Chapter 7 Air Care Services

Which of the following components make up the payables ledger setup

Payables and sales tax setting defaults

Payables linked accounts

Set up supplier information and historical data

All of the above

If the bank issues a new series of cheques with a different numbering sequence

B. We must change the cheque number in the Report & Form Options to match the new cheque numbers

C. We must start the numbering system for forms all over again

D. We must request that the bank prepare another order of cheques to match our numbers

A. We must change the payments settings to accommodate the alpha letter and the number

3. What mistakes can you not correct after you finish entering the history for the payables ledger

A. Mistakes made in historical supplier invoices

B. Mistakes made in the supplier account names

C. Mistakes made in the supplier payment terms

D. You can make all of the above corrections

4. What step is not involved in setting up the payables ledger

A. Enter the payables and sales tax setting defaults

B. Enter the payables linked accounts

C. Enter the supplier payment terms and historical data

D. All of the above are steps in setting up the payables ledger

5. If you record an incorrect payables historical invoice

A. Pay all invoices for the supplier, clear paid invoices and re-enter the historical data

B. Each historical invoice must be recorded separately

C. Delete the historical data and re-enter historical data

D. Delete the supplier record and begin again

6. Which one of the following will prevent you from finishing the history for the payables ledger –

A. The supplier payment terms are not defined

B. The amounts in the subsidiary supplier accounts do not match the Accounts Payable control account balance

C. The sales tax rate is not defined

D. The program will always finish the history but warns you to make the corrections later

7. What is the purpose of entering historical invoices and payments for suppliers –

A. To allow tracking of discounts taken

B. To total all purchases for the supplier this year

C. To allow the supplier balance field to be updated

D. All of the above

8. Where do you enter rates for sales taxes –

A. The payables ledger screen

B. settings, sales taxes

C. The historical suppliers screen

D. None of the above

9. Which statement is true about linked accounts

A. You must remove the linked account before you can remove the general ledger account

B. Linked accounts cannot be removed once the history is finished

C. Linked accounts are subsidiary accounts

D. All of the above

10. Which role do properly linked accounts not perform for a purchase invoice

A. Allow all subsidiary ledgers to be updated with one amount

B. allow HST to be recorded

C. Allow freight expense to be recorded

D. Allow purchase discounts to be recorded

11. Which one of the following statements about linked accounts is correct

A. They show invoices paid and unpaid

B. You are able to enter all linked accounts after finishing the history

C. You are able to post a discounted sale if sales discount is not linked

D. Bank accounts may be linked more than once

12. What step is not involved in setting up the receivables ledger –

A. Setting the defaults to customize the receivables ledger

B. Setting the receivables bank and accounts receivable linked accounts

C. Receivables ledger amounts must match the general ledger amounts

D. Recording a sales invoice

13. When you record an incorrect receivables historical invoice –

A. Delete the historical invoice and re-enter the historical invoice

B. Each historical invoice must be recorded separately

C. Pay the invoice, delete paid invoices and re-enter historical data

D. Click done to save the entry

14. To access the Receivables Settings in the classic view you might

A. a. Choose setup from the main menu, settings, Receivables

B. right-click the customers icon, then click the setup tool button

A. Click the setup tool button, then customers

D. A and c above

15. Topics called aging periods, interest charges, new customer tax codes are

A. Accounts receivable setting options

B. Accounts payable setting options

C. Columns found on a sales invoice

D. None of the above

16. What mistakes can you not correct after finishing history

A. Mistakes made in the general ledger account names

B. Mistakes made in the sales tax rate

C. Mistakes made in historical invoices

D. You are able to make all of the above corrections

17. The receivables ledger input screens will let you do all but one of the following

A. Enter e-mail and Web site addresses

B. Enter discount rates and amounts

C. Enter other options for address, taxes, memo

D. Post regular invoices

18. The Credit Card setup information screen requires that

A. You click the option to allow credit card sales and purchases

B. The name of each credit card appears on a separate line

C. You enter interest rate charged to the credit card company

D. You enter the revenue account to record interest charges

19. One of the following statements is true about credit cards

A. Set up cards used and accepted from the company settings

B. Set up cards used from the payables ledger settings

D. Both b and c are correct

C. Set up cards accepted from the receivables ledger settings

20. You will be unable to see HST tax codes for sales when

A. the HST charged account is not linked

B. the PST payable account is not linked

C. the HST paid account is not linked

D. All of the above are correct

21. You will be unable to apply tax codes for sales when –

A. The customer is set up as tax exempt

B. The default customer tax code is No tax

C. A foreign customer has been selected for the sale

D. You choose Quick Add for a new customer

22. Which of the following conditions will prevent you from finishing the history for the Receivables Ledger –

A. The linked account for discounts is omitted

A. An outstanding customer invoice is omitted

C. A historical payment is omitted

D. Both b and c above

23. Defining linked accounts correctly

A. Allows you to enter historical payments

B. Is an essential step for finishing the ledger history

C. Allows you to change the payment terms

D. Allows you to enter customer records

24. The Integrity Summary –

A. Records the unpaid invoices for customers

B. Balances the unpaid invoices with the corresponding ledger balances

C. Records the unpaid invoices for suppliers

D. None of the above

25. Which of the following statements about terms for historical customer invoices is correct

A. They must be the same as the terms on the receivables ledger settings screen

B. They must be the same as the terms in the customer’s ledger record

C. They can be changed for each individual invoice

D. The terms do not apply to historical invoices, only current invoices

26. Which one of the following is the best order for entering setup information –

A. accounts, sales taxes and tax codes, suppliers and customers

B. accounts, suppliers and customers, sales taxes and codes

C. Suppliers and customers, sales taxes and codes and accounts

D. It does not matter which order you use to enter the above information

27. The class option Bank is needed for accounts used for

A. Payments by cheque in the purchases and payments journals

B. Deposits of receipts from customers

C. Credit card receipts from customers

D. A and b above are correct

28. Expense accounts created in account ledger windows are assigned by default to

A. The expenses class

B. The operating expenses class

C. The cost of good sold class

D. The extraordinary expenses class

29. Before you can select these accounts as linked accounts, the class options must be set correctly for

A. Bank class accounts

B. Inventory linked accounts

C. Income and expense accounts for financial reports

D. All of the above

30. Before entering historical invoices for a supplier you must

A. Choose allow historical transactions

B. Save or create the supplier record

C. Enter the account terms for the supplier

D. All of the above

31. If a federal or provincial government changes the sales tax rate, you should

A. Create new tax codes for the tax at the new rate

B. Edit the existing tax codes by changing the tax status

C. Edit the existing tax codes by changing the tax rate

D. Edit the details for the tax on the Sales Tax, Taxes tab screen

32. From the Settings icon in the Payables module window, you can access

A. The settings for all ledgers

B. Settings for cheque numbers

C. Settings for reports

D. Only the settings for the Payables Ledger

33. To finish the history when you are using only the General, Payables and Receivables modules you must view

A. Icons for the general, receivables and payables pages or modules

B. Icons for the company, banking, receivables and payables pages or modules

C. Icons for the company, receivables and payables pages or modules

D. Icons for all modules

34. When you select a different industry or company type

A. The terminology for home window icons may change

B. The terminology for report names may change

C. The terminology for journal names may change

D. All of the above

35. You cannot change terminology for –

A. The sales journal

B. The customers icon

C. The general journal

D. You can change the terminology for any of the above

36. Unbalanced amounts for historical General Ledger account balances may be assigned

A. Automatically to the Current Earnings linked account

B. Automatically to the Test Balance account you created

C. Automatically to any account you choose for this purpose in the settings for the ledger

D. Any account you choose when the message about unbalanced amounts appears

37. If you want unbalanced General Ledger historical amounts to be assigned to an account automatically

A. Choose the automatic account you want to use when the message about unbalanced amounts appears

B. Choose the automatic account you want to use in the general ledger linked accounts settings screen

C. Choose to apply the balance to the Retained Earnings linked account in the general ledger linked accounts settings screen

D. You cannot choose an automatic account for this purpose

38. To charge customers interest on overdue accounts, you need to

A. Enter the interest rate charges in the customer’s ledger record and Sage 50 Accounting will automatically create an invoice for the interest charge when the account is overdue

B. Enter the interest rate charges as ledger settings, print statements and create the invoices for the interest amounts on the statements

C. Calculate the amount of interest owed and create an invoice for this amount

D. Print and send out customer statements and enter the receipts when the customers pay the interest charges

Chapter 7 Air Care Services

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