Chapter 6 (Phobe's Photo Studio)

A modern photo studio setting with accounting books and journals, showcasing photography equipment along with financial documents in a bright, engaging atmosphere.

Phobe's Photo Studio Quiz

Test your knowledge about sales transactions and accounting principles relevant to Phobe's Photo Studio! This engaging quiz features 43 questions that cover various aspects of sales journals, receipts, and financial reports.

  • Multiple choice questions
  • Focus on practical accounting scenarios
  • Ideal for anyone in the photography business or finance students
43 Questions11 MinutesCreated by CapturingClouds317
1. The sales journal may be used for –
A. All credit card sales transactions
B. All sale transactions paid by cash
C. All sales transactions paid by cheque
D. All of the above
2. Transactions entered in the sales journal will allow all but one of the following –
A. Recording of all necessary details surrounding the invoice
B. Only one type of transaction
C. More than one type of transaction
D. Omitting the HST from the invoice
3. The receipts journal may be used for the following –
A. Full cash payment from customers
B. Partial cash payment from customers
C. Customers paying more than one invoice with a single cheque
D. All of the above
4. Transactions entered in the receipts journal will not allow the following –
A. Payments greater than the invoice amount
B. Payments less than the invoice amount
C. Editing of the discount amount
D. Reversing a previous payment
5. When you post a sales invoice the following accounts are updated –
A. Only the sales and accounts receivable general ledgers
B. Only the sales and accounts receivable subsidiary ledgers
C. All properly linked accounts
D. Only the sales, accounts receivable ledgers and HST Charged
6. How would you enter a sale for an account customer paying by cheque –
A. Open the sales journal and choose invoice and cheque
B. Open the sales journal and choose invoice and pay later
C. Open the receipts journal and choose sale and cheque
D. Open the receipts journal and choose invoice, pay later and cheque
7. The linked accounts for HST/GST will be updated after which entry –
A. A sales invoice with cash payment
B. A cash receipt on account
C. A sales invoice quote
D. All of the above
8. To have only GST added to a sales invoice in Manitoba where the GST rate is 5% and the PST rate is 8%, the tax code should be –
A. No tax – because the GST is added automatically
B. code G (GST @ 5%)
C. code GI (GST @ 5% included)
D. code GP (GST @ 5%, PST @ 8%)
9. Which one of the following general statements is correct
A. A sales discount is recorded as a negative amount in the receipts journal
B. A sale return is recorded as a negative amount in the sales journal
C. Cash sales are recorded as other receipts in the receipts journal
D. A and b above are correct
10. Which one of the following general statements is incorrect –
A. Sales journal reports may be accessed from either the home or the customers windows
B. New customers may be added from both the sales and receipts journals
C. The message “there is no data to report” is found in the receipts journal
D. Enter payments in the receipts journal rather than the general journal
11. A sales journal entry will not balance if we –
A. Omit the payment terms
B. Omit the HST charged on sales
C. Include a second sale item in the invoice
D. This entry will balance whether we omit or include any of the above items
12. Which one of the following general statements about sales is true –
A. Journal reports may be accessed from either the home or the customers windows
B. New customers may be added from both the sales and receipts journals
C. The message “there is no data to report” may be found in the journal reports
D. All of the above
13. In the receipts journal, once we select the customer we are not required to enter –
A. The payment amount
B. The original amount
C. The date of payment
D. We need to enter all the above details
14. Linked accounts provide all but one of the following controls –
A. Amounts cannot be entered incorrectly
B. Required linked accounts must be defined
C. The program automatically updates the corresponding general ledgers
D. There is no need to enter the information twice
15. The Cash Flow Projection report allows you to –
A. Select more than one cash account
B. Project future short term cash commitments
A. Project future long term cash commitments
D. All of the above
16. If GST charged had been omitted from a posted sales invoice you should correct the entry by –
A. Selecting the invoice through the adjusting an invoice screen and selecting the appropriate tax code
B. Correct the posted invoice by entering the corrected version
C. Look up the invoice and reverse it
D. Record a separate entry for the GST charged
17. To enter a NSF cheque –
A. Reverse the receipt in the cash sales journal with a payment by cheque
B. Enter a sales invoice for a negative amount
C. Reverse the receipt in the receipts journal
D. None of the above
18. To record a NSF cheque, you can –
A. re-enter the original sales invoice to restore the balance owing
B. Reverse the receipt from the adjusting receipt screen
C. Make a general journal entry that debits Accounts Receivable and credits the bank account for the cheque amount
D. Use any of the above methods to record the NSF transaction correctly
19. You will see the message “there is no data to report” when
A. There are no journal entries for the dates selected for the report
B. You sort the journal report by invoice number
C. You filter the journal report by invoice number
D. You choose to show corrections and there are no correcting entries
20. Which one of the following is not included as an option for tax reports –
A. Report on PST
B. Report sales transaction amounts
C. Report purchase transaction amounts
D. All of the above can be included in tax reports
21. The Statement of Cash Flows shows –
A. How much money there is in the bank account
B. How much money you have saved
C. How efficiently cash is being used
D. B and c above
22. To record a NSF cheque from a customer you could –
A. Choose the adjust a receipt tool, select the customer’s receipt, change the amount paid to zero and post
B. Notify the customer and ask for a new cheque so no additional journal entry will be needed
In the general journal, debit accounts receivable and credit the bank account for the cheque amount
D. Choose the adjust a receipt tool, select the customer’s receipt, then choose the reverse entry tool
23. Choosing to show corrections in the journal report options window will –
A. Show the original, reversing and correcting entries
B. Show the original and reversing entries
C. Show the reversing and correcting entries
D. Show only the final correct entry
24. Which of the following errors can be corrected by adjusting a posted payment or receipt –
A. The amount of the payment was entered incorrectly
B. The payment cheque was returned by the bank as NSF
C. The payment was entered for the wrong customer or supplier
D. None of the above – they all require a reversing entry
25. The customer aged detail report will not include –
A. The names of customers who have had no sales
B. Invoice dates and sales terms
C. Invoices that are fully paid
D. The report will include all these details
26. You can customize the sales journal by –
A. Removing any of the columns in the invoice detail section of the journal
B. Removing the customer address field
C. Removing the ship to field and its details
D. None of the above
27. Customizing the sales journal will not –
A. Remove the columns you selected from the journal window
B. Modify the invoice you print from the journal
C. Simplify the journal by hiding the fields or columns you do not need
D. Allow you to change the journal window again later
28. Using the Continue option for new customers instead of choosing one-time customer may be preferred because –
A. Continue adds the sale to the customer aged detail report
B. Continue records the customer’s name in the journal entry
C. Continue creates a partial customer record that you can complete later
D. All of the above
29. To reverse a sales invoice for selecting the wrong customer, you should –
A. Open the adjusting sales invoice window and choose the reverse entry tool
B. Open the receipts journal and pay the invoice to cancel it
C. Open the adjusting sales invoice window and edit the customer name (choose the correct customer)
D. Make a general journal adjustment that reduces Accounts Receivable and the revenue accounts for the invoice amount
Adding the discount terms 2/10, n/30 to a sales invoice for $1 000 will –
A. Change the accounts receivable amount to $980
B. Change the cash in bank amount to $980
C. credit $20 to accounts receivable and debit $980 when the account is paid
D. Not change the amounts in the journal entry for the sales invoice
31. Discounts for early payments are offered to encourage customers to –
A. Buy more goods or services
B. Buy on account and pay later instead of paying at the time of the purchase
C. Settle their accounts on time
D. Avoid using their credit cards for purchases
32. The default customer early payment and discount terms –
A. Apply to all customers
B. Apply only when customers pay at the time of the sale
C. Are removed automatically when you choose cheque or debit card as the payment method
D. Can be changed for individual invoices
33. A sales journal entry will not balance if we –
A. Include a discount
B. Omit the GST/HST charged on sales
C. Include a second sale item in the invoice
D. This entry will balance whether we omit or include any of the above items
34. Which one of the following general statements about credit cards is correct –
A. Credit card payments must be entered in the receipts journal
B. Credit card receipts are deposited into the accounts receivable account
C. Credit cards sales do not involve any linked accounts
D. The credit card discount fee is deducted from the receipts
35. Which one of the following statements is true about credit cards –
A. Credit card issuers charge a percentage of the sale as the transaction fee
B. Credit cards used and credit cards accepted use the same set of linked accounts
C. The linked bank account for credit cards used is the payables linked bank account
D. The linked asset account for credit cards accepted is the receivables linked bank account
36. If you choose Quick Add to enter a sales invoice for a new customer –
A. You can display the customer’s transactions in receivables aged detail reports
B. No ledger record is created for the new customer
C. You cannot choose pay later as the payment method for the sale
D. The customer’s ledger record will include all the details you added to the invoice
37. In the Receivables module window, you can add shortcuts –
A. Only for the general journal and payables journals
B. Only for purchase invoices and payments
C. Only for the general journal and the chart of accounts
D. For up to ten different journals or ledger functions
38. When you see the message that a sale will cause the customer to exceed the credit limit, you should –
A. Cancel the sale
B. Call security to escort the customer from the store
C. Ask the customer to pay for the sale item by cheque
D. Not necessarily do any of the above
39. When you click the Add link above the Customer field in the sales journal invoice form –
A. You will create a complete customer record if you include the address in the journal
B. You will automatically create a partial customer record with only a name and continue in the journal
C. You will open the customer ledger record form for entering the customer details
D. You will open the customer ledger record and must complete all the ledger details before you can return to the sales invoice
40. Which of the following statements is correct about using the Add link for new customers on the sales journal invoice form –
A. Choosing the Add link gives the same results as choosing Continue
B. Choosing the Add link gives the same results as choosing Quick Add
C. Choosing the Add link gives the same results as choosing Full Add
D. None of the above
41. To insert an extra invoice line before the first line of a sales invoice –
A. Click anywhere on the first line of the invoice, choose the edit menu and click insert line
B. Click at the beginning of the first line of the invoice, type the new information and press enter to insert it
C. Click anywhere on the first line of the journal, press delete to remove this line and then add the new details
D. You cannot insert a line, you must add it below the invoice lines already used
42. To remove a line from the invoice –
A. Click on the first completed field in the line to be removed and press the delete key
B. Click anywhere on the first line of the journal, press the delete key to remove this line
C. Click anywhere on the line to be removed, choose the edit menu and click remove line
D. All of the above methods will remove the line
43. To find an invoice you need to adjust when you know only the customer’s name, the invoice amount and the approximate date of the sale, you would enter
A. The customer’s name as the search parameter
B. A range of dates as the search parameter
C. The customer’s name and a range of dates as the search parameter
D. The invoice amount and customer name as the search parameters
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