Pre-assessment Test - General Ledger
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Questions and Answers
- 1.
Where do you set up non-contract accounts in GCS?
Explanation
Non-contract accounts are set up in the Chart of Accounts in GCS. The Chart of Accounts is a list of all the accounts that are used to record financial transactions in an organization. It provides a systematic way of organizing and categorizing financial information. By setting up non-contract accounts in the Chart of Accounts, organizations can accurately track and report on their financial activities related to non-contractual transactions.Rate this question:
- 2.
Chart of Accounts has to be set up before FS Code File. True or False
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
The given statement is false. The Chart of Accounts does not have to be set up before the FS Code File. The FS Code File is a standardized set of codes used to classify and organize financial transactions, while the Chart of Accounts is a list of all the accounts used by a company to record its financial transactions. The Chart of Accounts can be set up independently of the FS Code File and can be customized to fit the specific needs of the company.Rate this question:
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- 3.
___________ is used to design the Balance Sheet and Income Statement to show the group and line of accounts with description.
Correct Answer
FS Code FileExplanation
The FS Code File is used to design the Balance Sheet and Income Statement to show the group and line of accounts with description. This file contains the necessary code and formatting instructions to arrange the accounts in a specific order and format, allowing for a clear representation of the financial information. By using the FS Code File, the designer can ensure that the Balance Sheet and Income Statement accurately reflect the organization's financial position and performance.Rate this question:
- 4.
Before setting up the Chart of Accounts, you should first set up divisions, indirect expense pools, and an OBS (optional) and design your financial statements. True or False.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
The statement is true because before setting up the Chart of Accounts, it is important to establish divisions, indirect expense pools, and an OBS (optional) in order to properly organize and categorize financial transactions. Additionally, designing financial statements is crucial as it helps in presenting financial information in a clear and understandable manner. By setting up these elements beforehand, the Chart of Accounts can be structured effectively to reflect the specific needs and requirements of the organization.Rate this question:
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- 5.
Where do you enter beginning balances when initializing GCS?
Correct Answer
GL beginning balanceExplanation
When initializing GCS (General Control System), you enter the beginning balances in the GL (General Ledger) beginning balance. This is the initial amount of money or value that is recorded in the general ledger accounts at the start of a new accounting period. By entering the beginning balances in the GL beginning balance, you ensure that the accounts are properly updated and reflect the correct financial position of the company from the beginning of the period.Rate this question:
- 6.
User entered transactions in the audit directory and need to forward the balances to the ongoing directory. What is the utility to be used?
Correct Answer
Update Beginning Balances from Prior YearExplanation
The utility to be used in this scenario is "Update Beginning Balances from Prior Year". This utility allows the user to update the beginning balances from the previous year in order to ensure accurate and up-to-date financial records. By using this utility, the user can transfer the balances from the audit directory to the ongoing directory, ensuring that the financial data is properly maintained and reflected in the current year's records.Rate this question:
- 7.
Always retain the General Journal that is printed when you actually post the entries to the General Ledger. This is an essential part of your system audit trail. It is also a good idea to print all journal entries before closing the accounting period to have a complete list of all journal entries made in the period. It is important to keep backup information or schedules to support journal entries. True or False
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
Retaining the General Journal that is printed when entries are posted to the General Ledger is important for maintaining an audit trail. It allows for a complete record of all journal entries made in a specific accounting period. Additionally, printing all journal entries before closing the period ensures a comprehensive list. Keeping backup information or schedules to support these journal entries is also emphasized. Therefore, the statement is true.Rate this question:
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- 8.
In closing an accounting period, the system will automatically check to insure that no journal files for the period have been left unposted before proceeding. True or False
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
In closing an accounting period, it is important to ensure that all journal files for that period have been posted. This is necessary to accurately reflect the financial transactions and balances in the accounting records. The system automatically checks for any unposted journal files before proceeding with the closing process. Therefore, the statement is true as the system performs this check to maintain the integrity of the accounting data.Rate this question:
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- 9.
Is there an audit trail in GCS?
Correct Answer
NoExplanation
The answer is "No" because GCS (Google Cloud Storage) does not have an audit trail. An audit trail is a record of all activities and changes made within a system, which allows for tracking and monitoring. Since GCS does not have this feature, there is no audit trail available.Rate this question:
- 10.
In GL Utilities, there are 5 journals that you can purge. Check all appropriate.
- A.
Labor Distribution
- B.
Accounts Payable
- C.
Voucher Distribution
- D.
Cash Receipts
- E.
Cash Disbursements
Correct Answer(s)
A. Labor Distribution
B. Accounts Payable
C. Voucher Distribution
D. Cash Receipts
E. Cash DisbursementsExplanation
This question is asking which journals can be purged in GL Utilities. The correct answer is Labor Distribution, Accounts Payable, Voucher Distribution, Cash Receipts, and Cash Disbursements.Rate this question:
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