Bookkeeping and Accounting Test — Questions and Answers
Question 1: When you post payments, you'll be able to:
- Post payment and apply to the oldest invoices.
- Post payments and disburse to specific invoices.
- Post payment to customers accounts and not disburse.
- All the above (Correct answer)
Correct answer: All the above
When posting payments, accounting systems typically offer flexibility to handle various scenarios. You can apply payments to the oldest outstanding invoices, disburse them to specific invoices as instructed by the customer, or simply post them to the customer's account as an unapplied credit. Therefore, all these options are generally available.
Question 2: Which pull-down menu on the Bookkeeping view is used to post payments, credit memos, and debit memos?
- Payments
- Customers
- Received On Account (Correct answer)
- Post
Correct answer: Received On Account
In many accounting software interfaces, the 'Received On Account' menu or function is specifically used to record incoming customer payments. This option also typically handles the application of credit memos (reductions in customer balances) and debit memos (increases in customer balances), centralizing customer account adjustments.
Question 3: Which tab on the Payment Edit screen allows you to establish disbursements after you've created a payment?
- AR Summary tab
- Create Disbursements tab (Correct answer)
- Main tab
- None of the Above
Correct answer: Create Disbursements tab
After a payment has been initially created and recorded, the 'Create Disbursements' tab (or a similarly named section) is where you proceed to allocate or apply that payment to specific outstanding invoices. This step is crucial for accurately reducing the customer's balance for particular transactions and clearing open items.
Question 4: A ledger is a primary accounting book.
- False
- True (Correct answer)
Correct answer: True
A ledger is indeed considered a primary accounting book. While transactions are first recorded in journals (books of original entry), the ledger is where these entries are systematically posted to individual accounts, providing summarized balances. These balances are then used to prepare the trial balance and financial statements, making the ledger indispensable.
Question 5: Choose the appropriate workflow for submitting a customer payment and applying it to a specific invoice.
- Fetch ALL > (double click) on line item to apply > COMMITT DISBURSEMENTS button > Create Payment
- Create Payment > Fetch ALL > (double click) on line item to apply > COMMITT DISBURSEMENTS button (Correct answer)
- Create Payment > COMMITT DISBURSEMENTS button > Fetch ALL > (double click) on line item to apply
- COMMITT DISBURSEMENTS button > Create Payment > Fetch ALL > (double click) on line item to apply
Correct answer: Create Payment > Fetch ALL > (double click) on line item to apply > COMMITT DISBURSEMENTS button
The correct workflow for applying a customer payment to a specific invoice begins with creating the payment record. Next, you would typically use a 'Fetch ALL' function to display all outstanding invoices and credits. You then select the specific invoice(s) for application, often by double-clicking, and finally 'Commit Disbursements' to finalize the payment application.
Question 6: In order to prepare the final account, the ledger is not required.
- False (Correct answer)
- True
Correct answer: False
This statement is false. The ledger is absolutely essential for preparing final accounts, such as the income statement and balance sheet. It contains the summarized and classified balances for all asset, liability, equity, revenue, and expense accounts, which are directly used to compile these crucial financial reports.
Question 7: When establishing disbursements, which "Fetch" button would you use to see all uncleared payments, credits, debits, and invoices that are eligible for disbursement?
- Fetch & Apply
- Fetch All Credits
- Committ Disbursements
- Fetch All (Correct answer)
Correct answer: Fetch All
When establishing disbursements, the 'Fetch All' button is used to retrieve and display every outstanding item that is eligible for application. This includes all uncleared payments, credit memos, debit memos, and unpaid invoices. This function provides a comprehensive view to ensure accurate and complete disbursement of funds.
Question 8: Journal Folio is the full form of JF.
- False
- True (Correct answer)
Correct answer: True
The abbreviation 'JF' stands for Journal Folio. This reference is commonly used in ledger accounts to indicate the page number or reference number in the journal from which a particular entry was posted. It serves as a vital cross-reference, allowing users to easily trace transactions back to their original entry in the journal.
Question 9: Final entry is another name for ledger.
- False
- True (Correct answer)
Correct answer: True
While 'final entry' isn't the most common formal synonym, a ledger can be considered the book of final entry. After transactions are initially recorded in journals, they are posted to the ledger accounts, where they are classified and summarized. The ledger holds the ultimate balances for all accounts, which are then used to prepare the final financial statements.
Bookkeeping and Accounting Test
When you post payments, you'll be able to: