1) 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

2) You are purchasing a 1-year Treasury bill with a par value of $10,000 and a price of $9,600. If you hold the Treasury bill until maturity, how much will your return be?

3) Royalty incomes from land and mines and income from public enterprises are included under the category of:

4) All of the following are examples of assurance services except:

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

6) Which of the following is closely linked to risk acceptance?

7) Key demanders of funds from financial institutions are

8) Auditors strive for attaining following objectives for the audit of receivables EXCEPT

9) Which one of the following is correct statement about Ethiopian taxation?

10)   In evaluating the validity of different types of audit evidence, which one of the following conclusions is Incorrect?

11) The major securities traded in the capital markets are

12) 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?

13) Which of the following is not a depository financial institution?

14)   All are management responsibilities with respect to financial statements, except

15) One of the following is not an act subject to penalty as related to tax payment.

16) Financial instruments such as forward contract, futures contracts, options are traded in

17) Which one is the most important source of revenue for a government?

18) What type of opinion should an auditor issue when the financial statements are not in accordance with IFRS because such adherence would result in misleading statements?

19)    All are auditor responsibilities with respect to financial statements, except

20)   Which of the following is the correct sequence of procedures in audit program of fixed asset? 1. Perform additional tests of controls for those controls
2. Obtain an understanding of internal control over Fixed Asset
3. Reassess control risk and modify substantive tests Fixed Asset
4. Assess control risk and design additional tests of control

21) Which one of the following is correct?

22) “Financial analysis is a tool for predicting the future performance of the firm on which the investment decision related to this firm can be made.” This perspective is according to the view point of:

23) __ is a comparison of the performance of a firm with the performance of other firms in the same industry

24) Which one of the following is importance Computation of cost of capital as the part of the financial management to decide the capital structure of the business concern

25) _____ is the rate of return that a firm must earn on its project investments to maintain its market value and attract funds

26) The long-term debt-equity ratio of the company decreased, this may be caused as the result of:

27)    In many cases lenders frequently require the current ratio of the borrowing company to remain at or above _________as a condition for grading or continuing the commercial and industrial loans.

28) Based on the following information am answer the question below: ABC company’s current liabilities = 16,000, current assets 34,000, inventories = 17,000. What is ABC Company’s quick ratios and current ratios respectively?

29) The ultimate measure of performance is _____________.

30) Assume you are auditing the financial statement of Girum Hotel, But you suspect the hotel is not recording the VAT for each sale transaction, This can be verified the following procedures Except one

31) Net working capital refers to ___________.

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

33) ______ Varies inversely with profitability.

34) Primary market is

35) Permanent working capital ___________.

36) The time period between placing an order its receipt in stock is known as

37)   Which of the following is not a financial instrument?

38) Key demanders of funds from financial institutions are

39) ____is a fund that is established for the payment of retirement benefits

40) ___is a tradable financial instrument or product whose value depends on the value of some underlying asset.

41) Which of the following is a principle of regulation?

42) 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

43) The necessities of raising the public revenue follows from the:

44) Among the classes of public debt (loans), in which type government usually gets loans from the central (national) banks by using treasury bills?

45) Royalty incomes from land and mines and income from public enterprises are included under the category of:

46) Which one of the following is correct statement?

47) What is not a purpose of having a conceptual framework?

48) The International Accounting Standards Board’s (IASB) conceptual framework

49) Which of the following is an example of a fair value measurement technique used for Level 2 assets?

50) Which of the following is not true with respect to the fair value hierarchy?

51) Which of the following approaches is used to determine the fair value of an asset when the carrying value is greater than the fair value?

52) Which of the following is an example of an impairment trigger event for a non-financial asset?

53) Which of the following is an example of an impairment trigger event for an intangible asset?

54) Bonsa Limited has non-current assets of £101,356, current assets of £52,618, current liabilities of £42,615 and non-current liabilities of £42,000. Using the accounting equation, calculate the figure for equity.

55) Bonsa Limited has non-current assets of £242,000, current assets of £68,000, current liabilities of £52,000 and non-current liabilities of £100,000. Using the accounting equation, calculate the figure for equity.

56) Laura is a solicitor with her own legal practice. On 1 April 2019, Laura’s capital account showed a balance of £152,000. During the accounting year to 31 March 2020 she paid £50,000 of her own money into the business bank account. Laura’s legal practice made a loss of £25,000 during the year to 31 March 2020 and in this same period Laura withdrew £120,000 to repay part of the mortgage on her house. What is the balance on Laura’s capital account at 31 March 2020?

57) On November 1, Epic Distributors borrowed $24 million cash to fund an expansion of its facilities. The loan was made by WW BancCorp under a short-term line of credit. Epic issued a 9-month, 12% promissory note. Interest was payable at maturity. Epic’s fiscal period is the calendar year. In Epic’s adjusting entry for the note on December 31, interest expense will be:

58) On November 1, Shearer Shoes borrowed $18 million cash and issued a 6-month, “noninterest-bearing note.” The loan was made by Third Commercial Bank whose stated “discount rate” is 9%. Shearer’s effective interest rate on this loan is:

59) Reunion BBQ has $4,000,000 of notes payable due on March 11, 2007, which Reunion intends to refinance. On January 5, 2007, Reunion signed a line of credit agreement to borrow up to $3,500,000 cash on a two-year renewable basis. On the December 31, 2006, balance sheet, Reunion should classify:

60) Which of the following does not define investment property?

61) A finance lease is an agreement between an owner of an asset and a user of that asset wherein the:

62) Grapes, after harvest, will need significant time before it can be sold as wine. This product should be accounted for in accordance with

63) Peter Company purchased machinery for birr 160,000 on January 1, 2017. Straight-line depreciation has been recorded based on a birr 10,000 salvage value and a 5-year useful life. The machinery was sold on May 2021 at a gain of birr 3,000. How much cash did Peterson receive from the sale of the machinery?

64) Insurance works on the principle of

65) What are events that occurred after the date on the balance sheet but before the financial statements have been issued called?

66) Why is it necessary to complete the basic income statement prior to completing the statement of retained earnings?

67) Which of these situations would use the multistage dividend discount model to calculate an intrinsic stock price?

68) Under the multivariate dividend discount model, dividends are $1.00 in year 1, $2.00 in year 2 and will grow at 5% thereafter. The required rate of return is 10%. How much is the intrinsic value of the stock?

69) What is the cash ratio for a company with $10,000 in the bank, $25,000 in the 30-day CDs, and $30,000 in current liabilities? (Assume a 30-day CD is a cash equivalent.)

70) Accounts receivable decreased £8,000 during the year, inventory increased £3,000 during the year, and accounts payable increased £6,000 during the year. Under the indirect method, what is net cash provided by operating activities if the net income is £80,000?

71) ABC Company issued common stock for proceeds of £250,000 during 2018. The company paid dividends of £40,000 and issued a long-term note payable for £150,000 in exchange for Machinery during the year. The company also purchased common stock that had a cost of £51,000. The financing section of the statement of cash flows will report net cash inflows of

72) Forester Company has reclassified certain assets as biological assets. The total value of forest assets is P6,000,000 which comprises P5,100,000 freestanding trees, P600,000 land under trees and P300,000 roads in forest .What amount should be reported as biological assets?

73) If the home office maintains accounts in its general ledger for a branch’s plant assets, the branch debits its acquisition of office equipment to:

74) Which of the following generally is not a method of billing merchandise shipments by a home office to a branch?

75) Bontu and Bona purchased a piece of land for birr 20,000 and sold it for birr 60,000 in 2023. Originally Bontu had contributed birr 12,000 and Bona birr 8,000. What will be the profit on the joint venture?

76) A single set of financial statements that combines the separate sets of financial statements of a parent and its subsidiaries is known as:

77) A group of entities comprised of A. company, B. company and C. company have the following cash balances: A. company birr 3,000, B. company birr 8,000 and C. company birr 20,000. A. company is the parent entity. The consolidated financial statements shows the following amounts as the consolidated cash balance:

78) Which of the following is/are not true about the consolidation process of stock acquisition?

79) The auditor give due consideration for audit of inventories due to the following its nature, except

80) Assume that that Eden had a total asset of birr 80,000 on December 31, 2003 and birr 60,000 on December 31, 2002. The total liability was 25% of total asset. Assume the accounting period is one year that ends on December 31. What would be the company’s beginning capital in birr?

81) The debit and credit analysis of a transaction normally takes place

82) ABC company paid cash of $18,000 on June 1, 2010 for one year’s rent in advance and recorded the transaction with a debit to Prepaid Rent. The December 31, 2010 adjusting entry is

83) If merchandise is sold on account to a customer for Br.1,000, terms FOB shipping point, 1/10, n/30, and the seller prepays Br.50 in freight, the amount of the discount for early payment would be:

84) Assume that sales are $450,000, sales discounts are $10,000, net income is $35,000, and cost of merchandise sold is $320,000. Gross profit and operating expenses are, respectively

85) Which of the following accounts would not be included in a post-closing trial balance?

86) In preparing a bank reconciliation, a service charge shown on the bank statement should be

87) An allowance for doubtful account has a debit balance of Br 250. The estimated amount under percentage of sales method is Br 750. The adjustment amount (journal entry) must be:

88) The inventory cost flow assumption where the oldest cost of inventory items is likely to be cost of goods sold.

89) Assume that during 2010 the cost of ending inventory is understated by Birr 20,000 what will be the effect of error financial statement items reported during 2010?

90) Which of the following expenditures incurred in connection with the acquisition of equipment is not a proper charge to the asset account?

91) Which of the following methods will yield the same depreciation expense during the useful life of a plant asset?

92) Ato Belete is a permanent employee of Ethiopian Insurance Company. The employer (Ethiopian Insurance Company) contributed birr 108.02 for pension on behalf of Ato Belete for the month of Ginbot, 2015. Ato Belete paid birr 38.2 employee income tax on his earnings of the same month. What is the monthly basic salary of Ato Belete?

93) Tracey and Hepburn invest $100,000 and $50,000, respectively, in a partnership and agree to a division of net income that provides for an allowance of interest at 10% on original investments, salary allowances of $12,000 and $24,000, respectively, with the remainder divided equally. What would be Tracey’s share of a net income of $55,000?

94) Which of the following is not an advantage of partnership business?

95) Which of the following accounts does a manufacturing company have that a service company does not have?

96) A manufacturing company completed work on a job. The cost of the job is transferred into _________ with a _______.

97) During a recent month, Cleveland Company planned to provide cleaning services to 30 customers for $25 per hour. Each job was expected to take 3 hours. The company actually served 10 more customers than expected, but the average time spent on each job was only 2.5 hours each. Cleveland’s revenues for the month were

98) On a CVP graph, the total cost line intersects the vertical (dollars) axis at

99) In deciding which product lines to emphasize when a production constraint exists, the company should focus on the product line that has the highest

100) When making outsourcing decisions, which of the following is true?