Drake Software Evaluation Guide

1 3 6 | R e v i e w Q u e s t i o n s P a r t 5 2 0 0 8 D R A K E S O F T W A R EANSWERS PART 51. The correct answer is b) retained earnings. This account acts as a balancing account for the return.a) is incorrect. Accounts payable is an asset account and the program doesn’t use this account tobalance.c) is incorrect. A cash account is an asset account and the program doesn’t use this account to balance.d) is incorrect. Capital stock is a liability account but it doesn’t function as a balancing account for theprogram.2. The correct answer is c) Schedule K, Other Information. The Principal Business Activity Code isentered on Schedule K along with the answers to various questions about the corporation.a) is incorrect. Screen 1 is used for general information about the corporation.b) is incorrect. Amounts for the state and local taxes and licenses are entered on this screen.d) is incorrect. This schedule is used for tax computation.3. The correct answer is d) M2, Retained Earnings. Distributions of cash, stock, and property areentered on the M2 screen.a) is incorrect. The M1 screen is used to reconcile income (or loss) per books with income (or loss) perreturn.b) is incorrect. Assets, not distributions, are entered on the L1.c) is incorrect. The Income and Deductions screens are used to enter income and deductions, notdistributions, for the corporation.4. The correct answer is b) PAGE UP. This takes to you the M1 screen.a) is incorrect. CTRL + D is for deleting a screen.c) is incorrect. END does not move you through the screens.d) is incorrect. ALT + END doesn’t do anything in the program.Drake Software Evaluation GuideCopyrighted Material