Accounting and finance level 4 knowledge

1. Double Entry Accounting System is successfully applied through:

2. Which one of the following item is added to bank statement balance while preparing bank reconciliation?

3. Which one of the following is not an advantage of Computerized accounting system

4. Banks grant credit to households in a limited amount to buy durable consumer goods such as television
sets, refrigerators. This types of bank credit is called

5. What are the 5 phases of 5S

6. Which of the following describes the classification and normal balance of unearned revenue account

7. Which of the following statements is not true about continuous audit

8. Which of the following is considered to be a long-term financial goal

9. Financial markets vary depending on the maturity of the securities being traded and the types of assets used
to back the securities. Which one of the following are types of financial market on the bases of financial
claim

10. IAS2 states that inventories should be measured at

11. The difference between the balance of a plant asset account and the related accumulated depreciation
account is termed as

12. Tesla trading performs a service but not yet received payment, it

13. A statement that reports the operating results of a company is

14. Producing more than your customer is requesting or before they request it is

15. Which one of the following are not characteristics of job order costing system

16. An entity prepares its first IFRS Financial statements for the year to 30 June 2022. These financial
statements provide comparative figures for the previous year. The date of transition to IFRS is

17. The year-end adjustments is made mainly because of one of the following concepts and principles

18. According to Ethiopian Tax system to compute excise tax for imported goods, we use the bases in order

19. Which of the following is characteristics of a partnership?

20. Monetary items are best described as

21. The break-even point can be defined as

22. In 2022 fiscal year, after the preparation of financial statement, ABC Company owed a liability of profit tax
of 150,000.00. However, during the year the company has collected withholding receipts from the purchase
performed from different companies which add up to 151,000. How much profit tax is payable/Receivable
to/from ERCA at the end of the year?

23. A non-zero balance in a ledger account represents

24. One of the following is not tax on income

25. A potential borrower usually has better information about the potential returns and risk of the investment
projects he plans to undertake than does the lender. This inequality of information is called

26. For which of the following errors should the appropriate amount be added to the balance per bank on bank
reconciliation

27. The properties owned by a business enterprise are

28. How can a personal budget benefit an individual?

29. Information is provided to customer about the processes for activating the account including the time frame
and mechanisms for receiving deposit books. This information is provided by

30. Account Receivable Account has a balance of 200,000.00 ETB and Allowance for Doubtful Account has a
credit Balance of 2,500.00ETB. If the estimates of uncollectable Account Expense is 8,500.00. What is the
amount of current provision for uncollectable Account expense

31. On December. 5, a company paid $5000 for acquisition of supplies. An inventory on December 31, reveals
that $2,000 of the supplies remain on hand. What entry is required to prepare the December 31adjusting
entry to record the used supplies?

32. The money market is the market in which _________ are traded.

33. Which of the following activities used to respond to complaints

34. A cost amount determined by which of the following costing method has permitted under International
Financial Reporting Standard

35. The monetary value of economic resources used or consumed to generate business revenues is reported as

36. A cash discount is provided on:

37. One of the local fast food outlets hired a first year accounting student to oversee the cash collection
procedures. When the firm payees the student here weekly wage, the transaction will

38. Which one of the following types of master budget mainly concerned with income generating activities?

39. A debit note is a document made out when goods are

40. Communication is a ______________"

41. Which one of the following account does not appear on the income statement
42. A decrease in owners’ equity that arises because a company delivers goods and service is called:

43. Auditing standards differ from auditing procedures in that procedures relate to ________.

44. An increase in the unit variable cost will generally cause an increase in all of the following except

45. One of the local fast food outlets hired a first year accounting student to oversee the cash collection
procedures. when the firm payees the student here weekly wage, the transaction will

46. Which type of inventory system is updated inventory system?"

47. Unnecessary manual work that does not contribute value to the product is__________.

48. Simpson Inc. purchased inventory as follows: Jan. 5 500 units at Br 10.00 Jan. 15 1,000 units at Br 15.00
Jan. 25 200 units at Br 20.00 What is the average unit cost of inventory?">

49. When individual relocate their business to region with lower taxes or take advantage of loopholes in tax
laws, it is said to be

50. Which phase of 5S are you in when you clean machines, windows, floors, etc

51. A manufacturer has beginning and ending finished goods inventory of $70, 000 and$90,000 respectively.
Also, the cost of goods manufactured is $200,000. What is the Cost of Goods Sold?

52. Accumulated Depreciation is a(n

53. Which of the following describes the classification and normal balance of the Unearned Rent Revenue
account?

54. Which of the following categories is included in generally accepted auditing standards?

55. Which of the following is not a characteristic of a partnership?

56. _________ is one of a financial instrument in Ethiopia that traded on a short period of time.

57. A broad rule adopted by the accounting profession as a guide in measuring, recording and reporting the
financial affairs and activities of a business is:

58. Which one of the following is long-term financial instruments?

59. Hayat borrows Birr 1200 from a bank with an 8% interest rate for 2 years. What is the Amount of interest
she will have to pay?

60. Aggregates of direct material, direct labor, and direct expenses is:

61. Business rules and guidelines’ would be considered as a:

62. The face value of a note refers to the amount

63. A group of related records constitutes a

64. Which type of deposits earns higher interest rate?

65. The advantages of partnership do not include:

66. Which one of the following is not a type of business?

67. Which one of the following statement lists the balance and titles of real accounts of ledger in an
organization on a given day is

68. Which of the following is not a key to saving money?

69. Communication saves time in

70. Assume that xyz company sales its product for $50 per unit which produced at variable cost per unit of
$30.If Total revenue is $200,000, contribution margin per unit is ______

71. Which one is NOT a benefit of Shine?

72. Matching supplier invoices ,the purchase order and the receiving report normally should be the
responsibility of the

73. An enterprise issued a Br. 5000,60 day, 12% note to the bank, the amount due at maturity is:

74. The following data are taken from ABC Company and Liability of the company is Birr 90,000.00. The
company’s Asset is three times equity. Calculate asset and capital

75. Which one of the following is not a characteristic of a team?

76. Account Receivable Account has a balance of 200,000.00 ETB and Allowance for Doubtful Account has a
credit Balance of 2,500.00ETB. If the estimates of uncollectable Account Expense is 8,500.00. What is the
amount of current provision for uncollectable Account expense

77. Berhan Bank agrees to lend ABC Company Birr 400,000 on January 1. ABC Company signs a Birr
400,000, 6%, 6-month note. What is the adjusting entry required if ABC Company prepares financial
statements on March 30?

78. The standard format of general journal does not include which of the following?
79. Vouching implies
80. A debit note is a document made out when goods are