Accounting with computers: chapter 5

CHAPTER 5, MULTIPLE-CHOICE QUESTIONS, QA TEMPLATES

In the space provided, type the letter that best answers each question.

_____1. The inventory system used is called:

a. Sum-of-the-years digits.

b. Double-declining balance.

c. Straight-line.

d. Perpetual inventory.

e. None of the above.

_____2. A list of all the accounts used by a company showing an identifying number assigned to each account is called:

a. A chart of accounts.

b. Case-sensitive letters.

c. An account number.

d. A general ledger.

e. None of the above.

_____3. The account(s) added to Bellwether’s Chart of Accounts in this chapter is:

a. Account No. 10200, Regular Checking Account.

b. Account No. 12000, Inventory.

c. Account No. 10500, Money Market Fund.

d. a. and c.

e. All of the above.

_____4. After the March 15, 2017 transfer of funds, the General Ledger Trial Balance shows the following amount in the Money Market Fund account:

 a. $4,500.00.

b. $7,500.00.

c. $62,769.25.

d. $5,004.90.

e.  None of the above.

_____5. On the Maintain Inventory Items window, the Oriole Feeder is which inventory type:

a. Labor.

b. Description only.

c. Non stock.

d. Stock item.

e. None of the above.

_____6. For Stock-Type Inventory Items, Sage 50 tracks the following:

a. Stock quantities.

b. Unit prices.

c. Descriptions.

d. Cost of goods sold.

e. All of the above.

_____7. The journal entry to purchase an inventory stock item is:

a. Debit Accounts Payable/Vendor

Credit Inventory

b. Debit Inventory

Credit Accounts Payable/Vendor

c. Debit Account Receivable/Customer

Credit Sales Tax Payable

d. Debit Product Cost 

Credit Inventory

e. None of the above.

____8. The journal entry or entries for the sale of an Inventory Item are:

a. Debit Accounts Receivable/Customer

Credit Sales 

b. Debit Accounts Receivable/Customer

Credit Sales

Credit Sales Tax Payable

Debit Product Cost 

Credit Inventory

c. Debit Sales-Retail 

Debit Sales Tax Payable

Credit Accounts Receivable/Customer

Debit Product Cost 

Credit Inventory

d. Debit Inventory

Credit Product Cost

e. None of the above.

____9. Shows all entries and changes related to the company’s data, including actions by specific users.

a. Find transactions.

b. Report groups.

 c. Audit trail.

d. Internal control.

e.  All of the above.

____10. The integrated system of people, processes, and procedures that minimize or eliminate business risks, protect assets, ensure reliable accounting, and promote efficient operation is called:

a. Sage 50’s find transactions capability.

b. Sage 50’s audit trail reports.

c. Internal control.

d. Setting up the administrator for access to all records.

e. None of the above.

ANALYSIS QUESTIONS

1.  List four ways that Sage 50 includes user security and internal controls.

2. How is the audit trail associated with user security? Provide an example.

3. How does user security address the purpose of internal control?