Chapter 2 - Receivables

1. Which of the following items do not need a negative amount to record the amount? a) Recording a sale to a customer with HST. b) Return of merchandise from a customer. c) Write-off of a customer bad debt balance. d) Reduction in the selling price of an invoice (previously recorded).

2. A firms fiscal year starts on March 1, 2026 and ends on February 28, 2027. You are recording a sales return that occurred on April 10, 2026 for a sale that took place on April 7, 2026. The Transaction date for the sales return to be recorded is? a) Apr 01, 2026. b) Apr 07, 2026. c) Apr 10, 2026. d) Feb 28, 2026.

3. An account number beginning with a 4 indicates that the account: a) Is an Asset section account (e.g., Cash in Bank). b) Is a Liability section account (e.g., Accounts Payable). c) Is an Equity section account (e.g., Owners Equity). d) Is a Revenue section account (e.g., Sales Return). e) Is an Expense section account (e.g., Purchase Return).

4. The Order/Quote No. field should: a) Always be used. b) Be used when a previous request for goods to be sold has been recorded. c) Be used for recording approved Sales Returns. d) Should contain the account number for the Order/Quote No. being entered.

5. An error in posting a sale (wrong amount) to a customers account should be corrected: a) By using the Reverse entry icon. b) Can be done in the GENERAL module. c) Cannot be done, until the month-end has been completed and the new month started. d) Should be recorded in the Purchase section of the RECEIVABLES module.

6. With respect to the , it records: a) Payments for cash/cheques/credit card sales only. b) Partial payments of cash and/or cheques. c) Customers on file where the account is paid in full. d) Sales on Account.

7. A positive invoice in the RECEIVABLES module is used to: a) Record a Sales Return. b) Record a Sales Discount. c) Reverse a wrong amount posted to a customers account. d) Cancel an invoice recorded to a wrong customer. e) Record a regular invoice.

8. The entry to journalize (record) a NSF payment without bank charges, (cheque received from customer) would be which of the following: a) RECEIVABLES Module: Accounts Receivable Customer xxxx Bank Account xxxx b) RECEIVABLES module: Bank Account xxxx Accounts Receivable-Customer xxxx c) COMPANY Module: Accounts Receivable-Customer xxxx Bank Account xxxx d) COMPANY Module: Bank Account xxxx Accounts Receivable-Customers xxxx

9. The display in the Receipts window shows the following: Invoice field Amount Owing Invoice 3432 $4,200.00 Invoice 3432RT 420.00 Invoice 3433 420.00 Invoice 3432Rv 420.00 Invoice 3432Co 420.00 To show invoice 3432 as fully paid, which of the following is true: a) 4 items need to be accepted 3432, 3432RT, 3432Rv and 3432Co. b) 2 items, 3432 and 3432Rv, need to be accepted. c) 2 items, 3432 and 3432Co, need to be accepted. d) 3 items, 3432, 3432RT, 3432Rv, need to be accepted.

10. The aging of customers accounts means: a) The length of time the customers have been dealing with our firm. b) The length of time the customer has not paid their accounts. c) The sorting of balances from the time the customer was invoiced for goods. d) A report on the ages of our customers.

11. A customers account would be written off when: a) The customer has returned 50% of the goods sold to them. b) The customer has given our firm a NSF cheque. c) The customer has moved and we can not contact them. d) The customer has been given an extension (more time) to pay the invoice.

12. A deposit is: a) A sum of money received for a future sale. b) A receipt of money for a sale on credit that took place last week. c) A receipt of money from a customer whose cheque was NSF. d) A partial receipt of money from a customer who can not afford to pay for the complete invoice.

13. An Invoice field abbreviation code is: a) An abbreviation to describe a customers buying habits. b) An abbreviation to describe the transaction. c) An abbreviation to describe a customers payment record. d) An abbreviation to describe what goods a customer does not want to purchase.

14. HST is charged to a customer when: a) The customer will be reselling the goods to another customer. b) The customer will be using the goods for their own use. c) The customer has prepaid the order and will pick up the goods in 10 days. d) a and b are correct.

15. The To-do list is: a) A reminder list of payments to be received in the next week. b) A reminder list of meetings you have with customers in the next week. c) A reminder list of Sales to be shipped in the next week. d) All of the above. e) Two of the above.

16. When using the Daily Business Manager, you cannot do which of the following: a) Record notes (messages) to help you remember tasks to be completed. b) Advance the session date for recording transactions. c) List recurring invoices for the next 7 days. d) Change the setting to not display this manager window.

17. A customer has ordered a special part for their kitchen cupboards and has paid the Deposit amount of $65.00. You record the deposit in the: a) Receipts Journal. b) Sales Invoices Journal (One-time customer). c) Sales Invoices Journal (create an account for the customer). d) Sales Orders Journal.

18. When the red stick pin is clicked in a Sales Journal window, Sold to: area, it means that: a) This is an invoice for a . b) The invoice is for a Sales Return, or a reduction to the customers balance owing. c) The same customers name will be used in the next invoice, unless changed. d) It is a sale to a customer who is nearing the maximum of their credit limit.

19. Key Business Performance information can be found in: a) Graphs. b) Daily Business Manager. c) Receivables customers. d) Payables vendors.

20. Which of the following 4 Invoice templates is not valid: a) Standard. b) Retail. c) Credit Notes. d) Professional.

21. The Discount % a) In the Sales journal, is used to record a cash discount for paying within the discount terms. b) In the Purchase journal, is used to record a discount when buying a large quantity of goods. c) a and b are both correct. d) In the Sales Journal, is used to reduce the price of goods sold.

22. Multiple Ship-to Addresses are used with: a) Purchases Invoices, Purchase Orders and Purchase Quotes. b) Sales Invoices, Sales Orders and Sales Quotes. c) Inventory Adjustments. d) a and b are correct.

23. Sales Packing slips: a) Are printed with all invoices. b) Are printed when selected. c) Cannot be printed. d) Can be printed only if a perpetual inventory system is in use.

24. In some windows in Sage 50 Accounting you may see a red *. This means that: a) This is a mandatory field when recording new Customers. b) This field must be left blank. c) This field is used when writing off a bad debt. d) This field is used when a customer has a credit balance.

25.Assume the Inventory & Services module has been set up for your company: Which of the following is true? a) All entries recorded In the Invoices journal must use the Inventory Item column. b) Sales, sales returns and customers receipts must use the Inventory Item column. c) Sales and sales returns must use the Inventory Item column. d) Sales, sales returns and customer write-offs must use the Inventory Item column.