Computerized Accounting With
PEACHTREE 2012
FINAL OBJECTIVE TEST
Chapters 8-12
1.Peachtree uses the periodic inventory system.
a.True
b.False
2.Cities and states can set a minimum wage which is higher than that required by the federal government.
a.True
b.False
3.The perpetual inventory system will automatically update the Inventory and Cost of Goods Sold accounts when an inventory item has been sold.
a.True
b.False
4.Capital and drawing accounts must be established for each partner in a partnership.
a.True
b.False
5.At the end of the accounting period, Peachtree will automatically distribute the profit/loss to each partner’s capital account.
a.True
b.False
6.Which Peachtree report shows the Item ID, Item Description, Item Class, Active/Inactive status, Item Type, and Quantity on Hand for all inventory items?
a.Inventory List
b.Item List
c.Quantity on Hand
d.Inventory on Hand
7.What type of account is Salaries Tax Payable?
a.expense
b.income
c.inventory
d.liability
8.Which of the following items from the Maintain menu would you choose to create a subsidiary ledger account for an inventory item?
a.Chart of Accounts
b.Inventory Items
c.Item Prices
d.Record Inventory
9.When purchasing items from a new company, which of the following options from the Maintain menu would you choose to create the new company’s account?
a.Customers/Prospects
b.Vendors
c.Chart of Accounts
d.Invoices
10.Which Peachtree window is used to record collection on an invoice?
a.Sales/Invoicing
b.Purchases/Receive Inventory
c.Invoicing
d.Receipts
11.Which of the following options from the Tasks menu would you choose to record a sale made on credit?
a.Sales
b.Invoicing
c.Sales/Invoicing
d.Receipts
12.When a customer returns damaged goods, what Peachtree function is used?
a.Sales/Invoicing
b.Credit Memos
c.Vendor Credit Memos
d.Inventory Adjustments
13.In a period of rising prices, what inventory costing method will produce the highest dollar value for the ending inventory and the lowest cost of goods sold?
a.FIFO
b.LIFO
c.Average Cost
d.All of the above will produce the same dollar value.
14.Which of the following is the basic formula to determine cost of goods sold?
a.Beginning Inventory + Net Purchases – Goods Available for Sale
b.Beginning Inventory + Net Purchases – Ending Inventory
c.Goods Available for Sale + Beginning Inventory – Ending Inventory
d.Goods Available for Sale + Net Purchases – Beginning Inventory
15.Which of the following Peachtree features would you use to initially establish the payroll module?
a.Default Information
b.Payroll Setup Wizard
c.Payroll Entry
d.Employees/Sales Reps
16.Which Peachtree function is used to create an employee record?
a.Default Information
b.Payroll Setup Wizard
c.Payroll Entry
d.Employees/Sales Reps
17.Which of the following requires employers to withhold Social Security tax and Medicare tax from the earnings of their employees and pay a matching amount themselves?
a.Fair Labor Standards Act
b.Current Tax Payment Act
c.Federal Insurance Contributions Act
d.Federal Unemployment Tax Act
18.In the Maintain – Default Information – Employees – Employee Defaults window, which of the following two accounts are used to record both employer and employee payroll taxes?
a.FUTA Tax Payable and SUTA Tax Payable
b.Federal Income Tax Payable and State Income Tax Payable
c.FICA—Social Security Tax Payable and FICA—Medicare Tax Payable
d.FUTA Tax Payable and FICA—Social Security Tax Payable
19.In job costing, significant pieces of a large project are referred to as which of the following?
a.cost centers
b.phases
c.units
d.parts
20.Which of the following items is a characteristic of fixed assets?
a.They have an expected life of more than one year.
b.They are intended for use in the business and not for resale to customers.
c.They are tangible.
d.All of the above.
21.The difference between the cost of a fixed asset and its accumulated depreciation is
a.purchase price.
b.book value.
c.salvage value.
d.selling price.
22.Which Peachtree function is used to allocate the cost of materials originally recorded in the inventory account to a specific job?
a.Job Costs
b.Purchases/Receive Inventory
c.Inventory
d.Inventory Adjustments
23.Which of the following reports does management use to determine the amount of money made from a completed job?
a.Job Ledger
b.Job Profitability
c.Job List
d.Job Register
24.Salaries Payable would appear on which financial report?
a.Balance Sheet
b.Income Statement
c.Statement of Owners Equity
d.None of the above
25.Bringing accounts up to date before preparing financial reports is called
a.posting.
b.adjusting.
c.journalizing.
d.analyzing.
26.Which of the following is not a characteristic of a partnership?
a.unlimited liability
b.mutual agency rule
c.limited life
d.double taxation
27.The journal entry to record the declaration of cash dividends would include
a.a debit to Cash Dividends and credit to Dividends Payable.
b.a debit to Dividends Payable and credit to Cash Dividends.
c.a credit to Cash and debit to Dividends Payable.
d.a credit to Dividends Payable and a debit to Cash.
28.If a partnership agreement does not stipulate the allocation of profits and losses, by law, the profits and losses are divided
a.equally to each partner.
b.in relation to each partner’s capital balance.
c.in accordance with industry standards.
d.based upon the percentage of time each partner has contributed to the business.
29.Which of the following is the basic formula to determine retained earnings?
a.Beginning Retained Earnings + Dividends – Net Income
b.Beginning Retained Earnings + Net Income – Dividends
c.Ending Retained Earnings + Net Income – Dividends
d.Ending Retained Earnings + Dividends – Net Income
30.Which of the following refers to the shares a corporation buys back from its investors?
a.common stock
b.preferred stock
c.authorized stock
d.treasury stock
Answers to Peachtree 2012 Final Objective Test (Chapters 8-12)
1.b
2.a
3.a
4.a
5.b
6.b
7.d
8.b
9.b
10.d
11.c
12.b
13.a
14.b
15.b
16.d
17.c
18.c
19.b
20.d
21.b
22.d
23.b
24.a
25.b
26.d
27.a
28.a
29.b
30.d
© Paradigm Publishing, Inc.Page 1