File: Chapter 11 Completing Quarterly Activities and Closing the Fiscal Year
True/False
[QUESTION]
1. All activities in Chapters 9 and 10 must be completed before starting Chapter 11.
2. The Year-End Wizard automatically completes the procedure for closing the fiscal year.
3. In Chapter 11, you continue recording financial information for James Crosby Designer.
4. The transaction register is used as a source document.
5. In Chapter 11, you complete the accounting cycle for the third quarter of the year.
6. In Chapter 11, you restore the Exercise 9-2.ptb backup file to continue work with James Crosby
Designer.
[QUESTION]
7. The October 30 balance in James Crosby Designer’s transaction register is the same as the ending
balance on the October bank statement.
8. Before you can complete the bank reconciliation, you need to journalize and post the bank’s service
charge.
9. To clear checks, ATMs, and deposits on the account reconciliation window, place a check mark in the
Status column.
10. To make sure you are starting in the correct place in the data, display the income statement and
check the account balances against the transaction register.
11. In Chapter 11, the first step of the computer accounting cycle is to:
a. Set up a business and select a chart of accounts
b. Journalize entries
c. Change accounting periods
d. Print the general ledger trial balance
e. Post entries to the general ledger
12. To change accounting periods, you need to make the following menu bar selections:
a. Tasks > System > Change Accounting Period
b. Tasks > Default > Change Accounting Period
c. Tasks > Maintain > Defaults
d. Maintain > System > Change Accounting Period
e. Maintain > User Security
13. The December 31 balance in Mr. Crosby’s retained earnings account (Account No. 3910) is:
a. Revenue minus expenses
b. Assets minus liabilities plus owner’s equity
c. Year-to-date net income plus the total of the drawing account
d. Year-to-date net income minus the total of the drawing account
e. Capital minus drawing
[QUESTION]
14. In order to complete account reconciliation, checks and deposits need to be:
a. Recorded
b. Journalized and posted
c. Set up in account reconciliation maintenance
d. Selected by clicking Tasks; Change Accounting Periods
e. Batched
15. If your journals do not agree with the textbook illustrations, use the following Sage 50 feature:
a. Maintain > defaults > general ledger
b. Edit journal transactions
c. Tasks > general journal transaction
d. Maintain chart of accounts
e. System Navigation Center > link to restore now
16. To display information about your company data files, complete these steps:
a. From the System Navigation Center, link to synchronize Sage 50 data on the web
b. From the Banking Navigation Center, click on write checks > view and edit checks
c. Select Analysis Tools from the System Navigation Center
d. From the Help menu, select Customer Support and Service > File Statistics
e. Link to Period on the tool bar
17. In Chapter 11, the ______________________________is completed before recording and posting
the end-of-quarter adjusting entries.
a. Adjusted trial balance
b. Cash disbursements journal
c. Unadjusted trial balance
d. Cash receipts journal
e. Post-closing trial balance
18. It is the policy of your accounting firm to record adjusting entries at:
a. The end of the quarter
b. The end of each month
c. Six month intervals
d. The end of the year only
e. During the month
19. To print a postclosing trial balance, you need to:
a. Select Tasks > System > change accounting periods
b. Select Reports & forms > accounts receivable > print reports
c. Select Options > Default Information
d. Select Help > About Sage 50 Accounting
e. Close the fiscal year, then print a general ledger trial balance
20. Sage 50’s _____________________________________ is the complete collection of accounts of a
company, transactions associated with these accounts, and account balances for a specified period of
time.
a. Maintenance system
b. Data file statistic
c. Default
d. General ledger system
e. Navigation center
CHAPTER 11, ANSWERS TO TRUE/MAKE TRUE QUESTIONS, QA TEMPLATES
1. You can complete the activities in Chapter 11 without completing Chapters 9 and
10.
2. Step 4 of Sage 50’s Computer Accounting Cycle is reconciling the bank statement.
3. To change an accounting period, use the Maintain menu.
4. James Crosby’s transaction register and bank statement are used as source documents
for recording journal entries.
5. The account reconciliation feature can reconcile the cash account only.
6. The accounting periods used in Chapter 11 are November 1 – 30 and December 1 – 31,
2019.
7. Sage 50 includes an editing feature so that records can be corrected.
8. To close the fiscal year, use the System menu selection, Year-End Wizard.
9. When the fiscal year is closed, an adjusted trial balance is displayed or printed.
10. The statement of retained earnings and the postclosing trial balance show the same
balance for retained earnings.
ANALYSIS QUESTION
1. When using Sage 50 why is it important to change accounting periods? (Hint: Do a
search on Sage 50’s Help window for Change Accounting period.)
ANSWER:
2. Does the balance in retained earnings differ on the adjusted trial balance and the
postclosing trial balance?
3. How does the postclosing trial balance differ from the adjusted trial balance?
ANSWER (answers #2 and #3):
The adjusted trial balance shows all accounts in the general ledger that have account balances.
This includes the revenue and expense accounts. Since the revenue and expense accounts
