BEGINING BALANNCE MULTIPLECHOICE TEST Test Questions FIRST NAME LAST NAME Your Email 1. What is the difference between setting up, on an accounting system, a “corner store” that only has shelves of items for sale and a cash register, and a large company that ships goods to and from vendors and customers who purchase and sell on credit and cash? a. A small company needs sales data in order to be set up properlyb. A large company needs to provide a credit report with a credit rating in order to be set up properlyc. A corner store only needs to count the on-hand inventory as of the startup dated. A large company has additional areas of data that need to be set up before all the opening balances in the general ledger can be established 2. What is the one action needed to establish the beginning balances of a company that only uses cash and has a general ledger and no other area of accounting data to record? a. A journal entryb. Filing an income tax statementc. Performing an auditd. None of the above 3. When setting up accounts receivable, what transaction type listed below must be input into the customer’s records? a. Sales receiptsb. Open invoicesc. Paid invoicesd. Customer direct deposits 4. When setting up accounts receivable, what types of payments need to be recorded into each customer’s records? a. All invoice paymentsb. All payments to closed invoicesc. Full payments to open invoicesd. Partial and full payments to open invoices 5. When setting up accounts payable, what transaction type listed below must be input into the vendor’s records? a. Checksb. Paid billsc. Unpaid billsd. Expense transactions 6. When setting up accounts payable, what types of bill payments need to be recorded into each vendor’s records? a. All bill paymentsb. All bill payments to closed billsc. Full bill payments to unpaid billsd. Partial and full bill payments to unpaid bills 7. If a company has open A/R invoices, unpaid A/P bills, and inventory on hand as of the start date of a new accounting system, what is the proper order of setup for these areas of data? a. 1) General Ledger, 2) Receivables and Payables, 3) Merchandise Inventoryb. 1) Merchandise Inventory, 2) Receivables and Payables, 3) General Ledgerc. 1) Receivables and Payables, 2) Merchandise Inventory, 3) General Ledgerd. 1) General Ledger, 2) Merchandise Inventory, 3) Receivables and Payables 8. Which of the following areas of data require an adjustment to have their starting numbers set as of the official date of start? a. Sales tax and inventoryb. Receivables and payablesc. General ledger and receivablesd. General ledger and payables
