SAGE 50 ACCOUNTING

I Choose the best answer for the following questions: (20 Points)

1. A recurring entry is an entry that:

1. Occurs regularly.
2. Occurs seldom.
3. Is to be deleted on a regular basis.
4. Will occur only within the next two months.

2. Which of the following items do not need a negative amount to record the amount?

1. Recording a sale to a customer with HST.
2. Return of merchandise from a customer.
3. Write-off of a customer bad debt balance.
4. Reduction in the selling price of an invoice (previously recorded).

3. If the HST Paid on Purchases account balance is more than the HST Charged on Sales balance:

1. You have made an error and will need to check previous purchases.
2. You must wait until the HST Charged on Sales account balance is more that the HST on Purchases before you can issue a cheque.
3. You will receive a cheque for the difference after you submit the HST report.
4. You must enter the difference as a purchase and record a cheque.

4. In reference to Account Codes, which of the following statements is not correct:

a) H - Headings are not postable and have no balances. They are descriptions only.

b) A - Accumulate column accounts are postable. Debits and Credits from the general journal can be posted to these and their balances are added together to show a sub-total.

c) S - Subtotals are postable. A accounts are always followed by an S account.

d) G - Group column accounts are postable. Debits and Credits from the general journal can be posted to these.

e) T - Total accounts are not postable. They end each section and have no balances. They are descriptions only.

5. In the EMPLOYEES & PAYROLL module, payroll entries recorded with errors:

1. Can be corrected using the Calculate Taxes Automatically" icon.
2. Are reversed using a negative amount in the "Payroll Cheque Run."
3. Are reversed using the Adjust Payroll icon, selecting the cheque in error and reversing the cheque
4. Are corrected using positive amounts in the "Payroll Cheque Run."

6. Inventory adjustments are required when:

1. Goods are accidentally broken by staff.
2. The cost price of goods purchased decreases.
3. The selling price of goods increases or decreases.
4. Items are purchased that were not in inventory before.

7. In Inventory, the Build from Bill of Materials Journal is used when:

1. You need to reduce the number of items you have in stock.
2. You need to increase the number of items you have in stock.
3. You are returning goods that are damaged.
4. You need to put together a package of different products that customers want to buy at a reduced price.

8. Which of the following is not true? Adjusting entries:

1. Are done to ensure the revenue recognition and matching principles are met.
2. Are usually done during the review of the companys accounts at month-end.
3. Can conveniently be set up as recurring entries to be modified and processed on a monthly basis.
4. Are completed on a random basis, depending on the manager of the business.

9. 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.

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

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

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

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

10. In the PROJECTS Module, which of the following is not true for the Allocation of costs:

1. by a set amount.
2. on an amount based on a percentage.
3. by employee hours.
4. by budget dollars.