File: Chapter 09 New Company Setup and Beginning Balances
True/False
[QUESTION]
1. The chapters in Part 2 (Chapters 9, 10, and 11) work together.
2. The business type used for setting up the Designer company is the Simplified Retail Company.
3. The year for setting up accounting records is 2017
4. The posting method selected in Chapter 9 is Batch.
5. In Chapter 9, you use New Company Setup to select a sample chart of accounts; then you revise some
of the accounts through the Maintain; Chart of Accounts window.
6. In Chapter 9 you use the New Company Setup Wizard to set up a company for Jessica Wood, CPA.
7. James Crosby Designer is located in La Crosse, Wisconsin.
8. James Crosby Designer is set up as a corporation.
9. James Crosby Designer uses the cash basis of accounting.
10. The selections for Options > Global > Other Options may be used to set the Receipts, Payments and
Payroll Entry windows to automatically recalculate the cash balance as transactions are entered.
[QUESTION]
11. The name of the business set up in Chapter 9 is:
a. James Crosby, Accountant
b. James Crosby, Graphics
c. James Crosby Designer
d. James Crosby Plastics
e. Your Name, Graphic Artist
12. The sample company chart of accounts that you use as the model for Chapter 9’s business is:
a. Accounting practice
b. General contractor
c. Gift Shop
d. Service Company
e. Retail Company
13. The posting method used by the business in Chapter 9 is:
a. Batch posting
b. Real time posting
c. A combination of batch posting and real-time posting
d. Accrual posting
e. Cash basis posting
14. In Chapter 9, the period for recording transactions is:
a. Period 1 – 1/1/19 to 1/31/19
b. Period 10 – 10/1/19 to 10/31/19
c. Period 11 – 11/1/19 to 11/30/19
d. Period 12 – 12/1/19 to 12/31/19
e. Period 9- 09/01/19 to 09/30/19
15. The chart of accounts is:
a. The accounts shown on the income statement
b. The accounts shown on the balance sheet
c. A list of accounts in the general ledger
d. A list of accounts in the general journal
e. A list showing account beginning balances
16. The account type specified on the chart of accounts is also the classification for the:
a. Financial reporting
b. General ledger
c. General journal
d. Cash receipts journal
e. Receipts
17. A balance sheet is also known as a/an:
a. Income statement
b. Statement of changes in cash flow
c. Statement of financial position
d. Retained earnings report
e. A list of revenues and expenses
18. The shortened company name that Sage 50 assigns to new companies is made up of:
a. The entire company name
b. The last word within the company name
c. The first three letters of the first word, the first three letters of the second word, and first two letters
of the third word.
d. The first word only
e. A random selection of characters
19. The Account Type for Account No. 3920 James Crosby [or your name], Capital is:
a. Cash
b. Equity-gets closed
c. Equity-doesn’t close
d. Retained earning
e. Other current liabilities
20. Saving Sage 50 data to the hard drive or external media is called:
a. Restoring data
b. Data mining
c. Backing up
d. Exporting to Excel
e. Windows Explorer
CHAPTER 9, ANSWERS TO MULTIPLE-CHOICE QUESTIONS, QA TEMPLATES
_____ 1. In Part 2 of the book, you complete monthly accounting for which type of business?
_____ 2. Which type of accounting method does James Crosby Designer use?
_____ 3. James Crosby’s business type is a:
_____ 4. What chart of accounts did you select for Mr. Crosby’s chart of accounts?
_____ 5. Mr. Crosby uses which type of posting method?
_____ 6. You can restore data by making which menu bar selection?
_____ 7. The correct file name for backing up James Crosby Designer, the chart of accounts,
and the October 1, 2019 beginning balances is:
_____ 8. Sage 50 assigns the following shortened company name to James Crosby Designer:
_____ 9. The account type of Account No. 3920, James Crosby, Capital (or your name,
Capital) is:
_____10. When saving an Excel 2007 or 2010 file, the file extension is:
ANALYSIS QUESTIONS
1. What chart of accounts beginning balance date is used for entering October 1, 2019
account balances in Sage 50?
ANSWER:
2. How does the account beginning balance date affect the current month and year–to–
date amounts on the financial statements?
ANSWER