Deck 15: Tesses Tresses

Question 1

If the session date is May 31st,what is the purpose of clearing paid customer invoices to April 30th -

A)to allow us to remove stored entries
B)to allow us to prepare customer statements for the previous month
C)to allow us to remove journal entries
D)to allow us to retain HST data for the previous month

Answer 1

B

Question 2

The account reconciliation linked accounts -

A)identify appropriate ledger accounts for income
B)identify appropriate ledger accounts for expenses
C)identify appropriate ledger accounts for adjustments
D)all of the above

Answer 2

D

Question 3

Which one of the following items may not require an account reconciliation at month end -

A)an outstanding deposit
B)outstanding cheques
C)approval of a bank loan
D)bank service charges

Answer 3

C

Question 4

All but one of the following are part of setting up account reconciliation for a bank account -

A)print the general ledger or bank account transactions report for the bank account
B)turn on the account reconciliation feature
C)identify and create the linking reconciliation accounts
D)mark the journal entries as cleared

Question 5

To reconcile a cheque on a deposit slip that is later returned as NSF -

A)change the status of the deposit slip amount to NSF
B)show the deposit slip details and change the status of the single cheque to NSF
C)show the deposit slip details and then separately mark the cheque as cleared
D)show the deposit slip details and mark all deposit slip items separately as NSF

Question 6

Which one of the following general statements is true -

A)unresolved amounts will be posted to the reconciliation adjustments expense account
B)drill-down reports are available from the account reconciliation summary report
C)you can enter only one transaction for each type of income and expense
D)you must complete the account reconciliation setup each month

Question 7

Which one is not a safeguard for account reconciliation to avoid mistakes -

A)saving a reconciliation transaction before posting
B)printing the general ledger or bank transactions report for the bank account
C)using deposit slip numbers to clear transactions
D)naming and linking reconciliation accounts

Question 8

After adding all the prior outstanding transactions when you begin account reconciliation -

A)the unresolved amount is usually the same as the opening bank balance
B)the unresolved amount should be zero
C)the unresolved amount should be the total of all debit transaction amounts
D)none of the above

Question 9

You would use deposit reference no.when a single bank statement entry -

A)shows that several cheques were withdrawn or cashed on the same day
B)shows the net effect of cheques and deposits for the same day
C)shows that more than one signature is needed to authorize bank transactions
D)shows that several cheques were deposited at the same time

Question 10

Which accounts may be set up to use account reconciliation -

A)all asset,liability and equity accounts
B)only asset and equity or capital accounts
C)only bank and credit card asset accounts
D)all asset,equity and expense accounts

Question 11

Which one of the following general statements about account reconciliation is incorrect -

A)unresolved amounts will be posted to the reconciliation adjustments account
B)income,expenses and adjustments are classifications of linked accounts
C)a backup copy of the data files should be made after you reconcile the account
D)a blank account reconciliation journal form is the last step in the process

Question 12

When should you not display and print the journal reconciliation report -

A)after marking journal entries as cleared
B)before marking journal entries as cleared
C)when everything is reconciled
D)when the unresolved amount should be zero

Question 13

Which one of the following general statements is true -

A)you can remove a supplier record at any time if the account is fully paid
B)you can restore cleared journal entries as long as you do not exit the Sage 50 Accounting program
C)you can remove the record for a supplier to whom you owe money
D)make a backup copy of your work before clearing invoices

Question 14

Which one is not a procedure to correct or mark NSF cheques -

A)double click the word cleared in the status column
B)display select transaction status and click NSF
C)change the status of the journal entry that reverses the receipt to adjustment
D)assign the adjustment status to the entry for the final receipt

Question 15

To enter NSF cheques when deposit slips are used (receipts are recorded to a separate undeposited amounts account before entering them in the bank account)-

A)select the bank account in the receipts journal,then show paid invoices and enter negative amounts for the appropriate invoice
B)reverse the original receipt in the adjust receipts screen to restore the balance owing
C)notify the customer to replace the cheque so you will not need to make any changes to your recorded transactions
D)record the sales invoice again to restore the balance owing by the customer

Question 16

When you compare the general ledger or bank account transactions report with the bank statement -

A)both records reveal a balanced position
B)all deposits made are recorded on the bank statement
C)interest and monthly fee amounts are not able to be matched to the cash account
D)all the cheques issued have been cashed by the bank

Question 17

You will have an unresolved reconciliation amount -

A)when a ledger is not balanced
B)when an account is not balanced
C)when the total debits and credits are not equal
D)when you have not entered bank charges for the month

Question 18

Which one of the following general statements is correct -

A)you should clear HST information each time you file a report to the Receiver General
B)lookup data is cleared automatically when you clear the paid transactions
C)data may be cleared for all customer and supplier accounts or for individual accounts
D)a and c above

Question 19

Which option is true in the Account Reconciliation Report -

A)choose detail report and only status total amounts appear
B)choose summary report and all journal entries and their status appear
C)choose detail report and all journal entries and their status appear
D)choose summary with outstanding transactions report to add the total outstanding amount

Question 20

Automatic fixed monthly payments such as auto lease,insurance premiums and mortgage -

A)can be recorded in the account reconciliation journal or in the general journal
B)must be recorded with a normal general journal entry
C)should be recorded in the adjustments journal
D)should be recorded as cash payments because they involve withdrawals from the bank account

Question 21

Cash and cheques are recorded differently on deposit slips in that -

A)cheque deposits are linked to individual sales transactions,cash deposits are not
B)cash is entered as a total broken down by denominations and cheques are recorded individually
C)cash and cheques are recorded on separate deposit slips
D)a and b are correct

Question 22

To reconcile a credit card receivable account you must -

A)assign the Bank class to the receivable account
B)choose to save transactions for account reconciliation in the ledger record for the account
C)use the credit card processing option in the sales journal
D)you cannot use account reconciliation for credit card accounts

Question 23

The Banking module window includes journal icons for -

A)sales,receipts and payments
B)purchases,receipts and payments
C)receipts,payments and general journal transactions
D)transactions that involve bank accounts

Question 24

To transfer funds to and from credit card accounts using the transfer funds journal,choose -

A)credit card bank as the class for these accounts
B)the general credit card class
C)credit card receivable and credit card payable,or bank for these accounts
D)all of the above account class selections will make the accounts available for transfers

Question 25

To set up the accounts for recording bank deposit transactions separately from sales and receipts all but one of the following are required -

A)create a separate account for the undeposited receipts
B)set up the bank account receiving the deposits for account reconciliation
C)choose the undeposited receipts account as the account for receipts and cash sales
D)assign the bank or cash class to the undeposited receipts account

Question 26

Before using the deposit slip journal for a US dollar account,you need to -

A)add an Undeposited Cash and Cheques clearing account as the linked account for US dollar receipts
B)open the deposit slip journal and choose the US dollar bank account
C)select the US dollar bank account in the Select Cheques window
D)choose the US dollar Undeposited Cash and Cheques account in the deposit slip journal window