Deck 13: Questions Shady Corners

Question 1

Which of the following general statements about divisions is not correct -

A) special journals and linked accounts are required for divisions
B) you may change allocation amounts at any time before posting
C) you may print journal reports with or without division allocations
D) if costs cannot be allocated accurately there is no reason to keep divisions

Answer 1

special journals and linked accounts are required for divisions

Question 2

Use the following journal entry display to answer the next questions



-What is the total amount allocated from the entry shown above -

A) $582.40
B) $640.20
C) $421.37
D) some other amount

Answer 2

$640.20

Question 3

The Allocate function may be unavailable when -

A) the cursor is on a blank journal line
B) the account ledger does not allow allocations
C) the item assembly journal is open
D) all of the above

Answer 3

all of the above

Question 4

The information provided from division allocations cannot be used for -

A) preparing customer statements
B) making decisions about expanding the business
C) making decisions about eliminating parts of a business
D) making decisions to control costs more effectively

Question 5

Allocating payroll amounts to different divisions involves -

A) editing the payroll ledger settings to allow allocation
B) editing payroll journal amounts to show the allocation
C) posting the payroll journal entry to save it and then allocating amounts
D) none of the above

Question 6

A cost variance is caused by -

A) a purchase order with the same price as the default
B) a new price that is different from the old price
C) the inventory level drops below zero
D) b and c above

Question 7

Divisions require no special journals or linked accounts but will do the following -

A) allocate only revenues
B) allocate only expenses
C) allocate revenues as well as expenses
D) allocate the total invoice amount for a purchase

Question 8

Which of the following general statements about divisions is not true -

A) there is no need to allocate if 100% of the amount is assigned to one division
B) division reports can be used for business planning
C) new divisions can be added at any time in the business
D) all of the above statements are true

Question 9

Use the following journal entry display to answer the next questions



-Which one of the following allocated amounts is correct from the journal entry above -

A) wage expense - Administration - $582.40
B) wage expense - Sales - $349.44
C) WSIB expense - Administration - $17.53
D) EHT expense - Sales - $5.49

Question 10

Which of the following are the settings options for entering division allocations -

A) enter budget amounts for divisions
B) allocate transactions by dollar amount or percentage
C) warn if allocation is not complete
D) all of the above

Question 11

Which one of the following is not a required step in setting up divisions -

A) selecting the method of allocation
B) naming divisions
C) turning on the warning for incomplete allocations
D) allowing allocation in the ledger records for accounts

Question 12

Use the following journal entry display to answer the next questions



-In the journal entry above -

A) vacation payable shows no allocation because the entire amount is allocated to one division
B) the vacation pay amount had not been calculated
C) vacation payable is not allocated
D) each amount allocated uses different percentages for the allocation

Question 13

Changing the name of the Division module will not change -

A) the way you allocate costs and revenues
B) the name of the reports in the reports menu
C) the label of the division icon in the home window
D) the labels in the division allocation windows

Question 14

When you turn on the warning for incomplete allocations, the program -

A) reminds you to change the division ledger name before entering journal transactions
B) does not allow you to post an entry until the allocation is complete
C) warns if an amount is not completely allocated
D) warns if you forgot to allow allocations for an account

Question 15

Use the following journal entry display to answer the next questions



-The journal entry above shows that -

A) the vacation pay is not allocated
B) the vacation pay is retained
C) the vacation pay has been paid
D) the vacation pay has not been calculated

Question 16

Divisions may be set up by doing the following -

A) choosing the method of allocation
B) creating new divisions and allowing allocations in account ledgers
C) creating new divisions
D) none of the above

Question 17

Division report options include -

A) choosing any or all of the revenue and expense accounts
B) available drill-down report options
C) summary or detail formats
D) all of the above

Question 18

When a division is set up and we enter a purchase, the allocate tool -

A) will automatically be highlighted
B) will automatically be dimmed
C) will be highlighted when an account that allows allocation is selected
D) will be highlighted only when an asset is purchased

Question 19

The pay cheques journal has no column on-screen to allocate payroll expenses, therefore -

A) we must open a new division for payroll
B) we must post the payroll entry before allocating expenses
C) we must choose the allocate tool or the allocate menu option to open the division allocation screen
D) we must access the division account from the payroll journal

Question 20

Which one of the following general statements about divisions is true -

A) all division income reports will show the profits for the selected divisions
B) allocate revenues by double clicking the allocation column beside the amount
C) you may print journal reports with or without division allocations
D) all of the above

Question 21

When setting up pre-authorized debits -

A) select the customer
B) check the pre-authorize debit tab
C) click this customer has a signed active pre-authorized debit agreement with my company
D) all of these are needed

Question 22

When you allow allocation for all expense and revenue accounts the following will not be allocated -

A) sales and purchase discount amounts
B) freight expense amounts
C) freight revenue amounts
D) all these expense accounts will be correctly allocated if you enter the allocation details

Question 23

Processing credit card sales automatically requires -

A) a merchant account with the credit card processing company
B) entering the merchant key code and ID as system settings
C) posting the sales invoice before entering credit card details
D) entering the merchant password during the processing stage

Question 24

When you choose to apply an allocation to the entire transaction -

A) you can change the allocation for some invoice lines
B) you must allocate 100 percent of amounts to one division or department
C) you can see the amount and percentage for each invoice line for each division or department
D) all journal amounts must be allocated in the same way

Question 25

To review the credit card details you entered after processing the sale, you would -

A) post the sale and then look up the invoice
B) click the Review Credit Card Details button before posting the sale
C) click the Review Credit Card Details button after posting the sale
D) you cannot review the details after the sale has been processed

Question 26

You can change the name of the Division module -

A) from the division settings, names screen
B) from the company settings, names screen
C) from the division settings, options screen
D) none of the above, you cannot change the name of the module

Question 27

Freight expenses -

A) cannot be allocated when they apply to purchases of assets if the asset accounts do not allow allocations
B) are allocated in the same proportion as the other accounts used in the purchase
C) are allocated separately from the other accounts used in the purchase
D) can never be allocated

Question 28

When processing credit card sales automatically, one of the following is not needed -

A) an Internet connection
B) the customer's name
C) the credit card expiry date
D) all of these are needed

Question 29

Journal reports can include or omit -

A) division allocation details
B) corrections
C) details from the additional fields
D) all of the above

Question 30

When you enter a purchase and have allowed allocation for all expense and revenue accounts -

A) cost of goods sold will be correctly allocated automatically
B) freight expenses may not be allocated
C) variance costs may not be allocated
D) all expense accounts will be correctly allocated if you enter the allocation details

Question 31

The option to apply an allocation to the entire transaction is available in -

A) sales, purchases and payroll journals
B) sales, purchases and general journals
C) sales and purchases journals
D) all journals

Question 32

You will see the warning message that an amount is not fully allocated when -

A) you have not allocated an asset amount
B) you posted an inventory purchase invoice with a cost variance amount
C) you posted a customer receipt with discounts
D) you allocated a freight amount to more than one division

Question 33

The Division module window has journal icons for -

A) all journals that allow allocations
B) division journals only
C) sales, purchases and payments
D) sales, purchases, general journal and paycheques

Question 34

Import duties -

A) are charged at the same rate on all purchases
B) are always charged on purchases but the rates may vary
C) may or may not be charged on purchases
D) are never charged on purchases of inventory items that will be resold

Question 35

Import duties on purchases of inventory items -

A) are automatically recorded as liabilities to the Receiver General for Canada once the duties are properly set up
B) require separate purchase and payment entries
C) are always charged on foreign inventory purchases
D) may be entered automatically from the rates in the inventory ledger