Multiple Choice:
21. All the following are true regarding Quotesexcept:
a. Quotes post entries to general ledger accounts
b. Quotes can be transferred to create an invoice
c. Quotes can be linked to customer jobs
d. Quotes can be linked to items
22. If a customer was overcharged for theservices, the customer's invoice can be reduced by posting a:
a. Sales invoice
b. Customer receipt
c. Debit memo
d. Credit memo
23. On the statement of cash flows, the cashflows from operating activities section would include:
a. Receipts from the issuance of capital stock
b. Receipts from the sale of investments
c. Payments for the acquisition of investments
d. Net income
24.The Income Statement will include thefollowing accounts:
a. Revenues less Expenses (ordered largest to smallest amount)with Other Expenses listed last
b. Revenues less Expenses (ordered smallest to largest amounts.With Miscellaneous Expenses listed last
c. Revenues less Expenses (ordered in alphabetical order) withOther Expenses listed last
d. Revenues less Expenses (order is not important)
25. The Statement of Cash Flows answers all ofthe following except:
a. Where the receipts come from
b. Where the cash payments were used for
c. What the overall change in cash was
d. If there will be enough cash to pay the currentliabilities
26. On the Navigation Bar, make the followingselections to enter a sales invoice:
a. Customers & Sales Navigation Center, click on theCustomers icon and select View and Edit Customers
b. Customers & Sales Navigation Center, click on the SalesInvoices icon and select Set up Invoice Defaults
c. Tasks; Purchases/Receive Inventory
d. Customers & Sales Navigation Center, click on the SalesInvoices icon and select New Sales Invoice
27. The following would be included in theheading of an income statement:
a. Title of the statement
b. Name of the business
c. Period of time covered by the statement
d. All of the above
. 28. A departmentalized accounting systemprovides information that can be used to:
a. Custom design departmental statements
b. Evaluate profitability and cost effectiveness
c. Evaluate current assets
d. Modify PCA's standard forms
29. In Peachtree, information about a sale isrecorded in the:
a. Purchase window
b. Inventory window
c. Purchases/Receive Inventory window
d. Sales/Invoicing window
30. The sample company, Bellwether GardenSupply, uses which method of posting?
a. Batch posting
b. Real-time posting
c. Cash basis posting
d. Accrual basis posting
Multiple Choice:
21. All the following are true regarding Quotesexcept:
a. Quotes post entries to general ledger accounts
b. Quotes can be transferred to create an invoice
c. Quotes can be linked to customer jobs
d. Quotes can be linked to items
22. If a customer was overcharged for theservices, the customer's invoice can be reduced by posting a:
a. Sales invoice
b. Customer receipt
c. Debit memo
d. Credit memo
23. On the statement of cash flows, the cashflows from operating activities section would include:
a. Receipts from the issuance of capital stock
b. Receipts from the sale of investments
c. Payments for the acquisition of investments
d. Net income
24.The Income Statement will include thefollowing accounts:
a. Revenues less Expenses (ordered largest to smallest amount)with Other Expenses listed last
b. Revenues less Expenses (ordered smallest to largest amounts.With Miscellaneous Expenses listed last
c. Revenues less Expenses (ordered in alphabetical order) withOther Expenses listed last
d. Revenues less Expenses (order is not important)
25. The Statement of Cash Flows answers all ofthe following except:
a. Where the receipts come from
b. Where the cash payments were used for
c. What the overall change in cash was
d. If there will be enough cash to pay the currentliabilities
26. On the Navigation Bar, make the followingselections to enter a sales invoice:
a. Customers & Sales Navigation Center, click on theCustomers icon and select View and Edit Customers
b. Customers & Sales Navigation Center, click on the SalesInvoices icon and select Set up Invoice Defaults
c. Tasks; Purchases/Receive Inventory
d. Customers & Sales Navigation Center, click on the SalesInvoices icon and select New Sales Invoice
27. The following would be included in theheading of an income statement:
a. Title of the statement
b. Name of the business
c. Period of time covered by the statement
d. All of the above
. 28. A departmentalized accounting systemprovides information that can be used to:
a. Custom design departmental statements
b. Evaluate profitability and cost effectiveness
c. Evaluate current assets
d. Modify PCA's standard forms
29. In Peachtree, information about a sale isrecorded in the:
a. Purchase window
b. Inventory window
c. Purchases/Receive Inventory window
d. Sales/Invoicing window
30. The sample company, Bellwether GardenSupply, uses which method of posting?
a. Batch posting
b. Real-time posting
c. Cash basis posting
d. Accrual basis posting
Related questions
Stacey's Piano Rebuilding Company has been operating for one year. At the start of the second year, its income statement accounts had zero balances and its balance sheet account balances were as follows:
| Cash | $ | 6,400 | Accounts payable | $ | 9,600 |
| Accounts receivable | 32,000 | Unearned revenue | 3,840 | ||
| Supplies | 1,500 | Long-term note payable | 48,500 | ||
| Equipment | 9,500 | Common stock | 1,600 | ||
| Land | 7,400 | Retained earnings | 11,560 | ||
| Building | 25,300 | Additional paid-in capital | 7,000 | ||
a. Rebuilt and delivered five pianos in January to customers who paid $19,000 in cash.
b. Received a $600 deposit from a customer who wanted her piano rebuilt.
c. Rented a part of the building to a bicycle repair shop; received $850 for rent in January.
d. Received $7,200 from customers as payment on their accounts.
e. Received an electric and gas utility bill for $400 to be paid in February.
f. Ordered $960 in supplies.
g. Paid $2,300 on account in January.
h. Received from the home of Stacey Eddy, the major shareholder, a $920 tool (equipment) to use in the business in exchange for 100 shares of $1 par value stock.
i. Paid $16,500 in wages to employees who worked in January.
j. Declared and paid a $2,200 dividend (reduce Retained Earnings and Cash).
k. Received and paid cash for the supplies in (f).
Required:
Prepare an income statement for January 31 (ignore income taxes). Fill in the letters
STACEYΓ’ΒΒS PIANO REBUILDING COMPANYIncome Statement (unadjusted)
For the Month Ended January 31
Operating revenues
a)
b)
Total operating revenues: a)
Operating expenses
a)
b)
c)
d)
Total operating expenses: a)
Other item:
a)
b)
c)
