TEST BANK COMPUTER ACCOUNTING WITH SAGE 50 COMPLETE ACCOUNTING 17e carol chap002

Chapter 02
Vendors

True / False Questions

1. When Bellwether Garden Supply orders inventory from vendors, Account No. 12000,
Inventory is credited.
True

False

2. Vendors offer Bellwether a purchase discount for invoices paid within a discount
period.
True

False

3. Accounts payable transactions refer to transactions with vendors or suppliers.
True

False

4. In order to begin where you left off the last time you used Sage 50, you use the
backup feature.
True

False

5. The restore feature is used to save data to the current point in Sage 50.
True

False

6. In order to show the GL Account column on journal windows, you should uncheck the
settings in Options; Global that hide the general ledger accounts.
True

False

7. In Sage 50, the Purchases/Receive Inventory window is also the purchase journal.
True

False

8. Clicking on the Journal icon on the Purchase Orders window takes you to the general
ledger.
True

False

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in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.


9. When you click on the Print icon on the Purchase Orders window, you print the
purchase order and also post the purchase order journal.
True

False

10. In Sage 50, the Purchases/Receive Inventory window is also the purchase order
journal.
True

False

Multiple Choice Questions

11. In Bellwether Garden Supply, vendors are set up using:

A.
B.
C.
D.
E.

Use eight characters only.

12. Alphabetic characters in Sage 50 are:

A.
B.
C.
D.
E.

Not case sensit

Combination of upper and lowercase.

13. The contact name for the vendor Armenta's Landscaping is:

A.
B.
C.
D.
E.

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in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.


14. The purchase account for Armenta's Landscaping is:

A.
B.
C.
D.
E.

57200, Materials Cost
57000, Direct Labor
57000-LS, Direct Labor - Landscaping
57200-LS, Materials Cost - Landscaping
14700, Other Current Assets

15. The following accounts are debited and credited when you purchase inventory on
account:

A.
B.
C.
D.
E.

Dr. Inventory account, credit Account Receivable/vendor
Dr. Accounts Payable/Vendor; Cr. expense account
Dr. Inventory account; Cr. Accounts Payable/Vendor
Dr. Accounts Receivable/Customer; Cr. Sales account
Dr. Accounts Payable/Vendor; Cr. Inventory account.

16. The Payments window is also known as the:

A.
B.
C.
D.
E.

Cash Receipts Journal
Purchases Journa
Cash Disbursements Journal

17. To print a vendor check, you use the following menu bar selections:

A.
B.
C.
D.

E.

Reports & Forms; Accounts Receivable, Invoices, Preprint 1 Stub, Print
Reports & Forms; Forms, Checks, OCR AP Laser Preprinted, Print
Tasks; Payments, Check Register, Checks, Print
Reports & Forms; Financial Statements, Current Period, Print
Maintain; Vendors, Purchase Info tab.

18. On the Navigation Bar, make the following selections to display the Vendor Ledgers
Report:

A.
B.
C.
D.

Vendors & Purchases Navigation Center, link to View Detailed List and select Vend
Vendors & Purchases Navigation Center, link to View all Vendor & Purchases Repor
Maintain; Customers/Sales Reps
Customers & Sales Navigation Center, in the Vendors area, link to View Detailed

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in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.


19. The Vendor Ledgers Report is another name for the:

A.
B.

C.
D.
E.

Accounts Receivable subsidiary ledger
Inventory subsidiary ledger
Accounts Payable open items report
Accounts Payable subsidiary ledger
Controlling account

20. The suggested file name for the first back up in Chapter 2 is:

A.
B.
C.
D.
E.

Page number and chapter number

2-4
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in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.


Chapter 02 Vendors Answer Key

True / False Questions

1.

When Bellwether Garden Supply orders inventory from vendors, Account No.
12000, Inventory is credited.
FALSE
Account No. 12000, Inventory is debited.

2.

Vendors offer Bellwether a purchase discount for invoices paid within a discount
period.
TRUE

3.

Accounts payable transactions refer to transactions with vendors or suppliers.
TRUE

4.

In order to begin where you left off the last time you used Sage 50, you use the
backup feature.
FALSE
You use the restore feature to begin where you left off the last time you used Sage
50.

5.

The restore feature is used to save data to the current point in Sage 50.
FALSE
You use Sage 50's backup feature to save data to the current point. Restore is used

to start where you left off the last time you backed up a Sage 50 file.

6.

In order to show the GL Account column on journal windows, you should uncheck
the settings in Options; Global that hide the general ledger accounts.
TRUE

2-5
© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution
in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.


7.

In Sage 50, the Purchases/Receive Inventory window is also the purchase journal.
TRUE

8.

Clicking on the Journal icon on the Purchase Orders window takes you to the
general ledger.
FALSE
Clicking on the Journal icon on the Purchase Orders window takes you to the
purchase order journal.

9.

When you click on the Print icon on the Purchase Orders window, you print the
purchase order and also post the purchase order journal.

TRUE

10.

In Sage 50, the Purchases/Receive Inventory window is also the purchase order
journal.
FALSE
The Purchases/Receive Inventory window is the purchases journal.

Multiple Choice Questions

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© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution
in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.


11.

In Bellwether Garden Supply, vendors are set up using:

(p. 71)

ALa
.st
na
m
e
fir
st
BFir

.st
na
m
e
fir
st
CA
.co
di
ng
sy
st
e
m
DD
. ef
a
ul
ts
EUs
.e
ei
gh
t
ch
ar
ac
te
rs
on

ly.
Difficulty: 2 Medium

2-7
© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution
in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.


2-8
© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution
in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.


12.

Alphabetic characters in Sage 50 are:

(p. 71)

AN
.ot
ca
se
se
ns
iti
ve
BC
.as
e

se
ns
iti
ve
CAl
.w
ay
s
up
pe
rc
as
e
D
Al
.w
ay
s
lo
w
er
ca
se

2-9
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in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.


E

Co
.m
bi
na
tio
n
of
up
pe
r
an
d
lo
w
er
ca
se
.
Difficulty: 1 Easy

2-10
© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution
in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.


13.

The contact name for the vendor Armenta's Landscaping is:

(p. 72)

AJe
.ss
e
W
o
o
d
BJe
.rr
y
Jo
h
ns
o
n
CSt
.e
v
e
n
C
ol
e
D
Al
.be
rt
Ar
m

en
ta
ELil
.io
C
h
o
m
et
te
Difficulty: 1 Easy

2-11
© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution
in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.


2-12
© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution
in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.


14.

The purchase account for Armenta's Landscaping is:

(p. 72)

A
57

.20
0,
M
at
eri
al
s
Co
st
B57
.00
0,
Di
re
ct
La
bo
r
C
57
.00
0LS
,
Di
re
ct
La
bo
rLa
nd

sc
ap
in
g

2-13
© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution
in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.


D
57
.20
0LS
,
M
at
eri
als
Co
st
La
nd
sc
ap
in
g
E14
.70
0,

Ot
he
r
Cu
rr
en
t
As
se
ts
Difficulty: 2 Medium

2-14
© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution
in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.


2-15
© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution
in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.


15.
(p. 55)

The following accounts are debited and credited when you purchase inventory on
account:

A
Dr.

.In
ve
nt
or
y
ac
co
un
t,
cr
ed
it
Ac
co
un
t
Re
cei
va
bl
e/
ve
nd
or

2-16
© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution
in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.

B
Dr.
.Ac
co
un
ts
Pa
ya
bl
e/
Ve
nd
or;
Cr.
ex
pe
ns
e
ac
co
un
t
C
Dr.
.In
ve
nt
or
y
ac

co
un
t;
Cr.
Ac
co
un
ts
Pa
ya
bl
e/
Ve
nd
or

2-17
© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution
in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.


D
Dr.
.Ac
co
un
ts
Re
cei
va

bl
e/
Cu
st
o
m
er;
Cr.
Sa
les
ac
co
un
t
E
Dr.
.Ac
co
un
ts
Pa
ya
bl
e/
Ve
nd
or;
Cr.
In
ve

nt
or
y
ac
co
un
t.
Difficulty: 3 Hard

2-18
© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution
in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.


2-19
© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution
in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.


16.

The Payments window is also known as the:

(p. 76)

ACa
.sh
Re
ce
ipt

s
Jo
ur
na
l
BPu
.rc
ha
se
s
Jo
ur
na
l
CS
.al
es
Jo
ur
n
al
D
Ca
.sh
Di
sb
ur
se
m
en

ts
Jo
ur
na
l

2-20
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in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.


EG
.en
er
al
Jo
ur
na
l
Difficulty: 1 Easy

2-21
© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution
in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.


2-22
© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution
in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.

17.

To print a vendor check, you use the following menu bar selections:

(p. 7879)

A
Re
.po
rts
&
Fo
rm
s;
Ac
co
un
ts
Re
cei
va
bl
e,
In
vo
ice
s,
Pr
ep

rin
t1
St
ub
,
Pri
nt

2-23
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in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.


B
Re
.po
rts
&
Fo
rm
s;
Fo
rm
s,
Ch
ec
ks,
O
CR
AP

La
se
r
Pr
ep
rin
te
d,
Pri
nt
C
Ta
.sk
s;
Pa
y
m
en
ts,
Ch
ec
k
Re
gis
ter
,
Ch
ec
ks,
Pri

nt

2-24
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in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.


D
Re
.po
rts
&
Fo
rm
s;
Fin
an
cia
l
St
at
e
m
en
ts,
Cu
rre
nt
Pe
rio

d,
Pri
nt
E
M
.ai
nt
ai
n;
Ve
nd
or
s,
Pu
rc
ha
se
Inf
o
ta
b.
Difficulty: 2 Medium

2-25
© 2014 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution
in any manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.