SlU e-Learning

1. Which one of the following is the primary importance of accounting information system?

2. Which of the following financial statement reports the resources that a business owns and controlled by an entity at a particular point in time:

3. Adjusting entries affect

4. On January 1, 2020, Lexy Company paid rent of $60,000 for the month January, February, March and April. The $60,000 was initially recorded as prepaid rent. The rent expense for the month of January should be:

5. If we failed to record adjustments for prepaid expense recorded as an asset initially except

6. Mr. Tomas deliver home rent service on monthly receipt basis and he has a plan to receive advance payment from its customers. One of the following is true on the accounts of Mr. Tomas

7. The form listing the titles and balances of the accounts in the ledger on a given date is;

8. The receipt of cash from customers in payment of their accounts would be recorded by:

9. An accounting assumption that states an entity will continue in operation long enough to carry out its existing objectives and commitments?

10. An accumulated amount that has been earned but not distributed to shareholders is known as:

11. Assume Company P began the accounting period with 100,000 in owner’s capital, ended with Br.700,000 in owner’s capital, and the owner withdrew 300,000 ETB during the period for personal use. What was the company’s net income or loss for the period?

12. Lucy Car Repair Shop started the year with total assets of 600,000 and total liabilities of 400,000. During the year the business recorded 1,000,000 in car repair revenues, 550,000 in expenses, and dividends of 100,000. The net income reported by Lucy’s Car Repair Shop for the year was

13. All of the following are true about internal control over cash except:

14. Which of the following type of assets are usually the management could reasonably be expected to convert into cash within one year?

15. Which of the following is not an activity listed in the statement of cash flows?

16. If a merchandise sold on account is returned because of defects, the seller may issue ____ to signify acceptance of merchandise returned from buyer.

17. Suppose Nile Company made credit sales of Br. 500,000 during 2022. Based on past experience Nile Company estimated that 10% of credit sales are uncollectible each year, the entry to record uncollectible accounts expense under direct write -off method

18. ____________are cash receipts recorded by the depositor, but not reached the bank to be included in the bank statement for the current month.

19. Suppose on January 1, 2021 Sally Company sold merchandise which worth Birr 150,000 on account terms 2/10, n/30, and FOB destination to Sony Company. On January 8, the buyer returned a portion of the goods worth Birr 5000 as they were found to be the wrong model. What will be the entry to record return of merchandise under perpetual inventory system?

20. Assume on December 1, 2022 Zemen Company purchase merchandise which worth Birr 500,000 on account terms 3/15, n/45, and FOB shipping point from Lulit Trading. On December 12, the company made full payment for Lulit Trading. What will be the entry to record settlement of liability under periodic system?

21. The cash in bank account for Tana Company at January 31, 2022 showed that balance of Br. 26, 431.60 after both cash receipt journal and check register for January had been posted. The bank statement indicated that a balance of Br. 39,027.8 on January 31. The bank had collected Br. 10,500 on an interest-bearing note left for collection, the face value of the note was Br.10, 000. In preparing bank reconciliation, the amount of notes collected would be:

22. Which one of the following is not element of a single set of high-quality international accounting standards?

23. One of the following is true about fair value measurement if there is a quoted price in an active market for an identical asset or liability

24. Under IFRS:

25. All of the following are major part of IASB pronouncement except:

26. General-purpose financial statements are prepared primarily for:

27. Which of the following statements is false?

28. Which of the following statements is correct?

29. When is revenue generally recognized?

30. On January 1, 2019 Saba Company purchased copy machine with a cost of Br. 155, 000 and a salvage value of Br. 5, 000 with economic life of five years or 100,000 operating hours. Assuming fiscal period of Saba Company ends on December 31. The machine will be depreciated over useful life of 5 years using the sum-of-the-year’-digits method. If the asset placed in to service on January 1, 2019, the amount of depreciation Saba Company would record for the year ended 2019 would be:

31. Debt investments not held for collection are reported at

32. Held-for-collection investments are reported at

33. An unrealized holding gains or losses on a trading debt investment is the difference between the investment’s

34. If the investor owns 60% of the investee’s outstanding ordinary shares, the investor should generally account for this investment under the

35. A Company purchased bonds with a face amount of $400,000. It purchased the bonds at 102 and paid brokerage costs of $6,000. The amount to record as the cost of this investment is

36. Under the equity method of accounting for investments, an investor recognizes its share of the earnings in the period in which the

37. Debt investments that are accounted for and reported at amortized cost, are

38. ZB Corp. had finished goods inventory of $50,000 and $60,000 at April 1 and April 30, respectively, and cost of goods manufactured of $175,000 in April. Cost of goods sold in April was

39. Materiality is used in all of the following situations of providing financial information, except:

40. For the current period, Mesfin started 5,000 units and completed 3,000 units, leaving 2,000 units in process 70 percent complete. How many equivalent units of production did Mesfin have for the period?

41. Which one of the following is not considered for preparation of Job cost sheet?

42. When should process costing techniques be used in assigning costs to products?

43. The predetermined overhead rate is $50 per machine hour, under applied overhead is $5,000. And the actual amount of machine hours is 2,000. What is the actual amount of total manufacturing overhead incurred during the period?

44. In job order costing, the basic document for accumulating the cost of each order is the:

45. Under a job order system of accounting, Cost of Goods Sold is debited and Finished Goods is credited for a:

46. When should process costing techniques be used in assigning costs to products?

47. If the level of activity increases,

48. An industry that would most likely use process costing procedures is:

49. Which of the following is a constraint in presenting financial information?

50. During a period 17, 500 labor hours were worked at a standard cost of Rs 6.50 per hour. The labor efficiency variance was Rs 7,800 favorable. How many standard hours were produced?

51. During September, 300 labor hours were worked for a total cost of $4800. The variable overhead expenditure variance was $600 (A). Overheads are assumed to be related to direct labor hours of active working. What was the standard cost per labor hour?

52. A company calculates the prices of jobs by adding overheads to the prime cost and adding 30% to total costs as a profit margin. Job number Y256 was sold for $1690 and incurred overheads of $ 694. What was the prime cost of the job?

53. Unit cost information is important for making all of the following marketing decisions except:

54. Which of the following is a non-discounting technique for appraising a project?

55. Davis Company manufacturer’s desks. The beginning balance of Raw Material Inventory was $4,500; raw material purchases of $29,600 were made during the month. At month end, $7,700 of raw material was on hand. Raw material used during the month was

56. The objective of financial management is to

57. Which one of the following statements is correct concerning the weighted average cost of capital (WACC)?

58. If risk free rate of return is 8%, Return on market portfolio is 12%, beta = 1.5, then the expected rate of return according to CAPM is equal to

59. If payable, receivables and inventories on average are $3,000,000, 3,500,000m and 4,000,000 respectively and sales are $15,000,000, Cash conversion cycle will be?

60. Which of the followings are factors favoring a low dividend policy

61. The major benefit of diversification is to____________.

62. Which of the following statements is correct regarding profit maximization as the primary goal of the firm?

63. Increasing the credit period from 30 to 60 days, in response to similar action taken by all of our competitors, would likely result in:

64. Permanent working capital ___________.

65. Auditor in general is:

66. In “auditing” financial accounting data, the primary concern is with:

67. Which of the following best describes the reason why independent auditors report on financial statements?

68. An audit conducted to determine whether an entity is following specific procedures or rules set down by some higher authority.

69. A review of any part of an organizations and methods for the purpose of evaluating efficiency and effectiveness is classified as a(n):

70. ________ refers to the application of relevant, training, knowledge and experience, within the context provided by auditing, accounting and ethical standards in making informed decisions about the course of action that are appropriate in the circumstances of the audit engagement.

71. Which of the following is a duty of the Auditor?

72. An auditor can be removed from their position as Auditor by:

73. Which of the following is considered lowballing?

74. An auditor who accepts an audit engagement and does not possess the industry expertise of the business entity, should:

75. Which of the following is not a function of working papers?

76. The permanent audit file would usually include the following:

77. Before the work of audit is commenced, the auditor plans out the whole of audit work is known as:

78. Which of the following procedures is not performed as a part of planning an audit engagement?

79. During an audit engagement pertinent data are prepared and included in the audit working papers. The working papers primarily are considered to be:

80. Evidence obtained directly by the auditor is more competent than information obtained indirectly. Which of the following is not an example of the auditor’s direct knowledge?

81. Which of the following statements is correct with respect to ownership, possession, or access to working papers prepared by an audit firm in connection with an audit?

82. The current file of an auditor’s working papers most likely would include a copy of the

83. When the auditor attempts to understand the operation of the accounting system by tracing a few transactions through the accounting system, the auditor is said to be:

84. Which of the following is not one of the three primary objectives of effective internal control?

85. Which of the following is not an underlying principle related to risk assessment?

86. Inherent risk and control risk differ from detection risk in that inherent risk and control risk are:

87. The opinion paragraph of a CPA’s report states: “In our opinion, except for the effects of not capitalizing certain lease obligations, as discussed in the preceding paragraph, the financial statements present fairly,” in all material respects, . . . This paragraph expresses a(an):

88. The date of the CPA’s opinion on the financial statements of the client should be the date of the

89. The introductory paragraph of the standard audit report states that the auditor is:

90. Among the classification of public revenue, which one is characterized by their voluntary nature and by the absence of any expectation of direct benefit for the donor?

91. he necessities of raising the public revenue follows from the:

92. If the tax liability as a proportion of income falls with the increase in taxpayer’s income, it is termed as ______________.

93. Which one of the following is correct statement about Ethiopian taxation?

94. Which of the following is a tax to be shifted from one person to another person?

95. Mr. Denbel has bought ten shares of ABZ Share Company for Birr 200,000 each and sold them at Birr 300,000 each. How much does he pay as capital gains tax?

96. Given that the following were extracted from the books of a public sector entity for the year ended December 31, 2022: Capital grants $50,000,000; Revaluation reserve $600,000; Translation reserve $900,000; Accumulated Surplus $400,000 and public debt charges $1,000,000. What is the value of its Net asset?

97. Which of the following is a distinguishing characteristic of a nonbusiness organization?

98. Governmental funds use the:

99. In comparing internal service funds to enterprise funds, which of the following is (are) true?

100. Which of the following is true regarding accounting for fixed assets of state and local governmental units?

In a given market, consumers' surplus would, all else equal, be increased by:

In order to determine whether to use a fixed effects or random effects model, a researcher conducts a Hausman test. Which of the following statements is false?

Which of the following are advantages of the use of panel data over pure cross-sectional or pure time-series modeling?(i) The use of panel data can increase the number of degrees of freedom and therefore the power of tests(ii) The use of panel data allows the average value of the dependent variable to vary either cross-sectionally or over time or both(iii) The use of panel data enables the researcher allows the estimated relationship between the independent and dependent variables to vary either cross-sectionally or over time or both

According to the Marshall-Lerner condition, if a country's currency depreciates its trade balance will worsen if elasticity of demand for exports is ______ and elasticity of demand for imports is _______.

Assume that Kenya faces an 8% inflation rate while no inflation exists in Japan. According to the purchasing power parity theory, in the long-run Kenyan shilling will be expected to:

Which of the following statements is necessarily incorrect about AK endogenous growth model?

The steady state growth rates in the Solow growth model with technological progress indicates:

he short run supply curve of a competitive market firm is:

When a perfectly competitive firm makes a decision to shut down, it is most likely that

The main decision for a profit maximizing perfectly competitive firm is NOT what ________ but what ________.

In the long run the average cost fulfills the following, except:

Which one of the following is not true about Stage one production period?

Which one of the following is false?

If OLS is applied separately to each equation that is part of a simultaneous system, the resulting estimates will be

In the context of simultaneous equations modeling, which of the following statements is true concerning an endogenous variable?

Suppose that we estimate a logit model based on an intercept and two explanatory variables and the parameter estimates are respectively β ̂_1=0.1,β ̂_2=0.3 and β ̂_3=-0.2, the average values of the explanatory variables are X ̅_1=0.5,X ̅_1=0.8. A 1-unit increase in X_2 will cause an increase in the probability that the outcome corresponding to Y=1 to

Which of the following is correct concerning logit and probit models?

It is possible to convert the coefficients of logit estimation to their probit perspective by multiplying them √3/( π). According to Amemiya it is possible to convert LPM coefficients with same conversion factors to logit coefficient irrespective of which coefficient in the model.

If all the explanatory variables are qualitative information, and you run regression without including an intercept term, the estimated coefficients represent :

If a researcher has a qualitative information independent variable and introduce all the categories in to a regression model without creating a benchmark. Hence she will face a Problem of:

Given the foreign currency market for the Kenyan shilling, the supply of shillings slopes upward, because as the dollar price of the shillings rises:

The monetary approach to BoP adjustment has been subjected to criticisms on all of the following grounds, except the assumption of:

In the Mundell-Fleming model under fixed exchange rates, the automatic adjustment process produces BoP equilibrium as:

The main difference between the monetary approach and the portfolio balance approach is that:

According to the J-curve effect, when the exchange value of a country’s currency appreciates, the country’s trade balance:

The statistical discrepancy component of a balance of payment is used to:

If birr’s and dollar’s interest rate are 0.01 and 0.02 respectively, and the current exchange rate is 105.

Given that the spot rate of Yuan today is $2.00 while the 3 month forward rate is $2.02, how can a U.S. importer who has to pay ¥10,000 in 3 months hedge his foreign exchange risk?

A high level of tariff rate that aims is to stop all international trade is ____________.

The Solow growth model shows that:

Which of the following statements is necessarily correct?

In the Solow growth model, if the capital stock is below the Golden Rule level:

A time-inconsistency problem in macroeconomic policy can occur when the policymaker:

The American economist, Robert Lucas has argued that traditional methods of policy evaluation:

If we assume workers and all jobs are the same and each worker equally well-suited to each job, then:

When you deposit birr 100,000 in your local bank such as Commercial Bank of Ethiopia, even though you can withdraw that amount at any time:

According to the permanent income hypothesis, consumption is primarily determined by:

One of the following is not an opportunity of WTO membership

Temporary trade restrictions for new industries until they build competition capacity is refereed as ________________

  For Heckscher and Ohlin, the most important cause of the difference in relative commodity price and trade between nations is a difference in

From the following one is not Major features of mercantilists

Which one of the following is the most radical form of economic cooperation?

Which one of the following was not principle of GATT

A strategy in which trade and industrial incentives are biased in favor of production for domestic market over the export market.

To test the significance of the OLS parameter estimators we need, except

Suppose that we estimate the model given as : Y_i=α+βX_i+u_i from the data collected from a sample size of 10 and we got RSS=200 and ESS = 200. Then which of the following can be the value of coefficient of determination?

Which of the following is correctly defined:

Which of the following is not among formal methods of detecting Hetroscedaicity?

Which of the following is incorrect statement regarding to classical linear regression model assumptions?

Which of the following is not feature of time series data?

Which of the following models are linear in both parameters and variables?

Which of the following is different from the others?

In Imperfect-Information Model

Which of the following is incorrect regarding IS-LM model?

If the government of Ethiopia decreases the price of one dollar from Birr 55/$1 to Birr 50/$1 we say that

Which of the following statements is incorrect?

Which of the following is true regarding aggregate demand curve?

……………………..is a decrease in private investment as a result of a rise in government purchase/ investment.

……………….. is the purchase of new plant & equipment by firms to add to their stock of capital & to replace existing capital as it wears out.

Which of the following statements is correct?

Which one of the following schools of economic thought favor “Laissez-faire”?

Which of the following statement is false?

_____________ is the process by which sellers send messages to buyers conveying information about product quality.

Moral hazard is an information problem that arises when:

Which of the following is incorrect about technological Progress and income distribution?

Monopolistic exploitation is occurred

Suppose that the probability of players playing low price is 25% and playing high price is 75%. Then what is the mixed strategy Nash equilibrium of this game?

In Cournot model if there are 6 firms in the industry each will provide _______ of the market, and the industry output will be _________. The missed values in this statement are respectively

Which of the followings can be rationale for collusion?

Which of the following is not characteristic/assumption of monopolistic competition market?

People hold their wealth in different assets and money is one alternative of holding wealth. This statements best suit for which motive of money?

From the following which one is considered as the liability of central bank?

Which one of the following is a direct monetary instrument of central bank?

Which one is incorrect about open market operation from the following statements?

Which of the following factors that affect liquidity of an asset?

Which of the following are financial intermediaries that accept deposits from individuals and institutions and make loans.

If the person or corporation selling the bonds to the Central bank and cashes the Central bank's check at a local bank for currency, which would be incorrect alternative on the possible impact of this OMO on reserve, security and monetary base?

Among the player in money supply process which one is an individuals and institutions that save in banks mostly.

Suppose that the National Bank of Ethiopia purchases Birr 100 of bonds from a bank and pays for them with a Birr 100 check. From this information which one is correct?

integration of one the following function is equal to

1.      Derivative of one of the following is equivalent to its integral

Given the marginal saving as a function of income (x) as MS(x)=, then how much is the total saving between 2 and 4 income level

One of the following integrals is indefinite integral

Given polynomial cost of production function as ƒ(x) = 3×3 – 4×2 + 6x+200. Then at when 2 units of output are produced (i.e. at x=2),

If the profit (π) of a company is linear function of output (x) which is given as π(x)=3x+5 then, the value of marginal profit is_______

Identify incorrect statement about the difference between differentiation and integration

Economy can face trade deficit due to one of the following results

Which of the following is not true about agriculture's role in economic development

The Malthusian theory of population growth, as formulated by Malthus, proved

Compared to the developed countries, the LDCs have

Which of the following statement is false?

Which of the following case contributes for the higher population growth?

Which the following countries have higher fertility rates?

Which of the following is the make the Tobin’s q model different from neoclassical model?

Identify the incorrect statement according to the Solow growth model.

Which of the following describes an increase in technological knowledge?

The main domestic source of savings in LDCs is

According to the Harrod-Domar model, an increase in growth rates depends on one of the followings

According to W.W.Rostow, which of the following does not belong to the “precondition for takeoff”?

In a given market, consumers' surplus would, all else equal, be increased by:

Balanced growth theories of Ragnar Nurkse advocate