Devry acct 251 final exam

1. DEVRY ACCT 251 Final Exam
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The Final Exam has 3 pages and is worth 270 points total. This first
page has all Multiple Choice questions.
Question 1.1. (TCO 1) To display the size of your backup file, you can
use the Windows program called: (Points : 5)
Windows Explorer
Scan disk
Defrag
Windows Accessories
Windows Defender
Question 2.2. (TCO 1) The Edit menu allows you to do the following:
(Points : 5)

2. cut
copy
paste
clear
find transactions
Question 3.3. (TCO 1) The balance sheet lists: (Points : 5)
assets, liabilities, and capital of a business.
revenues and expenses of a business.
the percentage of revenue at the end of the year.
the percentage of debt at the end of the year.
cash disbursements.
Question 4.4. (TCO 1) Business managers and owners depend on
financial statements because: (Points : 5)
Peachtree automatically calculates accurate financial statements.
financial statements are for internal use only.
they have primary responsibility for the business.
they can evaluate cash and make appropriate decisions.
they can use account balances to customize financial statements.
Question 5.5. (TCO 2) The sample company, Bellwether Garden
Supply, uses which method of posting? (Points : 5)
Batch posting

3. Real-time posting
Cash basis posting
Accrual basis posting
Just-in-time posting
Question 6.6. (TCO 2) The posting method used by the business in
Chapter 9 is: (Points : 5)
batch posting
real-time posting
a combination of batch posting and real-time posting.
accrual posting
cash basis posting
Question 7.7. (TCO 2) The account type specified on the chart of
accounts is also the account classification for the: (Points : 5)
balance sheet and income statement
general ledger
general journal
cash receipts journal
receipts
Question 8.8. (TCO 3) In Chapter 11, the
______________________________is completed before recording and
posting the end-of-quarter adjusting entries. (Points : 5)
adjusted trial balance

4. cash disbursements journal
unadjusted trial balance
cash receipts journal
post-closing trial balance
Question 9.9. (TCO 3) The best time to record adjusting entries is:
(Points : 5)
the end of the quarter.
the end of each month.
six month intervals.
the end of the year only.
during the month.
Question 10.10. (TCO 4) To change accounting periods, you need to
make the following menu bar selections: (Points : 5)
Tasks; System, Change Accounting Period
Tasks; Default, Change Accounting Period
Tasks; Maintain, Defaults
Maintain; System, Change Accounting Period
Maintain; User Security
Question 11.11. (TCO 4) If your journals do not agree with the
textbook illustrations, use the following Peachtree feature: (Points :
5)
Maintain; defaults, general ledger

5. Edit journal transactions
Tasks; general journal transaction
Maintain chart of accounts
Company page; link to restore
Question 12.12. (TCO 5) The account credited on the Receipts
window is: (Points : 5)
Account No. 1020, Checking Account
The GL Account selected
Account No. 1040, IRA Savings
The Receipts window does not need to have an account credited.
Account No. 1010, Money Market
Question 13.13. (TCO 5) In Chapter 10, you do the following:
(Points : 5)
Set up a retail business.
Select November 2010 as the accounting period.
Record deposits, checks, and ATMs.
Print the chart of accounts.
Record purchase invoices.
Question 14.14. (TCO 6) On the Navigation Bar, make the following
selections to enter a sales invoice: (Points : 5)
Customers & Sales page; click on the Customers icon and select
View and Edit Customers.

6. Customers & Sales page; click on the Sales Invoices icon and select
Set Up Invoice Defaults.
Tasks; Purchases/Receive Inventory.
Customers & Sales page; click on the Sales Invoices icon and select
New Sales Invoice.
Inventory & Services page; click on the Invoice icon, select View and
Edit Invoices.
Question 15.15. (TCO 6) The standard sales discount, in terms of
number of days, for Bellwether Garden Supply is: (Points : 5)
no sales discount is offered.
a discount if balance is paid in full within 10 days.
a discount if balance is paid in full within 15 days.
a discount if balance is paid in full within 20 days.
a discount if balance is paid in full within 25 days.
Question 16.16. (TCO 6) You need to set up a Job ID for Franklin
Botanical Gardens in Chapter 6, so that you can track: (Points : 5)
the employees’ expenses and miles driven to the job.
how much the merchandise cost.
how much the merchandise sold for.
the supplies and employee hours charged to this customer.
employee expenses and cost of inventory.
Question 17.17. (TCO 6) The Sales/Invoicing window is also known
as the: (Points : 5)

7. purchase journal
cash receipts journal
sales journal
cash disbursements journal
general ledger
Question 18.18. (TCO 6) On the Navigation Bar, make the following
selections to record a sales return: (Points : 5)
Customers & Sales page; click on the Credits and Returns icon and
select Make Payment to Customer, select the customer, type the
invoice number
Customers & Sales page; click on the Credits and Returns icon and
select New Credit Memo
Customers & Sales page; click on the Sales Invoices icon and select
New Sales Invoice
Customers & Sales page; click on the Credits and Returns icon and
select View and Edit Credit Memos
Tasks page; select Maintain Customers/Sales Reps, Defaults
Question 19.19. (TCO 6) On the Navigation Bar, make the following
selections to record a cash sale: (Points : 5)
On the Customers & Sales page, click on the Sales Invoices icon and
select New Sales Invoice.
On the Customers & Sales page, click on the Receive Money icon
and select View and Edit Payments Receive, Apply to Revenues tab,
record the cash sale.
On the Customers & Sales page, click on the Receive Money icon
and select Receive Money From Customer, Apply to Revenues tab,
record the cash sale.

8. On the Banking page, click on the Receive Money icon and select
Receive Money From Customer, Apply to Revenues tab, record the
cash sale.
On the Inventory & Services page, select Inventory Adjustments.
Question 20.20. (TCO 6) The Franklin Botanical Gardens job has the
following special circumstance: (Points : 5)
It is a motel overlooking a freeway.
It is a hotel near the airport.
It is a new building overlooking a park.
It is an apartment complex with surrounding gardens.
A newly remodeled building.
Question 1.1. (TCO 7) On the Navigation Bar, make the following
selections to enter inventory item maintenance information:
(Points : 5)
Inventory & Services page; click on the Inventory Items icon, select
View and Edit Inventory items and record inventory information
Vendors & Purchases page; click on the Purchase Orders icon, select
New Purchase Orders and record inventory information
Inventory & Services page; click on the Inventory Items icon, select
New Inventory Item and record inventory information
Maintain; Defaults, Inventory Items, record inventory information
Vendor & Purchases; select Pay Bills, New Bill
Question 2.2. (TCO 7) The LIFO (last in, first out) method of
inventory assumes: (Points : 5)
the lowest amount of net loss.
the highest amount of net income.

9. cost of sales is based on current replacement.
beginning inventory is sold first.
overall Average cost.
Question 3.3. (TCO 7) On the Navigation Bar, make the following
selections to make a general journal entry: (Points : 5)
Company page; click on the Chart of Accounts icon and select View
and Edit Accounts
Company page; link to General Journal Entry
Banking page; click on the Write Checks icon and select New Check
Company page; link to Restore a backup and click on the General
Journal Entry icon
Maintain; select General Journal record
Question 4.4. (TCO 7) If your GL Account columns and A/P Account
field are not displayed on the
Purchases/Receive Inventory window, you need to: (Points : 5)
check the Tasks windows.
check the maintenance menus.
click on Options; Global and uncheck the three boxes in the Hide
General Ledger Accounts section.
reset the defaults in the Accounting Behind the Screens selection.
accounting Behind the Screens cannot be changed.
Question 5.5. (TCO 9) An organized body of related information is
called a/an: (Points : 5)

10. feature of the software
software function
accounting software application
Peachtree Complete Accounting
database
Question 6.6. (TCO 9) The Payments window is also known as the:
(Points : 5)
Cash Receipts Journal
Purchase Journal
Sales Journal
Cash Disbursements Journal
General Journal
Question 7.7. (TCO 9) The following accounts are debited and
credited when you purchase inventory on account: (Points : 5)
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.
Question 8.8. (TCO 9) Sharon’s Service Merchandise is a partnership
owned by: (Points : 5)
Sharon Stewart and David Becker

11. Constance Molina and Sally Sweeney
Charles Anderson and Sharon Walters
Karen Hart and Maria Stanton
Richard Williams and Carol Dash
Question 9.9. (TCO 9) The Purchases/Receive Inventory window is
also called the: (Points : 5)
cash disbursements journal
sales journal
cost of goods sold journal
purchase journal
general journal
Question 10.10. (TCO 9) Sharon’s Service Merchandise accounting
records are set up to begin on: (Points : 5)
November 1, 2010
December 1, 2010
January 1, 2009
January 1, 2010
December 1, 2009
Question 11.11. (TCO 10) Processing payroll is automatic once
_____________________ are set up correctly. (Points : 5)
defaults
tasks

12. employees/sales rep tasks
payroll tables
manually recorded payroll deductions
Question 12.12. (TCO 10) The employee deductions display as
negative amounts on the Payroll Entry window because: (Points : 5)
they are added to the paycheck amount.
they are not used to compute the paycheck.
they are deducted from the employee’s gross pay.
the employer always pays deductions from the paycheck.
employee deductions display as positive amounts.
Question 13.13. (TCO 10) The account number used to record
employees’ regular pay is: (Points : 5)
77500
77600
77700
77800
77900
Question 14.14. (TCO 10) On the Navigation Bar, make the following
selections to enter employee maintenance information: (Points : 5)
Employees & Payroll page; click on the Employees icon and select
Write Letters to Employees
Employees & Payroll page; click on the Employees icon and select
New Employee

13. Employees & Payroll page; click on the Pay Employees icon and
select Set Up Payroll Service
Tasks; Payroll Entry
Tasks; Payroll Entry, View and Edit Employee Payments
Question 1. 1. (TCO 2, 3, & 4) The following selected accounts with
normal balances appeared in the unadjusted trial balance of
Bellwether Garden Industries:
Accounts receivable $176,000
Prepaid rent 69,000
Prepaid insurance 36,000
Equipment 280,000
Accumulated depreciation-equipment 30,000
Unearned service revenue 24,000
Salary expense 130,000
REQUIRED: Prepare the necessary year-end adjusting entries as of
December 31, 2011 for each part. Be sure to note which account is
debited and credited.
– Part A: One-half of the revenue received in advance has been
earned by December 31, 2011.
– Part B: The prepaid insurance represents three years’ premium on
a policy providing coverage starting September 1, 2011.
– Part C: Since the last payday, employees have earned an additional
$2,500 which has not yet been paid or recorded.
– Part D: The equipment has an estimated life of 10 years and no
expected value at the end of its life.
– Part E: Services performed but unbilled and uncollected at year-
end amount to $6,500.

14. – Part F: The prepaid rent relates to one-half of a year beginning on
October 1, 2011.
(Points : 25)
Question 2. 2. (TCO 2, 4, & 5) Prepare any journal entries based on
the following data regarding the bank reconciliation prepared by
Titon Com for the month of April 20XX:
Part A. The unadjusted balance in the cash account on Titon’s books
was $8,715.71.
Part B. The April 30 balance shown on Titon’s bank statement was
$8,472.36.
Part C. A customer that owed Titon $700 on a note paid the $700,
and $35 for interest directly to Titon’s bank. Titon did not know
about this payment prior to receiving its bank statement.
Part D. Titon had made a deposit of $1,635.25 near the end of April
that had not cleared the bank when it prepared Titon’s bank
statement.
Part E. Titon discovered that a check it had written for $153.15 had
been erroneously recorded in its books as $135.15. This check had
been written to pay an account payable.
Part F Three checks that Titon had written during April had not
cleared the bank by April 30. The amounts of these checks were
$147.90, $372.15, and $209.45.
Part G. Titon has a checking account that earns interest on the
minimum monthly balance. The bank statement showed that $35.12
of interest was earned during April.
Part H The bank statement showed that a check written by one of
Titon’s customers was returned for NSF. The check was for $79.72.
Titon did not know about the NSF check before receiving its bank
statement.
Part I. The bank charged Titon a $10.00 service charge for the
month of April.

15. REQUIRED: Prepare the necessary reconciliation entries for each
part. Be sure to note which account is debited and credited.
(Points : 25)
Question 3. 3. (TCO 2, 4, & 7) Inventory data for Midwest Logistics
Company for June 20XX are as follows:
June 1 balance 80 units at $25
June 10 purchase 100 units at $28
June 15 sale 120 units
June 21 purchase 90 units at $32
June 30 sale 130 units
REQUIRED: Using the FIFO cost method, compute ending inventory
as of June 30, 20XX and determine cost of goods sold for June. Be
sure to show your calculations. (Points : 25)
Question 4. 4. (TCO 2, 4, & 8) On January 2, 20XX, Bellwether
Garden Supply purchased a delivery truck for $34,000. The
estimated useful life of the truck is 5 years, with an estimated
salvage value of $4,000. The truck is expected to be driven 200,000
miles during its useful life.
Part A. Compute the amount of depreciation expense that the
company will recognize in a year in which the truck is driven 47,000
miles, assuming the company uses the units-of-production method.
Part B. Compute the book value of the asset at the end of the Third
year, assuming the company uses the straight-line method.
Part C. Determine the balance in the Accumulated Depreciation
account at the end of the Second year that it owns the asset,
assuming the company uses the double-declining-balance method.
REQUIRED: For each part, compute the results. Be sure to show your
calculations. (Points : 25)