CHAPTER 12, ANSWERS TO TRUE/MAKE TRUE QUESTIONS, QA TEMPLATES
Type the word True in the space provided if the statement is true. If the statement is not true,
type the correct answer.
1. Accounts Payable is money you pay to customers.
2. Vendor default information needs to be set up to establish the criteria used when computing
vendor discounts.
3. Each time you use the Write Checks window, you are journalizing in the Cash
Disbursements Journal.
4. The purchase discount offered to Shannon’s Service Merchandise from their vendors is 2%
10, Net 30 Days.
5. Each time you use the Payments window, you are journalizing in the Purchases
Journal.
6. The merchandise that Shannon’s Service Merchandise buys from Ronny Becker
Fabrics is classified as wall coverings.
True
7. The detailed types list includes chart of accounts numbers with five digits.
8. The Maintain Vendors window is used to enter information about vendors from
whom you purchase merchandise.
9. All accounting software applications, regardless of the size of the company, are the
same.
10. Each accounting software application (for example, Sage 50, QuickBooks, and Microsoft
Dynamics 365) has a unique system design.
reason, Sage 50, QuickBooks, and Microsoft Dynamics 365 look and work similarly.
ANALYSIS QUESTION
What is the balance in the Accounts Payable account, Shannon’s Service Merchandise? Why?
ANSWER:
File: Chapter 12 Vendors & Purchases
True/False
[QUESTION]
1. In Chapter 12, you use Sage 50 to organize and monitor accounts payable.
[QUESTION]
2. In Chapter 12, you use Sage 50 to record cash receipts to vendors.
3. Merchandising businesses purchase the merchandise they sell from suppliers called vendors.
4. Accounts payable is the amount of money the business owes to its customers.
5. When recording a purchase, you enter or select the customer code first.
6. You can print vendor checks individually or in batches.
7. In Chapter 12, you set up the merchandising businesses that continue in Chapters 13, 14, and 15.
8. Purchases made on account from vendors are recorded in the Purchases/Receive Inventory window.
9. In order for Sage 50 to have your name on its printouts, type your first name then Service
Merchandise in the company name field.
10. The purchase discount is calculated automatically even when merchandise was returned on a
specific invoice.
11. The first month’s data entered for Shannon’s Service Merchandise is February 2019.
12. In Chapter 12, you set up Shannon’s Service Merchandise using a detailed chart of accounts from
one of the many sample companies.
13. Shannon’s Service Merchandise sells hardware, software and equipment.
14. Shannon’s Service Merchandise is a corporation owned by Penelope Pines and her sister, Delilah
Delaney.
15. To enter beginning balances for January 2019, you must select the period from 12/1/18 through
12/31/18 on the Select Period window.
16. When merchandising businesses make purchases on account from vendors, this is known as:
a. Accounts receivable transactions
b. Accounts payable transactions
c. General ledger transactions
d. Income statement transactions
e. Recording beginning balances
17. The amount of money the business owes to suppliers or vendors is called:
a. Accounts payable
b. Accounts receivable
c. Contracts payable
d. Prepaid expense
e. Unearned revenue
18. Shannon’s Service Merchandise is a partnership owned by:
a. Susan Miller and Philip David
b. Constance Molina & Sally Sweeney
c. Brian Stewart and Shannon Larsen
d. Karen Greene and Maria Stanton
e. Richard Strand and Melanie Dash
19. Shannon’s Service Merchandise accounting records are set up to begin on:
a. November 1, 2019
b. December 1, 2019
c. January 1, 2018
d. January 1, 2019
e. December 1, 2018
20. In Sage 50, which account contains summary information about the total cost of merchandise on
hand and available for sale?
a. Payroll checking account
b. Supplies Inventory
c. Merchandise Inventory
d. Accounts Payable
e. Accumulated Depreciation
21. The beginning balances from Shannon’s Service Merchandise January 1, 2019 balance sheet are
entered for what period:
a. From 1/1/19 through 1/31/19
b. From 12/1/18 through 12/31/18
c. From 11/1/18 through 11/30/18
d. From 2/1/19 through 2/28/19
e. From 1/1/18 through 1/31/18
[QUESTION]
22. When recording vendor information, the following windows are used to enter this information:
a. Vendor Defaults and Maintain Vendors
b. Maintain Vendors and Tasks
c. Inventory Item Defaults and Pay Bills
d. Customer Defaults and Maintain Customers/Sales Reps
e. Employee Defaults and Maintain Employees
23. When setting up inventory items on the Maintain Inventory Items window, information must be
entered for:
a. Customer IDs
b. Inventory method
c. Inventory adjustments
d. Item ID, Minimum Stock, Reorder Quantity
e. Cash account credited
24. The Purchases/Receive Inventory window is also called the:
a. Cash disbursements journal
b. Sales journal
c. Cost of goods sold journal
d. Purchase journal
e. General journal
25. An organized body of related information is called a/an:
a. Feature of the software
b. Software function
c. Accounting software application
d. Sage 50 2019
e. Database
26. The collection of accounts of a company, summary of account transactions, and the related accounts
balances for a specific period of time is called the:
a. System module
b. Database
c. General ledger system
d. Features and functions of software
e. Default page
[QUESTION]
27. The information needed for the entry that credits the Accounts Payable accounts and debits the
various asset and expense accounts that vendor invoices represent is known as the:
a. Banking feature and its accompanying functions
b. System defaults
c. Batch posting
d. Accounts payable system
e. Software