Chapter 2: Multiple Choice Questions

Chapter 2: Multiple Choice Questions

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

_____1. In Chapter 2, backups are made to the following location:

• The place specified for the USB drive.

b. C:\Sage Software\Peachtree\Company\[file name].

c. X:\Exercise 1A.

d. D:\Chapter 1_Exercise 1-1.

e None of the above.

____2. Cash discounts from vendors in return for early payment of an invoice are

called:

• Sales discounts.
• Returns and allowances.
• Purchase discounts.
• Markdowns.
• None of the above.

____3. You can enter information within a lookup field by using one or more of the

following keys:

• Type the <+> symbol.
• Double-click with the mouse.
• a. or b.
• Type the invoice number.
• None of the above.

_____4. Why is it important that your coding system for vendors be consistent and logical?

• All vendors and customers should be identified by 3 digits.
• So that others working in your company can determine a vendor

code from the company name.

• All the vendors and customer numbers are already set up for Bellwether

Garden Supply so you don't have to worry about it.

• All customers and vendors should be identified by the first eight letters of a

company's name.

• None of the above.

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_____5. Why are purchase orders used?

• To post accounting information.
• To place an order with a customer.
• To update the accounts payable subsidiary system.
• To request items from a vendor.
• None of the above.

_____6. It is important to use either upper or lowercase letters to identify a vendor

because the program:

• Is susceptible.
• Doesn't recognize numbers.
• Doesn't recognize symbols.
• Is case sensitive.
• None of the above.

_____7. Which window do you use to add a new vendor?

• Maintain Vendors.
• Purchases/Receive Inventory.
• Menu bar.
• Select a Report.
• None of the above.

_____8. Going from the general ledger to the original entry window is called:

• Drill down.
• Coding.
• Lookup.
• None of the above.
• All of the above.

_____9. When you make an entry in the Purchases/Receive Inventory window for

Armstrong’s Landscaping you are debiting and crediting which accounts:

• Dr. Accounts Payable/Armstrong’s Landscaping

Cr. Cash in Checking Cr. Purchase Discounts

• Dr. Cash

Cr. Accounts Payable

• Dr. Cash

Cr. Sales

• Dr. Materials Cost

Cr. Accounts Payable/Armstrong’s Landscaping

• None of the above.

____10. Which of the following Navigation Bar; Vendor & Purchases selections do you use to issue a return of merchandise to a vendor?

• Vendors & Purchases Tasks; Purchases/Receive Inventory.
• Credits & Returns; New Vendor Credit Memo.
• Sales/Invoicing.
• Credit Memos.
• None of the above.

ANSWER TO THE ANALYSIS QUESTION

With the Vendors & Payables Navigation Center serving as the starting point to perform tasks related to Accounts Payable, list five Vendors & Purchases Tasks.

Briefly describe the Vendor Management tab.

ANSWER:

The Vendors & Purchases Navigation Center displays information and access points related to the company’s vendors and purchases.

1) The Vendors & Purchases Tasks provides a graphic representation of the flow of vendor-related tasks, as well as access to those tasks. It also provides access to windows where you enter/maintain vendor information.

2) A summary of vendor information; for example, link to View Detailed List.3) Access to vendor reports. For example, a link to View All Vendor & Purchases Reports.4) An overview of the company’s aged payables. You can also link or drill down to various areas.5) Peachtree solutions include drill down to Checks & Forms and Online Bill Pay.On the Vendor Management tab, you can see lists of information regarding transactions and history for a particular vendor, including purchase orders, purchases, and payments. This is where you want to go to see information about a particular vendor.

Computer Accounting with Peachtree by Sage Complete Accounting 2012 16th Edition Yacht Test Bank Visit TestBankDeal.com to get complete for all chapters