Question

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6. Match the information on the left with the appropriate account-type on the right: a. Retained Earnings 1. Fixed Asset b. Advertising 2. Current Liability c. Accounts Payable 3. Equity d. Sales Revenue 4. Expense e. Inventory 5. Long-Term Liability f. Delivery Truck 6. Current Asset g. Building Loan 7. Income 7. QuickBooks allows users to setup different 'on-screen' and 'printed' versions of sales forms. a. True b. False 8. Which of the following forms can price levels not be used on? a. Invoice b. Bill c. Sales Receipt d. Credit Memo e. None of the above A customer has 3 outstanding jobs and makes a partial payment. In QuickBooks, that payment: a. Must be applied to the first job taken on for that customer b. Must be applied to the last job taken on for that customer c. Can be applied to one specific or split between any combination of jobs d. Cannot be applied against that customer until full payment is received

Answer 1

6)		Supporting Explanations
a) Retained Earnings	3. Equity	Retained earnings is the balance of income which is retained for future purpose and it is part of equity and always has credit balance.
b) Advertising	4. Expense	Advertising is an expense which always has debit balance and it is incurred in order to advertise a product or service.
c) Accounts Payable	2. Current Liability	Accounts Payable is a current liability which always has credit balance and it needs to be paid at a future period.
d) Sales Revenue	7. Income	Sales Revenue is income which always has credit balance and it is the amount that is earned due to sale or providing services.
e) Inventory	6. Current Asset	Inventory is a current asset which always has debit balance.
f) Delivery Truck	1. Fixed Asset	Delivery Truck is a fixed asset which always has debit balance and it is used for future purpose to generate income.
g) Building Loan	5. Long-Term Liability	Building Loan is a long-term liability which always has credit balance and it needs to be paid more than one year.