CHAPTER 5, ANSWERS TO MULTIPLE-CHOICE QUESTIONS, QA TEMPLATES
_____1. The inventory system used is called:
_____2. A list of all the accounts used by a company showing an identifying number assigned
to each account is called:
_____3. The account(s) added to Bellwether’s Chart of Accounts in this chapter is:
_____4. After the March 15, 2019 transfer of funds, the General Ledger Trial Balance shows
the following amount in the Money Market Fund account:
_____5. On the Maintain Inventory Items window, the Oriole Feeder is which inventory type:
_____6. For Stock-Type Inventory Items, Sage 50 tracks the following:
_____7. The journal entry to purchase an inventory stock item is:
____8. The journal entry or entries for the sale of an Inventory Item are:
____9. Shows all entries and changes related to the company’s data, including
actions by specific users.
____10. The integrated system of people, processes, and procedures that minimize or
eliminate business risks, protect assets, ensure reliable accounting, and promote
efficient operation is called:
ANALYSIS QUESTIONS
1. List four ways that Sage 50 includes user security and internal controls.
2. How is the audit trail associated with user security? Provide an example.
record, and it will display what was changed.
3. How does user security address the purpose of internal control?
True/False
[QUESTION]
1. In Sage 50 2019, you track inventory both from the purchasing and sales perspectives.
[QUESTION]
2. When you set up an inventory item in Sage 50, you also establish the general journal accounts that
need updating.
[QUESTION]
3. In a perpetual inventory system, an up-to-date record of inventory is maintained, recording each
purchase and each sale that occurs.
[QUESTION]
4. To start Chapter 5, you need to have data from Exercise 4-2 in Chapter 4.
[QUESTION]
5. The Money Market Fund is Account No. 10000.
[QUESTION]
6. The Money Market Fund account is classified as a cash account.
[QUESTION]
7. In Sage 50, you can track inventory when it is purchased but not when it is sold.
[QUESTION]
8. Bellwether Garden Supply tracks oriole feeders as an inventory stock item.
[QUESTION]
9. On the Maintain Inventory Items window, you can set defaults for the item class.
[QUESTION]
10. When you sell inventory stock items on account, the journal entry is a debit to accounts receivable
and a credit to revenue; no other accounts are included.
Multiple Choice
[QUESTION]
11. A list of all the accounts used by a company showing an identifying number for each account is
called:
a. A general journal
b. An Inventory Journal
c. A chart of accounts
d. A balance sheet
e. Subsidiary ledgers
[QUESTION]
12. On the Navigation Bar, make the following selections to make a general journal entry:
a. Inventory & Services Navigation Center > click on the Chart of Accounts icon > select View and Edit
Accounts
b. Banking Navigation Center > link to General Journal Entry > select New General Journal Entry.
c. Banking Navigation Center > click on the Write Checks icon > select New Check
d. System Navigation Center > link to Restore a backup > click on the General Journal Entry icon
e. Maintain > select General Journal record
[QUESTION]
13. Bellwether Garden Supply’s account number for their Payroll Checking account is:
a. Account No. 10100
b. Account No. 10200
c. Account No. 10300
d. Account No. 10400
e. Account No. 12000
Difficulty: Easy
Page 161
[QUESTION]
14. Sage 50’s help topics are displayed in the following way:
a. PDF
b. PTB
c. DOC
d. HTML
e. XLS
[QUESTION]
15. On the Navigation Bar, make the following selections to set up an inventory item:
a. Inventory & Services Navigation Center > click on the Assemblies icon > select Build New Assemblies
b. Inventory & Services Navigation Center > click on the Inventory Items icon > select New Inventory
Item
c. Vendors and Purchases Navigation Center > click on the Vendors icon > select View and Edit Vendors
d. Inventory & Services Navigation Center > click on the Receive Inventory icon > select View and Edit
Purchases.
e. Inventory & Services Navigation Center > link to Edit vendor items
[QUESTION]
16. To transfer money to the Money Market Fund, make the following type of entry:
a. General Journal
b. Payments
b. Receipts
c. Tasks
d. Maintenance
[QUESTION]
17. The Item ID for Oriole Feeder is:
a. AVRY-10300
b. Avry-10300
c. avrY-10300
d. avry-10300
e. Oriole-10320
[QUESTION]
18. When you purchase inventory stock items, the journal entry is:
a. Dr. the Accounts Payable/Vendor account; Cr. The Inventory account
b. Dr. the Accounts Receivable/Customer account; Cr. the Sales account
c. Dr. the Inventory account; Cr. The Accounts Payable/Vendor account
d. Dr. the Cash account; Cr. the Revenue account
e. Dr. the Expense account; Cr. the vendor account
Page: 176
[QUESTION]
19. If your GL Account columns and A/P Account field are not displayed on the Purchases/Receive
Inventory window, you need to:
a. Check the Tasks windows
b. Check the maintenance menus
c. Click on Options; Global and uncheck the three boxes in the Hide General Ledger Accounts section
d. Reset the defaults in the Accounting Behind the Screens selection
e. Accounting Behind the Screens cannot be changed
[QUESTION]
20. If an inventory item is damaged make the following selections from the Navigation Bar to record the
damage:
a. Inventory & Services Navigation Center > click on the Prices icon
b. Inventory & Services Navigation Center > click on the Inventory Count icon
c. Inventory & Services Navigation Center > click on the Inventory Adjustments icon
d. Inventory & Services Navigation Center > click on the Track Packages icon
e. Vendors & Purchases > link to View and Edit Bills