Accounting

REVIEW QUESTIONS – LESSON 4

1. List the steps required to enter current year opening balances.

To enter current year opening balances, take these steps:

1. Create a batch containing the balances of your accounts as at the end of the year (this will be the year prior to the oldest fiscal year starting date that was entered when you set up the GL). Use the last fiscal period (12 or 13) depending on how your General Ledger is set up.

1. Print the batch listing and check it for accuracy.

2. Post the batch.

3. Print the posting journal and file this report as part of your audit trail.

4. Make a backup of your data prior to performing the Create New Year function.

5. Run the Create New Year function to transfer income and expense accounts to the retained earnings accounts and set up the opening balances for the current year.

6. Make a backup of your data after performing the Create New Year function.

7. Check the integrity of your data.

8. Print a Balance Sheet and file this report as part of your audit trail.

9. Print a Trial Balance as at fiscal period 1 of the New Year to make sure that it balances with the previous accounting system.

2. What are journal entries created in?

Journal entries are created in batches.

3. What are the two entry modes available for entering General Ledger transactions? What is the difference between them?

The two entry modes available for entering General Ledger transactions are Normal and Quick. When you use the Normal entry mode, the cursor stops at each field on every detail line for you to complete. When you use the Quick entry mode, the cursor stops at each field on the first detail line for you to complete; however, the reference and description fields are automatically entered for each subsequent detail line. Although this information is automatically entered, it can be modified.

3. How is a new batch created?

A new...