Deck 12: Questions Maple Leaf Rags

Question 1

Why might GST amounts in the ledger differ from the GST report -

A) GST paid is recorded from the total in the purchases journal
B) there is an outstanding GST account balance before the first journal entry
C) GST charged is recorded from the sales journal
D) the GST ledger and GST report are always in balance

Answer 1

there is an outstanding GST account balance before the first journal entry

Question 2

From the invoice lookup window you cannot -

A) change the invoice details to correct a mistake
B) view a different invoice
C) track shipment of the items purchased or sold
D) store the invoice

Answer 2

change the invoice details to correct a mistake

Question 3

When the exchange rate for a foreign currency changes between a sale and the receipt of payment -

A) the amount of the bank deposit is determined by the rate at the time of the sale
B) the amount of the bank deposit is determined by the rate at the time of the receipt
C) the amount of revenue is determined by the rate at the time of the receipt
D) the amount of revenue is the average of the two exchange rates

Answer 3

the amount of the bank deposit is determined by the rate at the time of the receipt

Question 4

Which one of the following general statements about sales is correct -

A) GST charged must be entered as credit amount
B) PST charged must be entered as a debit amount
C) GST charged must be entered as a debit amount
D) PST charged operates in a similar fashion to GST charged

Question 5

Checklists can be -

A) used as end-of-period reminders to complete certain tasks
B) modified by adding tasks to the lists
C) modified by removing or editing tasks on the lists
D) all of the above

Question 6

Credit card bill payment amounts -

A) are always the same as the credit card payable account balance
B) are recorded in the payments journal
C) do not involve any linked accounts
D) are recorded in the general journal by crediting bank and debiting credit card payable

Question 7

The linked accounts for Freight and GST will be updated after which entry -

A) a purchase invoice with cash payment
B) a purchase invoice on account with transportation costs
C) a purchase invoice quote only
D) the cash payment entry for choice (b)

Question 8

The PST (retail sales tax) remittance recorded in the payments journal will -

A) debit PST Payable; credit Bank
B) debit PST Payable; credit Bank and PST Compensation
C) debit PST Payable; credit Accounts Payable,
D) debit PST Payable; credit Accounts Payable and PST Compensation

Question 9

To e-mail a purchase order to a supplier you should -

A) complete the order, choose the e-mail function and then record the order
B) complete the order, record it and then choose the e-mail function
C) complete the order, post it to save it and then choose the e-mail function
D) complete the order, fill the order and then choose the e-mail function

Question 10

If you forgot to add shipping details to a purchase invoice, you should -

A) adjust the invoice to add shipping information
B) phone the supplier to get the missing information
C) look up the invoice, choose track shipments and add the shipping details
D) leave it, you do not need the shipping details

Question 11

If you choose Quick Add to enter a new customer record, you cannot change -

A) the currency for the transaction
B) the name of the customer in the ledger record
C) the payment terms for the invoice
D) you can change any of the above

Question 12

Which one of the following general statements is true -

A) GST charged is processed in the receipts journal
B) GST payable is processed in the receipts journal
C) customer NSF cheques are processed in the receipts journal
D) PST refunds are processed in the receipts journal

Question 13

Which one of the following statements about taxes is incorrect -

A) HST paid is processed in the purchases journal
B) HST payable is processed in the payments journal
C) HST refunds are processed in the cash payments journal
D) all of the above are correct

Question 14

You must choose Full Add to create a new foreign supplier record from the purchases journal in order to -

A) access the address tab information to enter the foreign address
B) access the options tab to choose the foreign currency
C) access the taxes tab to indicate whether the supplier charges tax
D) access the options tab to enter the payment terms

Question 15

Adjusting entries are required before closing the books -

A) to record previously unrecorded purchases
B) to record previously unrecorded sales
C) to adjust all ledger accounts to their correct values at year end
D) to adjust previously incorrect entries

Question 16

Access a Web site for a supplier using the Web site tool in -

A) the home window
B) the suppliers window
C) the purchases journal screen
D) the supplier's ledger record

Question 17

One of the following statements is true about sales to foreign customers -

A) you must accept the default exchange rate in the sales journal
B) GST and PST are not charged on the sale
C) all amounts are displayed in the home currency
D) separate revenue accounts are needed for foreign sales

Question 18

When paying a credit card bill -

A) enter the interest amount in the additional Fees & Interest amount field
B) enter the fees in the amount field
C) enter the amount for purchases in the amount field
D) enter the total payment amount in the amount field

Question 19

Enter the tracking site information for a shipper -

A) in the purchases journal tracking site field
B) in the payables ledger settings window
C) in the supplier record for the shipper
D) at any time when using the program

Question 20

One of the following transactions may not be entered in the payments journal -

A) payments toward outstanding invoices
B) cash purchases
C) payments toward a credit card bill
D) all of the above may be entered in the payments journal

Question 21

Exchange rates are required in journal entries -

A) only when payments are made to suppliers or received from customers because money has changed hands
B) only at the time of a purchase or sale because the expense or income is realized at that time in accrual-based accounting
C) whenever the exchange rate changes because otherwise they do not affect amounts in journal transactions
D) for all journal transactions involving foreign currencies

Question 22

The transfer funds journal may be used for -

A) transferring Canadian dollars to US currency bank accounts
B) transferring US dollars to Canadian currency bank accounts
C) adjusting a previous bank account transfer transaction
D) all of the above

Question 23

To modify a checklist task you should -

A) choose the edit menu, click checklists and then choose edit
B) open the checklist, click the task and then click the modify button
C) select the checklist, click the modify button, click the task and then click edit
D) you cannot modify checklist tasks

Question 24

When the exchange rate for a foreign currency increases between a purchase and a payment -

A) the payment amount is set by the exchange rate at the time of the purchase
B) the difference between the two rates is debited to the asset or expense account for the purchase
C) the difference between the two rates is credited to the linked expense account for tracking exchange rate differences
D) the difference between the two rates is debited to the linked expense account for tracking exchange rate differences

Question 25

Exchange rates for foreign currency transactions -

A) must be entered in the journal for each transaction
B) are required only when there is a change in the rate
C) must be entered before you open the purchases or sales journals
D) must be entered before making a payment or accepting a receipt

Question 26

You will find the transfer funds journal icon in -

A) the company module window
B) the general journal transactions drop-down list
C) the banking module window
D) all of the above

Question 27

You can import journal entries from the Accountant's Copy to your data files -

A) only after you have created an Accountant's Copy of your data
B) only before you close the books and start a new fiscal period
C) only if you work with a backup copy of your data
D) at any time

Question 28

The currency setting for a supplier -

A) allows purchases from the supplier in both currencies
B) can be set in the purchases journal after selecting the supplier
C) allows purchases from a supplier in only one currency
D) is entered in the activity tab screen in the supplier's ledger

Question 29

Checklists may not be used to -

A) verify that a task has been completed
B) monitor that customer accounts are paid in full
C) see the tasks that are recommended for different periods
D) create a list of tasks unique for your company

Question 30

When you enter a different exchange rate for a currency during a purchase transaction, you will -

A) be asked if you wish to make the new rate the default rate for that date
B) be asked to confirm that you want to change the rate
C) need to enter the new rate in the currency information setup window to make it the default
D) be reminded to reset the exchange rate in the bank's ledger record

Question 31

The linked account for foreign currency transactions -

A) tracks import duties on foreign purchases
B) tracks exchange rate differences
C) is the bank account for foreign currency receipts and payments
D) both b and c are correct

Question 32

To access checklists, you should -

A) choose the view menu and click view checklists
B) click the checklists tool button in the classic view home window
C) choose the business assistant menu and click checklists
D) b or c above

Question 33

The accounts listed in the Banking module window -

A) include credit card expense accounts
B) can all be used for transfers in the transfer funds journal
C) can all be used to make payments to vendors
D) are all bank class accounts

Question 34

While waiting for the accountant's entries to be added to your data files, you cannot -

A) continue making journal entries
B) start a new fiscal period
C) display any reports because some data will be missing
D) restore a previous backup file and use it to import the accountant's entries

Question 35

Creating an Accountant's Copy of your data allows your accountant to -

A) check your journal transactions and correct your posted entries
B) create adjusting journal entries that you can add to your data file
C) start a new fiscal period for your company records
D) all of the above

Question 36

The main reason for adding the reminder if an exchange rate is more than one day old is -

A) the exchange rate always changes from one day to the next
B) the exchange rate may change from one day to the next
C) to remind you to enter an exchange rate on the invoice
D) the reminder is not needed

Question 37

Checklists are helpful because they -

A) remind you about routine procedures that should be completed
B) can be edited to suit the needs of your own business
C) remind you about bill payments that are due
D) a and b above

Question 38

Realized Exchange Gain/Loss reports can show whether a business -

A) has lost or gained money on foreign transactions because of changes in exchange rates
B) has entered the exchange rates correctly in transactions
C) should delay or make payments to foreign suppliers immediately to maximize exchange rate gains
D) all of the above

Question 39

Checklists should be viewed -

A) each time you complete a series of accounting transactions
B) before you make a backup copy
C) regularly, at the end of normal business periods
D) there is no need to view checklists; they are not important

Question 40

For a purchase from a foreign supplier, the purchases journal -

A) shows the amounts only in the home currency
B) always requires you to type in the exchange rate
C) always requires you to choose a currency for the transaction
D) none of the above

Question 41

When your accountant is working with the Accountant's Copy of your data file, you cannot −

A) change an account number
B) start a new fiscal period
C) enter general journal transactions
D) make a backup copy of your data file

Question 42

When you see the message that your bank account is overdrawn after posting a payment, you should −

A) call the bank to arrange for overdraft protection
B) call the bank to cancel the cheque before the supplier can deposit it
C) require your customers to settle their accounts to increase your bank account balance
D) none of the above