Sage Computerised Accounting - Qp4
-
The Nominal Ledger contains numerous accounts and may be described as the central system of the double entry bookkeeping procedure.
-
True
-
False
-
About This Quiz
This quiz, titled 'Sage Computerised Accounting - QP4', assesses knowledge in using Sage for computerized accounting. It covers the Nominal Ledger, nominal codes, and control accounts, highlighting key skills in managing business finances efficiently.
Quiz Preview
- 2.
The default nominal codes are very useful and are an important feature of computerised accounting, especially when beginning a business or new to computerised accounts.
-
True
-
False
Correct Answer
A. TrueExplanation
The default nominal codes are useful in computerized accounting because they provide a starting point for organizing and categorizing financial transactions. They are especially beneficial for businesses that are just starting out or transitioning to computerized accounting systems. These codes help streamline the process of recording and tracking financial data, making it easier to generate accurate financial reports and analyze business performance.Rate this question:
-
- 3.
The total amounts entered as a ‘Debit’ should equal the total amounts entered as a ‘Credit’.
-
True
-
False
Correct Answer
A. TrueExplanation
This statement is true because in accounting, the double-entry system requires that for every debit entry, there must be a corresponding credit entry of equal amount. This ensures that the accounting equation (Assets = Liabilities + Equity) remains balanced. If the total amounts entered as a 'Debit' do not equal the total amounts entered as a 'Credit', it would indicate an error in the accounting records. Therefore, it is necessary for the debits and credits to balance in order to maintain accurate financial records.Rate this question:
-
- 4.
Control Accounts are a set of nominal codes which can be amended or deleted.
-
True
-
False
Correct Answer
A. FalseExplanation
Control Accounts are a set of nominal codes that cannot be amended or deleted. They are used to summarize and monitor the transactions in subsidiary ledgers, such as the sales ledger and purchase ledger. Control accounts provide a way to ensure accuracy and reconciliation between the subsidiary ledgers and the general ledger. They serve as a control mechanism and allow for easier identification and correction of errors. Therefore, the given statement is false.Rate this question:
-
- 5.
A nominal code between 6000 - 6999 indicates _______.
-
Sales
-
Purchases
-
Direct expenses
-
Miscellaneous overheads
Correct Answer
A. Direct expensesExplanation
A nominal code between 6000 - 6999 typically represents direct expenses. Direct expenses are costs that can be directly attributed to the production of goods or services. These expenses are incurred in relation to the core operations of a business and include items such as raw materials, direct labor, and manufacturing overhead. Therefore, a nominal code falling within this range would indicate that the expenses recorded under that code are directly associated with the production process of the company.Rate this question:
-
- 6.
Each account in the Nominal Ledger has its own Nominal Code; a five digit number which gives the account an identity.
-
True
-
False
Correct Answer
A. FalseExplanation
The explanation for the given correct answer is that each account in the Nominal Ledger does not have its own Nominal Code. The Nominal Code is a five-digit number that is assigned to each account in the Nominal Ledger to give it an identity. Therefore, the statement is false.Rate this question:
-
- 7.
_______ nominal codes will indicate capital and reserves.
-
0000-0999
-
1000-1999
-
2000-2999
-
3000-3999
Correct Answer
A. 3000-3999Explanation
The range of nominal codes from 3000 to 3999 will indicate capital and reserves. These codes are typically used to categorize financial transactions related to capital investments, retained earnings, and other forms of reserves within an organization's accounting system. By assigning transactions to these specific codes, it becomes easier to track and analyze the financial health and performance of a company's capital and reserves over time.Rate this question:
-
- 8.
The Profit and Loss Account will show a list of all debit and credit balances which should balance and show equal totals.
-
True
-
False
Correct Answer
A. FalseExplanation
The Profit and Loss Account does not show a list of all debit and credit balances. Instead, it shows the net profit or loss of a business over a specific period of time. The account summarizes the revenues, expenses, gains, and losses incurred during that period. It does not aim to balance debit and credit totals, unlike the Balance Sheet which presents the financial position of a business at a specific point in time.Rate this question:
-
Quiz Review Timeline (Updated): Mar 20, 2023 +
Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.
-
Current Version
-
Mar 20, 2023Quiz Edited by
ProProfs Editorial Team -
Apr 08, 2014Quiz Created by
Jackson Matthews
Back to top