Using Sage 50, 2016 Multiple Choice Questions

CHAPTER 1 QUESTIONS (Getting Started) When first opening the Sage 50 program you will be asked to choose – select an existing company to create a new company restore from backup any one of the above To see that your working copy contains all the files from the data folder – open the sample company open the appropriate drive to verify data folders and files show the select company window at startup create a new company The save function automatically – saves changes to the data file and the backup file at same time saves changes as another file and keep it open takes place each time you close a data file restores a file that was previously saved The Sage 50 help function will – give information on using the Sage 50 program give other information about the program give information about accounting procedures and practices give you advice on all of the above items Sage 50 Advice, the Help Menu, the Status Bar and the Tool Buttons – are other textbooks on the Sage 50 Program are various methods available for on-screen assistance allow you to make changes to the journal entries allow you to make changes to the ledger accounts The home window main menu bar contains such functions as – file, view, setup, business assistant, maintenance, reports, history, help tool buttons, sizing buttons, open buttons, close buttons recording general journal entries recording general ledger entries The Sage 50 home window does not display – icons for the ledger accounts icons for ledgers and journals icons for individual accounts icons for the journals Which one of the following comments is not true of the Sage 50 program – the help menu may be removed or hidden the automatic advice option may be turned off or on the shortcuts may be removed or changed the home window modules may be removed or hidden The Sage 50 Business Advice topics – give information on various ledger accounts give other information on various journals general business information and accounting practices give you advice on how to proceed to the advice tool To change date format settings in the Sage 50 data file, you must access – the Sage program system settings screen the Windows control panel screen the Windows explorer properties menu none of the above The save as function will automatically – save changes to the data file in a compressed backup version save changes as another file and keep the new file open save changes as another file and keep the original file open restore a file that was previously saved The backup function will automatically – create a compressed backup version of the current file and close the current file save changes as another file and keep the new file open create a compressed backup version of the current file and keep the original file open restore a file that was previously saved The save a copy function will automatically – save changes to the data file and the backup file at same time save changes as another file and keep the new file open save changes as another file and keep the original file open restore a file that was previously saved When you work with a DVD you cannot – back up your data files to the DVD make a copy of your data with the save a copy command open a working copy of your data file perform any of the above actions To restore a classic view home window from an enhanced view module window you should – choose classic view from the view menu choose the classic view tool in the module window choose restore from the home window help menu choose switch to classic view in the module window To find help on a topic in Sage 50 you would – find the topic on the help window contents tab screen find the topic on the help window index tab screen enter the topic on the help window search tab screen all of the above may provide the help you need Before you use the Sage 50 program you must – install the program install the data files you want to work with register and activate the program all of the above The date format used in a Sage 50 data file – is the same as in other Windows programs on your computer applies to all Sage 50 data files is set for the individual data file cannot be changed after you set it up Registering the Sage 50 program – is necessary to continue using the program is required before you can create new company data files occurs automatically after you install the program is required annually to continue using the program To access the journals for the any Sage 50 module you should – click the item in the modules pane list to show the journal icons click the particular module column heading in the classic view choose the desired module from the view menu do nothing, all icons are always available When you restore a file from a backup, you must – accept the default file name and location for the restored file verify that you are replacing the backup file verify that you are using the correct version of Sage 50 for your data press back to change any of your selections Home window tool icons in Sage 50 – are the same in the classic and enhanced view are shortcuts for accessing features provided by some menu options provide access to journals provide access to ledger windows Before opening a data file with the Student version of Sage 50, you must – choose to activate the program from the help menu enter the key code and activation code at the beginning of the installation procedure get the activation code from the online registration process after installing the program get the activation code from the online registration before installing the program Payroll activation – is not required for the Student version of Sage 50 is required before you can open a Sage 50 data file that uses payroll is required within 15 days of starting to use the Sage 50 program is required for all versions of the Sage 50 program before you can use the payroll features To activate the Student version of Sage 50 – open any data file and choose Activate from the help menu open any data file and choose Activate from the home window file menu registration and activation are not required for the Student version of Sage 50 none of the above CHAPTER 1: ANSWERS d. any one of the above b. open the appropriate drive to verify data folders and files c. takes place each time you close a data file d. give you advice on all of the above items b. are various methods available for on-screen assistance a. file, view, setup, business assistant, maintenance, reports, history, help c. icons for individual accounts a. the help menu may be removed or hidden c. general business information and accounting practices a. the Sage program system settings screen b. save changes as another file and keep the new file open c. create a compressed backup version of the current file and keep the original file open c. save changes as another file and keep the original file open d. perform any of the above actions d. choose switch to classic view in the module window d. all of the above may provide the help you need a. install the program c. is set for the individual data file a. is necessary to continue using the program a. click the item in the modules pane list to show the journal icons d. press back to change any of your selections b. are shortcuts for accessing features provided by some menu options c. get the activation code from the online registration process after installing the program a. is not required for the Student version of Sage 50 d. none of the above CHAPTER 2 QUESTIONS (GST, HST and PST) The Harmonized Sales Tax or HST is applied – to all goods and services sold in HST participating provinces in Canada only to merchandise sold in HST participating provinces in Canada to all goods and services except food and medicine to most goods and services sold in participating provinces in Canada Businesses must register for GST and apply GST to sales if – they sell to customers in Canada they have annual sales over $30 000 they import goods from outside of Canada all businesses in Canada must register for GST Registration for GST favours a business because – it increases revenue as customers pay more for the products and services it makes the tax reports easier to prepare it allows a business credits for the GST it pays for business-related expenses there are no advantages to registering for GST Items that are not taxable for GST – are mostly basic necessities are consumed in Canada are not used or needed by most Canadians there are no items that do not have GST applied A business that is registered to collect PST from customers – deducts the PST it pays on business-related expenses from the PST it remits to the provincial government does not pay PST on any business-related expenses pays PST on most goods and services, just like GST pays PST on taxable supplies and services that it does not resell HST (Harmonized Sales Tax) differs from GST in that – it has a different tax rate it includes a portion for provincial sales tax it applies to a different set of products and services a and b above Provincial sales taxes – apply at the same rate in all provinces and territories in Canada are always calculated on the sales amount before any other taxes are added on purchases that are treated as business expenses increase revenue for a business by the amount of the tax collected from customers Businesses that are allowed to use the Quick Method for applying GST/HST include – banks and other financial institutions any business with annual sales less than $500 000 some small businesses all businesses may use the Quick Method GST/HST differs from other sales taxes in that – it applies at all levels of sales the same rate applies to all goods and services sold all goods and services have GST/HST applied GST/HST is applied in the same way as other sales taxes Provincial sales taxes – are charged on all goods and services are charged on the item price plus GST to calculate the HST amount are never charged on services none of the above The percentage tax rate applied for the Goods and Services Tax – is constant at 5 percent varies with the sales tax rate applied by the provinces applies to all goods and services can be changed through federal government legislation Sales taxes on good and services in Canada – are the same across all provinces and territories are the same for all goods and services are charged at the rate applicable to the province of destination all of the above Provinces that apply HST – have an HST rate that is usually based on the original provincial tax rates do not have provincial taxes all have the same HST rate charge one HST rate for goods and a different rate for services HST rates – are the same for all provinces are set by the federal government apply to all goods and services that have GST applied may be different for different provinces PST paid by a business on business-related purchases – is the same rate for all provinces is not paid if the goods will be resold is refundable for all business-related purchases PST is not paid on any business-related purchases Which of the following statements is true about HST – HST is applied to all goods and services HST is applied only for goods that the business will not sell to customers HST is applied in all provinces of Canada HST rates depend on the provincial tax rate portion included CHAPTER 2: ANSWERS d. to most goods and services sold in participating provinces in Canada b. they have annual sales over $30 000 c. it allows a business credits for the GST it pays for business related expenses a. are mostly basic necessities d. pays PST on taxable merchandise that it does not resell d. a and b above c. on purchases that are treated as business expenses c. some small businesses a. it applies at all levels of sales d. none of the above d. can be changed through federal government legislation c. are charged at the rate applicable for the province of destination a. have an HST rate that is usually based on the original provincial tax rates d. may be different for different provinces b. is not paid if the goods will be resold d. HST rates depend on the provincial tax rate portion included CHAPTER 3 QUESTIONS (Muriel’s Murals) Which one of the statements about the Sage 50 date system is false – the posting date is the date of the transaction the session date may be advanced by more than one week the session date is the first posting date for a series of later transactions the session date is the date you are recording transactions Sage 50 provides a complete audit trail by – recording original transactions in a journal posting the journal amounts into a ledger numbering and referencing each transaction all of the above statements are correct Advantages of using the Sage 50 program over a manual accounting system include – Sage 50 creates jobs because it requires more individuals to key in data through recording journal entries, all ledgers and reports are automatically posted You are able to set reminders in daily business manager lists for reports, etc. choices b and c are correct The general journal input screen will not allow you to post a transaction – unless the revenue amounts exceed the expense amounts (there is a profit) unless the credit amounts exceed the debit amounts unless the debit amounts are equal to the credit amounts unless you choose to display the general journal entry first A purchase of supplies for $2 000 plus $260 HST in the general journal would not be posted – if the Supplies and HST were recorded as credits and Accounts Payable as debits if the HST was omitted and the Accounts Payable credit was $2 000 if the HST was omitted, Supplies debit was $2 260 and Accounts Payable credit was $2 260 if the debit amounts did not equal the credit amounts A variety of reports and financial statements may be viewed by – selecting the reports menu and opening the appropriate choice selecting the file menu and opening the appropriate choice selecting the view menu and opening the appropriate choice selecting the graphs menu and opening the appropriate choice Which one of the following general statements is incorrect – you cannot post an entry if debits do not balance with credits you must post an entry in order to review or display it displaying your general journal entry may uncover errors all of the above are correct The following General Journal Report options must be chosen – by date order by journal number start and finish dates all of the above statements are correct In the account field of the general journal input screen you cannot – type the account name in the account field type in the first letter of the account name to advance to that section of the account list select the name from the select account list type in the account number By moving the mouse over a displayed report – you can see the available drill-down reports you may choose to print the report drill-down report options at various levels are always available you may choose to save the report Which one of the following general statements is correct – posting creates a permanent record of the accounting transaction you may type account numbers directly into account fields you may choose to change the session date from the maintenance menu all of the above Which statement is true about the new account wizard – you cannot add new accounts from the account field in a journal you must add new accounts before opening a journal you may skip directly to the Finish screen in the wizard if the default settings are correct you must make a choice for each screen in the wizard Upon opening a file, the session date dialog box shows – the date that the accounting transactions must be recorded the session date previously entered that session dates have a special format – month, day, year that session dates must be set to the end of the month Which statement is not true about the session date – it must be set each time you record an entry it is usually the default date for transactions it must be set between the earliest transaction date and the beginning of the next fiscal period it may be moved backwards to a previous date Which statement about Sage 50 is not true – use ledger icons to record information about various types of accounts use journal icons to record journal transactions you may hide icons for ledgers that are not used the status bar describes the position of the cursor Which one of the following statements is not true about Backups – choosing restore from the file menu accesses the wizard backup wizard is an automatic function that reminds you to back up your data the program asks you to confirm your choice of backup files to restore the program asks you for the name of the new restored file What does it mean if a field, menu option or tool on your input screen is dimmed – your computer monitor is shutting down your frequency settings are not functioning you will not be allowed to use that feature at this time your frequency settings are functioning The journal icons in the home window serve to – post all entries to the ledgers record the original accounting entries give information on ledger balances give access to various ledger reports The Sage 50 Accounting backup procedure – starts automatically each time you choose a new session date creates a compressed version of the data files under a different name creates a new working copy of the data files under a different name must be used before you change a session date When you open a Sage 50 Accounting data file, to enter the session date – you may enter the month, day and year as numbers you may type the date in text style (e.g., April 8) you may choose a date from the pop-up calendar all of the above The date field pop-up calendar shows the range of dates that you can use – by adding red circles to the dates that you can choose by adding red circles to the dates that you cannot choose by not allowing access to the dates that you cannot choose the calendar does not limit the dates that you can choose To enter a date for an accounting transaction, you must – choose a date from the pop-up calendar type the date in text style (e.g., April 8) enter the month, day and year as two-digit numbers separated by a space you may use any of the above to enter the date When you adjust a posted general journal entry, you can – change the date change the account number or the amount enter additional account lines change any of the above To correct a general journal entry you should – choose the adjust an entry option, choose the transaction, edit it and post make a reversing entry and then enter the transaction correctly make a reversing entry to cancel the original incorrect entry enter the transaction correctly – when you use the same source number, the original entry is cancelled The date field drop-down list of dates is available – whenever the date calendar appears in report date fields and session date windows in the general journal date field all of the above Choosing the Modify Report option in a displayed report will – display the report options window again close the report and return you to the home window so you can choose from the Reports menu again allow you edit the settings in the displayed report none of the above You can access the option to Modify reports from the – modify report options window the Reports menu in the home window the displayed report File menu none of the above When short dates such as 11-05-12 are used in Sage 50, to check whether month or day comes first you could – type Nov 5 12 in a date field in Sage 50 type 11-05 in a date field in Sage 50 choose Nov 5 from the date field calendar do either a or c above Choosing Restore from the home window file menu will – restore a compressed backup file to a working data file restore the size of the window you are currently working in delete the changes from your current work session and restore the data file from your previous session restore the classic view home window from an enhanced view module window To see the corrected version of a journal entry prior to posting with the adjust a posted entry tool – choose show corrections in the journal report options window choose show corrections from the reports menu choose show corrections from the displayed journal report options menu do nothing, the corrected journal entry is always included in the report You can customize reports by – selecting the columns to be displayed in a report changing the order in which report information is displayed choosing criteria for including information in the report doing any of the above To customize reports you should – create a new report template and save it display the default report and then redo it with the new options use the last used report options template none of the above Sorted and filtered reports differ in that – sorting organizes the report details and filtering selects the records included sorting is a customizing option and filtering is a report option different criteria are used for sorting and filtering they are both methods of customizing reports When you adjust a general journal entry, Sage 50 – deletes the original entry and saves the correction always includes the original entry and the corrections in reports for a complete audit trail includes the original and reversing entry in reports only when you choose to show corrections renumbers the correction so that it replaces the original journal entry number in the report To reverse a general journal entry, you should – click the reverse entry tool in an empty journal window to open the search screen click the reverse entry tool in the home window to open the search window click the reverse entry tool in the displayed journal report to open the adjust entry screen click the reverse entry tool in the adjusting entry screen Which of the following statement about the report centre is correct – all reports are available you can bypass the modify report options screen you can bypass the report sample and description screen the last report you viewed is displayed as the default report The reports pane list of reports – provides access to all reports for that module displays reports using the same report options you used last time displays reports with all the default options opens the modify reports options screens for reports From the Report Centre, you can access – all reports and graphs for all modules all reports and graphs for the module you started from management reports and advice for the open module modify report options screens for reports You can access the Report Centre – from any enhanced view module home window from the classic view home window from the Reports menu in any home window all of the above To change a session date, you can – choose change session date from the maintenance menu choose change session date from the file menu choose change session date from the setup menu choose change session date from the business activities menu To see the drill down reports that are available, you would – double click any number in a displayed report double click any heading in a displayed report hold the mouse over different parts of a displayed report right-click any part of a displayed report to see a pull-down menu of available reports The session date appears as the default in a journal transaction window – for all journal transactions each time you close the journal and then re-open it only when you open the journal for the first time after you change the session date after you post a previous journal transaction When you do not change the default session date in a journal transaction – the transaction will be posted with the session date as the transaction posting date it does not matter because transactions are always posted with the session date it does not matter because the session date is always the same as the posting date you will be reminded to change the date when you try to post the transaction If you reversed the order of transactions in your latest General Journal Report, the next time you view the report – the transactions will be displayed in their standard (not reversed) order the transactions will be displayed in the reversed order you will need to modify the report options again before you can view the report you should view the transactions from the home window Recently Viewed Reports pane to see the standard (not reversed) order You can review the report options you used most recently by – selecting the report from the home window Recent Reports list modifying the report options again displaying the report using the default settings none of the above CHAPTER 3: ANSWERS c. the session date is the first posting date for a series of later transactions d. all of the above statements are correct b. through recording journal entries, all ledgers and reports are automatically posted c. unless the debit amounts are equal to the credit amounts d. if the debit amounts did not equal the credit amounts a. selecting the reports menu and opening the appropriate choice b. you must post an entry in order to review or display it d. all of the above statements are correct a. type the account name in the account field a. you can see the available drill-down reports d. all of the above d. you must make a choice for each screen in the wizard b. the session date previously entered a. it must be set each time you record an entry d. the status bar describes the position of the cursor b. backup wizard is an automatic function that reminds you to backup your data c. you will not be allowed to use that feature at this time b. record the original accounting entries b. creates a compressed version of the data files under a different name d. all of the above c. by not allowing access to the dates that you cannot choose d. you may use any of the above to enter the date d. change any of the above a. choose the adjust an entry option, choose the transaction, edit it and post b. in report date fields and session date windows a. display the report options window again d. none of the above d. do either a or c above a. restore a compressed backup file to a working data file d. do nothing, the corrected journal entry is always included in the report d. doing any of the above d. none of the above a. sorting organizes the report details and filtering selects the details c. includes the original and reversing entry in reports only when you choose to show corrections d. click the reverse entry tool in the adjusting entry screen b. you can bypass the modify report options screen b. displays reports using the same report options you used last time d. modify report options screens for reports d. all of the above a. choose change session date from the maintenance menu c. hold the mouse over different parts of a displayed report b. each time you close the journal and then re-open it a. the transaction will be posted with the session date as the transaction posting date b. the transactions will be displayed in the reversed order a. selecting the report from the home window Recent Reports list CHAPTER 4 QUESTIONS (Love It Again) Adding non-postable accounts to your Chart of Accounts – allows you to separate your postable accounts will allow you to classify your accounts with formal accounting headings will allow you to balance your chart of accounts non-postable accounts are not required When creating the Chart of Accounts it would be very important to – leave spaces between account numbers in order to insert new accounts when required leave spaces between account numbers to allow the computer to function better leave spaces between account numbers for the reporting process spaces do not have to be left between account numbers Settings for the System do not include one of the following choices – allow future transactions cash-basis accounting display font size accrual-basis accounting When changing the system settings what part of the main menu must you select – edit setup maintenance none of the above In order to access the General Ledger and view a ledger account you would – open the chart of accounts icon and double click the account select the file from the pull-down menu and click open ledger select the account from the drop-down list options a and b are correct What does the non-finished symbol on ledgers indicate – the ledger has a malfunction – get help before proceeding the history for the ledger is not finished you must remove it in order to get access to a journal to open the general journal icon, click on it Account types for HST Charged on Sales, HST Paid on Purchases, HST Owing should be – account types G, A, S for the above order account types G, A, T for the above order account types A, A, S for the above order account types A, A, T for the above order Choose the true statement about group accounts and subgroup accounts – the group account is selected when one account is the total for that name the subgroup selection is required when one account must stand alone the group accounts types are non- postable accounts the subgroup accounts are non-postable accounts What is the purpose of preparing a backup copy of your data before you finish entering the history to save your data in case of a malfunction there is no reason to make a backup before finishing the history to allow backups to be used after the history is finished to allow the backup of your data to be done automatically When you create the Chart of Accounts in Sage 50 – subgroup accounts must be followed by a group total group accounts must be followed by subgroup accounts group accounts and subgroup totals must be followed by a group total group headings will be added to the group accounts What types of errors would the program not detect when you finish entering the history – a ledger is balanced, but individual accounts have incorrect amounts incorrectly assigned group account types subgroup accounts not followed by a subgroup total essential linked accounts are not defined Which one of the following comments is true of the Sage 50 Accounting program – the home window modules may be removed or hidden the automatic advice may be removed or hidden the daily business manager lists may be removed or hidden all of the above are true Which one of the following methods will not allow you to open a new ledger account – open the chart of accounts icon and proceed to the file menu open new accounts when finishing the history for the ledger select create another while still in the general ledger select the create tool in any ledger window One of the following statements is true about the sample from a Balance Sheet shown here – Bank A 100 Bank B 200 Cash: Net 300 Accounts Rec 400 Advances Rec 500 Receivables: Net 900 Prepaid Expenses 300 TOTAL CURRENT ASSETS 1 500 that Bank A and Bank B are group accounts that Accounts Rec and Advances Rec are subgroup accounts that Cash: Net and Receivables: Net are total accounts that Prepaid Expenses is a group total account How do the Earliest Transaction date and Session date differ – no difference – both serve the same function the earliest transaction date records the entry the session date usually follows the earliest transaction date the session date records the entry Which statement about editing accounts is true – you may change group accounts to subgroup accounts without a following subgroup total account you may change subgroups accounts to group accounts you cannot change group accounts to subgroup accounts you cannot change account types When using only the General Ledger, hiding the other modules – ensures that all accounts are properly set up is an option but is not required before finishing the history will remove the not-finished symbols for all ledgers is necessary before finishing the history for the general ledger Which one of the following can be changed from the home window View menu – using accounting or non-accounting terms using cash or accrual based accounting selecting French or English as the working language for the program automatically saving changes to accounts Why are adjusting entries required before closing the books – to record previously unrecorded purchases to record previously unrecorded sales to adjust all ledger accounts to their correct values at year end to record previously incorrect entries Before closing the books for a fiscal period, you should print – reports that provide sufficient detail to create new company files if necessary all the reports available through Sage 50 Accounting all the reports in the financials section of the reports menu all of the management reports for the business If June 30th is the session date and the Fiscal Year End, the next session date should be – July 1st July 31st June 1st June 30th Which of the following statements about changing the session date for a new fiscal period is not true? you should make the date change in two steps you must choose the first date of the new fiscal period as the new session date you must set the new fiscal end period before the session date you must not choose a fiscal end date earlier than the session date After starting a new fiscal period on June 1st, Net Income on the Balance Sheet for June 1st has a zero balance because – the net income for May 31st has not been transferred the net income for May 31st has been transferred there has not been any income earned for June 1st closing entries are not required for June 1st Which one of the following general statements about closing entries is false – only the asset and liability accounts may be closed Sage 50 closes the appropriate accounts automatically when you start a new fiscal period only the revenue and expense accounts may be closed net income is closed to the retained earnings capital account After starting a new fiscal period on June 1st, the trial balance will show zero balances for Income Statement accounts on June 1st because – the May 31st accounts have been closed the May 31st accounts have not been closed the June 1st accounts have been closed the June 1st accounts have not been closed The date field drop-down list for session date windows shows – the session date and the current transaction date the fiscal start and end dates the earliest transaction date, end of fiscal period and the start of the next fiscal period all of the above To change an account type from group to subgroup you should – delete the account and re-enter it with the correct type change the account opening balance to zero and then change the type select the account in the general ledger accounts window and edit the type none of the above When you start a new fiscal period, the fiscal end date is automatically advanced – to create a new fiscal period of one year to the end of the calendar year for the new start date to match your previous fiscal period, i.e., by three months if you had a quarterly period before to the new fiscal start date You can access the company system settings – by clicking the Settings icon in a module home window by clicking the the Business Assistant icon by clicking the Maintnence icon in the company module window by performing any of the above steps To use only the General Ledger or Company module features, you must – hide all other module or pages windows hide all modules or pages except Company and Payables hide all modules or pages except Company and Banking you do not need to hide any other modules because they are not used The terminology for icons in module windows – is the same for all types of industry cannot be changed may change when you select a different industry type always changes when you select a different industry type One of the following is not an option for account numbering – showing account numbers in reports not using account numbers using account numbers in transactions using more than four digits for account numbers When accounts are not in logical order – you will be unable to display some reports you can finish the history but you cannot complete journal entries your subtotal accounts may be following the subgroup accounts instead of the group accounts the total of debit and credit amounts in the Trial Balance may be unequal If the fiscal start is Jan. 1, the fiscal end is Dec. 31, the earliest transaction date is Jul. 1 and both the latest transaction and the session dates are Jul. 31, you will be unable to enter transactions dated before – Jan. 1 Jul. 1 Jul. 31 Dec. 31 When you see non-accounting terms used in a company data file, you should – change company settings and select Use Accounting Terms close and reopen the data file to see the default accounting terms used accept the terms – you cannot change them and they do not affect the accounting transactions change user preference settings and select Use Accounting Terms To finish history when you are using only the general journal – you can hide all modules and work in the Classic view you must hide all modules except Company you must hide all the modules that have essential linked accounts you do not need to hide the unused modules If the new fiscal start date after starting a new fiscal period is July 1, 2018, the new fiscal end date will be – December 31, 2018 June 30, 2019 July 1, 2019 July 31, 2019 When creating files for a new company, Sage 50 Accounting – provides two starter files provides templates for various industries provides the opportunity to build the company files from scratch all of the above CHAPTER 4: ANSWERS b. will allow you to classify your accounts with formal accounting headings a. leave spaces between account numbers in order to insert new accounts when required c. display font size b. setup a. open the chart of accounts icon and double click the account b. the history for the ledger is not finished c. account types A, A, S for the above order d. the subgroup accounts are non-postable accounts a. to save your data in case of a malfunction c. group accounts and subgroup totals must be followed by a group total a. a ledger is balanced, but individual accounts have incorrect amounts d. all of the above are true b. open new accounts when finishing history for the ledger b. that Accounts Rec and Advances Rec are subgroup accounts c. the session date usually follows the earliest transaction date b. you may change subgroups accounts to group accounts d. is necessary before finishing the history for the general ledger c. selecting French or English as the working language for the program c. to adjust all ledger accounts to their correct values at year end c. all the reports in the financials section of the reports menu a. July 1st c. you must set the new fiscal end period before the session date c. there has not been any income earned for June 1st a. only the asset and liability accounts may be closed a. the May 31st accounts have been closed c. the earliest transaction date, end of fiscal period and the start of the next fiscal period c. select the account in the general ledger accounts window and edit the type a. to create a new fiscal period of one year a. by clicking the Settings icon in a module home window c. hide all modules or pages except Company and Banking c. may change when you select a different industry type b. not using account numbers a. you will be unable to display some reports b. Jul. 1 d. change user preference settings and select Use Accounting Terms c. you must hide all the modules that have essential linked accounts b. June 30, 2019 d. all of the above CHAPTER 5 QUESTIONS (Groen Fields) The purchases journal may be used for the following – credit or pay later purchase transactions purchase transactions paid by cash purchase transactions paid by cheque all of the above The payments journal may be used for the following – full cash payment to suppliers partial cash payment to suppliers purchase transactions paid by cheque all of the above Transactions entered in the payments journal will not allow the following – recording of all necessary details surrounding the payment editing the cheque number entering a payment amount that is more than the outstanding balance to create a credit balance editing the payment amount When you post a supplier invoice the following accounts are updated – all properly linked accounts only the purchases and accounts payable general ledgers only the purchases and accounts payable subsidiary ledgers only the purchases, accounts payable ledgers and HST paid How would you enter a purchase with payment – open the payments journal and choose invoice with cheque open the purchases journal and choose invoice and pay later open the payments journal and choose supplier with cheque open the payments journal and choose make other payment The HST (harmonized sales tax) on purchases is recorded in – the HST paid account entered as a debit amount the HST charged account entered as credit amount the HST charged account entered as a debit amount the HST paid account entered as a credit amount Drill-down reports – are available from both purchases and payments journal reports allow access to detail reports allow viewing of invoices all of the above Which one of the following general statements is incorrect – journal reports may be accessed from either the home window or the suppliers windows new suppliers may be added from both the purchases and payments journals the message “there is no data to report” is found in the payments journal it is much easier to enter payments in the payments journal than the general journal A supplier invoice will not show – the description and prices for two items purchased on account the HST code H (HST @ 13% tax not included in price) the HST rate is incorrect the asset purchases have been charged to the appropriate accounts A purchases journal entry will not balance if we – omit one of two items that were purchased omit the HST paid omit the freight charge this entry will balance whether or not we omit any of the above items To record a partial payment in the payments journal, you must change – the cheque number the date of payment the invoice number the payment amount Recurring transactions are not generally used for – daily cash sales adjusting entries entries that must be stored and recalled as needed automatic weekly or monthly charges or payments Which one of the following statements about Payables reports is correct – you may print a supplier aged report – detail you may print a supplier aged report – summary you may select all or individual suppliers all of the above To change a stored/recurring transaction – remove the stored entry and then re-enter and store the changed transaction recall the stored entry, edit it and then store it again recall the stored entry, edit it and post it you cannot change an entry that is stored Which one of the following statements about supplier options is incorrect – an asset account may be selected as the default expense account print contact on cheques only if the field has an address or department only the no tax code is available if you choose No as the tax exempt option you can send e-mails to suppliers The payables ledger input screens will not let you enter – e-mail and Web site information discount terms Accounts Payable control account current supplier invoices Which role does a properly linked account not perform for a supplier invoice – allows all subsidiary ledgers to be updated with one amount allows HST to be recorded allows freight expense to be recorded allows purchase discounts to be recorded Which of the following statements about the default linked expense account for a supplier is incorrect – you can select an asset account as the linked account the default account may be changed in the purchases journal you must select an expense account as the linked account the linked account is entered on the supplier’s option tab input screen Which of the following statements is true about entering sales tax codes in the general journal – when you enter a tax account and amount, the tax codes entry screen opens automatically when you enter a tax account and amount, the sales taxes button becomes available you can enter the tax codes as soon as you open the general journal you cannot enter tax codes in the general journal For which of the following purchase invoice errors would you reverse the entire entry – entering the wrong date for the invoice entering the wrong supplier for an invoice entering incorrect payment terms for the invoice entering an incorrect account for the invoice From the Payables Module window you cannot – complete the same activities as you can from the classic view home window complete all supplier-related activities access help for entering supplier-related activities access the home window tools and menu options To open the Payables Module window, you could – choose open payables module from the home window file menu choose open payables module from the home window view menu make the payables module your default home page choose payables from the home window modules menu From the supplier aged summary report you can learn – the unpaid balance for each invoice the total owing to each supplier the due date for each outstanding invoice which invoices are fully paid The supplier aged detail report does not include – the payment terms for each invoice invoices and payments for one-time suppliers a separate entry for each invoice and payment invoices and payments for suppliers added with the quick add option The Suppliers Aged report does not include – cash purchases entered in the purchases journal when cheque was the method of payment cash purchases entered with the make other payment option the original incorrect payment entry for transactions that were adjusted after posting the report includes all of the above The cheque log report – can be displayed from the report centre financials reports can be displayed from the report centre payables reports shows whether cheques have been printed both a and c are correct Choosing Quick Add when you enter a purchase for a new supplier – creates a record for the supplier so you can add details later opens the ledger window so you can enter all the supplier details you need adds the supplier’s name to the journal entry is required to continue recording the purchase details All Payables modules reports can be accessed from the payables section of the report centre the reports menu in the home window the reports menu in the suppliers window the report menu in the purchase or payments journal window Why might the discount field be blank when entering a payment – a discount is not set up the discount has expired a discount is not required all of the above To access the general journal when you are working in the Payables module window – create a shortcut for the general journal open the company module window change to the classic view to access the journal all of the above To create a shortcut for the general journal, you would – open the journal and choose the make shortcut tool choose make shortcuts from the home window view menu choose the customize tool in any journal window choose customize in the module window shortcuts pane After choosing Continue for a new vendor in a supplier invoice – you can open the vendor’s ledger record to add the remaining vendor details there is no ledger record for the new vendor you will be unable to edit the vendor payment terms for later purchases the ledger record already contains all details you added to the purchase invoice After choosing Quick Add for a new vendor in a supplier invoice – you can open the vendor’s ledger record to add the remaining vendor details there is no ledger record for the new vendor you will be unable to edit the vendor payment terms for later purchases the ledger record already contains all details you added to the purchase invoice After choosing Continue for a new vendor in a supplier invoice – you can choose to include this vendor in aged payables reports the aged payables detail report always includes this vendor’s purchase you cannot choose pay later for the purchase the journal report will include the purchase details with one-time vendor as the vendor’s name You should choose the option to Print Contact on Cheques – for all vendors when the contact field contains address details when the person named in the contact field is the business owner when the person named in the contact field is the treasurer for the business If you post a purchase invoice with 2016 as the year in the date field when the fiscal year is 2018 – Sage 50 Accounting will not post the transaction Sage 50 Accounting will post the purchase with a reminder that prior fiscal period reports are affected Sage 50 Accounting will ask for confirmation that the date is correct and then post the entry Sage 50 Accounting will warn you of the error and then close the journal Which of the following statements about adding new suppliers in the purchases journal is correct – choosing Quick Add opens a ledger record form for the new supplier choosing the Add link above the supplier field opens a ledger record form for the new supplier choosing Continue creates a partial ledger record for the new supplier all of the above are correct Choosing the Suggested Accounts button in the select account list when in the purchases module will – show only revenue accounts show only expense accounts show the single account that is most likely the one you need show revenue accounts when you start from the sales journal and expense accounts when you start from the purchases journal To find an invoice you need to adjust from the Search window, you can might search for – invoices from suppliers beginning with the letters A to D invoices for a range of dates invoices for a range of journal entry numbers invoices with invoice numbers beginning with A or B In the Search results window when adjusting an invoice, you can – sort the search results by date reverse the order of the transactions listed sort the search results by invoice amount all of the above CHAPTER 5: ANSWERS d. all of the above d. all of the above c. entering a payment amount that is more than the outstanding balance to create a credit balance a. all properly linked accounts d. open the payments journal and choose make other payment a. the HST paid account entered as a debit amount d. all of the above c. the message “there is no data to report” is found in the payments journal c. the HST rate is incorrect d. this entry will balance whether or not we omit any of the above items d. the payment amount a. daily cash sales d. all of the above b. recall the stored entry, edit it and then store it again c. only the no tax code is available if you choose No as the tax exempt option d. current supplier invoices a. allows all subsidiary ledgers to be updated with one amount c. you must select an expense account as the linked account b. when you enter a tax account and amount, the sales taxes button becomes available b. entering the wrong supplier for an invoice a. complete the same activities as you can from the classic view home window c. make the payables module your default home page b. the total owing to each supplier b. invoices and payments for one-time suppliers a. cash purchases entered in the purchases journal when cheque was the method of payment c. shows whether cheques have been printed a. creates a record for the supplier so you can add details later a. the payables section of the report centre d. all of the above d. all of the above d. choose customize in the module window shortcuts pane b. there is no ledger record for the new vendor a. you can open the vendor’s ledger record to add the remaining vendor details c. you cannot choose pay later for the purchase b. when the contact field contains address details a. Sage 50 Accounting will not post the transaction b. choosing the Add link above the supplier field opens a ledger record form for the new supplier b. show only expense accounts b. invoices for a range of dates d. all of the above CHAPTER 6 QUESTIONS (Phoebe’s Photo Studio) The sales journal may be used for – all credit card sales transactions all sale transactions paid by cash all sales transactions paid by cheque all of the above Transactions entered in the sales journal will allow all but one of the following – recording of all necessary details surrounding the invoice only one type of transaction more than one type of transaction omitting the HST from the invoice The receipts journal may be used for the following – full cash payment from customers partial cash payment from customers customers paying more than one invoice with a single cheque all of the above Transactions entered in the receipts journal will not allow the following – payments greater than the invoice amount payments less than the invoice amount editing of the discount amount reversing a previous payment When you post a sales invoice the following accounts are updated – only the sales and accounts receivable general ledgers only the sales and accounts receivable subsidiary ledgers all properly linked accounts only the sales, accounts receivable ledgers and HST Charged How would you enter a sale for an account customer paying by cheque – open the sales journal and choose invoice and cheque open the sales journal and choose invoice and pay later open the receipts journal and choose sale and cheque open the receipts journal and choose invoice, pay later and cheque The linked accounts for HST/GST will be updated after which entry – a sales invoice with cash payment a cash receipt on account a sales invoice quote all of the above To have only GST added to a sales invoice in Manitoba where the GST rate is 5% and the PST rate is 8%, the tax code should be – No tax – because the GST is added automatically code G (GST @ 5%) code GI (GST @ 5% included) code GP (GST @ 5%, PST @ 8%) Which one of the following general statements is correct – a sales discount is recorded as a negative amount in the receipts journal a sale return is recorded as a negative amount in the sales journal cash sales are recorded as other receipts in the receipts journal a and b above are correct Which one of the following general statements is incorrect – sales journal reports may be accessed from either the home or the customers windows new customers may be added from both the sales and receipts journals the message “there is no data to report” is found in the receipts journal enter payments in the receipts journal rather than the general journal A sales journal entry will not balance if we – omit the payment terms omit the HST charged on sales include a second sale item in the invoice this entry will balance whether we omit or include any of the above items Which one of the following general statements about sales is true – journal reports may be accessed from either the home or the customers windows new customers may be added from both the sales and receipts journals the message “there is no data to report” may be found in the journal reports all of the above In the receipts journal, once we select the customer we are not required to enter – the payment amount the original amount the date of payment we need to enter all the above details Linked accounts provide all but one of the following controls – amounts cannot be entered incorrectly required linked accounts must be defined the program automatically updates the corresponding general ledgers there is no need to enter the information twice The Cash Flow Projection report allows you to – select more than one cash account project future short term cash commitments project future long term cash commitments all of the above If GST charged had been omitted from a posted sales invoice you should correct the entry by – selecting the invoice through the adjusting an invoice screen and selecting the appropriate tax code correct the posted invoice by entering the corrected version look up the invoice and reverse it record a separate entry for the GST charged To enter a NSF cheque – reverse the receipt in the cash sales journal with a payment by cheque enter a sales invoice for a negative amount reverse the receipt in the receipts journal none of the above To record a NSF cheque, you can – re-enter the original sales invoice to restore the balance owing reverse the receipt from the adjusting receipt screen make a general journal entry that debits Accounts Receivable and credits the bank account for the cheque amount use any of the above methods to record the NSF transaction correctly You will see the message “there is no data to report” when – there are no journal entries for the dates selected for the report you sort the journal report by invoice number you filter the journal report by invoice number you choose to show corrections and there are no correcting entries Which one of the following is not included as an option for tax reports – report on PST report sales transaction amounts report purchase transaction amounts all of the above can be included in tax reports The Statement of Cash Flows shows – how much money there is in the bank account how much money you have saved how efficiently cash is being used b and c above To record a NSF cheque from a customer you could – choose the adjust a receipt tool, select the customer’s receipt, change the amount paid to zero and post notify the customer and ask for a new cheque so no additional journal entry will be needed in the general journal, debit accounts receivable and credit the bank account for the cheque amount choose the adjust a receipt tool, select the customer’s receipt, then choose the reverse entry tool Choosing to show corrections in the journal report options window will – show the original, reversing and correcting entries show the original and reversing entries show the reversing and correcting entries show only the final correct entry Which of the following errors can be corrected by adjusting a posted payment or receipt – the amount of the payment was entered incorrectly the payment cheque was returned by the bank as NSF the payment was entered for the wrong customer or supplier none of the above – they all require a reversing entry The customer aged detail report will not include – the names of customers who have had no sales invoice dates and sales terms invoices that are fully paid the report will include all these details You can customize the sales journal by – removing any of the columns in the invoice detail section of the journal removing the customer address field removing the ship to field and its details none of the above Customizing the sales journal will not – remove the columns you selected from the journal window modify the invoice you print from the journal simplify the journal by hiding the fields or columns you do not need allow you to change the journal window again later Using the Continue option for new customers instead of choosing one-time customer may be preferred because – continue adds the sale to the customer aged detail report continue records the customer’s name in the journal entry continue creates a partial customer record that you can complete later all of the above To reverse a sales invoice for selecting the wrong customer, you should – open the adjusting sales invoice window and choose the reverse entry tool open the receipts journal and pay the invoice to cancel it open the adjusting sales invoice window and edit the customer name (choose the correct customer) make a general journal adjustment that reduces Accounts Receivable and the revenue accounts for the invoice amount Adding the discount terms 2/10, n/30 to a sales invoice for $1 000 will – change the accounts receivable amount to $980 change the cash in bank amount to $980 credit $20 to accounts receivable and debit $980 when the account is paid not change the amounts in the journal entry for the sales invoice Discounts for early payments are offered to encourage customers to – buy more goods or services buy on account and pay later instead of paying at the time of the purchase settle their accounts on time avoid using their credit cards for purchases The default customer early payment and discount terms – apply to all customers apply only when customers pay at the time of the sale are removed automatically when you choose cheque or debit card as the payment method can be changed for individual invoices A sales journal entry will not balance if we – include a discount omit the GST/HST charged on sales include a second sale item in the invoice this entry will balance whether we omit or include any of the above items Which one of the following general statements about credit cards is correct – credit card payments must be entered in the receipts journal credit card receipts are deposited into the accounts receivable account credit cards sales do not involve any linked accounts the credit card discount fee is deducted from the receipts Which one of the following statements is true about credit cards – credit card issuers charge a percentage of the sale as the transaction fee credit cards used and credit cards accepted use the same set of linked accounts the linked bank account for credit cards used is the payables linked bank account the linked asset account for credit cards accepted is the receivables linked bank account If you choose Quick Add to enter a sales invoice for a new customer – you can display the customer’s transactions in receivables aged detail reports no ledger record is created for the new customer you cannot choose pay later as the payment method for the sale the customer’s ledger record will include all the details you added to the invoice In the Receivables module window, you can add shortcuts – only for the general journal and payables journals only for purchase invoices and payments only for the general journal and the chart of accounts for up to ten different journals or ledger functions When you see the message that a sale will cause the customer to exceed the credit limit, you should – cancel the sale call security to escort the customer from the store ask the customer to pay for the sale item by cheque not necessarily do any of the above When you click the Add link above the Customer field in the sales journal invoice form – you will create a complete customer record if you include the address in the journal you will automatically create a partial customer record with only a name and continue in the journal you will open the customer ledger record form for entering the customer details you will open the customer ledger record and must complete all the ledger details before you can return to the sales invoice Which of the fol