A profit ---making business that is a separate legal entity and in which ownership

is divided in shares of stock is Known as a

A. Sole proprietorship
B. Single proprietorship
C. Partnership
D. Corporation
ANSWER:D

The properties owned by a business enterprise are called:

A. Assets
B. Liability
C. Stockholders� equity
D. Owner�s equity
ANSWER:A

A list of asset increase and owner�s equity of a business entity as of a specific

date
A. A balance Sheet
B. An income statement
C. A statement of owner�s equity
D. A retained earnings statement
ANSWER:A

If total assets increase $ 20,000 during liabilities increase by $ 12,000 during

the same period. The amount and direction (increase or decrease of the period�s
change in owner�s equity is:
A. $ 32,000 Increase
B. $ 32,000 Decrease
C. $ 8,000 Increase
D. $ 8,000 Decrease
ANSWER:C

If revenue was $ 45,000, expense were $ 37,500, and the owner�s withdrawals were
10,000, the amount of net income or not loss was:
A. $45,000 net income
B. $7,500 net income
C. $37,500 net loss
D. $2,500 net loss
ANSWER:B

A Debit may signify

A. An Increase in an asset account
B. A Decrease in a asset account
C. A Increase in a liability account
D. An increase in the owner�s capital account
ANSWER:A

The type of account with a normal credit balance is :

A. A asset
B. A drawing
C. A revenue
D. An Expense
ANSWER:C

The current asset category would include:

A. Cash
B. Account receivable
C. Supplies on hand
D. All of the above
ANSWER:D

The receipt cash from customers in the payment of their account their account would
be recorded :
A. Debit to cash ;Credit to account receivable
B. Debit to Account receivable ; Credit to cash
C. Debit to cash; Credit to Account Payable
D. Debit to Account Payable ; Credit to cash
ANSWER:A

The form listing the balance and the titles of the accounts in the ledger on a
given :
A. Income statement
B. Balance Sheet
C. Retained earnings statement
D. Trail Balance
ANSWER:D

If supplies account before adjustment on May, 3 indicated a balance of $ 2,250

Inventory of supplies on hand May 31, Totaled $ 950, the adjusting entry would be :
a. Debit supplies $950;Credit Supplies Expanse $950
b. Debit supplies expense $2,250;credit supplies $ 2,250
c. Debit supplies $1,300; credit supplies expanse $ 1,300
d. Debit supplies expanse $1,300; credit supplies $ 1,300
ANSWER:D

In the business transaction first accurate can be recorded in a book of

A. Journal
B. Payment Journal
C. Ledger
D. Receipts journal
ANSWER:A

Proprieties owned by business

A. Asset
B. Capital
C. Liabilities
D. Revenue
ANSWER:A

Assume that you have 500 ERUO in your hand what is the equivalent amount USD if USD
is birr 18 for EURO 24 birr
A. 666.6/USD
B. 500 USD
C. 5833.33USD
D. 120.00 USD
ANSWER:A

Post closing trail balance may include which one of the account:
A. Sales
B. Account Receivable
C. Salary Expense
D. Interest Expense
ANSWER:B

Goods and document are examined in accordance with legislative requirement it need
bank Permit base on CBE directive this:
A. To have principle legislative certificates
B. Related to import and export activity
C. Regulation declaration of tax
D. Internal control system
ANSWER:A

Payment of cash for settlement of purchase on account would be recorded :

A. Cash debit
B. Account payable credit
C. Account Payable debit
D. Account Receivable credit
ANSWER:C

Credit may Signify

A. Increase an Assets
B. Decrease in liability
C. Decrease in Assets
D. Decrease in Capital
ANSWER:C

Salary expense has a credit balance of birr 10,000 on Hamle beginning of period
reversing entries posted but before any transaction occurred the balance represent:
A. Assets
B. Revenue
C. Liability
D. Expense
ANSWER:D

What is the Maturity Value Br 100,000, term 90, 12% for

A. 9,000
B. 5,000
C. 103,000
D. 3,500
ANSWER: C

Before adjusting entry account receivable has a balance of birr 400,000 allowance
for doubtful account has birr 5,000 if. Estimated uncollectable account determine
by against receivable is birr17,000, the current portion to be made uncollectable
account expense
A. 15,000
B. 5,000
C. 12,000
D. 400000
ANSWER:C

One of the following not closed the end of the accounting fiscal period
A. Expense
B. Income summary
C. Revenue
D. Liability
ANSWER:D

Minor amount of money, to replenish the company activity

A. Change fun
B. Petty cash
C. Capital receipt journal
D. Cash receipt journal
ANSWER:B

Sales or purchase is recorded in which financial report.

A. Income statement
B. Trail balance
C. Balance sheet
D. Cash flow
ANSWER:A

Controlling account that summarize the balance of each customer is.

A. Account payable
B. Merchandise inventory
C. Account receivable
D. Income summary
ANSWER:C

Which of the following does not need journal

A. Note collected and bank service charge
B. Non sufficient fund
C. Deposit in transit
D. Service charge
ANSWER:C