QuickBooks lesson 5.
Terms in this set (10)
What are the advantages of entering credit card charges when you charge them?
You can keep close track of what you owe and if the charge is for a particular job you can easily keep track of what you're spending on that job.
What are the two account types for tracking the value of short or long term assets and what do they track?
Other current asset accounts - track assets that are likely to be converted to cash in under one year.
Fixed Asset accounts - tracks assets that are not likely to be converted to cash in less than one year.
What are the 3 types of current asset accounts that QuickBooks provides?
1. Accounts receivable
2. Bank accounts
3. An other current asset account.
What are the 2 account types for tracking short or long term liabilities, what do they track?
Other current liability - tracks liabilities that your company expects to pay in less than one year.
Long term liability - tracks liabilities that will take longer than 1 year to pay.
What are the 3 types of current liability accounts that QuickBooks provides.
1. Accounts Payable
2. A credit card account
3. Other current liability.
What information does the fixed item list allow you to record?
1. Date and price
2. Whether the asset was new or used
3. Assets sale price.
What does QuickBooks automatically do when you pay a loan?
QuickBooks subtracts the amount of the cheque from your balance in the chequings account. In the expense account that tracks interest it enters the interest amount as an increase. The loan liability account has the principal amount subtracted from the current liability value. It also creates a journal entry.
Difference between what you have and what you owe.
Opening Bal Equity
An Equity account that QuickBooks records equity in.
What is a common use of an equity account?
To record an owners draw.
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QuickBooks lesson 4.