Multiple Choice Questions - Chapter 5
Student Name______Date______
Section/Course______
Multiple Choice Questions - Chapter 5
____1.The inventory system used by SCA is called:
a.Sum-of-the-years digits.
b.Double-declining balance.
c.Straight-line.
d.Perpetual inventory.
e.None of the above.
_____2.A list of all the accounts used by a company showing an identifying number assigned to each account is called:
a.A chart of accounts.
b.Case-sensitive letters.
c.An account number.
d.A general ledger.
e.None of the above.
_____3.The account(s) added to Bellwether’s Chart of Accounts in this chapter is:
a.Account No. 10200, Regular Checking Account.
b.Account No. 12000, Inventory.
c.Account No. 10500, Money Market Fund.
d.a. and c.
e.All of the above.
_____4.After the March 15, 2013 transfer of funds, the General Ledger Trial Balance shows the following amount in the Money Market Fund account:
a. $4,500.00.
b. $7,500.00.
c. $62,769.25.
d. $5,004.90.
e. None of the above.
_____5.On the Maintain Inventory Items window, the Oriole Feeder is which inventory type:
a.Activity item.
b.Description only.
c.Assembly.
d.Stock item.
e.None of the above.
_____6.For Stock-Type Inventory Items, SCA tracks the following:
a.Stock quantities.
b.Unit prices.
c.Descriptions.
d.Cost of goods sold.
e.All of the above.
_____7.The journal entry to purchase an inventory stock item is:
a.Debit Accounts Payable/Vendor
Credit Inventory
b.Debit Inventory
Credit Accounts Payable/Vendor
c.Debit Account Receivable/Customer
Credit Sales Tax Payable
d.Debit Product Cost
Credit Inventory
e.None of the above.
____8.The journal entry or entries for the sale of an Inventory Item are:
a.Debit Accounts Receivable/Customer
Credit Sales
b.Debit Accounts Receivable/Customer
Credit Sales
Credit Sales Tax Payable
Debit Product Cost
Credit Inventory
c.Debit Sales-Retail
Debit Sales Tax Payable
Credit Accounts Receivable/Customer
Debit Product Cost
Credit Inventory
d.Debit Inventory
Credit Product Cost
e.None of the above.
____9.Shows all entries and changes related to the company’s data, including actions by specific users.
a.Find transactions.
b.Report groups.
c.Audit trail.
d.Internal control.
e. All of the above.
____10.The integrated system of people, processes, and procedures that minimize or eliminate business risks, protect assets, ensure reliable accounting, and promote efficient operation is called:
a.Sage 50’s find transactions capability.
b.Sage 50’s audit trail reports.
c.Internal control.
d.Setting up the administrator for access to all records.
e.None of the above.
ANALYSIS QUESTIONS
- List four ways that Sage 50 includes user security and internal control.
- How is the audit trail associated with user security? Provide an example.
- How does user security address the purpose of internal control?