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Job Exam (Accounting)

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28 views

Job Exam (Accounting)

Exam

Uploaded by

adem mohammed
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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SRS College of Management and Public Service

Department of Accounting and Finance


Written Exam to Accountant II job candidates
Of the office of EPSA Jigjiga Branch on April 29, 2024 Allowed Time: 2hrs
Part I-Multiple Choice Questions
Instruction: Choose the correct answers from the given alternatives listed under each of the
following questions and write your answers on the answer sheet.
1. A business organized as a separate legal entity is a______________________________.
A. corporation. B. proprietor. C. government unit. D. partnership.
2. Which of the following is not one of the three forms of business organization?
A. Corporations B. Partnerships C. Proprietorships D. Investors
3. Which of the following would not be considered an internal user of accounting data for the a
given Manufacturing Company?
A. CEO of the company B. Production manager
C. Customers of the company D. President of the employees' labor union
4. The liability created by a business when it purchases coffee beans and coffee cups on credit from
supplier is termed as a/an__________________________________.
A. account payable. B. account receivable. C. revenue. D. expense.
5. The best definition of assets is the__________________________________.
A. cash owned by the company.
B. collections of resources belonging to the company and the claims on these resources.
C. owners’ investment in the business.
D. resources belonging to a company that have future benefit to the company
6. Dividends are reported on the_________________________________________.
a. Income statement. B. retained earnings statement.
c. Balance sheet. D. income statement and balance sheet.
7. To show how successfully your business performed during a period of time, you would report its
revenues and expenses in the
A. balance sheet. B. income statement.
C. statement of cash flows. D. retained earnings statement.

1
8. Ahmed ’s Accessory Shop started the year with total assets of Birr 210,000 and total liabilities of
Birr 120,000. During the year the business recorded Birr 330,000 in revenues, Birr 165,000 in
expenses, and dividends of Birr 60,000. The net income reported by Ahmed ’s Accessory Shop for
the year was_________.
A. Birr 120,000. B. Birr 150,000. C. Birr 195,000. D. Birr 165,000
9. As of January 1, 2023, Abdi ’s Store had a balance in its retained earnings account of Birr
100,000. During the year Elena’s Store had revenues of Birr 80,000 and expenses of Birr 45,000. In
addition, the business paid cash dividends of Birr 20,000. What is the balance in Retained Earnings
at December 31, 2023 for Abdi ’s Store?
A. Birr 100,000 B. Birr 115,000 C. Birr 135,000 D. Birr 155,000
10. Which of the following financial statements is concerned with the company at a point in time?
A. Balance sheet B. Income statement
C. Retained earnings statement D. Statement of cash flow
11. An income statement of a firm_________________________________________.
A. summarizes the changes in retained earnings for a specific period of time.
B. reports the changes in assets, liabilities, and stockholders’ equity over a period of time.
C. reports the assets, liabilities, and stockholders’ equity at a specific date.
D. presents the revenues and expenses for a specific period of time.
12. Assume that Ali Company compiled the following financial information as of December 31,
2022: Sales revenue Birr 1,120,000; Common stock Birr 240,000; Buildings Birr 320,000; Operating
expenses Birr 1,000,000; Cash Birr 280,000; Dividends Birr 80,000; Inventory Birr 40,000;
Accounts payable Birr 160,000; Accounts receivable Birr 120,000; Retained earnings, 1/1/2022 Birr
600,000.
Ali’s total assets on December 31, 2022 is__________________.
A. Birr 1,880,000. B. Birr 1,360,000. C. Birr 640,000. D. Birr 760,000
13. A company using a perpetual inventory system neglected to record a purchase of merchandise
on account at year end. This merchandise was included the year end physical count. How will these
errors affect assets, liabilities, and stockholders' equity at year-end and net income for the year?
Assets Liabilities Stockholders' Equity Net Income
A. No effect; Understate Overstate Overstate
B. No effect Overstate Understate Understate
C. Understate Understate No effect No effect
D. Understate No effect Understate Understate
E. Understate No effect No effect No effect

2
Use the following information to answer the next two questions Washington Inc. is a calendar-year
corporation. Its financial statements for the years ended 12/31/20 and 12/31/21 contained the
following errors:

Accounts 2020 2021


Ending Inventory Birr 15,000 understatement Birr 24,000 understatement
Depreciation Expense Birr 6,000 understatement Birr 12,000 understatement

14. Assume that the 2020 errors were not corrected and that no errors occurred in 2019. By what
amount will 2020 income before income taxes be overstated or understated?
A. Birr 21,000 overstatement B. Birr 9,000 overstatement
C. Birr 21,000 understatement D. Birr 9,000 understatement E. Birr 6,000
overstatement
15. Assume that no correcting entries were made at 12/31/20 or 12/31/21. Ignoring income taxes, by
how much will Retained Earnings at 12/31/19 be overstated or understated?
A. Birr 24,000 overstatement B. Birr21,000 overstatement
C. Birr 36,000 understatement D. Birr 6,000 understatement E. Birr 30,000
understatement
16. On January 1, 2019, Abebe Company sold 12% bonds with a face value of Birr 300,000. The
bonds will mature in five years, and interest is paid semiannually on June 30 and December 31
respectively. The bonds were sold for Birr 323,100 to yield 10%. Using the effective-interest method
of amortization, interest expense for 2019 is approximately:
A. Birr 38,772 B. Birr 30,000 C. Birr 36,000 D. Birr 32,218 E. Birr
32,310
Part II- Workout Questions
Instruction: Correctly workout the following questions
1. Write each item listed below whether it would appear on the income statement (IS), balance sheet
(BS), or retained earnings statement (RE) by putting a tick mark ( √ )on the answer sheet

A. Service Revenue
B. Accounts Receivable
C. Utilities Expense
D. Common Stock
E. Cash
F. Equipment
G. Accounts Payable

3
H. Advertising Expense
I. Supplies
J. Dividends
K. Salaries and Wages Expense
L. Notes Payable
2. Use the following information to calculate for the year ended December 31, 2023
(a) net income (net loss)
(b) ending retained earnings
(c) total assets.
Supplies ---------------------------------Birr 1,500 Service revenue ---------------------Birr 19,000
Other operating expenses----------Birr 10,000 Cash--------------------------------------Birr 15,000
Accounts payable ------------------ --Birr 11,000 Dividends ---- ------------------------Birr 6,000
Accounts receivable ------------------Birr 4,000 Notes payable -------------------------Birr 1,000
Common stock------------------------ Birr 10,000 Equipment--------------------------- --Birr 9,500
Retained earnings (beginning) ----- -Birr 5,000
Answer Sheet
Candidate’s Name_________________________________ Candidate’s Exam
Code_______________
Part I-Multiple Choice Questions (2 points each)
1.____________________2.___________________3.___________________4.___________________
5.___________________6.____________________7.__________________8.____________________
9.__________________10.___________________11.__________________12.___________________
13._________________14.___________________15.__________________16.___________________
Part II-Workout Questions

1.

IS BS RE
A
B
C
D
E
F
G
H

4
I
J
K
L

2.

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