Multiple Choice:

21. All the following are true regarding Quotes except:

a. Quotes post entries to general ledger accounts

b. Quotes can be transferred to create an invoice

c. Quotes can be linked to customer jobs

d. Quotes can be linked to items

22. If a customer was overcharged for the services, the customer's invoice can be reduced by posting a:

a. Sales invoice

b. Customer receipt

c. Debit memo

d. Credit memo

23. On the statement of cash flows, the cash flows from operating activities section would include:

a. Receipts from the issuance of capital stock

b. Receipts from the sale of investments

c. Payments for the acquisition of investments

d. Net income

24.The Income Statement will include the following accounts:

a. Revenues less Expenses (ordered largest to smallest amount) with Other Expenses listed last b. Revenues less Expenses (ordered smallest to largest amounts. With Miscellaneous Expenses listed last

c. Revenues less Expenses (ordered in alphabetical order) with Other Expenses listed last

d. Revenues less Expenses (order is not important)

25. The Statement of Cash Flows answers all of the following except:

a. Where the receipts come from

b. Where the cash payments were used for

c. What the overall change in cash was

d. If there will be enough cash to pay the current liabilities

26. On the Navigation Bar, make the following selections to enter a sales invoice:

a. Customers & Sales Navigation Center, click on the Customers icon and select View and Edit Customers

b. Customers & Sales Navigation Center, click on the Sales Invoices icon and select Set up Invoice Defaults

c. Tasks; Purchases/Receive Inventory

d. Customers & Sales Navigation Center, click on the Sales Invoices icon and select New Sales Invoice

27. The following would be included in the heading of an income statement:

a. Title of the statement

b. Name of the business

c. Period of time covered by the statement

d. All of the above

. 28. A departmentalized accounting system provides information that can be used to:

a. Custom design departmental statements

b. Evaluate profitability and cost effectiveness

c. Evaluate current assets

d. Modify PCA's standard forms

29. In Peachtree, information about a sale is recorded in the:

a. Purchase window

b. Inventory window

c. Purchases/Receive Inventory window

d. Sales/Invoicing window

30. The sample company, Bellwether Garden Supply, uses which method of posting?

a. Batch posting

b. Real-time posting

c. Cash basis posting

d. Accrual basis posting