Question 1

The most recent purchase price becomes the default for the next invoice when -

Accepted Answer

A)  the inventory is over stocked
B)  you type in the amount and the quantity,there is no need to calculate unit price
C)  a new price has been entered for an inventory purchase
D)  a sale causes the inventory level to drop below zero B

Question 2

If the wrong inventory is selected in a purchase,you can make the correction before posting by -

Accepted Answer

A)  opening a new purchase invoice and entering the correct work
B)  selecting the incorrect field,entering the correct item,re-entering the quantity
C)  re-selecting the supplier from the suppliers list and recording the purchase from scratch
D)  removing the purchase invoice from the edit menu and choosing redo B

Question 3

Which of the following best describes inventory item linked accounts -

Accepted Answer

A)  when you purchase the item,the asset account is debited
B)  when you sell the item,the revenue account is credited
C)  when you sell the item,the cost of goods sold account is debited
D)  all of the above D

Question 4

Record inventory that is recovered after a loss has already been recorded -

Accepted Answer

A)  in the general journal using the inventory asset and the damaged/lost inventory expense accounts
B)  in the adjustments journal using a positive quantity and the damaged/lost inventory expense account
C)  in the adjustments journal using a negative quantity and the damaged/lost inventory expense account
D)  in the general journal using the inventory asset and the damaged/lost inventory expense account

Question 5

Regular inventory purchases and sales journal entries have what in common -

Accepted Answer

A)  both consist entirely of linked accounts
B)  the price field in both entries is the same
C)  you can edit the account field in both entries
D)  the entries have nothing in common

Question 6

The inventory journals may be used for one the following -

Accepted Answer

A)  all credit purchases of inventory merchandise
B)  all cash purchases of inventory merchandise
C)  all sales of inventory merchandise
D)  all adjustments and item assembly of inventory merchandise

Question 7

Which of the following statements is true about inventory sales journal entries -

Accepted Answer

A)  the revenue account number can be edited
B)  a negative quantity must be entered for a sales return
C)  displaying the entry before making changes is a good idea
D)  all of the above

Question 8

Which of the following best describes the selection of inventory items in the sales journal -

Accepted Answer

A)  selection lists are available only from the Item Number field list icon or by double clicking the Item Number field
B)  selection lists in the Item Description fields are sorted by inventory name or description
C)  you cannot create new inventory items from the sales journal
D)  both a and c are correct

Question 9

A business that provides only services -

Accepted Answer

A)  can use the Inventory and Services module
B)  cannot use the Inventory and Services module
C)  must buy the services from an external supplier in order to use the Inventory and Services module
D)  must have standard prices for the services in order to use the Inventory and Services module

Question 10

The discount amount for the sale of inventory items to a preferred customer appears in the journal entry as -

Accepted Answer

A)  a credit to the linked sales discount revenue account
B)  a debit to the linked sales discount revenue account
C)  a decreased amount for the linked sales revenue account
D)  an increased amount for the linked sales revenue account

Question 11

Why does an inventory purchase not usually include a RST/PST amount -

Accepted Answer

A)  the RST/PST default has not been set up
B)  the RST/PST amount was missed and not entered
C)  the merchandise is for resale and therefore RST/PSTexempt
D)  only the GST is required on business purchases

Question 12

Which of the following general statements is not correct -

Accepted Answer

A)  you can change the selling price for individual sales by editing the price column
B)  when a customer returns merchandise the HST charged on sales is debited in the sales return entry
C)  enter purchase returns in the adjustments journal to show the decrease in inventory
D)  freight expenses that are linked to a single inventory item may be added to the purchase price for the item

Question 13

To report on the number of units sold,revenue,cost of goods sold and the net profit,you would display the -

Accepted Answer

A)  inventory transaction report
B)  inventory statistics report
C)  supplier purchases report
D)  inventory sales report

Question 14

When you combine a sales return and new sale in a single journal entry -

Accepted Answer

A)  the sales return is recorded by entering a negative sign for the quantity
B)  the sale is recorded by entering a positive quantity
C)  the total field for the invoice will net out the sale and return
D)  all of the above

Question 15

In the sales journal,inventory item selection lists are available from -

Accepted Answer

A)  the Item Number field list icon
B)  the Item Number field list arrow
C)  the Item Description field
D)  all of the above

Question 16

When setting up a new inventory item that is combined from other items -

Accepted Answer

A)  enter each of the original items one at a time
B)  enter all the original items together
C)  set up an inventory ledger record,name the item,record the linked accounts
D)  none of the above

Question 17

Transactions entered in the inventory journals will allow all but one of the following -

Accepted Answer

A)  recording of customer and supplier invoices involving inventory
B)  adjustments for lost,stolen or damaged goods
C)  transfers from one inventory item to another
D)  the assembly of various inventory items into one finished product

Question 18

To correct a sales invoice that was accidentally posted containing the wrong inventory -

Accepted Answer

A)  reverse all original data in the sales journal with a minus sign and post; enter new sales data and post
B)  open adjust an invoice; locate the invoice; edit the inventory item,add the quantity and post
C)  pay the original invoice; prepare an invoice for the correct inventory,add the quantity and post
D)  prepare a new invoice for the correct inventory item,add the quantity and post

Question 19

If freight shipping charges had been incorrectly added to a sales invoice,you should correct the entry after posting by -

Accepted Answer

A)  selecting the invoice through the adjust an invoice screen and entering the correction
B)  entering the corrected version to correct the posted invoice
C)  looking up the invoice and reversing it
D)  recording an adjusting general journal entry to correct the freight charges

Question 20

Typing a letter or number of an inventory code in the Item Number field of the sales journal -

Accepted Answer

A)  allows you to see a reduced inventory drop-down list
B)  opens the Add Inventory Item Wizard
C)  opens a Sage 50 Accounting error message that the code is not valid
D)  none of the above

Exam 10: Flabuless Fitness