Hawassa University

College of Business and Economics,

Department Accounting and Finance.
Fina Examination, Accounting Software Application (AcFn3182)
Name_________________________________Id/No______________Section________________
PART I: choose the best answer from the alternatives given to the questions below.

1. One of the following is not true regarding computerized accounting system?

a. Is an accounting system that performs data processing manually.
b. It enables to handle complex and large transactions easily.
c. It increases efficiency, accuracy, speed, and timeliness.
d. It reduces cost in relation to record keeping (cost per transaction)
e. None
2. One of the following doesn’t relate to the limitations of a computerized accounting system ?
a. It may not be cost-effective for small firms with lesser volume of data to process
b. Initial implementation may be time taking;
c. It requires specialized skill;
d. Slow acceptance may there be by employees, clients, creditors, and auditors.
e. None
3. One of the following is not an accounting software?
a. Peachtree d. EXACT.
b. QuickBooks. e. SPSS.
c. ACCPAC. f. None.
4. One of the following accounts cannot be categorized under an equity-gets closed accounts
a. Withdrawal c. Interest expense
b. Dividend account. d. None
5. One of the following accounts can only be entered as a negative balance in the asset expense
section while maintaining charts of accounts?
a. Accumulated depreciation. c. Sales discount.
b. Allowance for doubtful accounts. d. None
6. The journal that is used record miscellaneous transactions that cannot be recorded into special
journals is?
e. Sales journal c. General journal
a. Purchase journal. d. None
b. Other Journal.
7. One of the following Accounts can only be maintained once?
a. Capital stock c. Retained earnings.
b. Account payable d. None
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8. Accounting activities that may occur in relation with customers include:
a. Sending quotes to customers.
b. Receipt of sales order.
c. Issuance of goods on account (invoicing customers by issuance sales invoice).
d. Receipt of cash on account.
e. All.
9. Major information to be filled while maintaining an inventory item includes:
a. Inventory ID and description. c. General ledger ‘inventory’ account to
b. General ledger ‘sales’ account to be be affected.
affected with the specific inventory d. General ledger ‘cost of sales’ account to
item. be affected.
e. None
10. Non-invoiced cash receipts should be recorded in
a. Apply to revenues folder tab c. Apply to invoice folder tab
b. Apply to sales folder tab d. None.
11. One of the following is not true about purchase order?
a. A purchase order enlists a list of items or services one desires to buy from a vendor;
(representing an intent to purchase)
b. Events will only be recorded in a purchase order journal without affecting or up-dating both
the GL and subsidiary ledger accounts;
c. ‘Closing’ of a purchase order involves the case where the items indicated in the purchase order
are entirely received or they are not to be received any more in the future
d. None
12. Select the incorrect statement regarding payment options in Peachtree?
a. Use Write Checks to create individual payments on the fly.
b. Use Payments to pay a single vendor when you need to track inventory or jobs;
c. Select for use Payment, Paper Checks to pay more than one vendor at a time.
d. None
13. one of the following is not true regarding sales quotations?
a. Refers to prices offered to goods or services to be sold
b. If no alteration is made, quotes can be converted to sales order or sales invoices.
c. If the quote is accepted by the customer, later it may be converted into sales order or sales
invoice.
d. Quotes recorded are not to be posted to the accounts indicated as it is not yet complete
transaction to consider
e. None
14. One of the following is not true regarding sales order and related transactions?

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 a. Sales order is a document enlisting goods or services customers want to buy. It shows a sales
request from the customer. (Representing intent to sale)
b. Sales orders issued will be recorded in a ‘sales order journal’
c. When the goods on the sales order are shipped, sales invoice will be prepared for the goods
shipped.
d. Sales orders recorded wouldn’t affect or up-date general ledger accounts. Since the transaction
is not yet complete by the time sales orders are issued
e. None
15. A journal shows detailed records of sales orders issued chronologically?
a. Sales Journal c. Sales Order register
b. Purchase journal d. None
16. One of the following is not true regarding sales invoices and related transactions?
a. Issuance of sales invoice occurs when the goods are actually shipped to the customer
b. Issuance of sales invoice indicates the actual sales transactions and completion of the earning
process.
c. When goods are shipped after sales order had been sent for them, the specific sales order from
which the goods are shipped should be specified in the sales invoice in to ‘apply to sales order’
folder.
d. None
17. One of the following is not true regarding purchase invoices and related transactions.?
a. In case where the cash payment is not recorded from the ‘apply to purchase’
related with a given purchase invoice folder tab
issued earlier, such an event is to be c. Items purchased from vendors report
recorded from the ‘apply to expenses’ lists quantity and price of items
folder tab purchased from various vendors for a
b. Purchase invoice for the goods received specific period selected.
but that cannot be related with a given d. None
purchase order issued earlier should be
18. Return of items purchased is recorded in?
a. Vendor credit memo d. Purchase journal
b. General journal e. None
c. Sale journal
19. Which menu will you open to create chart of accounts?
a. Maintain menu c. Analysis Menu.
b. Task menu d. None
20. General information regarding terms of payment, aging, finance charges and the like is maintained
as?

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 a. Default information. 7. In batch posting, the transactions you
b. As part of subsidiary ledger. enter are both posted and saved when
c. In general ledger accounts.
you click theSave button.F
d. None.
8. In cash basis accounting method,
Peachtree will provide you active
PART I: TRUE/FALSE (0.5pt each) receivable and payableaccountsF

1. Customer default is unchangeable 9. Peachtree accounting provides a

information for an individual customer perpetual inventory system facility,
recoras.F which continuallyupdates inventory

2. The account type we select in general records.T

ledger set up determines where the 10. In accrual basis accounting model,
account appea financial statements and there are no receivables and payables
how its amounts are handled at fiscal accounts.F
year end.T
11. If you age by invoice date, the aging
3. Customer defaults are information t reports show how old each invoice and
that you enter every time when you? set each balance is.T
up each customer's record.F
12. Account numbers can contain any
4. Once you select the posting method printable character except *, t, and?.T
you never change it after the completion
13. If you enter a new account, Peachtree
oI New Company Set up.F
assumes that this account has a zero
5. After creating new company, you can balance T
change the accounting methods between
14. The selection of business type
accrual basisand cash basis.T
determines the makeup of the equity
6. In real-time posting, the transactions section of the charts of accounts.T
you enter are saved to a temporary
15. After you close a fiscal year, you can
holding area, whereyou can review them
edit any transactions posted to the
before posting the batch to the General
General Ledger any time after the fiscal
Ledger.F
year is closed.F

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1. One of the following is not included for 6. It is basic information about the
terms and credits customer in general tabs

A. Standard terms A. Sales tax

B. Credit limit B. Current balance

C. Credit status C. Customer type

D. None of the above D. All are of the above

2. The standard payment terms does not 7. Which one of the following is odd?
include one aspects
A. COD
A. Discount GL account
B. Prepaid
B. Due in numbers of days
C. Credit limit
C. COD
D. Due in number of days
D. Net due in
8.......represent equity that is carried
4. It is not the equity character days forward from year to year

A. Equity does not close A. Equity does not close

B. Equity gets closed B. Equity gets closed

C. Equity retained C. Cost of sales

D. Equity running balance D. Equity running balance

5. It is different from the three items in 9. The following item cannot be modified
sales tax at any time after completing the "setup a
new
A. Sales tax codes
company" process in Peachtree
B. Sales revenue balance
accounting
C. Vendor
A. Account method
D. Sales tax authority
B. Business type

C. Chart of accounts

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 D. Account period 12.is represents equity that is zeroed out
at the end of the fiscal year with the
10. Which one of the following is odd
amounts moved to the retained earnings
A. Invoice number account.

B. AP account A. Equity retained earning

C. Purchased order number B. Retained earning

D. Expense Account C. Equity get closed

11.is represents the known cost to your D. Equity doesn't close

business for items or services when sold
to

customers.

A. Cost of sales

B. Retained earning

C. Account payable Part II

D. Dividend
I. Discuss the basic difference between general and subsidiary ledger accounts (5Pts)

II. Discuss the basic difference between quotation and order (5pts

1. General Ledger vs. Subsidiary Ledger Accounts:

- General Ledger Accounts: The general ledger is the main accounting record that
contains all financial transactions of a business. It summarizes all transactions into
specific categories such as assets, liabilities, equity, revenue, and expenses. General
ledger accounts provide an overview of the financial position and performance of the
entire organization.
- Subsidiary Ledger Accounts: Subsidiary ledgers are detailed records that support
the information in the general ledger. They contain specific details for individual
accounts, such as customers, vendors, or inventory items. Subsidiary ledgers provide

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 more detailed information about transactions and help in tracking specific activities
or balances within the organization.

2. Quotation vs. Order:

- Quotation: A quotation is a document issued by a seller to a potential buyer that provides details
about the products or services being offered, including prices, terms, and conditions. It is a
preliminary offer that outlines the cost of goods or services and serves as a basis for negotiation. A
quotation is not binding and can be revised or updated based on further discussions with the
buyer.
- Order: An order is a formal request made by a customer to purchase goods or services from a
seller. It specifies the quantity, type, and terms of the products or services to be delivered. An order
is a legally binding agreement between the buyer and seller that outlines the terms of the
transaction, including price, delivery date, payment terms, etc. Once an order is accepted by the
seller, it becomes a sales contract.

In summary, general ledger accounts provide an overall view of a company's financial transactions,
while subsidiary ledger accounts offer detailed information about specific accounts. A quotation is
a preliminary offer provided by a seller to a buyer, while an order is a formal request made by a
customer to purchase goods or services.

1. List the item window of customer default windows and customer record windows?
2. List and discuss each of the sixteen account types Peachtree Accounting provides.
3. List the item windows of vendor default windows and vendor record windows?
4. List item windows of inventory default window and inventory item record windows?

5. Discuss the steps to be following while setting up New Company.

6. What are the procedures for creating customers?
7. Enumerate and discuss the types of business Peachtree Accounting provides.
8. Write the account types of the following accounts.
A. Cost of goods sold
B. Preferred stock
C Transportation in
D. Allowance for uncollectable
E. Retained earning
E. Bank Service change
G. Change funds

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1. The item window of customer default windows includes information such as customer
ID, customer name, address, contact information, credit limit, payment terms, etc. The
item window of customer record windows provides detailed information about a specific
customer, including transaction history, account balance, open invoices, etc.
2. Peachtree Accounting provides the following sixteen account types:
- Asset
- Liability
- Equity
- Revenue
- Cost of Goods Sold
- Expense
- Other Income
- Other Expense
- Bank
- Accounts Receivable
- Accounts Payable
- Credit Card
- Long-Term Liability
- Fixed Asset
- Other Current Asset
- Other Current Liability

3. The item windows of vendor default windows include vendor ID, vendor name, address,
contact information, payment terms, etc. The item window of vendor record windows
provides detailed information about a specific vendor, including transaction history,
account balance, open bills, etc.

4. The item windows of inventory default window include information such as item ID,
item name, description, cost, selling price, quantity on hand, reorder point, etc. The item
window of inventory item record windows provides detailed information about a specific
inventory item, including transaction history, stock levels, cost of goods sold, etc.

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5. Steps to follow while setting up a new company in Peachtree Accounting may include:
- Creating a new company file
- Setting up company details such as name, address, fiscal year, etc.
- Configuring chart of accounts
- Setting up users and security permissions
- Defining vendors and customers
- Setting up inventory items
- Configuring tax settings
- Setting up bank accounts and other financial details

6. Procedures for creating customers in Peachtree Accounting may include:

- Accessing the customer module
- Clicking on the "New Customer" button
- Entering customer details such as name, address, contact information, credit limit,
payment terms, etc.
- Saving the customer record
- Assigning appropriate sales accounts and tax codes to the customer

7. Types of businesses Peachtree Accounting caters to include small and medium-sized

businesses in various industries such as retail, manufacturing, service-based businesses,
non-profit organizations, etc. It provides accounting solutions tailored to the specific
needs of these businesses.

8. Account types for the provided accounts are:

A. Cost of Goods Sold - Expense
B. Preferred Stock - Equity
C. Transportation In - Expense
D. Allowance for Uncollectable - Other Expense
E. Retained Earnings - Equity
F. Bank Service Charge - Expense
G. Change Funds - Asset