UM Tagum College

Department of Accounting Education

COMED 422 – Final Exam
May 16-17, 3019
Instruction: Read the following questions and choose the best answer among the choices. STRICTLY
NO ERASURES.
1. Which of the following is a characteristic of Manual Accounting?
a. Prepare business documents using the computer to record information directly on the business
form—Invoice, Check, Sales Receipt
b. Based on the business form entry, QuickBooks enters transactions in Debit/Credit format
automatically
c. Post transactions to General Ledger and Subsidiary Ledgers
d. Prepare reports by clicking a button
2. Which of the following is a characteristic of Computerized Accounting with QuickBooks?
a. Prepare Reports by hand
b. Prepare business documents by hand—Invoice, Check, Sales Receipts
c. Record transactions in Debit/Credit format
d. Close period by entering a closing date
3. It contains a list off your business accounts including all the balances.
a. Chart of Accounts c. Account Register
b. Register d. Ledger
4. It contains chronological list of transactions recorded in the QuickBooks.
a. Chart of Accounts c. Account Register
b. Register d. Ledger
5. What part of the edit menu will you click if you want to show or hide an icon/s?
a. Edit Company c. Company Preference
b. Preferences d. My Preferences
6. It contains icons that correspond to business activities.
a. QuickBooks Interface c. Accountant Center
b. Homepage d. Employee Center
7. Place at the top of the screen where you can find all the functionality of the software.
a. Menu Bar c. Window List
b. Icon Bar d. Name bar
8. Which of the following is an advantage of Quickbooks?
a. QuickBooks is expensive and costly.
b. Requires a lot of manual oversight.
c. The user’s work must be adapted to what the software needs.
d. Executes accounting process automatically.
9. When you start a company or are hired as a bookkeeper, it is important to know which edition of
QuickBooks you are using. What are the major QuickBooks editions?
a. QuickBooks Online, QuickBooks Pro, QuickBooks Premier, QuickBooks Enterprise Solutions
b. QuickBooks Online, QuickBooks Basic, QuickBooks Pro
c. QuickBooks Basic, QuickBooks Pro
d. QuickBooks Premier, QuickBooks Enterprise Solutions
10. What is the purpose of the Chart of Accounts?
a. It allows accountants to view accounting records remotely.
b. It is how you categorize financial transactions.
c. To see a graphical chart of income and expenses.
d. To categorize items.
11. Accumulated Depreciation-Computer would be defined in QuickBooks as a ______ and a sub-account of
________?
a. Fixed Asset; Accumulated c. Fixed Asset; Computers
Depreciation d. Expense; Depreciation Computer
b. Owner's Equity: Computer Cost
12. An account type that includes costs incurred for material and services not part of the normal operation of
the business.
a. Other expenses c. Expenses
b. Costs d. COGS
13. These accounts contain cost incurred for materials and services not part of the normal operation of the
business.
a. Other expenses c. Expenses
b. Costs d. COGS
14. Things that you can do to manage your chart of accounts
a. Transform accounts c. Do nothing
b. Add accounts d. All of the above
15. This account pertains to the transaction you owe from the supplier of goods and services.
a. Accounts payable c. Other current assets
b. Accounts receivable d. Credit card
16. What does the term “Double-entry accounting” mean?
a. That the Income and Expense accounts are always part of every transaction.
b. There are always at least two accounts involved in every financial transaction.
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 c. That the Cost of Goods Sold account and the Liabilities account are always part of a transaction.
d. The Equity and Asset accounts are always involved in a transaction.
17. What is the purpose of subaccounts?
a. Track departments or locations efficiently
b. Track finances in more detail by grouping accounts in a logical fashion and showing a subtotal for
those accounts
c. To show different Account Types together in one section of a report
d. None of the above
18. Which on the following is the detailed type of Bank category?
a. Cash on Hand c. Licenses
b. Development Cost d. Owners Equity
19. What are the main sections of the Profit & Loss?
a. Income, Expenses, and Liabilities c. Income, Assets, and Owner’s Equity
b. Income, Cost of Goods Sold, and d. Assets, Liabilities, and Equity
Expenses
20. To set up the chart of accounts, go to ________ or click the chart of accounts icon on the home page.
a. Edit > Chart of Accounts c. View > Chart of Accounts
b. Company > Chart of Accounts d. File > Chart of Accounts
21. Are people is whom the company pays for goods and services acquired.
a. Vendor c. Customer
b. Vendor Center d. Customer Center
22. It is a place where you can manage and monitor transactions with the customer.
a. Vendor c. Customer
b. Vendor Center d. Customer Center
23. It provides a summation before you add shipping charges, markups or subtract any discounts or
prepayments
a. Service c. Non-Inventory Part
b. Group d. Subtotal
24. Product that company sell, but do not track as inventory.
a. Service c. Non-Inventory Part
b. Group d. Subtotal
25. It is used when the company wants to sell a bundle of items for promo.
a. Service c. Non-Inventory Part
b. Group d. Subtotal
26. All of the following tasks can be completed in the Vendors section of the Home page except:
A. Create Invoices C. Purchase Orders
B. Receive Inventory D. Enter Bills
27. From the Customer section of the Home page, all of the following transactions can be recorded except:
A. Create Invoices C. Pay Bills
B. Create Estimates D. Receive Payments

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 28. When would you enter a journal entry?
a. To correct errors (if you have a c. To enter depreciation
strong accounting background) d. All of the above
b. For year-end adjustments
29. When entering a journal entry, what happens if the debits don’t equal the credits?
a. QuickBooks sends the difference to an adjustment account.
b. QuickBooks will not allow you to record the transaction.
c. QuickBooks asks you what to do with the “unequal” amount.
d. Nothing. QuickBooks records the transaction as is.
30. When recording the purchase of an inventory item, which account is increased?
a. Sales c. Inventory Asset
b. Checking d. Accounts Receivable
31. What transaction should you enter if a customer returns a damaged product or, in the case of a service,
complains so much you decide to offer a refund?
a. Debit Memo c. Customer Return
b. Credit Memo d. Check or Bill
32. When should you create an invoice in QuickBooks?
a. When a customer purchases goods or services and pays you in cash at the time of the sale
b. When a customer purchases goods or services and pays you by check or credit card at the time of
the sale
c. When a customer purchases goods or services, but you don’t want to record the sale as final
d. When a customer purchases goods or services but does not pay you at the time of the sale
33. When should you use a Sales Receipt in QuickBooks?
a. To give a customer a receipt for payment of an invoice
b. To record a customer prepayment or deposit
c. To record a customer payment at the time of sale
d. To enter a customer early-payment discount
34. The purchasing cycle includes all of the following transactions except:
a. Receive inventory items and record in the inventory account
b. Enter bill in QuickBooks when bill is received
c. Create a sales receipt when inventory is ordered
d. Print the checks
35. If the supplies on hand at the end of January totaled $400 and the Supplies on Hand account before
adjustment is $900, what would be the adjustment at month-end?
a. Reduce supplies on hand by $400, increase supplies expense by $400
b. Reduce supplies on hand by $500, increase supplies expense by $500
c. Increase supplies on hand by $500, reduce supplies expense by $500
d. Increase supplies on hand by $400, reduce supplies expense by $400
36. What happens to the inventory asset account when you enter a purchase order for inventory?
a. The inventory asset account increases.
b. The inventory asset account decreases.
c. The inventory asset account is not affected. Cost of Goods Sold increases.
d. No accounts are affected.
37. The transactions of the vendor will start
a. When the vendor list is already done
b. from creation of purchased orders
c. when the goods are received by the company
d. all of these
38. Statement 1: General Journal is design to record business transactions automatically
Statement 2: General Journal provides memo to explain the business transactions.
a. Both Statements is true
b. Both Statement are false
c. Statement 1 is false and statement 2 is true
d. Statement 1 is true and statement 2 is false
39. Statement 1: The initial investment is recorded in the general journal.
Statement 2: The Expenses and other transactions are recorded in the general journal.
a. Both Statements is true
b. Both Statement are false
c. Statement 1 is false and statement 2 is true
d. Statement 1 is true and statement 2 is false
40. Which of the following is true?
a. The account that is use already in the transactions can be edited but cannot be deleted
b. The vendor that is use already in the transactions cannot be edited and cannot be deleted
c. The customer that is use already in the transactions cannot be edited but can be deleted
d. The list that is use already in the transactions can be edited and can be deleted
41. Which software is awarded as the Best Accounting Software for 2018?
a. FreshAgent c. FreshBooks
b. NetSuites d. Xero
42. Which of the following is awarded as the Best ERP Software of 2018?
a. FreshAgent c. FreshBooks
b. NetSuites d. Xero
43. Statement 1: FreshBooks gives clients the ability to customize the branding of their financial documents by
modifying its design, colors and logo to be more professional.
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 Statement 2: FreshBooks mobile apps, available on both IOS and Android, enable you to run your business
anywhere, anytime using your mobile devices.
a. True; False c. False; True
b. True; True d. False; False
44. Freshbooks lets you set up a billing schedule and auto-bills charges your client’s card automatically and
securely. What Freshbooks benefit?
a. Dynamic solution for SMBs c. time-saving autobills and recurring
b. responsive mobile design payments
d. preserved simplicity
45. Available on both IOS and Android devices, you can create and send invoices, take a photo of receipts,
manage expenses, keep up with updates, communicate with clients, sync data acroos all devices on-the-
go. What Freshbooks benefit?
a. Dynamic solution for SMBs c. time-saving autobills and recurring
b. responsive mobile design payments
d. preserved simplicity
46. Among are the detailed Freshbooks feature regarding time tracking, EXCEPT
a. team timesheets c. project managers
b. detailed time entry notes d. tracking spending per project
47. Among are the detailed Freshbooks feature regarding payments, EXCEPT
a. track offline payments c. automatically recorded payments
b. quick bank deposits d. simple payment experience

48. Statement 1: Sage 50 Cloud is an online accounting solution for small and medium-sized businesses that
offers features such as taxes, inventory, budgeting, cash flows, and invoicing.
Statement 2: Businesses can store and share databases on the cloud and do the same with credit card
numbers, both done securely.
a. True; False c. False; True
b. True; True d. False; False
49. Statement 1: Sage 50 Cloud can be used to track purchases and vendors and pay bills.
Statement 2: The product is capable of connecting to your bank accounts, allowing for real time recording
of sales and receipts, track receivables, etc.
a. True; False c. False; True
b. True; True d. False; False
50. It automatically update stock levels and use audits and stock valuations to manage assets. What Sage
50Cloud benefit?
a. tracking/mobile payments c. inventory/stock management
b. online payments d. innovative accounting solution
51. link to bank accounts to record receipts and sales in real time, and keep tabs on what your business is
owed, schedule supplier payments, etc. What Sage 50Cloud benefit?
a. tracking/mobile payments c. inventory/stock management
b. online payments d. innovative accounting solution
52. What is the satisfaction rate of Sage 50Cloud?
a. 97% c. 99%
b. 98% d. 100%
53. Which is a language support of Sage 50Cloud?
a. English c. Swedish
b. polish d. Chinese
54. How much does a client pays for monthly subscription of Sage 50 Cloud Pro Accounting?
a. $44.97 c. $175.87
b. $69.62 d. $202.67
55. Statement 1: NetSuite ERP is utilized by thousands of organization for their accounting requirements, such
as expense management, financial close, auditable and streamlined revenue management, etc.
Statement 2: The Accounting module’s effectiveness is expanded by its seamless integration with other
NetSuite solution, such as e-commerce, CRM, inventory, and other management tools.
a. True; False c. False; True
b. True; True d. False; False
56. Statement 1: NetSuite ERP’s general Ledger functionality offers a host of benefits including the ability to
make smarter decisions by understanding how each day’s numbers stack up.
Statement 2: The software assures you of precise, real-time financial history and data in the general ledger,
which leads to streamlined back-office processes.
a. True; False c. False; True
b. True; True d. False; False
57. Statement 1: The A/R module is customizable as it allows you toset up accounts receivables based on your
particular accounting rules.
Statement 2: The financial planning module provides a slew of benefits as it enables you to pan for profits
using a budgetary roadmap, and also compare the budget with actual expenses.
a. True; False c. False; True
b. True; True d. False; False
58. Facilitates a host of benefits such as assisting businesses to speed payment, cut expenses, enhance
efficiencies, minimize errors, and eliminating redundancies. What functionality of NetSuite?
a. Inventory c. Accounts Payable
b. Accounts Receivable d. Loans
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 59. In NetSuite,
a. PDF in case you have complex requirements, you can develop c. xlx
budgets outside the system and
import
b. them
text using what format? d. CSV
60. Among are the detailed feature of NetSuite on billing management and invoicing, EXCEPT
a. tax management c. revenue recognition management
b. payroll services d. shipping and fulfillment
61. What is the user satisfaction rate of NetSuite?
a. 97% c. 99%
b. 98% d. 100%
62. Statement 1: FreeAgents hosts a suite of tools that are meant to help users manage all aspects their
financial operations – from running payrolls to managing expenses.
Statement 2: In FreeAgents, clients can both send and track invoices that are created by the system itself.
a. True; False c. False; True
b. True; True d. False; False

63. Statement 1: Cash flows can also be monitored with ease as the systmen dashboard makes them readily
viewable along with due tax bills.
Statement 2: Using the software, finance officers get to be always on top of their operations as they are
provided with an overview of their organization’s income, expenses, profitability and receivables.
a. True; False c. False; True
b. True; True d. False; False
64. Statement 1: FreeAgent has 20 integrations, including PayPal, Stripe, Receipt bank and Zapier.
Statement 2: Users also get to know how much tax they owe and even file their own VAT, RTI and Self
Assessment returns.
a. True; False c. False; True
b. True; True d. False; False
65. When was the launching of FreeAgent?
a. April 2007 c. September 2007
b. October 2007 d. December 2007
66. The Royal Bank of Scotland acquires the FreeAgent in the year 2018 for how much?
a. £53 million c. £58 million
b. £48 million d. £74 million
67. The solution can create and send invoices with ease, with estimate to invoice conversion taking but
seconds. What FreeAgent benefit?
a. Easy-to-Use System c. expense tracking capability
b. invoicing/contact management d. intuitive navigation
68. It can attach expenses to individual projects and bill them to their customers. What FreeAgent benefit?
a. Easy-to-Use System c. expense tracking capability
b. invoicing/contact management d. intuitive navigation
69. Statement 1: Xero is listed on the Australian Securities Exchange.
Statement 2: Its products are based on the software as a service (SaaS) model and sold by subscription,
based on the type and number of company entities managed by the subscribers.
a. True; False c. False; True
b. True; True d. False; False
70. All purchase files can be edited within seconds, in particular the ready templates offered by the system for
those who prefer to skip drafting individual ones. What Xero benefit?
a. Painless setup c. transformed inventory management
b. simplified transactions d. receivable financing
71. Who founded the Xero Accounting software?
a. Rod Drury c. Olly Headey
b. Ed Molyneux d. Roan Lavery
72. What is the current tagline of Xero Accounting?
a. “beautiful accounting software” c. “beautiful business”
b. “easy to use and secure” d. “your business that we care”
73. Which is a language support of FreeAgent?
a. English c. Swedish
b. Dutch d. Japanese
74. What is the Satisfaction score of Xero Accounting?
a. 9.4 c. 9.6
b. 9.5 d. 9.7
75. How much will it cost to subscribe monthly in Xero Standard?
a. $9 c. $30
b. $10 d. $70

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