Question $1$

$1$

Point

Which of the following is true. The adjusting entry for Depreciation is:

Always entered in the COMPANY module.

Always entered in the PAYABLES module.

Always entered in the RECEIVABLES module.

Often entered months in advance.

Question $2$

$1$

Point

Which of the following is not true. Adjusting entries:

Are done to ensure the revenue recognition and matching principles are met.

Are usually done during the review of the company$$s accounts at month$-$end.

Can conveniently be set up as recurring entries to be modified and processed on a monthly basis.

Are completed on a random basis, depending on the manager of the business.

Question $3$

$1$

Point

Which of the following is not true. An accrual is:

Recording revenue that has not been previously recorded.

Recording expenses that have not been previously recorded.

The vacation pay payable owed to employees that have been recorded from previous paycheques.

An entry that must include a Payables $($vendor$)$ or a Receivables $($customer$).$

Question $4$

$1$

Point

Which of the following is true: Depreciation

Is the yearly cost or expense, over time, of a capital asset.

Is the new reduced value of the capital asset.

Can not be recorded if the business has a Net Business Loss.

Is recorded in the PAYABLES module.

Question $5$

$1$

Point

When the session date is advanced to the first day of the next year, Sage $50$ Accounting:

Closes the revenues and expenses, transfers the net income$/$loss and drawings$/$dividends for you and prepares the General Journal entry.

Closes the revenues and expenses, transfers the net income$/$loss and prepares a General journal entry.

Closes the revenues and expenses, transfers the net income$/$loss to Capital or Retained Earnings but does not prepare a General journal entry.

Will generate journal entries for the closing entries specified at your request in System Setup.

Question $6$

$1$

Point

In Sage $50$ Accounting, when the session date is advanced to the first day of the next fiscal year, which of the following is true.

The program resets the temporary accounts balances to zero but continues with the next journal entry number in sequence.

Requires the user to input the closing entry to transfer the Drawings balance to Capital or Dividends Declared to Retained Earnings.

Maintains PROJECT module detail recognizing that projects may not always start and finish within fiscal year.

The fiscal year dates $($Start$,$ End$)$ must be confirmed in the System Setting.

Question $7$

$1$

Point

In Sage $50$ Accounting when the session date is advanced to the first day of the next fiscal year, which of the following entries need to be reversed.

Estimated bank statement charges, Depreciation of capital assets, salary accrual.

Depreciation of capital assets, salary accrual $($weekly payroll$)$ and office supplies.

Estimated bank statement charges, salary accrual $($bi$-$weekly payroll$),$ prepaid supplies.

Estimated bank statement charges, salary accrual $($bi$-$weekly payroll$)$ and interest accrued $($due monthly on the $15$th of each month$).$

Question $8$

$1$

Point

In the new fiscal year, which of the following does not need a reversing entry at the beginning of the year.

Estimated Bank Service charges.

Accrued Expenses.

Prepaid Insurance.

Accrued Salary$/$Wages$.$

Question $9$

$1$

Point

Month$/$Year End Adjustments occur because of mistakes that happen throughout the period.

True

False

Question $10$

$1$

Point

Month$/$Year End Adjustments are normally reversed the following period to allow the actual entry to flow through.

True

False

Question $11$

$1$

Point

Recording depreciation is a normal month$/$year end adjustments.

True

False

Question $12$

$1$

Point

Some normal month$/$year end adjustments include, prepaid expenses, depreciation and wages and salaries.

True

False

Question $13$

$1$

Point

Inventories are adjusted only once at the beginning of the period.

True

False

Question $14$

$1$

Point

The previous fiscal year ending inventory is the new fiscal year beginning inventory.

True

False

Question $15$

$1$

Point

When starting a new fiscal year, the previous year's income is cleared, by Sage $50$ Accounting, to the Drawings account.

True

False