, INSTRUCTOR’S MANUAL
Answers to Review Questions and Cases
Betty Young
Using Sage 50
Accounting 2018
Mary Purbhoo
ISBN: 978-0-13-523676-5
Copyright © 2019 Pearson Canada Inc., Toronto, Ontario. All rights reserved. This work is protected by Canadian copyright laws and is
provided solely for the use of instructors in teaching their courses and assessing student learning. Dissemination or sale of any part of
this work (including on the Internet) will destroy the integrity of the work and is not permitted. The copyright holder grants permission to
instructors who have adopted Using Sage 50 Accounting 2018 by M. Purbhoo to post this material online only if the use of the
website is restricted by access codes to students in the instructor’s class that is using the textbook and provided the reproduced
material bears this copyright notice.
Sage 50® is a registered trademark of Sage Software Inc.
, CONTENTS
Answers to Review Questions and Cases (found in Appendix D of the Student DVD)
Chapter 1: Getting Started 3 Chapter 11: Andersson Chiropractic Clinic 85
Review Questions 3 Review Questions 85
Chapter 3: Binh’s Bins 8 Review Case 90
Review Questions 8 Chapter 12: Maple Leaf Rags 92
Review Cases 14 Review Questions 92
Chapter 4: Love It Again 16 Review Cases 97
Review Questions 16 Chapter 13: Shady Corners 104
Review Cases 22 Review Questions 104
Chapter 5: Groen Fields 26 Review Cases 110
Review Questions 26 Chapter 14: Sound, Inc. 113
Review Case 33 Review Questions 113
Chapter 6: Phoebe’s Photo Studio 34 Review Cases 115
Review Questions 34 Chapter 15: Tesses Tresses 117
Review Cases 42 Review Questions 117
Chapter 7: Air Care Services 45 Review Cases 121
Review Questions 45 Chapter 16: VeloCity 124
Review Cases 54 Review Questions 124
Chapter 8: Helena’s Academy 58 Review Cases 129
Review Questions 58 Chapter 17: Stratford Country Inn 137
Review Cases 64 Review Cases 137
Chapter 9: Northern Lights 66 Chapter 18: Ryder’s Routes 140
Review Questions 66 Review Questions 140
Review Cases 71 Review Cases 145
Chapter 10: Flabuless Fitness 73 Chapter 19: Able & Associates, Inc. 148
Review Questions 73 Review Questions 148
Review Cases 79 Review Case 150
Copyright © 2019 Pearson Canada Inc. 2
, ANSWERS TO REVIEW QUESTIONS AND CASES
For reference, we have included the questions and cases (in italics) with their solutions. These are suggested
solutions only. Remember that we use general rather than the industry-specific terms in most cases. Answers
may vary depending on the interpretation of the question or case. Some of the answers we provide may
include points covered in later chapters. Where discussion is involved, students should be encouraged to
think of alternative solutions. They should also be encouraged to experiment with entering transactions in
the data files (after making backups) to discover how the program handles different kinds of transactions.
CHAPTER 1: GETTING STARTED
Review Questions
1. What are the differences between Save As and Save A Copy (in the File menu)? How are these commands different
from the Backup command?
The Save As command saves the current working file under a separate file name. That is, it creates a
separate, working, backup copy of the file and opens the renamed file. If you use the name of an already
existing file, the previous file will be replaced after you confirm that this is what you want to do. Save a
Copy will also create a separate working copy of your data file but the current file stays open instead of the
new file. If you use the name of an already existing file, the previous file will be replaced after you confirm
that this is what you want to do. As you work in Sage 50, your data file is continually saved with any
changes you make. The Save tool in the Home window also opens the Save As window.
Backup also makes a copy of your file and keeps the current file open. However, the new file is a compressed
version of the original data that must first be restored (from the Restore option on the File menu or the
Company module Data Management icon drop-down list, or from the Select Company window) before you
can work with it. The compressed file saves data space so it is easier to save separate backups for different
time periods.
2. Why is it important to make backups of your data files?
If you have a backup, you can return to it if your working data file is corrupted and unusable because of a
computer error, or if you have made changes to the file that were not correct and cannot be reversed, like
starting a new fiscal period. (The author has recently had an entire database wiped out while opening a file.
The resulting file had no ledger records or journal entries. Backups work!)
3. Why can you not open the data files directly from the Student DVD with Sage 50? Why are you able to restore
backup files from a DVD?
DVD files are read-only files and this property cannot be changed. Because Sage 50 continually saves your
work by writing to your data file and because it cannot write directly to the DVD, it cannot open the read-
only files. The read-only property does not allow a file to be changed. The same principles apply to opening
files from a CD-ROM – these files are also read-only.
You can access and restore backup files from a DVD or CD-ROM because does not write to this same file.
However, you cannot restore the backup file to either of these medias.
4. How does Sage 50 Help differ from Sage 50 Advice?
Help provides general information about accounting procedures and how to use Sage 50 software. Advice
includes general information about good accounting practice as well as specific information and advice
about accounting procedures related to the data file that is currently open.
Copyright © 2019 Pearson Canada Inc. 3
Answers to Review Questions and Cases
Betty Young
Using Sage 50
Accounting 2018
Mary Purbhoo
ISBN: 978-0-13-523676-5
Copyright © 2019 Pearson Canada Inc., Toronto, Ontario. All rights reserved. This work is protected by Canadian copyright laws and is
provided solely for the use of instructors in teaching their courses and assessing student learning. Dissemination or sale of any part of
this work (including on the Internet) will destroy the integrity of the work and is not permitted. The copyright holder grants permission to
instructors who have adopted Using Sage 50 Accounting 2018 by M. Purbhoo to post this material online only if the use of the
website is restricted by access codes to students in the instructor’s class that is using the textbook and provided the reproduced
material bears this copyright notice.
Sage 50® is a registered trademark of Sage Software Inc.
, CONTENTS
Answers to Review Questions and Cases (found in Appendix D of the Student DVD)
Chapter 1: Getting Started 3 Chapter 11: Andersson Chiropractic Clinic 85
Review Questions 3 Review Questions 85
Chapter 3: Binh’s Bins 8 Review Case 90
Review Questions 8 Chapter 12: Maple Leaf Rags 92
Review Cases 14 Review Questions 92
Chapter 4: Love It Again 16 Review Cases 97
Review Questions 16 Chapter 13: Shady Corners 104
Review Cases 22 Review Questions 104
Chapter 5: Groen Fields 26 Review Cases 110
Review Questions 26 Chapter 14: Sound, Inc. 113
Review Case 33 Review Questions 113
Chapter 6: Phoebe’s Photo Studio 34 Review Cases 115
Review Questions 34 Chapter 15: Tesses Tresses 117
Review Cases 42 Review Questions 117
Chapter 7: Air Care Services 45 Review Cases 121
Review Questions 45 Chapter 16: VeloCity 124
Review Cases 54 Review Questions 124
Chapter 8: Helena’s Academy 58 Review Cases 129
Review Questions 58 Chapter 17: Stratford Country Inn 137
Review Cases 64 Review Cases 137
Chapter 9: Northern Lights 66 Chapter 18: Ryder’s Routes 140
Review Questions 66 Review Questions 140
Review Cases 71 Review Cases 145
Chapter 10: Flabuless Fitness 73 Chapter 19: Able & Associates, Inc. 148
Review Questions 73 Review Questions 148
Review Cases 79 Review Case 150
Copyright © 2019 Pearson Canada Inc. 2
, ANSWERS TO REVIEW QUESTIONS AND CASES
For reference, we have included the questions and cases (in italics) with their solutions. These are suggested
solutions only. Remember that we use general rather than the industry-specific terms in most cases. Answers
may vary depending on the interpretation of the question or case. Some of the answers we provide may
include points covered in later chapters. Where discussion is involved, students should be encouraged to
think of alternative solutions. They should also be encouraged to experiment with entering transactions in
the data files (after making backups) to discover how the program handles different kinds of transactions.
CHAPTER 1: GETTING STARTED
Review Questions
1. What are the differences between Save As and Save A Copy (in the File menu)? How are these commands different
from the Backup command?
The Save As command saves the current working file under a separate file name. That is, it creates a
separate, working, backup copy of the file and opens the renamed file. If you use the name of an already
existing file, the previous file will be replaced after you confirm that this is what you want to do. Save a
Copy will also create a separate working copy of your data file but the current file stays open instead of the
new file. If you use the name of an already existing file, the previous file will be replaced after you confirm
that this is what you want to do. As you work in Sage 50, your data file is continually saved with any
changes you make. The Save tool in the Home window also opens the Save As window.
Backup also makes a copy of your file and keeps the current file open. However, the new file is a compressed
version of the original data that must first be restored (from the Restore option on the File menu or the
Company module Data Management icon drop-down list, or from the Select Company window) before you
can work with it. The compressed file saves data space so it is easier to save separate backups for different
time periods.
2. Why is it important to make backups of your data files?
If you have a backup, you can return to it if your working data file is corrupted and unusable because of a
computer error, or if you have made changes to the file that were not correct and cannot be reversed, like
starting a new fiscal period. (The author has recently had an entire database wiped out while opening a file.
The resulting file had no ledger records or journal entries. Backups work!)
3. Why can you not open the data files directly from the Student DVD with Sage 50? Why are you able to restore
backup files from a DVD?
DVD files are read-only files and this property cannot be changed. Because Sage 50 continually saves your
work by writing to your data file and because it cannot write directly to the DVD, it cannot open the read-
only files. The read-only property does not allow a file to be changed. The same principles apply to opening
files from a CD-ROM – these files are also read-only.
You can access and restore backup files from a DVD or CD-ROM because does not write to this same file.
However, you cannot restore the backup file to either of these medias.
4. How does Sage 50 Help differ from Sage 50 Advice?
Help provides general information about accounting procedures and how to use Sage 50 software. Advice
includes general information about good accounting practice as well as specific information and advice
about accounting procedures related to the data file that is currently open.
Copyright © 2019 Pearson Canada Inc. 3
