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                                      Chapter 1


                    COMPANY SETUP




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                                              Table of Contents

Objectives and Course Information .................................................................................... ii
OA CPE Course Outline .................................................................................................... iii
Introduction ..........................................................................................................................1
Learning Objectives .............................................................................................................2
New Company Startup Wizard ............................................................................................3
Startup Wizard Tips and Comments ....................................................................................5
       Setting up Multiple Companies ...............................................................................5
       Flow of Company Information ................................................................................5
       Federal Information .................................................................................................5
       Chart of Accounts ....................................................................................................6
       Business Type ..........................................................................................................8
       Fiscal Year Settings & Start Date ............................................................................9
       Entering Detailed Historical Transactions .............................................................10
       Job Costing.............................................................................................................11
       Sales Taxes.............................................................................................................11
       Form Layout Preferences ……………………………………………………….. 13
       Numbering Preferences…………………………………………………………..14
       Payroll ....................................................................................................................14
       Cash Basis or Accrual Basis …………………………………………………..... 15
Saving Your New Company Files .....................................................................................16
Startup Wizard Progress Checklist ....................................................................................18
Vendors………………………………………………………………………………….. 21
Items……………………………………………………………………………………...22
Business Services ...............................................................................................................24
Company Preferences ........................................................................................................25
       Account Numbers ..................................................................................................25
       Classes....................................................................................................................26
       Jobs ........................................................................................................................27
       Change Log ............................................................................................................28
       Prevent Posting ......................................................................................................28
       Remaining Preference Tabs ...................................................................................28
       Updates to OA…………………………………………. 29
Tips for Starting a New Business.......................................................................................34
Hands on Learning – Now Your Try It ..............................................................................38
End Notes ...........................................................................................................................42
References ..........................................................................................................................42
Glossary of Terms ..............................................................................................................42
Test Questions ....................................................................................................................43
Answers to Study Questions and Reinforcing Responses .................................................46




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Objectives & Course Information
Learning Objectives               The objectives of this chapter are to educate and to provide
                                  guidance and understanding to CPAs on the process of for setting
                                  up and managing a new company in OA, and to provide CPAs
                                  with the information they need to better educate and assist their
                                  clients with this process.

Course Level                      Overview

Pre-Requisites                    No prerequisites are required.

Advanced Preparation              Before taking this course, the student should first install Microsoft
                                  Office OA . Students are expected to practice with the product as
                                  they study these materials.

Delivery Method                   Self-study materials, product screen shots, examples, case studies,
                                  study questions, and final exam materials.

Recommended CPE Credit            This chapter is part of a 24-chapter CPE course featuring OA. The
                                  24 chapters are divided into three equal parts of 8 chapters each.
                                  Each of the three parts is recommended for 8 hours of CPE credit,
                                  for a total of 24 hours of CPE credit.

Course Development Date           May 2005. Revised June 2008

                                  AdvisorCPE is registered with the National Association of State
                                  Boards of Accountancy (NASBA) as a sponsor of continuing
                                  professional education on the National Registry of CPE Sponsors.
                                  State boards of accountancy have final authority on the acceptance
                                  of individual courses for CPE credit. Complaints regarding
                                  registered sponsors may be addressed to the National Registry of
                                  CPE Sponsors, 150 Fourth Avenue, Nashville, TN, 37219-2417.




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OA CPE Course Outline
Microsoft is pleased to provide CPAs with the following CPE series to help you get up to
speed quickly with MOA. This chapter is part of three separate 8-hour CPE courses
focusing on the OA product. An outline for all three courses is presented below:

Part I – Setting Up OA
(8 Hours of CPE Credit)
     1 New Company Setup
     2 Backup Procedures & Data Protection
     3 General Ledger & Journal Entries
     4 Customer, Vendor, and Employee Setup
     5 Inventory Setup
     6 Inventory Pricing, Receipts & Adjustments
     7 Financial Reporting I
     8 Financial Reporting II

Part II – Using MOA
(8 Hours of CPE Credit)
     9 Purchase Flow
    10 Sales Flow
    11 Cash Flow Projections
    12 Customization
    13 Month End & Year End Procedures
    14 New User Setup & Security
    15 SBA Office Integration
    16 SBA Excel Integration

Part III – MOA Advanced
(8 Hours of CPE Credit)
    17 Banking
    18 Budgeting & Planning
    19 Sales Taxes
    20 Managing Customers
    21 Job & Project Costing
    22 Time & Billing
    23 Payroll
    24 Business Services




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Introduction
Setting up a new company in MOA will take anywhere from a few minutes to a few hours,
depending on the complexity of your company and the detail that you decide to add about your
company's customers, vendors, employees, the items your company sells and the amount of
historical data you have to enter into the system.

There are two ways to set up a company: By setting up a company manually or by importing
your data from QuickBooks®. For QuickBooks® import, please refer to chapter 2 (Backup
Procedures & Data Protection).

Before you start the new company setup process, you should assemble all of the necessary data
to be entered into the system. The data to be assembled includes the following:

    1. Chart of accounts.
    2. Trail balance as of the startup date, or:
             a. Checking, savings, and credit card statements dated just before your startup date,
                including unrecorded or un-cleared transactions for these accounts.
             b. Unpaid customer and vendor balances as of the startup date.
             c. Assets, liability and equity accounts as of the startup date.
    3. Company information such as name, federal ID number, address, etc.
    4. List of customers, with all relevant information, and outstanding invoices.
    5. List of vendors, with all relevant contact information, and outstanding invoices.
    6. List of employees with all relevant contact information, payroll setup data1, etc.
    7. List of all items, including inventory items, service items, non-inventory items, and kits.
       This information should include all relevant descriptions, costs, sales prices, quantities on
       hand, etc.
Various chapters are provided to explain the data assembly and entry process in detail. Please
refer to these chapters for further guidance on these matters.




1
 Please note that setup of payroll can be done later and is fully documented in chapter 23 Payroll
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Learning Objectives
The learning objectives of this chapter are to help CPAs understand:

       How to setup a new company file in MOA.

       How to use the OA Startup Wizard and Progress checklist.

       How to setup company preferences.

       Tips for setting up a new business.




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           New Company Startup Wizard
           The first step to using OA is to setup a new company. This is accomplished by selecting File,
           New Company from the main menu as shown in the screen below.




                                        Figure 1.1 – Setting up a New Company in OA




Slide 24

           Audit ok.

           *********************************************************************************************
           *************************************************************************************

           This action will close your current company (which may be the one of the two sample companies
           included in OA) before proceeding to the next step. OA provides a six step wizard to help you
           set up your initial company and establish some of the defaults and preferences in your new
           system. The screen below shows step 1 of the Startup wizard entitled Company and
           Preferences.
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                           Figure 1.2 – The Company and Preferences Wizard

Note the link at the bottom of the page where you can find a Microsoft Professional Accountants'
Network member to help with setting up OA.

The Startup Wizard is provided to make it easier for users to enter their initial information by
summarizing all of the primary data input fields in one convenient location. Additionally, the
Startup Wizard uses color coding to signify required data fields.

Please note that it is only necessary to complete the first section of the Startup Wizard, which
will create the OA company file and database. The rest of the data could be input directly into
the OA user screens. The choice is up to you.

The OA Startup Wizard is divided into six sections as follows:
   1.   Company and Preferences (required step) – This section allows you to enter basic
        company information, defaults, and preferences. When this step is completed the OA
        company file and database is created and you can continue with the rest of the steps or
        start using the application right away.
   2.   Accounts - This section allows you to set up and enter opening balances for your
        company’s assets, liabilities, equity, income, and expenses.
   3.   Customers - This section allows you to set up and enter opening balances for the
        individuals and companies that owe your company money.


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   4.   Vendors - This section allows you to set up and enter opening balances for the
        individuals and businesses that your company owes money to.
   5.   Items - This section allows you to set up the products and services that your company
        sells and enter opening balances for the inventory items at hand.
   6.   Business Services - This takes you to a Microsoft web site where you can learn more
        about the various OA services, such as payroll, online banking and credit card services
        that can help increase your productivity and help your business grow.


SQ 1.1 - Before setting up a new company (starting the setup process), you should assemble:

           A. Company Federal Identification Number.
           B. List of employees and all relevant employee contact information.
           C. Trial Balance.
           D. All of the above information is relevant and should be assembled prior to starting
              the setup process.
           E. None of the above.




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   Startup Wizard Tips and Comments
   Comments regarding the OA Startup Wizard are presented below.

   1. Setting up Multiple Companies - New companies are setup one company at a time. If
      you have more than one company, step through the wizard from start-to-finish for each
      company that you want to enter into OA. After you finish the Startup Wizard for one
      company, select New Company from the File menu in OA to open the wizard and set up
      the next company.

   2. Flow of Company Information – As a default, company details entered into OA are
      included in company reports, purchase orders, invoices, and other documents.

   3. Federal Information - The Internal Revenue Service (IRS) issues a nine-digit federal tax
      ID number to corporations, partnerships, and sole proprietors that employ one or more
      individuals. If you do not have a federal tax ID number, you will need to apply for one
      using federal tax form SS-4 - Application for Employer Identification Number located
      here: http://www.irs.gov/pub/irs-pdf/fss4.pdf. You may also want to
      download and read IRS Publication 1635 - Understanding your Employer ID Number
      located here: http://www.irs.gov/pub/irs-pdf/p1635.pdf. The only
      exception to using a federal ID number is if you are a sole proprietor that does not
      employ or pay wages to any employee and does not file pension and excise tax returns,
      you can enter your Social Security number in the Federal tax ID field.




                         Figure 1.3 – The Company and Preferences Setup Screen

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Slide 24
Text Captions: Double-click the Legal Name text box




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Audited not ok; operator skipped a step.




    4. Chart of Accounts - You have two options for entering a chart of accounts. The first
       option is to enter your own chart of accounts if you already have a chart of accounts. If
       you do not have a chart of accounts, then OA provides sample charts of accounts based
       on your business type. The chart of accounts can be entered directly into OA, or if you
       prefer you can import your chart of accounts using the integrated data utilities in OA a
       later time. If you choose to import your chart of accounts later, please be aware that a
       significant portion of the remaining setup involves referencing customers, vendors,
       employees, items and other information to the various accounts contained in the chart of
       accounts. Several financial accounts are needed for later steps when setting up items.
       These accounts can however be created at that point in time.




                                      Figure 1.4 – The Setup Accounts Screen

Note on using classes Small Business Accounting provides the notion of classes that are often
used to track income and expenses for multiple departments. You can then analyze your profit
and loss per class.

Classes are not set up at this point in the Startup Wizard. Classes are added to the system later;
therefore you should set this information aside for now, and revisit this area later. Also note that
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if you use classes, you will probably want to set up opening balances per class manually using a
journal entry, rather than using the opening balances in the startup wizard for accounts (see
later).


SQ 1.2 - If a corporation does not have a federal tax identification number:
       A. The company will need to call the Better Business Bureau and have one assigned.
       B. The company will need to apply for one using federal tax form SS-4.
       C. The chart of accounts will assign the identification number.
       D. The company will need to apply for one using IRS Publication 1204.
       E. None of the above.


   5. Business Type – OA provides 17 different business types as shown in the screen below.




                                 Figure 1.5 – OA Provides 16 Different
                               Charts of Accounts to Help You Get Started

       If you do not find a company type that exactly matches your company, you should select
       the company type that is the closest match, and edit the account list further to meet your
       specific needs. The chart of account setup screen is shown below.


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                             Figure 1.6 – The Chart of Account Setup Screen

   6. Fiscal Year Settings & Start Date – Be sure not to confuse your fiscal year settings with
      the start date, this is a common problem for many small business users who setup entry
      level accounting systems. For example, assume that you are setting up your company in
      the month of June, and your company’s fiscal year begins on January 1 and ends on
      December 31. Assume further that your trial balance and company records are dated as of
      May 31. In this case, some small business owners make the mistake of using May 31 as
      the beginning of the company’s fiscal year – this is a mistake which will cause problems
      the following year. In this example, the correct procedure would be to use January 1 and
      December 31 as the beginning and ending fiscal year dates, and May 31 as the start date.

       The Start Date is the date for which your trial balance or supporting data is compiled.
       You should pick your start date wisely for several reasons. Once the Start Date passes,
       time becomes of the essence and you will need to work double time to keep up with the
       business’ normal operations along with the setup, learning and implementation of the
       new accounting system. The further you get from the Start Date, the more transactions
       you will need to enter in order to catch the system up to current operations. At some
       point, the mounting transactions could become too voluminous and the un-posted
       transactions will start to adversely affect your business. For these reasons, you should
       pick a Start Date that coincides with the low season of your business, if possible. You
       should also make sure that essential accounting personnel have no plans for vacations;
       and if possible, you should pick a start date that coincides with your normal inventory
       count or trial balance compilation.



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       Finally it is recommended that you pay out all you bills before switching accounting
       application as that will leave you with open transaction on only the customer and banking
       sides.




                         Figure 1.7 – The Fiscal Year and Start Date Setup Screen

   7. Entering Detailed Historical Transactions – One of the more perplexing questions
      regarding the setup of an accounting system pertains to entering detailed historical
      transactions in the system, that is historical transactions prior to the Start Date. Consider
      the situation mentioned above in which a calendar year end company is setting up an
      accounting system in the month of May. In this case many business owners and CPAs
      believe that you should always use the beginning fiscal year date as the start date, and
      enter all transactions from the beginning fiscal year date to the current date in order to
      provide the relevant history. In reality, entering historical data is often less important than
      you might think. After 90 days pass by, the detailed historical information is almost
      irrelevant. Therefore, if you can survive 90 days by referring to your old accounting
      system (either manual or otherwise) for detailed historical data, then you will likely have
      little need to access that data again. To do this, simply enter starting balances as of May
      31, and begin entering daily transactions thereafter. Most companies find this to be the
      better approach.

       However if you business report accounting on cash basis, and you want to use OA to
       issue invoices and bills, you will have to consider the impact of entering opening
       balances as accrual balances and making adjustments at the time of the next financial
       reporting. Another approach is to enter the opening balances in cash basis and enter all


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       open invoices and bills as sales orders and purchase orders, in order to get the P&L
       correct when the customer pays or the bill is paid.

   8. Job Costing – OA allows you to track jobs (sometimes known as projects) in the system;
      however you must turn this feature on by answering yes to the preferences question –
      does your company track jobs?.




                                      Figure 1.8 – Using Jobs in OA

       You would normally use jobs either to track profitability for a certain piece of work over
       time or to have a better understanding of expenses incurred for a particular sale, even if
       you don’t track inventory.

       Jobs allow you to track profitability and estimated vs. actual invoicing and have a start
       date and end date. The start and end dates can span multiple fiscal years. By creating
       multiple jobs for a customer, you can measure and track the income, expenses, and
       profitability of each individual job, as well as the income, expenses, and profitability for
       each customer.

       Jobs differ from classes in the sense that you can track profitability by job, but you can
       track profit and loss by class. Jobs are thus made to track activities over time, where
       classes are used to get a more granular view of your profit and loss statement.

   9. Sales Taxes - OA allows you to calculate and charge sales taxes on all orders and
      invoices; you can configure this feature by answering yes to the preferences question –
      does your company track sales taxes? If your company does track sales taxes, OA offers
      two options as follows: 1. If your company collects a single tax rate from its customers
      and pays that tax rate to only one tax agency, you should select the single tax rate option.
      2. If your company collects multiple tax rates, or it pays sales tax to more than one tax
      agency, you should select the multiple tax rates option. These options are shown in the
      screen below.




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                                 Figure 1.9 – Sales Tax Options in OA

       The process of charging, collecting and properly reporting sales taxes can be a complex
       matter for many businesses, especially for those businesses that serve customers in
       multiple sales tax districts or states. Further, depending upon the particular state where
       your business is located, some items many be subject to sales taxes while other items may
       be subject to different sales taxes, or no sales taxes at all. Further complicating this matter
       is the fact that some states (including Hawaii and Washington) charge sales tax on sales
       tax. For example, a $100.00 item subject to a 4% sales tax in a tax-on-tax state would
       need to charge the customer $104.17. Small business owners also face the daunting task
       of keeping all sales tax rates up to date for all jurisdictions in which they do business. For
       all of these reasons, sales tax issues are addressed in detail in a separate chapter. Please
       refer to this chapter to better understand how to work with sales taxes in OA.




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   10. Form Layout Preferences -

   To determine the layout of the company’s invoices, quotes, and sales orders, OA helps to
   select a form layout that is based on the products or services that company provides.

   Select the option according to the company whether it Sells Products, Services or both.




                         Figure 1.10 - Form Layout Preferences in OA




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   11. Numbering Preferences -

   OA can assign numbers to help in identify accounts, customers, vendors, employees, or items
   that the company sells.

   Select things to which you want OA to assign numbers.
   Even you can change your selections in OA when you are finished with the Startup Wizard
   from the Company – Preferences menu.




                         Figure 1.11 - Number Preferences in OA




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   12. Payroll – One of the most frequent complaints about entry level accounting is that the
       payroll solution is inadequate or limited in its capabilities. In order to avoid this common
       problem, OA offers an integrated solution to the world’s top payroll solution as provided
       by Automated Data Processing (ADP). The proven ADP payroll solution provides
       virtually every payroll feature a company desires. The ADP payroll solution is covered in
       detail in a separate chapter of these materials. If you want to configure the ADP payroll
       solution, you should indicate this by answering yes to the preferences question – does
       your company want to use ADP payroll?




                              Figure 1.12 – Setting up ADP Payroll in OA




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   13. Cash basis or accrual basis accounting -

   OA lets you view Company’s reports as either a cash basis or accrual basis.

   With cash basis report, revenue is recognized when your company receives a payment, and
   expenses are recognized when your company pays a bill. Cash basis reports are easier to
   understand than accrual basis reports.

   With actual basis reports, revenue is recognized when your company writes an invoice, and
   expenses are recognized when your company receives a bill. Accrual basis reports give a
   more accurate view of a company’s operating performance. Most businesses use accrual
   based accounting.

   We can view the company’s reports on a cash basis or on an accrual basis (We can always
   change our preference when we individual reports).




                                      Figure 1.13 – Cash Basis or Accrual Basis in OA




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   Saving Your New Company Files
   Upon completing the Company and Preferences section of the Startup Wizard, OA will ask
   you to save your files on your computer system. You should choose a name that well
   describes your company so that it will not be easily confused with other company files. The
   Select Company File dialog box where company files are initially saved is shown below.

Technical note
The Small Business Accounting company file does not contain any data in itself. Rather it is a
shortcut to an MSDE database (Microsoft Desktop Engine - the free version of Microsoft SQL
server 2000), which is store under the Program Files folder of the computer where Small
Business Accounting was installed). The Backup and Data Protection chapter contains more
information on how to maintain the company file and MSDE database.




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                             Figure 1.14 – Saving Your New Company File

   Note that if you are setting up a template you can use when setting up your clients, the
   database should be backed up at this point in time. Please refer to chapter 2 (Backup
   Procedures & Data Protection).




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   Startup Wizard Progress Checklist
   Once you complete this required step of the Startup Wizard and save your company file,
   you can begin using OA. However, it is recommended that you first complete the setup of all
   accounts, customers, vendors, items, and business services. As shown below, the next page
   of the Startup Wizard Progress Checklist shows you the sections of the Startup Wizard
   that you have completed, in addition to the sections you still have to complete.




                             Figure 1.15 – Startup Wizard Progress Checklist

You can exit the wizard and return to it later, and OA will keep track on your progress.

This screen can be used to launch wizards to help you complete the setup of accounts, customers,
vendors, employees, items and business services. For example, selecting accounts from the
Startup Wizard Progress Checklist displays the screen shown below.




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                        Figure 1.16 – The Startup Wizard’s Setup Accounts Screen

This account setup screen functions the same ways as the regular accounts setup screen described
in chapter 3. Likewise, the setup screens for customers, employees, items and business services
are identical to the regular setup screens below, with one exception. That exception is that this
screen allows you to set up opening balances where necessary. As shown in the screen below, the
user can add new customers, and insert their beginning balances as well.




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             Figure 1.17 – The Startup Wizard’s Customer Setup Screen, with Beginning Balances

Once all customers have been setup, the Startup Wizard provides you the opportunity to enter
opening balances as shown in the screen below:




                           Figure 1.18 – Entering opening Balances for Customers

All opening balances entered into the system are treated as if they each are the first transaction
on the day of the start date, however they are filtered away in certain reports (sales, purchase and
profitability reports). Any beginning balances entered into the OA system appear as opening
balances as shown in the screen below.




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Vendors
A vendor is a company, such as a contractor or supplier, from which a\your company purchases a
product or service. In this section of the Startup Wizard you track any money that your company
owes its vendors as of the start date.

In this section of the Startup Wizard, you can enter all your vendors, including vendors to which
your company does not owe money. However it may be easier to enter only vendors to which
your company does owe money, and then enter the rest of your company’s OA after you finish
this Startup Wizard.




                  Figure 1.19 – Vendors Setup in OA Setup Wizard

To enter a vendor to which your company owes money as of the start date, click New. To change
the name of the vendor to which your company owes money, select the vendor, and then click
Edit. To remove a vendor from the list, select the vendor, and then click Delete.

To add the balance that your company owes its vendors as of the start date, click the balance
field next to a vendor, and then type the balance.




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Items

OA helps you track the items that your company sells. Items include service, physical goods that
are kept in inventory. In this section of the Startup Wizard, you track the items that your
company sells.




                  Figure 1.20 – Add Services Screen in Item Setup Wizard

A service is work performed for sale or purchase, such as consulting, design, or landscaping.
Services can sold by your company for work performed by your company or by subcontractors
of your company; services can be bought by your company from other companies.

You can add services that your company buys or sells.

You can add non – inventory items, which are physical goods that your company purchase but
does not track in inventory.




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You can add inventory items, which are physical goods that your company buys and then keeps
in stock before selling.
OA automatically tracks the quantity of the inventory on hand, the value of the inventory, and
the cost of selling the items.

Example of Opening Balances:




                    Figure 1.21 – Example of how Opening Balances are handled by OA




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Business Services
OA also offers a series of add-on business services which enhance the capabilities of the product.
These services must be setup individually using the Products and Services screen shown below.
This screen is available from the Startup Wizard Progress Checklist, and can also be accessed
from the main menu by selecting Company, Business Services, Services Overview. The
various add-on services available in OA are discussed in depth in the Business Services chapter.




                          Figure 1.22 – The Business Services Overview Screen




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Company Preferences
The next step in the company setup process is to visit the Company Preferences screens shown
below, and make the appropriate selections that will best accommodate your company. A
discussion of some of the more important preferences is presented below.




                                  Figure 1.23 – Company Preferences

Account Numbers - Most companies prefer to number their accounts rather than relying on a
name description only. The following two screens show the difference this feature makes in the
OA system. Please note that turning on account numbers makes them visible in the UI and forces
the user to set assign an account number when setting up a new financial account. Account
numbers can be up to 40 characters in length, and can be any combination of numbers, letters
and special characters. Each account number has to be unique (if assigned). Account numbers
can be changed at any point in time.



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Un-checking the checkbox merely hides the existing account numbers. So if you want account
numbers, but your client does not like them, you can hide them when you don’t use the database.




                     Figure 1.24 – The Chart of Accounts - With and Without Numbers

Classes – The use of classes allows you to establish and track another level of detail, such as
department or purpose for each transaction. After selecting this option, the Class field appears on
all forms that relate to income and expenses. For customer transactions, the class is tracked on a
document (e.g. invoice) level, assuming the whole transaction is for one class (e.g. one retail
store). For vendor transactions, banking transactions and journal entries, you can specify the
class on each line, assuming that different expenses and adjustments may not relate to the same
class. The following two screens show the difference this feature makes in the OA system on
vendor transactions:




                         Figure 1.25 – A Vendor Bill - With and Without Classes




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SQ 1.3 - The Company Preferences screen includes a preference to: ….

                        A. Automatically create a company logo to be printed on all business forms.
                        B. Force daily physical inventory counts.
                        C. Use account numbers and classes.
                        D. Track all account service calls.
                        E. None of the above.
.........................................................................................................................................................

Jobs - By using jobs, you can organize your income and expenses by job. Jobs are sometimes
known as projects. You can determine the profitability of each job and maintain tighter control of
your business. After selecting this option, the Job field appears on all forms that relate to income
and expenses. Just like classes, jobs appear on a document level for customer transactions and on
a line level for vendor and banking documents and well as for journal entries. Please refer to
chapter 21 (Job & Project Costing) for more detail on how to use jobs.

The following two screens show the difference this feature makes in the OA system on vendor
documents:




                                    Figure 1.26 – A Vendor Bill - With and Without Job Tracking

Change Log – The change log provides an audit trail by recording all changes that are made to
the master records, such as account, vendor, customer, employee, item, and job records.
However you must turn this feature on by select the appropriate check box.


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Prevent Posting – OA provides the ability to prevent posting before a selected a date. This
feature is provided for your protection as it prevents users from going back and changing data in
your accounting system either intentionally or accidentally. This preference can only be set by
The accountant or business owner. Please refer to chapter 14 (New User Setup & Security) for
more detail on how the security works in SBA.

Cash vs. Accrual – You can set up the default view for the reporting mode of your business

Remaining Preference Tabs – The remaining preference tabs provide additional preference
settings. You should review the settings on these tabs as well to ensure that the appropriate
selections have been made. These remaining preferences are discussed in more detail in the
various chapters of materials related to those particular topics.




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Updates to OA
Note that Microsoft continuously provides service packs and add-ins to OA. Office Online has a
list of all the updates, and from the help menu of OA, you can find the latest update:




Microsoft publishes all updates for OA on Office Online:

                   http://office.microsoft.com/en-us/officeupdate/default.aspx




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Click on Downloads for Office 2003




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Microsoft Small Business Accounting   Continuing Professional Education
And select Updates for OA 2008




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Microsoft Small Business Accounting   Continuing Professional Education
And click on the Updates link to see a list of all the updates:




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Microsoft Small Business Accounting                         Continuing Professional Education
On the page above, please note the OA 2008 Transaction Migration Update that enables you
to migrate transactions from QuickBooks as described in chapter 2 (Backup Procedures & Data
Protection).




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Tips for Starting a New Business
When starting a new business, they are a multitude of steps and tasks to be performed. To assist
you with this process, presented below is a brief list of some tips you should consider when
starting a new business.

Protecting your Business Name – Once you have selected a name for your business, it is wise
to protect that business trade name by registering it to ensure that other businesses can not use
the name you have chosen. This registration process will also help you avoid legal problems with
competitors by keeping you from choosing a name that is confusingly similar to that of another
business. Trademarks are names or symbols used in any commerce that are subject to regulation
by state government or the U.S. Congress. You can register online at the United States Patent
and Trademark Office located at this web address:
              http://www.uspto.gov/teas/eTEASpageA.htm
Select A Business Structure – When starting a new business, you should decide which form of
business entity to establish. Your options are as follows: sole proprietorship; limited partnership;
general partnership, corporation; S corporation; nonprofit or limited liability company (LLC).
There are legal and tax considerations related to your selection of a business structure, and the
form of business you choose will determine which income tax return form you need to file.

Getting Started Kit form the Federal Government – The United States Small Business
Administration offers a free business startup kit to assist in the process of starting up a new
business. You can access the small business startup kit at this web address:

    http://www.sba.gov/starting_business/startup/guide.html
Federal Employer Identification Number – You should apply for a federal tax identification
number to be used to identify your business entity. You may apply for this number using federal
form SS-4, or you can apply online at this web address:

http://www.irs.gov/businesses/small/article/0,,id=102767,00.ht
                            ml
Business License – It is most likely that you will need a business license in order to operate a
legal business. If your business is located within an incorporated city limits, a license must be
obtained from the city; and if it is located outside the city limits, then you will need to obtain a
business license from the county. In some cases, your local government may have established
guidelines and criteria which you will need to meet before you can legally operate your business.

Zoning Requirements – Be aware that local zoning restrictions dictate the types of activities
that can be legally conducted in any given location. To make sure that you are legally able to
operate your business in your particular location, you should check with the local zoning board
in your county.

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Business Insurance – It is prudent for any business to purchase insurance. Some types of
insurance coverage are required by law, while other types simply make good business sense. The
types of insurance most commonly used include liability insurance, property, business
interruption, automobile, officer and director insurance, home office, and key man insurance.

Workers' Compensation Insurance – Most businesses are required to carry workers'
compensation insurance, and the actual threshold for meeting this requirement varies. For
example in may states all businesses that employ three or more people must carry workers
compensation.

Sales Tax Number – Each state has specific requirements pertaining to the collection of sales
tax on just about every tangible item sold. Therefore you should apply for a sales tax number
from your state.

Unemployment Insurance Tax – All businesses are required by law to pay unemployment
insurance tax if the company has one or more employees for 20 weeks in a calendar year, or it
has paid gross wages of $1,500 or more in a calendar year.

Immigration Act - The Federal Immigration Reform and Control Act of 1986 requires all
employers to verify the employment eligibility of new employees using Employment Eligibility
Verification Form I-9.

Minimum Wage Laws – Almost all businesses are required to comply with federal minimum
wage, overtime and child labor laws. Information on these laws may be obtained from the
Department of Labor at this web address: http://www.dol.gov/.

Record Keeping – The government requires you to maintain a record keeping system, however
you may choose any record keeping system you desire. Good records will help you monitor your
business, prepare financial statements, identify receipts and deductible expenses, prepare tax
returns and support items reported on tax returns. The length of time you should keep a
document depends. In general, you should keep your records as long as they may be needed to
prove the income or deductions on a tax return. You should keep all records of employment
taxes for at least four years. Basically, the responsibility to prove transactions, deductions and
information provided on your tax returns is known as the burden of proof. You must be able to
prove (substantiate) all expenses in order to deduct them. OA helps businesses comply by
recording all supporting transactions and keeping those details in electronic form. However you
should also keep original documents that support the transactions entered into OA.



SQ 1.4 - A company can protect its company name from being used by other companies by …?

       A. Taking out a 4 by 6 inch advertisement in the local newspaper announcing the
          company name.
       B. Registering that name with the United States Patent and Trademark Office.
       C. Purchasing an Internet domain name for that company name.
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       D. Sending the company name to their lawyers using certified mail.
       E. All of the above.

Create a Business Plan - It is helpful to create a business plan for your business which
addresses aspects such as sales, marketing, advertising, locations, training, goals, budgets, etc.
The U.S. Small Business Administration provides a tutorial on how to create a business plan at
this web address:

  http://www.sba.gov/starting_business/planning/basic.html
Identify your Customers – It is important to identify your potential customers and organize
their names, address and other contact information. To assist you with this effort, for a relatively
small fee, Microsoft provides a stratified online database of more than 250 million consumers
and more than 14 million businesses at this web address:

      http://www.microsoft.com/smallbusiness/online/sales-
                       leads/detail.mspx

For example, using this database, you could identify all of the businesses with 25 miles of your
location that work in a specific industry, have between 10 and 25 employees, and revenues
between $2 million and $5 million. The cost for this information is approximately 10 cents per
contact name.

Select a CPA, Banker and Lawyer – The services of a good CPA, banker and lawyer can be
instrumental to the success of your new business. You should strive to find suitable professionals
in your location that relate well to you and your business.

Other – Of course there are many other steps you may need to take ranging form printing
business cards, securing a lease, securing advertising in the yellow pages, and setting up a phone
and voicemail system. The tips presented above are intended to provide only a starting point to
help you get started in the right direction.

Microsoft continues to update the OA site with tips and help for small businesses on the
following web address:

                                      http://sba.microsoft.com/




SQ 1.5 - A good method for identifying your customers?

   A. Ask your competitors for their customer lists.
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   B. Ask the chamber of commerce to supply you with their membership directory.
   C. Use Microsoft’s sales leads service – an online database of more than 250 million
      consumers, and 14 million businesses.
   D. Publish a request for customer information in your local newspaper.
   E. All of the above.




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                        Chapter 1 - New Company Set up
                        Hands on Learning - Now you try it
Complete the following assignment: Create a new company in OA using the following steps and
information:

   1. Select File, New Company from the main menu.

   2. Proceed to the Add Company Details screen and enter the following information:




   3. Proceed to the Setup Accounts screen and choose the option for selecting your business
      type. In the next screen, select the Wholesale/Distribution option as shown below:




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   4. Proceed to the Company preferences, Select a Fiscal Year and Start Date screen and enter
      the following information:




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   5. Proceed to the Select Job Preferences screen and select YES.

   6. Proceed to the Select Sale Tax Preferences screen. Select YES, and select the option for
      Collecting Multiple Tax Rates.

   7. Proceed to the Select Form Layout Preferences screen and select the Sells Products, or
      Both Products and Services Option.

   8. Proceed to the Select Number Preferences screen and place a check mark next to
      Accounts, Customers, Vendors, Employees, and Products and Services.

   9. Proceed to the Setup Payroll screen and select No.

   10. Proceed to the Select cash basis or accrual basis reporting screen and select Accrual
       basis reports (recommended).

   11. Proceed to the Save File screen and save the file using the default company name and
       locations as shown in the screen below:




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Company Setup                                                        46
Microsoft Small Business Accounting   Continuing Professional Education
End Notes
Some of the comments included in this chapter will seem basic to many CPAs. Any CPA with
auditing, review, or write up experience will already understand some of the basic concepts
covered herein. However, please keep in mind that there are many CPAs who have developed
expertise in other areas such as tax and consulting. Despite their expertise in other areas, the
CPAs may find themselves using OA for a local homeowners association or small start up
company. These CPAs may not have been exposed to certain basic accounting system concepts,
and therefore we address a few fundamental concepts which we believe may be pertinent to
those CPAs who fall into this less experienced category.


Glossary of Terms

       Wizard – The term wizard refers to a software approach using a series of dialog boxes
       that walks the user through a complex task step-by-step. Wizards are applauded for
       making difficult tasks easier to understand and perform.

       Fiscal Year – This term refers to a company’s official starting and ending year for
       financial reporting purposes. The fiscal year can coincide with a calendar year end, or
       may span any other 12 month period.

References

       How to set up a company, and succeed!
       http://www.rediff.com/money/2005/jan/14bspec.htm
       http://www.rediff.com/money/2005/jan/14bspec.htm

       Case Study - Setting up a United States Company
       http://images.jw.com/com/publications/355.pdf
       Setting Up Your Own Business: The Limited Liability Company
       http://ianrpubs.unl.edu/consumered/nf257.htm
       Protecting your Business Name, Entrepreneur.com
       http://www.entrepreneur.com/article/0,4621,278267,00.ht
       ml
       US Small Business Administration, New Business Startup Kit
       http://www.sba.gov/starting_business/startup/guide.html

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                            Test Questions
                                         Chapter 1
                                      COMPANY SETUP

                                          MOA




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Microsoft Small Business Accounting             Continuing Professional Education
TQ 1.1 - When setting up a new company in OA using the startup wizard, what is the
recommended course of action for a new company that does not have an established Chart of
Accounts?
Answer: B

B. Skip this step as the chart of accounts is not a required element to the accounting system.
C. Choose a chart of accounts based on your business type from the sample chart of accounts
   provided in OA.
D. The Startup Wizard will pick a chart of account based on your company’s location.
E. Determine your chart of account by reviewing your prior year’s invoices.

Chapter 1, New Company Setup

TQ 1.6 - When setting up a new company, which does not have an established Chart of
Accounts, you should:

       A. Skip this step as the chart of accounts is not a required element to the accounting
          system.
       B. Choose a chart of accounts based on your business type from the sample chart of
          accounts provided in OA.
       C. The Startup Wizard will pick a chart of account based on your company’s location.
       D. Determine your chart of account by reviewing your prior year’s invoices.
       E. All of the above.

Chapter 1, New Company Setup
*******
TQ 1.6 Answer: B


TQ 1.6a - When setting up a new company, which does not have an established Chart of
Accounts, you should:

       A.   Choose a chart of accounts.
       B.   Base the Chart of Accounts on this business type.
       C.   Select from the sample chart of accounts provided in MOA.
       D.   All of the above.
       E.   None of the above.

Chapter 1, New Company Setup
*******
TQ 1.6 Answer: E



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TQ 1.2 - Which of the following is a common mistake small businesses make when setting up an
entry level accounting system?

A. They fail to make sure that the fiscal year is the same as the start date.
B. They fail to pick a start date that coincides with their busy season.
C. Many companies do not realize that the fiscal year date and the start date are not necessarily
   the same date when beginning a new accounting system.
D. They fail to use a start date of December 31, which should always be the start date for every
   organization.

Chapter 1, New Company Setup

TQ 1.2 Answer: C


TQ 1.7 - when setting up a new accounting system, frequently users fail to?

   A. .......................................................................................................................make
        sure that the fiscal year is the same as the start date.
   B. .......................................................................................................................pick a
        start date that coincides with their busy season.
   C. .......................................................................................................................realize
        that the fiscal year date and the start date are not necessarily the same.
   D. .......................................................................................................................use a
        start date of December 31, which should always be the start date.
   E. ........................................................................................................................None
        of the above.

Chapter 1, New Company Setup

TQ 1.7 Answer: C




TQ 1.3 - How will the beginning account balances entered for each customer appear in OA?
Answer: A

A. As opening balances on the customer transaction history report.
B. They will automatically be used to produce invoices.
C. As zeros for all customers that have outstanding invoices.

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D. They are grouped together and summarized in the business services overview report.

Chapter 1, New Company Setup




TQ 1.8 - The beginning account balances entered for each customer will?

   A. .......................................................................................................................Appear
        as opening balances on the customer transaction history report.
   B. .......................................................................................................................Autom
        atically be used to produce invoices.
   C. .......................................................................................................................Appear
        as zeros for all customers that have outstanding invoices.
   D. .......................................................................................................................Appear
        grouped together and summarized in the business services overview report.
   E. ........................................................................................................................All of
        the above.

Chapter 1, New Company Setup
*********************
Answer: A




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TQ 1.4 - Which OA feature allows a business to track income and expenses by specific projects?
Answer: B

A.   The project configurator can be used to create jobs and project groupings.
B.   The use of jobs allows the user to organize income and expenses by jobs or projects.
C.   The XML based project wizard allows projects to be imported in from Microsoft Excel.
D.   The Project Trial Balance feature is used to track jobs and projects.

Chapter 1, Company preferences

TQ 1.9 - Which OA feature allows a business to track income and expenses by specific projects?

     A. .......................................................................................................................The
          project configurator can be used to create jobs and project groupings.
     B. .......................................................................................................................The
          use of jobs allows the user to organize income and expenses by jobs or projects.
     C. .......................................................................................................................The
          XML based project wizard allows projects to be imported in from Microsoft Excel.
     D. .......................................................................................................................The
          Project Trial Balance feature is used to track jobs and projects.
     E. ........................................................................................................................None
          of the above

Chapter 1, Company preferences

TQ 1.9 - Answer: B



TQ 1.5 - When setting up multiple companies within OA, it is a system requirement that:
Answer: D

A.   All companies must be set up at the same time.
B.   All companies must have the same start date.
C.   All companies must have the same fiscal year end date.
D.   You finish the startup wizard for one company, and then select New Company from the File
     menu to begin the set up for the next company.

Chapter 1, New Company Setup




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TQ 1.10 - When setting up multiple companies within OA, it is a system requirement that:
Answer: D

   A. .......................................................................................................................All
        companies must be set up at the same time.
   B. .......................................................................................................................All
        companies must have the same start date.
   C. .......................................................................................................................All
        companies must have the same fiscal year end date.
   D. .......................................................................................................................You
        finish the startup wizard for one company, and then select New Company from the File
        menu to begin the set up for the next company.
   E. ........................................................................................................................None
        of the above

Chapter 1, New Company Setup

TQ 1.5 - Answer: D




SQ (SQ) Answers and Reinforcing Responses
SQ 1.1
Answer: D

Answer A is incorrect because the material recommends that all of these items be assembled
prior to setting up a new company.
Answer B is incorrect because the material recommends that all of these items be assembled
prior to setting up a new company.
Answer C is incorrect because the material recommends that all of these items be assembled
prior to setting up a new company.
Answer D is correct because the material recommends that all of these items be assembled prior
to setting up a new company.

SQ 1.2
Answer: B

Answer A is incorrect because the Better Business Bureau does not issue federal employment
identification numbers.
Answer B is correct because you must apply for federal employment identification numbers
using federal tax form SS-4.
Answer C is incorrect because the chart of accounts will not assign a federal employment
identification number.

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Answer D is incorrect because you can not obtain a federal employment identification number
using IRS Publication 1204.

SQ 1.3
Answer: C

Answer A is incorrect because there is no preference to automatically create a company logo to
be printed on all business forms.
Answer B is incorrect because there is no preference to force daily physical inventory counts.
Answer C is correct because users must indicate from the Company Preferences screen in order
to use account numbers and classes in their accounting system.
Answer D is incorrect because there is no preference to track all account service calls.




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SQ 1.4
Answer: B

Answer A is incorrect because taking out a 4 by 6 inch advertisement in the local newspaper
announcing the company name will not protect your company name.
Answer B is correct because you should protect your company name by registering that name
with the United States Patent and Trademark Office.
Answer C is incorrect because purchasing an Internet domain name for that company name will
not protect your company name.
Answer D is incorrect because sending the company name to your lawyers using certified mail
will not protect your company name.


SQ 1.5
Answer C

Answer A is incorrect because your competitors will not provide you with their customer lists.
Answer B is incorrect because the membership directory provided by the chamber of commerce
may or may not include target customers.
Answer C is correct because Microsoft’s sales leads service provides an online database of more
than 250 million consumers, and 14 million businesses that you can search to find those
prospects that are likely customers.
Answer D is incorrect because publishing a request for customer information in your local
newspaper will likely yield no results.

Changes to make:
Original to Replace with …….
SQ …SQ
TQ 1-1,1-5……TQ (1-6, 1-10),
TQ 2-1,2-5……TQ (2-6, 2-10),

Correct answers after the end of the Q&A (Questions and multiple choice answers)
MOA MOA (Microsoft Office Accounting)
OA OA (Office Accounting)

Create Itemized PowerPoint Slides, update references, spell check & correct erros, shorten
phrases & convert passive to active voice.




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1 Company
Setup End




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Practice Test
CPE MOA Chapter 1 Company Setup

  1.   1-1 Before setting up a new company (starting the setup process), you should assemble:
       A  Company Federal Identification Number.
       B  List of employees and contact information.
       C  Trial Balance.
       D  All of the above
       E  None of the above.

  2.   1-2 If a corporation does not have a federal tax identification number:
       A  Call the Better Business Bureau.
       B  Apply for one using federal tax form SS-4.
       C  The chart of accounts will assign the ID number.
       D  Apply for one using IRS Publication 1204.
       E  None of the above.

  3.   1-3 The Company Preferences screen includes a preference to: ….
       A  Automatically create a company logo.
       B  Force daily physical inventory counts.
       C  Use account numbers and classes.
       D  Track all account service calls.
       E  None of the above.

  4.   1-4 A company can protect its company name from being used by other companies by …?
       A  Take out a advertisement in the local newspaper
       B  Register with the US Patent and Trademark Office.
       C  Purchase an Internet domain name.
       D  Send the name to their lawyers by certified mail.
       E  All of the above.

  5.   1-5 A good method for identifying your customers?
       A  Ask your competitors for their customer lists.
       B  Ask the chamber of commerce.
       C  Use Microsoft’s sales leads service.
       D  Publish a request for customer info in newspaper.
       E  All of the above.

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  6.   1-6 When setting up a new company, which does not have an established Chart of
       Accounts, you should:
       A  Skip it, the chart of accounts is not required.
       B  Choose a chart of accounts based on your type.
       C  Startup Wizard will pick a chart of account.
       D  Determine by reviewing your prior year’s invoices.
       E  All of the above.

  7.   1-7 When setting up a new accounting system, frequently users fail to?
       A  Make sure the fiscal year same as the start date.
       B  Pick a start date that coincides with their season
       C  Fiscal date, start date not necessarily the same.
       D  Use a start date of December 31.
       E  None of the above.

  8.   1-8 The beginning account balances entered for each customer will?
       A  Appear as opening balances on transaction report.
       B  Automatically be used to produce invoices.
       C  Appear 0 for ones that have outstanding invoices
       D  Summarized in business services overview report.
       E  All of the above

  9.   1-9 Which OA feature allows a business to track income and expenses by specific projects?
       A  The project configurator.
       B  The use of jobs to organize income and expenses.
       C  The XML based project wizard.
       D  The Project Trial Balance feature.
       E  None of the above.

 10.   1-10 When setting up multiple companies within OA, it is a system requirement that:
       A  All companies must be set up at the same time.
       B  All companies must have the same start date.
       C  Same fiscal year end date.
       D  Startup wizard, select New Company from File menu.
       E  None of the above.

 11.   1-11 You can setup a new company file in MOA
       A  True
       B  False

 12.   1-12 You cannot setup a new company file in MOA
       A  True
       B  False

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 13.   1-13 You can use the:
       A  Run OA Startup Wizard and Progress checklist.
       B  Run Office Accounting Startup Wizard.
       C  Run the Progress checklist.
       D  All of the above.
       E  None of the above.

 14.   1-14 You can setup company preferences in MOA.
       A  True
       B  False

 15.   1-15 You cannot setup company preference in MOA.
       A  True
       B  False

 16.   1-16 You can setup a new company in MOA by:
       A  Click File, Select Open Company
       B  Click File, Select New Company
       C  Click File, Select Close Company
       D  All of the above
       E  None of the above

 17.   1-17 The Startup Wizard divided into how many sections:
       A8
       B2
       C6
       D1
       E  10

 18.   1-18 You can a apply for a nine-digit federal tax ID number using federal tax form SS-4 -
       Application
       A  True
       B  False

 19.   1-19 You cannot apply for a nine-digit federal tax ID number using federal tax form SS-4 -
       Application.
       A  True
       B  False

 20.   1-20 With cash basis report:
       A  revenue is recognized when your company receives a payment.
       B  revenue is recognized when your company writes an invoice.

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       C  revenue is never recognized.
       D  All of the above.
       E  None of the above.




       Quiz Key

       Response A is incorrect because the material recommends that all of these items be
1. D   assembled prior to setting up a new company.
       Response B is incorrect because the material recommends that all of these items be
       assembled prior to setting up a new company.
       Response C is incorrect because the material recommends that all of these items be
       assembled prior to setting up a new company.
       Response D is correct because the material recommends that all of these items be
       assembled prior to setting up a new company.
       Response E is incorrect because another response is correct

       Response A is incorrect because the Better Business Bureau does not issue federal
2. B   employment identification numbers.
       Response B is correct because you must apply for federal employment
       identification numbers using federal tax form SS-4.
       Response C is incorrect because the chart of accounts will not assign a federal
       employment identification number.
       Response D is incorrect because you can not obtain a federal employment
       identification number using IRS Publication 1204.
       Response E is incorrect because another response is correct

       Response A is incorrect because there is no preference to automatically create a
3. C   company logo to be printed on all business forms.
       Response B is incorrect because there is no preference to force daily physical
       inventory counts.

       Response C is correct because users must indicate from the Company Preferences
       screen in order to use account numbers and classes in their accounting system.
       Response D is incorrect because there is no preference to track all account service
       calls.
       Response E is incorrect because another response is correct


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       Response A is incorrect because taking out a 4 by 6 inch advertisement in the local
4. B   newspaper announcing the company name will not protect your company name.
       Response B is correct because you should protect your company name by
       registering that name with the United States Patent and Trademark Office.
       Response C is incorrect because purchasing an Internet domain name for that
       company name will not protect your company name.
       Response D is incorrect because sending the company name to your lawyers using
       certified mail will not protect your company name.
       Response E is incorrect because another response is correct

       Answer A is incorrect because your competitors will not provide you with their
5. C   customer lists.
       Answer B is incorrect because the membership directory provided by the chamber
       of commerce may or may not include target customers.
       Answer C is correct because Microsoft’s sales leads service provides an online
       database of more than 250 million consumers, and 14 million businesses that you
       can search to find those prospects that are likely customers.
       Answer D is incorrect because publishing a request for customer information in your
       local newspaper will likely yield no results.
       Response E is incorrect because another response is correct

6. B   Response A is incorrect because the chart of accounts is required.
       Response B is correct because you want to pick the type based on your needs.
       Response C is incorrect because the startup wizard might pick the wrong type.
       Response D is incorrect because you want to focus on the new company, not the
       past invoices.
       Response E is incorrect because other responses are incorrect.

7. C   Response A is incorrect because they don't have to be same.
       Response B is incorrect because season is not a factor on picking a start date.
       Response C is correct because they don't have to be the same.
       Response D is incorrect because it doesn't have to be on December 31.
       Response E is incorrect because response C is the correct answer.

       Response A is correct because the beginning account balances appear as opening
8. A   balances.
       Response B is incorrect because it doesn't necessarily used to produce invoices.
       Response C is incorrect because it won't appear 0.
       Response D is incorrect because it won't be summarized when entering the
       beginning account balances.
       Response E is incorrect because response A is correct.

Company Setup                                                                                  61
Microsoft Small Business Accounting                             Continuing Professional Education
       Response A is incorrect because the project configurator doesn't track income and
9. B   expenses.
       Response B is correct because the use of jobs does help to track income and
       expenses.
       Response C is incorrect because the project wizard doesn't track income and
       expenses.
       Response D is incorrect because the project trial balance feature doesn't track
       income and expenses.
       Response E is incorrect because response B is correct.

10.
D      Response A is incorrect because they don't have to be set up at the same time.
       Response B is incorrect because they don't have to have the same start date.
       Response C is incorrect because they don't have to have the same fiscal year end
       date.
       Response D is correct because that's how to you set up multiple companies within
       OA.
       Response E is incorrect because response D is correct.

11.    You can setup a new company file in MOA, just change the current name to the
A      new name.                                                                             URL:
       You can setup a new company file in MOA


12.
B      You can setup a new company file in MOA, select the new company button.               URL:
       You can setup a new company file in MOA, select the new company button.


13.
D      It will show you step by step how to set a new company.                               URL:
       OA wizard will show you how to set a new company.
       The progress checklist will show you the progress.
       OA wizard will show you how to do it and the progress checklist will show you the
       progress.
       All of the above are correct.

14.
A      When setting up a new company, you can setup the company preferences in MOA.          URL:

       When setting up a new company, you can setup the company preferences in MOA.




Company Setup                                                                                 62
Microsoft Small Business Accounting                            Continuing Professional Education
15.
B     This is incorrect because you can setup company preference in MOA                      URL:
      This is correct because you can setup company preference in MOA


16.
B     incorrect, open company will only opne a company that's previous set up.               URL:
      correct, you can setup a new company by selecting new company.
      incorrect, you will close the company by selecting Close Company
      incorrect, choice #2 is the only right answer
      incorrect, choice #2 is the right answer

17.
C     incorrect, there are 6 sections in startup wizard.                                     URL:
      incorrect, there are 6 sections in startup wizard.
      correct, there are 6 sections in startup wizard.
      incorrect, there are 6 sections in startup wizard.
      incorrect, there are 6 sections in startup wizard.

18.   You can a apply for a nine-digit federal tax ID number using federal tax form SS-4 -
A     Application                                                                            URL:
      inncorrect, you can a apply for a nine-digit federal tax ID number using federal tax
      form SS-4 - Application



19.   inncorrect, you can apply for a nine-digit federal tax ID number using federal tax
B     form SS-4 - Application.                                                               URL:
      correct, you can apply for a nine-digit federal tax ID number using federal tax form
      SS-4 - Application.



20.   correct, with cash basis report, revenue is recognized when your company receives
A     a payment.                                                                             URL:
      incorrect, this is with accrual basis reports
      incorrect, with cash basis report, revenue is recognized when your company receives
      a payment.
      incorrect, choice #1 is the only right answer.
      incorrect, choice #1 is the right answer




Company Setup                                                                                 63
Microsoft Small Business Accounting                            Continuing Professional Education
Company Setup                                                        64
Microsoft Small Business Accounting   Continuing Professional Education
Company Setup                                                        65
Microsoft Small Business Accounting   Continuing Professional Education
Company Setup                                                        66
Microsoft Small Business Accounting   Continuing Professional Education

								
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