QBO - Domain 1 Lesson 2 Projects

An Employer Identification Number (EIN) is:

• A unique number assigned to businesses for tax purposes

• A personal identification number for employees

• A code used for tracking shipments

• A number used for social security benefits

Label the following statement as true or false. Companies should not change their EIN frequently.

• True

• False

Select the icon users choose to edit company information sections.

• Pencil icon

• Trash icon

• Plus icon

• Lock icon

How can users ensure that only certain people can change the books after closing them?

• By using a password-protected system

• By leaving the books open

• By sharing the books with everyone

• By not closing the books

The accrual accounting method is:

• A method where transactions are recorded when cash is exchanged.

• A method where transactions are recorded when they are incurred, regardless of cash flow.

• A method that only records revenue when cash is received.

• A method that records expenses only when they are paid.

Which accounting method is used mainly by individuals and small businesses?

• Accrual accounting

• Cash accounting

• Managerial accounting

• Cost accounting

Which accounting method gives the most accurate assessment of a company’s financial health?

• Cash basis accounting

• Accrual basis accounting

• Tax basis accounting

• Managerial accounting

Label the following statement as true or false. It is a good idea to switch back and forth between accounting methods frequently.

• True

• False

What is the purpose of class tracking in QuickBooks Online?

• To categorize income and expenses

• To track inventory levels

• To manage payroll

• To reconcile bank statements

Name three examples of class segments for a business.

• a. Geographic, Demographic, Behavioral

• b. Geographic, Technological, Seasonal

• c. Demographic, Seasonal, Behavioral

• d. Behavioral, Technological, Geographic