Unity University Adama Campus

Department of Accounting and Finance

Accounting software Application Final Examination

Instructor: Getu W. Max Marks: 40%

Time Allowed: 1:20hrs.
Date: February 2022
Name______________________________________________________________
ID________________________________________________________________
Section____________________________________________________________
General Instruction
 This exam booklet contains 10 true or false questions, 25 multiple type questions, 6 matching,
and 5 short answer questions in 8 pages including the cover page.
 Try to attempt all questions
 Don’t bring any material to the exam hall
 Be confident! And manage your time!
 Respect all the rules and regulation of the university
 Follow the instructions of the exam and the invigilator’s
 Any attempt of cheating will end up with the cancelation of your score

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Instruction I Say true if the statement is correct and false if it is wrong and write your answer on the space
provided to you.
1. There are some payroll reports that are print only. In other words, these reports can be printed but
not seen on the computer screen.
2. Customer defaults can be overridden for any one customer or specific invoice. But, the defaults
cannot be changed for all customers that use standard terms.
3. Invoices that post to a vendors account on a regular basis are considered recurring vendor invoices.
4. The General Ledger account used for Accounts Receivable finance charges must be an Income
account type.
5. Peachtree can maintain a record of two consecutive periods
6. In Peachtree Accounting, accounting method cannot be changed once you complete the New
Company Setup wizard.
7. Each time you use the “Sales/Invoicing” window you are journalizing in the Sales Journal.
8. In Peachtree Accounting if you post any transaction, it indicate a General Ledger update.
9. The “Maintain Vendor” window is used to enter information about vendors from whom you
purchase merchandise.
10. At the end of the fiscal year, Peachtree automatically closes the year by posting the necessary
journal entries.
Instruction II Choose the best answer from the given alternatives and write the letter of your answer on the space
provided to you.
1. To enter a sale invoice on the navigation bar, select one of the following.
A. Firstly Tasks, then Purchases, then Receive Inventory
B. Firstly Customers & Sales Navigation Center, then Sales Invoices, then Set Up Invoice Defaults
C. Firstly Customers & Sales Navigation Center, then Sales Invoices, then New Sales Invoice
D. Firstly Customers & Sales Navigation Center, then Customers, then View and Edit Customers
2. Income statements show the summary of
A. Cash payments and what they were used for.
B. Revenues and expenses over a period of time.
C. The overall change in cash.
D. Cash receipts and where they came from.
3. Which of the following account’s ID is different?

A. Petty cash C. Accounts Receivable

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 B. Sales D. Cash checking account
4. Which of the following does not represent an inventory item class?
A. Stock item B. Non- stock item C. Labour D. Item Id E. None of the above

5. Which of the following from the Reports & Forms menu would you choose to print a balance sheet?

A. General Ledger B. General Journal C. Financial Statements D. Company Reports

6. If you receive prepayment from a customer, what window do you use?
A. Task, Sales/Invoicing
B. Task, Receipts
C. Maintain, Sales/Invoicing
D. Task, Payment
E. None of the above
7.The general ledger link account selected when we enter customer beginning balance
A. Accounts Receivable
B. Income
C. Miscellaneous Expense
D. Cost of Sales
E. None of the above
8. Which menu bar selection do you make to record merchandise purchased on account?
A. Maintain, Purchases/Receive Inventory
B. Tasks, Sales /Invoicing
C. Option, Payment
D. Tasks, Purchases/Receive Inventory
E. None of the above
9. Use the following menu options to record entries in the Sales Journal:
A. Maintain, Customer Prospects
B. Tasks, Receipts
C. Tasks, Sales/Invoicing
D. Maintain, Default Information/ Customers
E. None of the above
10. An account we must have in all chart of account to save beginning balance information
A. Equity- Retained Earning
B. Equity-Get Closed
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 C. Equity-Does not Close
D. Cost of Sales
E. None of the above
11. If you want to show a list of customers in the sales or invoicing customer ID text box, then which of
the following can be used?
A. Click on the right mouse button
B. Type a question mark (?)
C. Click on the magnifying glass icon
D. All of the above
E. None of the above
12. For individual employee make the following selections to set up specific guideline
A. Tasks > Select for payment > Select employee
B. Maintain > Default Information > Employees
C. Employee and Payroll Navigation Employees & Payroll Navigation Center > Employees > View
and Edit Employees
D. Employee tasks > Employees > Employee Maintenance > make the appropriate selection
E. None of these
13. Which of the following selections would you make from the peachtree navigation bar to
record the damage if an inventory item is damaged?
A. Inventory & Services Navigation Center and  Inventory Adjustments
B. Inventory & Services Navigation Center and Prices
C. Inventory & Services Navigation Center and Track Package
D. Inventory & Services Navigation Center and Inventory Count
E. None of these
14. The Vendor Ledger report in peachtree is another name for the
A. Inventory subsidiary ledger.
B. Accounts Payable subsidiary ledger.
C. Accounts Payable open items report.
D. both A and B

E.None of these

15. The journal entry when you purchase inventory stock item is
A. Dr. the Accounts Payable/Vendor account; Cr. the Inventory account.
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B. Dr. the Inventory account; Cr. the Accounts Payable/Vendor account.

C. Dr. the Cash account; Cr. the Revenue account.

D. Dr. the Accounts Receivable/Customer account; Cr. the Sales account.

E. None of these

16. Each inventory item’s price in peachtree is stored in the:

A. Tasks; Inventory items.

B. Maintain Inventory Items file.

C. both A and B
D. Maintain Purchase Items file.

E. None of these

17. Net income of the Income Statement’s or (net loss) can also be seen on the
A. Balance sheet’s capital section.
B. At the end of the period cash balance.
C. Income statement’s revenue section.
D. Departmental gross profit totals.

E. None of these

18. Commands which Peachtree automatically selects are called

A. Objects B. Dialog boxes C. Defaults D. Shortcuts E. None of these

19. To display the balance sheet One way is to use for which the menu bar selection?
A. Reports & Forms > Financial Statements > Standard Financial Statements > Display
B. Reports & Forms > Financial Statements > Inventory > Options
C. Reports & Forms > Financial Statements > Print
D. Reports & Forms > Financial Statements > Standard Balance Sheet > OK

E. None of these

20. Over a period of time expenses and revenues are shown on the
A. Departmental gross profit report
B. Income statement

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C. Balance sheet
D. Statement of cash flow

E. All of these

21. Which option from the Tasks menu would you choose to record a purchase made on credit?

A. Sales/Invoice B. Purchase C. Purchases/Receive Inventory D. Receive Inventor

22. Which of the following is not under general ledger report group area?

A. General Ledger Account Summary Report C. General Ledger

B. Chart of Accounts D. General Ledger Trial Balance E. None of the above

23. All of the following are the use of the Chart of Accounts window except:

A. Add new accounts C. Modify the description of an existing account

B. Make an account inactive D. Change the account type for an account
E. None of the above
24.Of the following identify the wrong account type matching
A. Saving Account- Cash
B. Allowance for Doubtful Accounts-Account Receivable
C. Office Equipment-Fixed Asset
D. Owner’s Withdrawal-Equity Doesn’t Close
E. None of the above
25.The Cash Account number is shown on which of the following windows
A. General Journal Entry
B. Receipts
C. Sales/Invoicing
D. Purchases/Receive Inventory
E. None of the above

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 Instruction III Match items in a column A with items in column B and write the letter of your answer on the
space provided to you.
Column A Column B
1. Sold 20 units of Product A to a customer for cash. A. Inventory Adjustment
2. Sold 20 units of Product A to a customer for cash. B. Maintain customers/Prospects
3. Record proceeds from disposal of office furniture. C. Maintain Vendors
4. Hide a GL account column on Receipt window. D. Payment
5. 5. Purchase 15 units of Product A for cash. E. General journal entry
6. Enter an adjustment for Product B because 2 units were found to be F. Maintain inventory item
spoiled.
G. Receipts
H. Global Options
I. Purchase/Receive Inventory
J. Purchase Order
K. Sales/Invoicing

Instruction IV Short Answer Questions

1. List out the main tasks to be performed in general ledger?
2. What is Customer Default? How is Customer Default entered?
3. State all the information that should be used in setting up company profile

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 Unity University Adama Campus
Department of Accounting and Finance
Accounting and Software Application Final Examination
Answer Sheet
Name_____________________________________________
Id________________________________________________
Section___________________________________________
Instruction I True or False
1.____________ 2___________ 3_____________ 4_____________ 5__________
6____________ 7___________ 8_____________ 9_____________ 10_________
Instruction II Choose
1.____________ 2___________ 3_____________ 4_____________ 5__________
6____________ 7___________ 8_____________ 9_____________ 10_________
11____________ 12___________ 13_____________ 14_____________ 15__________
16____________ 17___________ 18_____________ 19_____________ 20_________
21.____________ 22___________ 23_____________ 24_____________ 25__________
Instruction III Matching
1.____________ 2___________ 3_____________ 4_____________ 5__________
6____________
Instruction IV Short Answer Questions