Electronic Fund Transfer

b) Encrypted Financial Transaction

c) Essential Financial Tools

 d) Expanded Fiscal Tracking

Answer: a) Electronic Fund Transfer

* What is the main function of an Enterprise Resource Planning (ERP) system

in relation to accounting?

a) To replace all individual accounting software packages

b) To integrate various business processes, including accounting, into a

single system

c) To provide a standalone solution for payroll management

d) To exclusively handle customer relationship management

Answer: b) To integrate various business processes, including accounting,

into a single system

* A “drill-down” feature in a computerized accounting report allows a user

to:

a) Print the report in a different format

b) View the underlying details of a summarized figure

c) Export the report to a spreadsheet

d) Schedule the report to run automatically

Answer: b) View the underlying details of a summarized figure

* Which of the following is an example of an internal control feature in

computerized accounting?

a) Requiring unique user IDs and passwords

b) Allowing all users full access to all data

c) Storing all data on a single, unencrypted server

d) Disabling audit trails

Answer: a) Requiring unique user IDs and passwords

* Cloud-based accounting software means the software and data are hosted:

a) On the user’s local computer

b) On a physical server within the user’s office

 c) On remote servers accessed via the internet

d) On a USB drive

Answer: c) On remote servers accessed via the internet

* What is the primary benefit of using bank reconciliation features in

computerized accounting?

a) To increase the amount of cash on hand

b) To identify discrepancies between bank statements and company

records

c) To automatically pay all outstanding bills

d) To generate sales forecasts

Answer: b) To identify discrepancies between bank statements and

company records

* Integrated payroll modules in accounting software typically handle:

a) Only gross pay calculations

b) Gross pay, deductions, net pay, and tax filings

c) Only employee vacation requests

d) Only expense report approvals

Answer: b) Gross pay, deductions, net pay, and tax filings

* What is the role of an “audit trail” in a computerized accounting system?

a) To hide sensitive financial information

b) To record all changes made to financial data, including who made them
and when

c) To speed up data entry

d) To prevent unauthorized access to reports

Answer: b) To record all changes made to financial data, including who

made them and when

QuickBooks Specific Questions:

* In QuickBooks, what is the primary window for recording sales to

customers?
 a) Write Checks

b) Enter Bills

c) Create Sales Receipts or Create Invoices

d) Pay Bills

Answer: c) Create Sales Receipts or Create Invoices

* Which of the following is used in QuickBooks to record money a company

owes to its vendors?

a) Customer List

b) Chart of Accounts

c) Vendor List

d) Employee Center

Answer: c) Vendor List

* To view a list of all your customers and their balances in QuickBooks, you
would typically go to the:

a) Vendor Center

b) Employee Center

c) Customer Center

d) Banking Center

Answer: c) Customer Center

* When you receive a payment from a customer in QuickBooks, you would

use the:

a) Write Checks window

b) Receive Payments window

c) Enter Bills window

d) Create Invoices window

Answer: b) Receive Payments window

* In QuickBooks, the “Chart of Accounts” is where you find:

a) A list of all your inventory items

 b) A list of all your bank accounts only

c) A categorized list of all your company’s financial accounts (assets,

liabilities, equity, etc.)

d) A list of all your employees

Answer: c) A categorized list of all your company’s financial accounts

(assets, liabilities, equity, etc.)

* What is the purpose of the “Items” list in QuickBooks?

a) To list all the employees

b) To define products and services that your company sells or purchases

c) To track customer contact information

d) To record daily expenses

Answer: b) To define products and services that your company sells or

purchases

* To record an expense that you paid immediately with a check in

QuickBooks, you would use the:

a) Enter Bills window

b) Create Invoices window

c) Write Checks window

d) Receive Payments window

Answer: c) Write Checks window

* Which QuickBooks report would show you how much profit your company
made over a specific period?

a) Balance Sheet

b) Statement of Cash Flows

c) Profit & Loss (Income Statement)

d) Accounts Receivable Aging

Answer: c) Profit & Loss (Income Statement)

* To enter a bill you’ve received from a vendor that you plan to pay later in
QuickBooks, you would use:
 a) Write Checks

b) Enter Bills

c) Pay Bills

d) Create Sales Receipts

Answer: b) Enter Bills

* What is the primary function of the “Bank Feeds” feature in QuickBooks?

a) To automatically pay bills

b) To download bank transactions directly into QuickBooks for reconciliation

c) To send invoices to customers

d) To create new financial reports

Answer: b) To download bank transactions directly into QuickBooks for

reconciliation

* In QuickBooks, when you create an invoice, which account is typically

debited?

a) Cash

b) Accounts Payable

c) Accounts Receivable

d) Sales Expense

Answer: c) Accounts Receivable

* If you want to customize a report in QuickBooks to show only specific dates

or accounts, you would use the:

a) Print button

b) Export button

c) Customize Report button

d) Delete button

Answer: c) Customize Report button

* What does “undeposited funds” represent in QuickBooks?

a) Money you owe to vendors

 b) Customer payments that have been received but not yet deposited into
the bank

c) Money spent on office supplies

d) Employee salaries not yet paid

Answer: b) Customer payments that have been received but not yet
deposited into the bank

* To record payroll in QuickBooks, you would typically use the:

a) Sales Receipts window

b) Enter Bills window

c) Payroll Center or Pay Employees function

d) Receive Payments window

Answer: c) Payroll Center or Pay Employees function

* In QuickBooks, to see a summary of what your customers currently owe

you, you would look at the:

a) Accounts Payable Aging report

b) Profit & Loss report

c) Balance Sheet report

d) Accounts Receivable Aging report

Answer: d) Accounts Receivable Aging report