Chapter 5:
General Ledger, Inventory,
and Internal Control
McGraw-Hill/Irwin
Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved.
General Ledger and Inventory
In Chapter 5, you learn about the General Ledger chart of
accounts.
Sage 50 includes over 75 sample charts of accounts. You can
set up your own chart of accounts, copy a chart of accounts
used by another company, or use one of the samples.
Chapter 5 also shows you how to use Sage 50’s inventory
system. Sage 50 lets you track inventory items both at the
purchasing and sales level.
Sage 50 keeps track of cost of goods sold, stock levels, sales
prices, and vendors.
Another Sage 50 feature is user security. On pages 178186, Security and Internal Control, you learn about how
Sage 50 keeps company data secure.
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Sage 50 Tip
Sage 50 uses a perpetual inventory system.
See the tables on page 176 to review how
Sage 50 journalizes the purchase and sale
of inventory items.
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Backing Up Chapter 5
In Chapter 5, you make two backups, export the General
Ledger Trial Balance to Excel, and save one PDF file.
Backup File (.ptb)
Excel (.xlsx) and Adobe (.pdf)
KB
Page Nos.
Chapter 5.ptb
3,852 KB
186
Exercise 5-2.ptb
3,815 KB
188
Exercise 5-2_General Ledger
Trial Balance.xlsx
15 KB
188
Exercise 5-2_General Ledger
Trial Balance.pdf
63 KB
188
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Sage 50 Help: Chart of Accounts,
pp. 154-155
Toolbar
Navigation pane
Topic pane
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Chapter 5:
Glossary of Terms
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Perpetual inventory, p. 153
In a perpetual inventory system, an up-todate record of inventory is maintained. The
inventory account is revised each time a
purchase or sale is made.
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Chart of accounts, pp. 154-155
A list of all the
accounts used by a
company, showing
the identifying
number assigned to
each account.
Sage 50 has over 75
sample charts of
accounts.
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HTML, p. 154
HTML is an acronym for Hypertext Markup
Language. Sage 50’s Help windows display in HTML
format.
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Inventory System, p. 166
Sage 50’s Inventory & Services Navigation Center shows the inventory
system, which includes information and access points related to the
company’s inventory items. The Inventory & Services selection shows Sage
50’s inventory module or inventory system.
Workflow
diagram
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Internal Control, p. 178
Internal control is an integrated system of people,
processes, and procedures that minimize or eliminate
business risks, protect assets, facilitate reliable
accounting, and promote efficient operations. (Refer to
pages 178-186.)
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Audit Trail, pp. 184-185
If changes are made to company records, Sage 50’s audit trail provides
documentation. An audit trail records all entries and changes related to the
company’s data, including actions by specific users.
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Online Learning Center
 Go online to www.mhhe.com/yacht2013 for additional
resources. Link to Student Edition, select Chapter 5.
o Interactive Testing
o Glossary of Terms
o Feature Quizzes
o Narrated PowerPoints
Appendix A: Troubleshooting
Appendix B: AIS
Appendix C: Review of Acctg.
Appendix D: Glossary
o Assessment Rubrics
o Going to the Net
o QA Templates
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Going to the Net
Access this website
http://www.nolo.com/legal-encyclopedia/bookkeepingaccounting-basics-29653.html. Read the Bookkeeping and
Accounting Basics article.
List the three steps for keeping your small
business accounting records.
2. From this website, link to another area.
1.
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Analysis Questions
1. List four ways that Sage 50 includes user
security and internal control.
2. How is the audit trail associated with user
security? Provide an example.
3. How does user security address the
purpose of internal control?
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Assessment Rubric
Date
Transaction
3/18
Transfer $1,200
from the Regular
Checking Account
to the Payroll
Checking Account.
3/19
Purchased two (2)
Oriole Feeders
from DeJulia
Wholesale
Suppliers, Invoice
No. 94977, $14.
Navigation
Center/Module
Task
Window
Journal
Dr./Cr.
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