Multiple Choice Questions

1. In Chapter 2, backups are made to the following location:
a. TheplacespecifiedfortheUSBdrive.
b. C:\SageSoftware\Peachtree\Company\[filename].
c. X:\Exercise 1A.
d. D:\Chapter1_Exercise1-1.
e. None of the above

2. Cash discounts from vendors in return for early payment of an invoice are called:
a. Salesdiscounts.
b. Returnsandallowances.
c. Purchase discounts.
d. Markdowns.
e. Noneoftheabove

3. You can enter information within a lookup field by using one or more of the following keys:
a. Typethe<+>symbol.
b. Double-clickwiththemouse.
c. a.orb.
d. Type the invoice number.
e. Noneoftheabove

4. Why is it important that your coding system for vendors be consistent and logical?
a. Allvendorsandcustomersshouldbeidentifiedby3digits.
b. So that others working in your company can determine avendor code from the company name.
c. All the vendors and customer numbers are already set upfor Bellwether Garden Supply so you don't have to worryabout it.
d. Allcustomersandvendorsshouldbeidentifiedbythefirsteight letters of a company's name.
e. Noneoftheabove.

5. Why are purchase orders used?
a. Topostaccountinginformation.
b. Toplaceanorderwithacustomer.
c. To update the accounts payable subsidiary system.
d. Torequestitemsfromavendor.
e. Noneoftheabove.

6. It is important to use either upper or lowercase letters to identify a vendor because the program:
a. Issusceptible.
b. Doesn'trecognizenumbers.
c. Doesn't recognize symbols.
d. Iscasesensitive.
e. Noneoftheabove.

7. Which window do you use to add a new vendor?
a. MaintainVendors.
b. Purchases/ReceiveInventory.
c. Menubar.
d. SelectaReport.
e. Noneoftheabove.

8. Going from the general ledger to the original entry window is called:
a. Drilldown.
b. Coding.
c. Lookup.
d. Noneoftheabove.
e. Alloftheabove.

9. When you make an entry in the Purchases/Receive Inventory window for Armstrong's Landscaping you are debiting and crediting which accounts:
a. Dr.AccountsPayable/Armstrong'sLandscaping Cr. Cash in Checking Cr. Purchase Discounts
b. Dr.Cash Cr. Accounts Payable
c. Dr. Cash Cr. Sales
d. Dr.MaterialsCost Cr. Accounts Payable/Armstrong's Landscaping
e. Noneoftheabove.

10. Which of the following Navigation Bar, Vendors & Purchases selections do you use to issue a return of merchandise to a vendor?
a. Vendors&PurchasesTasks;Purchases/ReceiveInventory.
b. Credits&Returns;NewVendorCreditMemo. c. Sales/Invoicing.
d. CreditMemos.
e. Noneoftheabove.

True / Make True Questions:

1. Accounts Payable is money you pay to customers.

2. Vendor default information needs to be setup to establish the criteria used when computing vendor discounts.

3. Each time you use the Write Checks window, you are journalizing in the Cash Disbursements Journal.

4. The purchase discount offered to Cynthia's Service Merchandise from their vendors is 2% 10, Net 30 Days

5. Each time you use the Payments window, you are journalizing in the Purchases Journal.

6. The merchandise that Cynthia's Service Merchandise buys from Ronald Becker Fabrics is classified as wall coverings.

7. The detailed types list includes chart of accounts numbers with five digits.

8. The Maintain Vendors window is used to enter information about vendors from whom you purchase merchandise.

9. All accounting software applications, regardless of the size of the company, are the same.

10. Each accounting software application (for example, Peachtree, QuickBooks, and Microsoft Dynamics GP) has a unique system design.