2009 GETAHUNfinacial report II FINAL EXAM

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School

Addis Ababa University *

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101

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Accounting

Date

Nov 24, 2024

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ADMAS UNIVERSITY MESKEL , MISRAK , MEGENAGNA ADEBABAY, KALITI , MEKANISSA , MEKELE & BISHOFTU TVET COLLEGES’ SUMMATIVE ASSESSMENT/S KNOWLEDGE AND PRACTICAL PACKAGE Trainee’s Name: ID No.: Section: Occupation/Department: Accounts and Budget Support level III Entry & Level LEVEL I 2010 E.C ENTRY EXTENSION TRAINEES’  Please put a tick mark (  ) besides your trainer’s name: GETAHUN FANTAHUNE Unit Title: 1. Prepare Financial Reports Date of Assessment: 11/02/2012 1:30 HRS GENERAL DIRECTIONS: 1. MAKE SURE THAT THE ASSESSMENT PAKAGE CONTAINS 05 PAGES INCLUDING THE COVER PAGE. 2. READ THE INSTRUCTIONS CAREFULLY FOR KNOWLEDGE AND PRACTICAL PARTS. 3. USE ONLY BLUE OR BLACK PEN. 4. TURN OFF YOUR MOBILE PHONE. 5. ANY ACTION TAKEN BY THE INVIGILATOR DURING EXAM TIME WILL NOT BE COMPROMISED. 6. PUT AWAY ANY MATERIALS THOSE ARE NOT ALLOWED FOR THE ASSESSMENT/S. N.B: DON’T TURN THIS PAGE UNTIL YOU ARE ALLOWED TO DO SO!!

LET`S GO GREEN TO GET OUR GLOBE CLEAN!  ሠልጣኞች ውጤት ( ግብረ - መልስ ) የሚያዩበት ቀን፡ /02/2012 ዓ . ም . ሠዓት፡ በ 3 ፡ 00 ሠዓት ይሆ PART I: KNOWLEGDE PART INSTRUCTION: This assessment contains 15 multiple choice questions, each worth 2 points. Choose the Best answer from the given alternatives and write the choice of the correct letter on the space provided. Make sure that your answer is clearly marked. Use only capital letters. 1. a deduction from the normal selling price (list price) to determine the invoice price of Goods? A. Sales discount B. trade discount C. cash discount D. purchase discount . 2. If the appropriate adjusting entry for accrued salaries is omitted at the end of a fiscal year: . 2. If the appropriate adjusting entry for accrued salaries is omitted at the end of a fiscal year: A. A. assets for the period will be overstated assets for the period will be overstated B. B. liabilities for the period will be understated liabilities for the period will be understated C. C. expenses for the period will be overstated expenses for the period will be overstated D. D. owner's equity for the period will be understated owner's equity for the period will be understated 3. Which of the following accounts will appear in the post-closing trial balance of a business? A. Drawings C. Wages expense B. Accumulated depreciation D. Sales revenue 4. Gross profit from sales is the difference between A. net sales and operating expense B. net sales and cost of goods sold C. net sales and cost of goods sold plus all the expense D. gross sales less the sales discounts and sales return and allowance 5. Under the periodic inventory system, the purchase account is used to record A. only cash purchases of merchandise inventory B. purchases of any asset on account or note payable C. only purchases of merchandise inventory on account D. purchases of merchandise inventory for cash or on account 6. a closing entry would close any debit balance in: A. sales discount B. sales return and allowance C. cost of goods sold D. all is correct 7. Merchandise inventory: A. is a long term asset B. is a current asset C. includes supplies D. is an investment asset

8. if gross sale is Br 40,000, sales R&A Br 1,000 sales discounts Br 400 and delivery expenses Br 100, the net sales will total A. Br 38,500 B. 38,600 C. 40,000 D. 39,000 9. The discount period for credit terms of 1/10, n/30 A. 1 day B. 10 days C. 20 days D. 30 days 10. Which of the following would be classified in income statement as other expense? A. advertising expense B. interest expense C. freight out D. Cost of goods sold 11. Which of the following accounts is credited by the seller when merchandise purchases are paid for with in discount period? A. merchandise inventory B. Accounts payable C. accounts receivable D. sales discount 12. One of the following is reported on the retained earnings of the current year A. dividend for the current year B. sales D. cost of goods sold D. merchandise inventory 13. Which of the following accounts will normally appear in the ledger of a merchandising company that uses perpetual inventory system? A. freight in B. purchase C. purchase discount D. cost of goods sold 14. Sales revenue less cost of goods sold is called net profit A. true B. false 15. In perpetual inventory system a return of defective merchandise by a purchaser is recorded by crediting A. merchandise inventory B. purchases C. purchase discount D. purchase return and allowance PART II: PRACTICAL PART INSTRUCTION: This assessment contains 4 questions; total worth 20 points. Read and analyze each question carefully so that when you understand, answer the questions correctly. 1. The following unadjusted trial balance was prepared at the end of the fiscal year for ABC .Company:

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ABC COMPANY Unadjusted Trail Balance July 31, 2000 Cash……………………………………………….. $ 4,200 Merchandise Inventory…………………………… 11,500 Store supplies…………………………………….. 4,800 Prepaid Insurance………………………………… 2,300 Store equipment………………………………….. 41,900 Accumulated depreciation-Store Equipment… $ 15,000 Accounts payable…………………………………. 9,000 ABC CO capital…………………………….. 35,200 ABC CO. withdrawals,,,, ………………………. 3,200 Sales……………………………………………….. 104,000 Sales discounts…………………………………… 1,000 Sales returns and allowances……………………,,, 2,000 Cost of goods sold………………………………... 37,400 Depreciation expense – Store equipment…….. - Salaries expense………………………………… 31,000 Insurance expense………………………………. - Rent expense…………………………………….. 14,000 Store supplies expense…………………………. - Advertising expense…………………………….. 9,900 . Totals……………………………………………...$163,200 $163,200 Required: 1. Prepare adjusting journal entries for the following: a. Store supplies on hand at year-end amount to $1,650. b. Expired insurance, an administrative expense, for the year is $1,500. c. Depreciation expense, a selling expense, for the year is $1,400. d. A physical count of the ending merchandise inventory shows $11,100 of goods on hand. 2. Prepare a multiple-step income statement. 3. Prepare a single-step income statement. 4. Prepare all the necessary closing entries.