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    Final Regular IV

    Uploaded by

    Jemal Seid
    1. This exam assesses competencies in preparing financial statements for governmental and non-profit entities, applying principles of professional practice, and managing overdue customer accounts. 2. It contains three parts - a matching section with governmental and non-profit accounting terms, a multiple choice section testing understanding of governmental and non-profit accounting concepts, and a worked problem calculating note receivable amounts. 3. Key concepts covered include the different types of governmental funds, the accounting equation for expendable funds, budgeting processes, and revenue recognition standards for governmental entities.

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    Download as DOCX, PDF, TXT or read online from Scribd

    Final Regular IV

    Uploaded by

    Jemal Seid
    15 views4 pages
    1. This exam assesses competencies in preparing financial statements for governmental and non-profit entities, applying principles of professional practice, and managing overdue customer accounts. 2. It contains three parts - a matching section with governmental and non-profit accounting terms, a multiple choice section testing understanding of governmental and non-profit accounting concepts, and a worked problem calculating note receivable amounts. 3. Key concepts covered include the different types of governmental funds, the accounting equation for expendable funds, budgeting processes, and revenue recognition standards for governmental entities.

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    1. This exam assesses competencies in preparing financial statements for governmental and non-profit entities, applying principles of professional practice, and managing overdue customer accounts. 2. It contains three parts - a matching section with governmental and non-profit accounting terms, a multiple choice section testing understanding of governmental and non-profit accounting concepts, and a worked problem calculating note receivable amounts. 3. Key concepts covered include the different types of governmental funds, the accounting equation for expendable funds, budgeting processes, and revenue recognition standards for governmental entities.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    15 views4 pages

    Final Regular IV

    Uploaded by

    Jemal Seid
    1. This exam assesses competencies in preparing financial statements for governmental and non-profit entities, applying principles of professional practice, and managing overdue customer accounts. 2. It contains three parts - a matching section with governmental and non-profit accounting terms, a multiple choice section testing understanding of governmental and non-profit accounting concepts, and a worked problem calculating note receivable amounts. 3. Key concepts covered include the different types of governmental funds, the accounting equation for expendable funds, budgeting processes, and revenue recognition standards for governmental entities.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 4

    Regular IV

    Name ________________________ID No. ______program Regular time allowed 2:00hr


    THIS EXAM INCLUDE THE FOLLOWING UNIT OF COMPETENCIES

    1. Prepare Financial Statements for governmental and not for profit Entities (NFP)
    2. Applying Principles of Professional Practice to Work in the financial services industry
    3. Manage Overdue Austomer Accounts
    Part I: This assessment contains 7 matching type questions, each worth 1 points. Match the
    item in column “A” with the item in column “B” and write letter of the best match on the
    answer sheet.
    Column “A column “B”

    1. Governmental funds A. Budgeted sources exceed budgeted uses

    2. Proprietary funds B. The General Fund,

    3. Fiduciary funds C. Borrowings for capital projects.

    4 Capital project fund D. Agency funds

    5. Budgetary surplus E. Costs incurred in the construction of the building

    6. Budgetary deficit F. Internal services funds

    7. Debt services funds G. Budgeted uses exceed budgeted sources

    Part II: Choose the correct answer from the given alternatives (1 Point each)

    1. Which of the following correct meaning of NFP?

    A. Is trying to make money C. Business enterprise activities

    B. Have ownership shares that can be sold or bought D. None

    2. Governmental units and other non-profit organizations have the following common characteristics except?

    A. Organization to serve the society (citizens C. Profit making activities

    B. General absence of profit motive D. Stewardship for resources

    3. Governmental units of basis accounting mostly used _______

    Accrual basis B. modified accrual basis C. Cash basis D. All but except ‘’C”

    4. Which one of the following is internal user of financial reports of governmental units?

    A. Society B. Governmental body C. Managers D. Customers

    5. Which one of the following Correct for accounting equation for an expendable fund

    A. FB=C + OR -L B. FB= C-L C. A= L+C D. FB=L-C

    6. Self-supporting activities that provide goods or services to the public on a users charge basis should be accounted
    for in what fund category?
    A. Governmental B. Governmental business type fund C. Fiduciary D. Entreprise funds

    7. A fund is a (an)

    A. Legal entity created only when authorized or required by law.

    B. Self-balancing set of accounts recording cash and other financial resources, together with all related liabilities
    and residual equities or balances, and charges there in.

    C. Accounting but not a fiscal entity. D. All of the above

    8. The governmental funds category is made up of:

    A. The general fund, special revenue fund, capital project fund and debt service fund.

    B. The general fund, special revenue fund, capital project fund, and internal service fund.

    C. The general fund, special revenue funds, and permanent funds.

    D. The general fund, special revenue funds, capital project funds, and permanent funds.

    9. The proprietary funds category is made up of:

    A. Enterprise funds, non expendable trust funds, pension trust funds, and internal service funds.

    B. Internal service funds, special revenue funds, and enterprise funds

    C. Enterprise funds and internal service funds.

    D. Any of the above, depending on management intent.

    10. Which one of the following is not a source of governmental revenue funds?

    A, Tax revenues B. Licenses and permits

    C. Special assessment D. Miscellaneous revenues E. none

    11. All governmental funds are ------------

    A. Expendable funds B. Non expendable C. Pension trust funds D. Agency funds

    12.--------------- is the process of allocating scarce resources to unlimited demands.

    A. Budgeting B. Budget C. Revenues D. Budgetary account

    13. An account that involves to made adjustment and estimate the amount of receivable that is probable to be
    uncollectible the end of each accounting period,this called--------------?

    A . Accumulated depreciation B. Direct write -Off method

    C. Allowance method D. Allowance for double ful account

    14. ------which are used to record estimated amount of purchase orders or contracts.

    A. Encumbrances B. Appropriations

    C. Estimated other financing sources D. Estimated other financing uses


    15. Which one of the following true about Prepare Financial Statements for governmental and not for profit Entities
    (NFP)

    A. Nature of Governmental and not-for profit organizations are identified

    B. Accounting for governmental entities identified

    C. Accounting for governmental entities for Ethiopian method identified

    D. all

    16. The residual interest in assets of an entity that remains amount

    after deduction its liabilities is known as----------------------------?

    A. Capital B. Revenues C. Liabilities D. Assets E. All

    17.. Which one is the characters of note receivable?

    A. Face amount B. Interest C. Issued date D. Terms of a note E. All

    18. The primary quality identified involving the degree to which accounting information is free from error and bias,
    and its faithful representation of facts is known as

    A. Reliability B. Relevance C. Comparabilities D. Consistency

    19. Which one of the following is true about cash basis accounting system except

    A. Revenue is recorded when cash has is received

    B. expense is recorded when it is paid

    C. it does not require adjusting entries

    D. it is not supported by GAAP E. All

    20.Aprinciple which states financial statements should contain all information necessary for a reader to understand a
    business’ financial information.

    A. Adequate disclosure concept

    B. Accounting period concept

    C. Units of measurement concept

    D. Objective evidence concept

    Part three : Workout (points 10%)


    1. Assume the trading Company received 120-days, 3% note of Br 40,000 dated April 10, 2014
    from customer & then May 20, 2014 the note is discounted at commercial bank of Ethiopia at the
    rate of 8%. assume to use 360 days per year.

    Required:

    (a). Determine the maturity value?

    (b). Determine maturity date of the note?

    (c). Determine the discounting period

    (d). Determine the amount of discount?

    (e). Determine the amount of the proceeds?

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