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APSCS Multiple Choice

Model Exit Exan on APSCS

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49 views

APSCS Multiple Choice

Model Exit Exan on APSCS

Uploaded by

yooftahee
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Model Exit Exam questions and answers with brief explanations

Choose the correct answer from the given alternatives


1. Governments differ from business organizations in which one of the following ways
A. Governments are subject to formal and restrictive budgets
B. Governments receive resources that are restricted to being used for a particular
purpose
C. Governments engage in non-exchange transactions
D. All of the above
2. Which of the following statement don’t represent a similarity between the environment
of not-for-profit organizations and the environment of governmental organizations?
A. Not-for-profit organizations do not have residual owners
B. The excess of revenues over expenses is not an effective performance measure for
the organization
C. The accounting practices closely resemble those of commercial businesses
D. Not-for-profit organizations often receive resources with donor-imposed restrictions
3. The primary focus of business accounting is profitability. The primary focus of
government accounting is:-
A. Checks and balance
B. Accountability
C. Recording spending
D. Following the rule of democracy
4. For a state or local government, capital assets includes:
A. Land and improvements to land
B. Buildings, equipment, and vehicles
C. Infrastructure
D. All of the above
5. ________ is a standard used by Federal Government of Ethiopia as a basis for
establishing the financial statements.
A. IFRS
B. IPSAS
C. IAS
D. GAAS
6. The General Accounting Standards Board (GASB) serves as the standard setting body
for
A. State and local governments
B. Private not-for-profit organizations
C. The federal government
D. A & B
7. Governments differ from business organizations in which one of the following ways
A. Governments are subject to formal and restrictive budgets

Prepared by: Asrat M. (MBA)


Model Exit Exam questions and answers with brief explanations

B. Governments receive resources that are restricted to being used for a particular
purpose
C. Governments engage in non-exchange transactions
D. All of the above
8. GASB classifies which of the following as governmental funds?
A. Permanent
B. Special revenue
C. Debt service
D. All of the above
9. Which of the following statement is false regarding the definition of a fund?
A. A fund is an accounting entity that is used for one year only and each
year a new set of funds must be established.
B. A fund is a fiscal entity used to account a subset of an organization's
resources that is to be used for a specific purpose.
C. A fund has a self-encompassing, self-balancing accounting equation.
D. A fund is an accounting entity for which financial statements can be
prepared.
10. As a general rule, debt service expenditures in a Debt Service Fund are recognized …..
a. When the debt service payment is due
b. When resources to be used for the repayment are made available to a Debt Service
Fund
c. In accordance with the requirements of the original bond order that specifies the
basis of expenditure recognition
d. When due for principal repayments but on an accrual basis for interest
11. Assume that Dire Dawa city Administration budgeted the following general fund
revenues for the fiscal year of 2016 E.C. Estimated Revenue amounted to Br. 35,000,000;
Appropriations amounted to Br. 34,500,000; Estimated other Financing sources to Br.
3,500,000; and Estimated other Financing uses to Br. 6,000,000. In the Budgetary entry,
the Budgetary Fund Balance will be recorded as:-
A. Cr: Budgetary Fund Balance for Br. 2,000,000
B. Dr: Budgetary Fund Balance for Br. 2,000,000
C. Cr: Budgetary Fund Balance for Br. 2,500,000
D. Dr: Budgetary Fund Balance for Br. 2,500,000
12. In the above given data of question number 11, If Dire Dawa city Administration ignored
the subsidiary details, the Budgetary Fund Balance will be:
A. Budgetary Fund Balance would be Credited for 2,000,000
B. Budgetary Fund Balance would be Debited for 2,000,000
C. Budgetary Fund Balance would be Created for 500,000
D. Budgetary Fund Balance would be Debited for 500,000
13. Assume that Jima city place purchase order for supplies totaling Br. 15,000,000. The
entry will be recorded as:

Prepared by: Asrat M. (MBA)


Model Exit Exam questions and answers with brief explanations

A. Dr: Appropriations by 15,000,000 and Cr: Expenditures by 15,000,000


B. Dr: Encumbrance by 15,000,000 and Cr: Reserved for Encumbrance by
15,000,000
C. Dr: Expenditures by 15,000,000 and Cr: Vouchers payable by
15,000,000
D. All of the above
14. Jima city recorded expenditures of Br. 15,000,000 for goods received that had been
ordered in the preceding transactions. The entry/entries needed at this point is:
A. Dr: Reserved for Encumbrance by 15,000,000 and Cr: Encumbrance by
15,000,000
B. Dr: Expenditures by 15,000,000 and Cr: Vouchers payable by
15,000,000
C. Dr: Encumbrance by 15,000,000 and Cr: Reserved for Encumbrance by
15,000,000
D. A & B
15. What Is a Not-For-Profit Entity?
A. Any organization, which is established with objective other than profit
making
B. A government is a body that has the power to make and the authority to
enforce rules and laws within a civil, corporate, religious, academic, or
other organization
C. A & B
D. None of the above
16. ------is an estimated amount recorded for purchase orders, contracts, or other expected
expenditures chargeable to an appropriation.
A. Appropriation
B. Encumbrance
C. Estimated revenue
D. All of the above
17. Which of the following is Accounting Control over Expenditures?
A. Appropriations
B. Encumbrances
C. Expenditures
D. All of the above
18. In 2012, the governing board of the City of G authorized construction of an addition to
the police station. The total cost was expected to be $2,500,000, with $700,000 to be
financed by a grant from the state government and $300,000 to be transferred from an
enterprise fund of the City of G. The entry to record the receivables from the enterprise
fund and the grant from the state would be:
A. Debit Accounts Receivable $1,000,000 and Credit: Revenues Control
$1,000,000

Prepared by: Asrat M. (MBA)


Model Exit Exam questions and answers with brief explanations

B. Debit Due from Other Funds $300,000 and Debit due from Other
Governments $700,000
Credit: Other Financing Sources - Transfers In $300,000 and Credit:
Revenues Control $700,000
C. Debit Accounts Receivable $1,000,000 Credit: Other Financing Sources
- Transfers In $300,000
D. Debit Due from Other Funds $1,000,000 Credit: Other Financing
Sources - Transfers In $1,000,000
19. Which one of the following are Classification of appropriations and Expenditures by
character
A. Current Expenditure
B. Capital Expenditure
C. Debt Service Expenditure
D. All of the above
20. Which of the following is correct with respect to Internal Service Funds?
A. Internal service funds use modified accrual accounting and the current
financial resource measurement focus
B. Net position is to be reported in two categories: assigned and
unassigned
C. Internal service funds account for long-term debt but not capital assets
D. All of the above are false statements
21. Proprietary funds utilize what basis of accounting?
A. Modified accrual basis
B. Budgetary basis
C. Cash basis
D. Accrual basis
22. Classification of revenue and estimated revenue based on source of revenue
A. Taxes (Ad-valorem and self-assessing)
B. Special Assessments
C. Licenses and Permits
D. Intergovernmental Revenues
E. All of the above
23. Activities that produce goods or services to be provided to other departments or other
governmental units would be reported in which fund?
A. Internal service fund
B. Agency fund.
C. Enterprise fund.
D. Advance fund.
24. Governmental units use which fund type to account for services provided to the general
public on a user-charge basis?
A. Enterprise fund.

Prepared by: Asrat M. (MBA)


Model Exit Exam questions and answers with brief explanations

B. Internal service fund.


C. Permanent fund.
D. General Fund.
25. Assume that sales within a government amount to Br. 10,000,000 for 2023 and a sales tax
of 4% is assessed. In the period in which the sales are made, the required journal entries
will be:
A. Dr: Sales tax Revenue by 9,600,000 and Cr: Sales tax Receivable by
400,000
B. Dr: Sales tax Receivable by 400,000 and Cr; Sales tax Revenue by
400,000
C. Dr: Sales tax Revenue by 400,000 and Cr: Sales tax Receivable by
400,000
D. Dr: Sales tax Receivable by 9,600,000 and Cr: Sales tax Revenue by
9,600,000

Prepared by: Asrat M. (MBA)

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