GAGE UNIVERSITY COLLEGE
TVET-PROGRAM
BUSINESS and FINANCE LVELE II
SUMMATIVE ASSESSMENT
Learner’s Name:
Instructor’s Name:
ID No:
Section:
Department: BUSINESS and FINANCE
Process financial transaction and extract interim
Learning Module Covered: report
Administering, monitoring and controlling
General and Subsidiary ledger
Batch: 2015 E.C (2nd)
Assessment Day:
Time Permitted: 1:20
Weight of Assessment in%: 40
Overall Direction:
Make sure the examination paper contains ---page together with the cover page
Read all Instructions Prudently
Make Sure Your Mobile Phone Switched off
Unlawful action during the exam never negotiated
N.B: Don’t Turn This Page until Allowedꜝꜝ
PART I:-Choos
INSTRUCTION: This evaluation section comprises 20 multiple questions, each has 1.5 point.
Choose the best answer from the given alternatives and write the representative letter on the
space provided.
-------1 Which of the following step come first in recording deposit and withdrawal?
A. Entering the postdate C. Choosing either deposit or withdrawal
B. Selecting the bank account D. None
---------2. What is the impact on the accounting equation when an accounts receivable is
collected?
A. both sides increase C. only the Asset side changes
B. both sides decrease D. the total of neither side changes
--------3. Which of the following is not importance of bank reconciliation?
A. To stop fraud C. To stay on top of accounts receivable
B. To detect bank error D. All of the above
------4 When a customer deposits a check into an account but the account of the issuer of the
check has an insufficient amount to pay the check
A check outstanding C. Not sufficient fund (NSF)
B. Deposit in transit D. Bank service fees
--------5. What is the impact on the accounting equation when a sale occurs?
A. both sides increase C. only the Asset side changes
B. both sides decrease D. neither side changes
--------6. The final step in recording deposit and withdrawal is________
A. Adding raw C. Saving the file in the software
B. Attaching files D. All of the above
-----------7. Any device used to provide the results of processing data is ________ device.
A. sources C. output
B. input D. storage
---------8.Which one is a form of business organizations?
A. Proprietorship C Corporation
B. Partnership D. all
-------------9. What is the impact on the accounting equation when a payment of account payable
is made?
A. both sides increase C. only the Asset side changes
B. both sides decrease D. neither side changes
--------10. From the following one is not the Elements of Accounting
A. Owner’s Equity B. Revenues C. Assets D. Liabilities E. none
------------11. All of the following can provide source data except ________.
A. a scanning device at the grocery store
B. a utility bill received in the mail
C. a bar code reader
D. software to process the source data
--------12.Which one is true about Accounting Equation?
A. Asset = L+C B. Capital = A-L C. A and B. D .none
---------13. Revenue Recognition Principles are
A. Recognize revenue when it is earned.
B. Proceeds need not be in cash.
C. Measure revenue by cash received plus cash value of items received.
D. Each business has an identity separate from its owners. E. all Except D
-------14. ----------- is a list of individual accounts that bears a similar nature.
A. Subsidiary Ledge B. general. Ledge C. general journal
-------15. One is not type of subsidiary ledger
A. Accounts Payable Subsidiary Ledger C. Fixed Asset Subsidiary Ledger:
B. Accounts Receivable Subsidiary Ledger D Accounts Revenue Subsidiary Ledger
-------16. What are the methods used in accounting for uncollected account
A. Direct Write-off Method C. both of them
B. Allowance Method
--------17. What are the Main Steps for a typical A/R Process?
A. Establishing Credit Practices
B. Invoicing Customers
C. Tracking Payments Received and Payments Due
D. Accounting for Accounts Receivables
-----------18.From the following one is not Types of cheques
A Bearer Cheque C. Post-Dated Cheque
B. Order Cheque D. Travelers Cheque E. none
---------19. What are the Factors causing the bank statement balance to differ from the
depositor’s book balance?
A. Outstanding cheeks C. Service charges and other bank fees
B. Deposit in Transit D. Bank collections E. all
20. What are the payment terms?
A. Credit period C. Credit limit
B. Credit terms D. Discounts E. all
PART II: - Matching
INSTRUCTION:-This evaluation section comprises 5 matching questions, each has 1 point.
Match column “A” with the item in column “B” and write the best answer from the given
matching the space provided.
COLUMN A. COLUMN B.
1. Source Document A. Subsidiary ledger
2. Book of account B. to provides evidence
3. Types of ledger C. ledger
4. Importance of Source Documents D. Accrual
5. Basis of accounting E. Sales and Purchase Invoices
PART III: -DEMONSRATION QUATIONS
INSTRUCTION:-This demonstration questions have 2 points as whole. Read and analyze each
question and answer correctly.
1. Write the two methods of accounting for receivables
2. Write at least four common source documents.
PART VI: -WORKOUT QUATIONS
INSTRUCTION:-This workout questions have 3 points as whole. Read and analyze each cause
carefully and answer correctly by showing the stapes.
1. ------. On June 1, $1000 of goods are sold with credit terms of 2/10, n/30. How much should
the seller expect to receive if the buyer pays on June 8?
2. Assume that Gemeda Bewketu Company borrowed money in Buna bank Br 9,000,000 for
three years in interest rate of 10 percent.
Given
Principal (P) =9,000,000
Rate (R) =0.1
Time (T) =3 years
Calculate I and A
2.1 Interest (I)
2.1. Amount at end of 3rd years. (A)
Good luck //
