2.  How to install the QuickBooks software  How to work with the practice files in this book  How to open QuickBooks data files  Editions of the QuickBooks software  Some of the basic principles of accounting  About Academy Glass, the sample company  How to install QuickBooks Releases  How to use Navigators, Menus, Icon Bars, and the Shortcut list in QuickBooks  About QuickBooks Help and Support QuickBooks Help

3.  Insert the QuickBooks CD into CD-ROM drive  The installation program will start automatically  Follow the onscreen instructions  If the installation program does not start automatically:  Select the windows start menu and then select run  Enter [D]:\ Setup.exe (where D is the drive letter of your CD-ROM drive)  Click OK

4.  The practice files are located at www.quickbooksupportdesk.com/support/  Download the file QuickBooks_2005_Classroom_Files.exe to your local hard disk and install (double-click) it  Installed files will be placed in  C:\QuickBooks 2005 Classroom Files and backup files into the QuickBooks 2005 Backup Files directory.

5.  All the chapter computer files are  In the.QBB format  Located inside the QuickBooks 2005 backup files sub directory  Example: Intro-05.QBB  The practice files used for every chapter are  In the.QBW format  Created by restoring the corresponding backup file  Example: Intro-05.QBW

6. QuickBooks has two primary types of files:  Data files (extension “.QBW”)  To enter data or create reports  Select File menu and then select Open company  Backup files (extension “.QBB”)  To create a condensed version of the data file  Restore into a.QBW file before using it  Select File menu and then select Restore

7.  To create a backup, select the File Menu and then choose Backup  Creates a smaller version of the data file with the file extension “.QBB”  Most important safeguard for safety of your data file

8.  Main reasons for restoring backup files in QuickBooks:  To transfer files between computers  To recover damaged or lost data files  Restoring does not add information to your file

9.  Launch the QuickBooks program  Select the File menu and then select Restore  Restore From: Set the filename and location fields of your backup disk and backup file name (.QBB file)  Restore To: Set the filename and location fields to where you want to store your file (.QBW file)  Click Restore  QuickBooks will then restore your backup file to a “.QBW” file in the directory you specified

10.  Launch the QuickBooks program:  Double-click the icon on your desktop or  Select it from the Windows Start menu  Previously opened data file will be opened (unless you specifically closed the data file before exiting File / Close Company )  To open a different file, select the File menu and then select Open Company

11.  Comprehensive set of accounting tools that’s very powerful and easy to use  General Journal  Chart of Accounts  Accounts Receivable  Accounts Payable  Inventory  Financial Reporting  Fee based Payroll services

12.  Simple Start  Basic  Pro  Premier  Accountant  Contractor  Non Profit  Manufacturing & Wholesale  Professional Services  Retail

13.  To assess:  The financial position of the organization relative to its debts (liabilities)  Its capabilities to satisfy those debts and continue operations (assets), and  The difference between liabilities and assets (net worth or equity)  The Accounting Equation,  Assets = Liabilities + Equity

14.  Business transactions are recorded in several types of ledgers, called accounts  The summary of all transactions in all ledgers for a company is called the General Ledger  A listing of every account in the General Ledger is called the Chart of Accounts.  Each account has a type (i.e., asset, liability, equity, income, or expense)

15.  Total debits must always equal total credits  In QuickBooks, every transaction creates a debit in one or more accounts and a credit in one or more accounts to handle double- entry accounting  Depending on the type of account, a debit might increase the account or decrease it; the same is true of credits  Therefore, debits are not always bad and credits are not always good

16.  The accrual basis method  Revenues and expenses are recognized in the period in which the transactions occur, rather than in the period in which cash changes hands  The cash basis method  Revenues and expenses are not recognized until cash changes hands  With QuickBooks, you can create reports for either method

17.  Transactions are entered in familiar- looking forms such as Invoices, Bills and Checks  QuickBooks handles the accounting debit and credit entries  This allows you to focus on the business transaction rather than the debits and credits in the General Ledger

18.  Fictitious sample company used in the text book  A home improvement and contracting corporation  A service and a merchandising company  Has two stores, one located in San Jose and another located in Walnut Creek

19.  Release Level refers to the patches provided by Intuit to fix the problems found in the program  To verify the release level, press Ctrl+1 (or F2 ) while QuickBooks is running  To patch your software with the latest maintenance release  Download the latest release by selecting the File menu and then selecting Update QuickBooks  Follow the instructions on these screens to download and install maintenance releases in QuickBooks via the Internet

20.  There are five methods of accessing the data entry windows:  Menus  Icon Bar  Shortcut List  Navigators  Shortcut Keys

21. Menus Icon Bar Navigators

22.  Menus run along the top of the screen  To open a menu, select the menu name and then choose the option desired

23.  Allows you to select activities and lists by clicking icons on the bar  The contents or position of the icons on the Icon Bar can be modified by selecting the View menu, and then choosing Customize Icon Bar

24.  Allows you to select activities and lists by picking them from items on a bar located at the right or left of the screen  Click Customize at the bottom of the shortcut list to modify the contents or position of the list

25.  QuickBooks has several navigators that help you work through the program and understand how it functions.  The Customer Navigator shows a flowchart of the sales process as well as several other icons that relate to the sales part of your business

26.  You may use your mouse or the keyboard shortcut keys to select the menu options.  To use the keyboard, press the ALT key then press the underlined letter of the desired menu item.  Some of the menu items have control- key shortcuts.

27.  You can open a previous company file by selecting it from the Open Previous Company submenu of the File menu  QuickBooks lists the last few companies you have most recently accessed, allowing you to open any one of them  You can set the number of previous companies on the list from 1 to 20

28.  Transactions are created by filling out familiar-looking forms such as invoices, bills, and checks.  As you fill out forms, you choose names from lists such as the customer list, the Item list, and the account list.  When you finish filling out a form, QuickBooks automatically records the accounting entries behind the scenes.

29.  QuickBooks provides a variety of support resources that assist in using the program  Some of these resources are on the Internet and others are in help files on disk  To access the support resources, select the Help menu and then select Help & Support

30.  You can access onscreen Help by clicking the How Do I button on any screen, or by pressing the F1 key.  Depending on what you are doing at the time, you’ll get advice from the Help system that is relevant to what you’re doing  This is known as Context-Sensitive Help

31.  How to install the QuickBooks software  How to work with the practice files in this book  How to open QuickBooks data files  Editions of the QuickBooks software  Some of the basic principles of accounting  About Academy Glass, the sample company  How to install QuickBooks Releases  How to use Navigators, Menus, Icon Bars, and the Shortcut list in QuickBooks  About QuickBooks Support and Help QuickBooks Support