Reference no: EM132943487
Problem 1: There are two methods of tracking vendor deposits described in the Supplemental Guide training. What is the primary difference between them?
A One method works for sales tax purposes, whereas the other method does not
B The first method shows the deposit as a credit in the vendor's account. The second method shows the deposit as an asset
C One method requires a year-end journal entry to adjust the vendor deposits. The other method requires a journal entry every month
D The first method assumes the client is using the cash basis of accounting. The second method assumes the use of the accrual basis
Problem 2: Which statement is true concerning how QuickBooks Desktop Pro and QuickBooks Desktop Premier calculate the value of inventory?
A QuickBooks Desktop supports the average cost method
B QuickBooks Desktop supports FIFO, LIFO, and average cost
C Once a method has been chosen it cannot be changed
D QuickBooks Desktop supports the use of different costing methods with different items