1.

Question

Answer
The correct answer is: b. Sold goods on credit
Explanation: In accounting, the General journal is used to
record all business transactions. When goods are sold on
credit, it is considered a revenue transaction, and it would be
recorded in the General journal. This transaction would
include the sale of the goods and the associated accounts
receivable.

2. Question
Question
Answer
The correct answer is b. Investing activities. Short-term
investments in marketable securities are considered to be
part of a company’s investing activities. Investing activities
include the purchase, sale, and holding of financial assets
and other assets with a term of more than one ye

3. Question
Question
Answer
The correct answer is b. Gross profit.
Explanation:
 Gross Profit is calculated as the excess of net sales over
the cost of goods sold.
 It represents the amount of revenue that exceeds the
cost of goods sold and directly contributes to covering
operating expenses and generating profit for a company.
4. Question
Question

Answer
The correct answer is a. Balance sheet.
A balance sheet provides a snapshot of a business entity’s
financial position at a specific point in time, including its
assets, liabilities, and owner’s equity. It is one of the primary
financial statements used to assess the financial health and
stability of a company.

5. QuestionQuestion

Answer
The correct sequence of partnership liquidation process is:
c. Selling of non cash assets - distribution of liability -
distribution of cash to partners

Answer
The correct answer is a. Balance sheet.
The financial position of an organization is typically shown in
a balance sheet. A balance sheet provides a snapshot of the
organization’s financial position at a specific point in time,
including its assets, liabilities, and equity. It helps
stakeholders understand the organization’s financial health
and its ability to meet its obligations and generate future
profits.

7. Question

Answer
The correct answer is C. Cash inflows from financing
activities. External sources of cash refer to the cash inflows a
company receives from its financing activities, such as
issuing stocks or bonds, taking out loans, or receiving cash
from investors. These sources of cash help the company to
fund its operations, invest in new projects, and pay off its
debts.

8. Question

Answer
The correct answer is a. Corporations. A corporation is a
profit-making business that is a separate legal entity from its
owners. It is considered separate from its owners because it
has its own rights, obligations, and liabilities. In a
corporation, ownership is divided into shares of stock, which
can be bought and sold by investors. This structure provides
limited liability protection to the owners, meaning their
personal assets are protected from the company’s debts and
liabilities.

9 Question
Question

Answer
The correct answer is b. Balance sheet. A balance sheet is a
financial statement that provides a snapshot of a company’s
financial position at a specific point in time. It lists the
company’s assets, liabilities, and owner’s equity, providing a
comprehensive overview of the company’s financial health.

10. Question

Answer
The correct answer is option B: “Check against design.” This
is a component in quality checking because it involves
verifying that the product or service being tested aligns with
the design specifications and requirements. This step helps to
ensure that the final product meets the intended standards
and quality expectations.

11 Question

Answer
The correct answer is d. Financial analysts. Financial analysts
assess the attractiveness of investing in a business by
analyzing its financial statements, industry trends, and other
factors to determine its potential for growth and profitability.
They provide valuable insights and recommendations to
investors, helping them make informed decisions.

12Question

Answer
The correct answer is b. Liabilities. Liabilities are financial
obligations or debts that a company owes to its creditors.
They are considered as claims against the assets of the
company. Capital, expenses, and revenues are not considered
as claims against the assets of the company.

K13 Question

Answer
The correct answer is a. Posting. Posting is the process of
transferring debit and credit entries from a journal to the
appropriate ledger accounts. It is a crucial step in the
accounting cycle and helps in maintaining accurate and up-
to-date financial records.

Answer
The correct answer is a. Posting. Posting is the process of
transferring debit and credit entries from a journal to the
appropriate ledger accounts. It is a crucial step in the
accounting cycle and helps in maintaining accurate and up-
to-date financial records.

14 Question

Answer
The correct accounting cycle sequence is:
c. Trial balance - Financial statements

15Identified Question
index Test Execution:WOLKITE ATLAS ABS L-3 Question If total
assets increased by change in efford and total liabilities
increased by birr 20000 during the same period, direction
(increase of decrease) of the change in owneráe ms equity
for that period is a (n) a. Birr 15,000 decrease decrease
increases c. O decrease d. increases b. 0 questions

Answer
The correct answer is d. Birr55,000 increases.
Explanation: The change in owner’s equity can be calculated
using the formula: change in owner’s equity = change in
assets - change in liabilities. In this case, the total assets
increased by Birr35,000 and the total liabilities increased by
Birr20,000. So, the change in owner’s equity would be
Birr35,000 - Birr20,000 = Birr15,000. However, the question
asks for the direction of the change in owner’s equity, which
is an increase. Therefore, the correct answer is Birr55,000
increases.

16Identified Question
Test Execution:WOLKITE ATLAS ABS L-3 Question Which one
of the following is a problem in monitoring implementation of
work plan? b. Salifrecords-and-planning-and delegations b.
Principle of work planning and delegations a. 0 Principle of
work planning and his C. praffrecords and planning and
delegations d. Difficult customeral reports annual C.
Preparing thandregular performan < previous (18) (19)
confirm (29) next > questions d. Preparing financia reports
erformance d. Difficult customer service situations

Answer
The correct answer is d. Difficult customer service situations.
This is a problem in monitoring the implementation of a work
plan because it can be challenging to handle and resolve
difficult customer service situations. It requires strong
communication and problem-solving skills to effectively
manage these situations and ensure customer satisfaction.

17. Identified Question

Test Execution:WOLKITE ATLAS ABS L-3 Question Which one
of the following is accrued liability? a. Accrued interested in
a. Accrued interest receivable b. Accrued interest receivab b.
Accrued Interest C. Accrued Asset d. Accrued revenues <
previous (27) (28) confirm (29) next > questions

Answer
The correct answer is d. Accrued revenues. Accrued revenues
are liabilities that represent the amount of revenue that has
been earned but not yet received by the company. This is a
common type of accrued liability that companies record on
their balance sheets to reflect the revenue they expect to
receive in the future.

18 Question

Answer
The correct answer is a. Source document. A source
document provides objective evidence for the occurrence of a
transaction. It is the original record that captures the details
of a business transaction, such as a sales invoice, purchase
order, or receipt. Source documents serve as the basis for
recording the transaction in the general ledger and are
essential for maintaining accurate financial records.

19Question
Answer
The correct answer is d. Turnover tax. Turnover tax is
different from the other options because it is not a tax on
income or consumption, but rather a tax on the value of
goods and services produced within a country. It is imposed
on businesses and is based on their gross sales or revenue.
On the other hand, excise tax, employees’ income tax, and
value-added tax are all types of taxes imposed on specific
goods or services, individuals, or businesses.

20Identified Question
index Test Execution:WOLKITE ATLAS ABS L-3 Question A kind
of disbursement that uses wire and telephone is? a. Journal
Vouchers Journal Vouchers b. Cash disbursement using
manual system C. Payment vouchers d. Maintain Automatic
Teller Machine Payment vouchers using manual < previous
(28) (29) confirm (30) next> questions 1.0 1.0 1.0 1.0 1.0
time

Answer
The correct answer is c. Payment vouchers. Payment
vouchers are a type of disbursement that can be made using
a wire and telephone. They are typically used in situations
where a payment needs to be made to a vendor or supplier.
Payment vouchers are often used in manual systems, where
the payment is made by physically presenting the voucher to
the payee. This payment is commonly used in various
industries, including government and finance.

21 Question

Answer
【Answer】: c
【Explanation】: To determine the net sales during the period,
we first calculate the Cost of Goods Sold (COGS). COGS is
calculated as the sum of the beginning inventory and net
purchase minus the ending inventory. Using the given values,
COGS = 30,000 + 55,000 - 20,000 = 65,000. Next, to find the
net sales, we add the gross profit to the COGS. Therefore, Net
Sales = 65,000 + 25,000 = Birr 90,000. Hence, the correct
answer is c. Birr 90,000.

23 Question
Answer
【Answer】: c
【Explanation】: To determine the net sales during the period,
we first calculate the Cost of Goods Sold (COGS). COGS is
calculated as the sum of the beginning inventory and net
purchase minus the ending inventory. Using the given values,
COGS = 30,000 + 55,000 - 20,000 = 65,000. Next, to find the
net sales, we add the gross profit to the COGS. Therefore, Net
Sales = 65,000 + 25,000 = Birr 90,000. Hence, the correct
answer is c. Birr 90,000.

24Question

Answer
The correct answer is: b. Debit to cash and credit to accounts
payable
Explanation: When a company pays cash to suppliers on
account, it means they are settling a debt that was previously
incurred. This transaction would be recorded as a decrease in
the cash account (debiting cash) and a decrease in the
accounts payable account (crediting accounts payable). This
is because cash is going out of the company (debiting cash),
and the company’s liability to the supplier is being reduced
(crediting accounts payable).

24 Question

Answer
The correct answer is d) Imaging systems.
Explanation: In maintaining business records, imaging
systems play a crucial role in digitizing and storing physical
documents, making them easily accessible and searchable.
This not only saves space and reduces the risk of document
loss or damage but also allows for faster and more efficient
retrieval of information.

Identified Question
Test Execution:WOLKITE ATLAS ABS L-3 Question Which of the
following is information in maintaining business records? a.
emote drives b. Paper based C. Stock control d. Imaging
systems < previous (23) (24) confirm (25) next > questions
Answer
The correct answer is d. Imaging systems. Imaging systems
are used in maintaining business records as they allow for
the digital capture and storage of physical documents,
making them easier to access, share, and preserve. This
helps to reduce the risk of document loss or damage, and
ensures that important records are always readily available
for reference or audit purposes.

25Identified Question
logout Test Execution:WOLKITE ATLAS ABS L-3 Question
Group of accounts with a common characteristic can be
identified by: a. Subsidiary ledger b. Chart of accounts C.
Balance sheet d. Income statement < previous (30) (31)
confirm (32) next > questions time

Answer
The correct answer is b. Chart of accounts. A chart of
accounts is a tool used in accounting to organize and classify
all the accounts in a company’s general ledger. It provides a
framework for recording and tracking, and helps to identify
groups of accounts with common characteristics, such as
assets, liabilities, equity, revenues, and expenses.

26 Identified Question
index user logout Test Execution:WOLKITE ATLAS ABS L-3
Question Tax receivable is categorized as a. Other
receivables b. Interest receivables C. Account receivables d.
Note receivables < previous (33) (34) confirm (35) next >
questions

Answer
The correct answer is d. Note receivables. Tax receivable is of
note receivable, which is a financial instrument that
represents a claim to receive cash or other assets in the
future. In this case, it refers to a claim for tax refunds or
credits that a company has overpaid in taxes and expects to
receive a refund from the tax authorities in the future.

27 Identified Question
Test Execution:WOLKITE ATLAS ABS L-3 Question Which of the
following events is not recorded in the accounting records? a.
The owner withdraws and before a. The owner withdraws
cash for personal use b. A cash investment is made into the
business C. Equipmentsimentis made into the C. Equipment
is purchased on account d. An employee is terminated. <
previous (34) (35) confirm (36) next > questions

Answer
The correct answer is d. An employee is terminated. This
event is not recorded in the accounting records because it
does not directly affect the financial position of the business.
The other events listed (withdrawals, cash investments,
equipment purchases, and equipment sales) all have a direct
impact on the financial position of the business and would be
recorded in the accounting records.

28 Identified Question
Test Execution WOLKITE ATLAS ABS L-3 Question change in
ownerae equity for that period is a in assets
increased during a period and total liabilities increased
birr12.000 during the same period the amount and direction
a. decreases b decreases d increase increases previous
(35) (36) confirm

Answer
The correct answer is: Birr32,000 increases
Explanation: According to the question, assets increased by
Birr20,000 and total liabilities increased by Birr12,000 during
the same period. The net change in owner’s equity is the
difference between the increase in assets and the increase in
liabilities, which is Birr20,000 - Birr12,000 = Birr8,000.
However, the question asks for the net change in owner’s
equity for that period, which is Birr32,000. This means that
the owner’s equity increased by Birr32,000 during the period.

29 Identified Question
DIGITAL EXAMINATION CEN TRAL ETHIOPIA REGION
OCCUPATIONAL COMPETEN point popoline sourachi Test
Execution:WOLKITE ATLAS ABS L-3 Question What is the
gross profit if sales revenues are cost of goods sold and
operating oxpenses are Birt a b C d

Answer
The correct answer is option a) Birr 90,000.
To calculate the gross profit, you subtract the cost of goods
sold from the sales revenues. In this case, the sales revenues
are Birr 400,000 and the cost of goods sold is Birr 310,000.
So, the gross profit is:
Gross Profit = Sales Revenues - Cost of Goods Sold Gross
Profit = Birr 400,000 - Birr 310,000 Gross Profit = Birr 90,000
Therefore, the gross profit is Birr 90,000.