Part -1:
1. The inventory system used by PCA 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. AccountNo.10200, Regular Checking Account.
b. AccountNo.12000, Inventory.
c. Account No. 10500, Money Market Fund.
d. a. and c.
e. All of the above.
4. After the March 15, 2012 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, PCA 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. Peachtree's find transactions capability.
b. Peachtree's audit trail reports.
c. Internal control.
d. Setting up the administrator for access to all records.
e. None of the above.
Part -2:
1. Draw the diagram that shows how the job cost system works with purchases, sales, and payroll.
2. What is the description of the Franklin Botanical Gardens job?
3. What is the customer ID for Franklin Botanical Gardens?
4. How much does Franklin Botanical Gardens owe for the one Bel-Gro Home Irrigation System (include the sales tax)?
5. What is the GL account (name and number) for the purchase of the wood treatment?
6. What is the name of the report that tells you about Bellwether's jobs?
7. When inventory items are purchased for jobs, what do you need to do?
8. How many hour(s) did Alex C. Kornel work on the Franklin Botanical Gardens job?
9. Summarize the advantage to using Peachtree's job costing feature.
10. What does the Job Profitability report show?