Ethiopian Exit Exam Questions and Answers

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Ethiopian exit exam questions and answers pdf

 Ethiopian exit exam questions and answers pdf

o Ethiopian exit exam questions and answers pdf part 2

1. Which of the following is an example of a plant asset?

a. Accounts Receivable
b. Inventory
c. Machinery
d. Accounts Payable
Solution: c. Machinery
2. Which of the following is an example of land improvements?
a. Building
b. Parking lot
c. Office furniture
d. Inventory
Solution: b. Parking lot

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3. What is the cost of a piece of equipment that was purchased for $10,000 and had $500 of
freight-in costs?
a. $9,500
b. $10,000
c. $10,500
d. $11,000
Solution: c. $10,500
4. What is the estimated useful life of a building that is expected to last 30 years?
a. 10 years
b. 20 years
c. 30 years
d. 40 years
Solution: c. 30 years
5. What is depreciation?
a. An increase in the value of an asset
b. A decrease in the value of an asset
c. An increase in revenue
d. A decrease in expenses
Solution: b. A decrease in the value of an asset
6. Which of the following is an example of a current asset?
a. Land
b. Building
c. Equipment
d. Inventory
Solution: d. Inventory
7. What is the difference between book value and market value?
a. Book value is the amount paid for an asset and market value is the estimated worth of
the asset
b. Market value is the amount paid for an asset and book value is the estimated worth of
the asset
c. Book value is the estimated worth of an asset and market value is the market price of
the asset
d. Market value is the estimated worth of an asset and book value is the balance sheet
value of the asset
Solution: d. Market value is the estimated worth of an asset and book value is the balance
sheet value of the asset
8. Which of the following is not a method of calculating depreciation?
a. Straight-line
b. Double-declining balance
c. Sum-of-years-digits
d. Cash-basis
Solution: d. Cash-basis
9. Which of the following is a contra-asset account?
a. Accumulated Depreciation
b. Prepaid Rent
c. Goodwill

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 d. Accounts Payable
Solution: a. Accumulated Depreciation
10. What is the formula for calculating straight-line depreciation?
a. (Cost – Salvage Value) / Useful Life
b. Cost * Useful Life
c. Cost / (Useful Life – Salvage Value)
d. Cost – Salvage Value
Solution: a. (Cost – Salvage Value) / Useful Life
11. If a piece of equipment was purchased for $5,000, has a salvage value of $1,000 and an
estimated useful life of 5 years, what is the annual depreciation expense using the
straight-line method?
a. $1,000
b. $800
c. $600
d. $400
Solution: b. $800
12. Which of the following is not a factor in determining the useful life of an asset?
a. Age of the asset
b. Estimated resale value of the asset
c. Maintenance costs of the asset
d. Usage of the asset
Solution: b. Estimated resale value of the asset
13. Which of the following is not a component of the cost of a building?
a. Purchase price
b. Legal fees associated with the purchase
c. Closing costs
d. Annual property taxes
Solution: d. Annual property taxes
14. What is the gain or loss on the disposal of an asset?
a. It is the difference between the book value and the market value of the asset
b. It is the difference between the cost and the book value of the asset
c. It is the difference between the cost and the market value of the asset
d. It is the amount paid for the asset
Solution: b. It is the difference between the cost and the book value of the asset
15. Which of the following is an advantage of the straight-line method of depreciation?
a. It is the easiest method to calculate
b. It results in the highest annual depreciation expense
c. It produces a more uniform expense over the life of the asset
d. It produces the lowest annual depreciation expense
Solution: c. It produces a more uniform expense over the life of the asset
16. Which of the following is a factor in determining the salvage value of an asset?
a. The cost of the asset
b. The estimated useful life of the asset
c. The condition of the asset
d. The estimated resale value of the asset
Solution: d. The estimated resale value of the asset

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17. Which of the following is an example of an intangible asset?
a. Buildings
b. Equipment
c. Goodwill
d. Land
Solution: c. Goodwill
18. Which of the following is not an example of a repair expense?
a. Replacing a lightbulb
b. Replacing a window
c. Replacing a roof
d. Painting a room
Solution: c. Replacing a roof (this would be considered a capital expenditure)
19. Using the double-declining balance method, what is the depreciation expense for an asset
that cost $10,000 and has a useful life of 5 years?
a. $4,000
b. $3,200
c. $1,600
d. $1,280
Solution: b. $3,200
20. Which of the following is an example of a natural resource?
a. Machinery
b. Land
c. Patents
d. Accounts Receivable
Solution: b. Land
21. Which of the following is the correct order of steps in the disposal of an asset?
a. Update the Accumulated Depreciation account, record the gain or loss on disposal,
remove the asset from the books
b. Record the gain or loss on disposal, remove the asset from the books, update the
Accumulated Depreciation account
c. Remove the asset from the books, update the Accumulated Depreciation account,
record the gain or loss on disposal
d. None of the above
Solution: b. Record the gain or loss on disposal, remove the asset from the books, update
the Accumulated Depreciation account
22. Which of the following is not a factor in determining the cost of a piece of equipment?
a. Purchase price
b. Freight-in costs
c. Installation costs
d. Annual maintenance costs
Solution: d. Annual maintenance costs
23. Which of the following is an example of an intangible asset with a limited life?
a. Patents
b. Trademarks
c. Copyrights

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 d. Goodwill
Solution: a. Patents
24. What is the carrying value of a building that was purchased for $1 million, has $200,000
of accumulated depreciation, and a market value of $900,000?
a. $900,000
b. $800,000
c. $1 million
d. $1.1 million
Solution: b. $800,000
25. Which of the following is not a component of the cost of land?
a. Purchase price
b. Legal fees associated with the purchase
c. Closing costs
d. Annual property taxes
Solution: d. Annual property taxes

1. Under the straight-line method, what is the annual depreciation expense for an asset that
cost $50,000 and has a useful life of 10 years?
a. $5,000
b. $4,000
c. $3,500
d. $2,500
Solution: a. $5,000
2. Which of the following is a disadvantage of the double-declining balance method?
a. It is more difficult to calculate than other methods
b. It does not take salvage value into account
c. It results in a less uniform expense over the life of the asset
d. It results in a lower annual depreciation expense than other methods
Solution: c. It results in a less uniform expense over the life of the asset
3. Which of the following is an example of a long-term investment?
a. Accounts Receivable
b. Inventory
c. Treasury Stock
d. Land
Solution: d. Land
4. Which of the following is an example of a natural resource with a finite life?
a. Timber
b. Oil
c. Land
d. Water
Solution: b. Oil
5. Which of the following is a component of the cost of a patent?
a. Legal fees associated with obtaining the patent
b. Annual maintenance costs of the patent
c. The estimated resale value of the patent

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 d. All of the above are components of the cost of a patent
Solution: a. Legal fees associated with obtaining the patent
6. Which of the following is not a component of property, plant, and equipment?
a. Buildings
b. Equipment
c. Patents
d. Land
Solution: c. Patents
7. What is the formula for calculating double-declining balance depreciation?
a. (Cost – Salvage Value) / Useful Life
b. (2 x Straight-line rate) x Beginning book value
c. Cost / Useful Life
d. Cost – Accumulated Depreciation
Solution: b. (2 x Straight-line rate) x Beginning book value
8. Which of the following is not a method of calculating depletion?
a. Straight-line
b. Double-declining balance
c. Units of production
d. Cost-benefit
Solution: d. Cost-benefit
9. Which of the following is an example of a current liability?
a. Mortgage Payable
b. Accounts Payable
c. Long-Term Notes Payable
d. Bonds Payable
Solution: b. Accounts Payable
10. What is a capital expenditure?
a. An expense that is incurred to maintain an asset
b. An expense that is incurred to upgrade an asset
c. An expense that is incurred to repair an asset
d. An expense that is incurred to dispose of an asset
Solution: b. An expense that is incurred to upgrade an asset
11. Which of the following is not a factor in determining the fair value of an asset?
a. Age of the asset
b. Market conditions
c. Overall economic conditions
d. Estimated useful life of the asset
Solution: d. Estimated useful life of the asset
12. Which of the following is not a component of the cost of an intangible asset?
a. Legal fees associated with obtaining the asset
b. Annual maintenance costs of the asset
c. The estimated resale value of the asset
d. All of the above are components of the cost of an intangible asset
Solution: b. Annual maintenance costs of the asset
13. What is an impairment loss?
a. A loss caused by damage to an asset

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 b. A loss caused by the sale of an asset
c. A loss caused by the disposal of an asset
d. A loss caused by the decline in value of an asset
Solution: d. A loss caused by the decline in value of an asset
14. Which of the following is not a factor in determining the cost of a building?
a. Purchase price
b. Legal fees associated with the purchase
c. Closing costs
d. Annual depreciation
Solution: d. Annual depreciation
15. Which of the following is an example of a natural resource with an infinite life?
a. Land
b. Timber
c. Oil
d. Water
Solution: a. Land
16. Which of the following is an example of a betterment?
a. Replacing a lightbulb
b. Replacing a window
c. Adding a security system to a building
d. Painting a room
Solution: c. Adding a security system to a building
17. Which of the following is an advantage of the units of production method of
depreciation?
a. It results in a more uniform expense over the life of the asset
b. It is the easiest method to calculate
c. It produces the lowest annual depreciation expense
d. It results in the highest annual depreciation expense
Solution: a. It results in a more uniform expense over the life of the asset
18. Which of the following is not a factor in determining the fair value of a liability?
a. Interest rates
b. Creditworthiness of the debtor
c. Term of the liability
d. The company’s level of debt
Solution: d. The company’s level of debt
19. Which of the following is not a component of accumulated depreciation?
a. Depreciation expense
b. Maintenance costs
c. Book value
d. Depreciation method used
Solution: b. Maintenance costs
20. Which of the following is an example of a natural resource with an indefinite life?
a. Timber
b. Oil
c. Land

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 d. Water
Solution: c. Land
21. Which of the following is not an example of a capital expenditure?
a. Replacing a roof
b. Remodeling a room
c. Repairing a leaky faucet
d. Adding insulation to a building
Solution: c. Repairing a leaky faucet
22. Which of the following is a disadvantage of the units of the production method of
depreciation?
a. It results in a less uniform expense over the life of the asset
b. It is difficult to calculate
c. It produces the highest annual depreciation expense
d. It does not take salvage value into account
Solution: a. It results in a less uniform expense over the life of the asset
23. What is a partial year of depreciation?
a. Only part of the annual depreciation expense is recorded in the first year of an asset’s
life
b. Depreciation is only recorded in the last year of an asset’s life
c. The annual depreciation expense is prorated based on the number of days in the year
the asset was used
d. None of the above
Solution: c. The annual depreciation expense is prorated based on the number of days in
the year the asset was used
24. Which of the following is an example of a deferred expense?
a. Prepaid Rent
b. Accumulated Depreciation
c. Treasury Stock
d. Land
Solution: a. Prepaid Rent
25. Which of the following is an example of a deferred revenue?
a. Accounts Receivable
b. Accumulated Depreciation
c. Unearned Rent
d. Buildings
Solution: c. Unearned Rent

COC Exam Questions with Answer Part 1 2012 Free

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Ethiopian exit exam questions and answers pdf Ethiopian exit exam questions and answers pdf
Ethiopian exit exam questions and answers pdf Ethiopian exit exam questions and answers pdf
Ethiopian exit exam questions and answers pdf Ethiopian exit exam questions and answers pdf
Ethiopian exit exam questions and answers pdf

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43 thoughts on “Ethiopian Exit Exam Questions and Answers Pdf”

jeje

December 23, 2023 at 8:22 pm

Please send me INDUSTRIAL ENGINEERING exit exam

Reply

Mohamed Mohamud Ali

January 19, 2024 at 8:25 am

DEPARTMENT OF ACCOUNTING AND Finance Please

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 ReplyJanuary 21, 2024 at 10:10 amReplyJanuary 21, 2024 at 1:03
pmReplyMengistuJanuary 24, 2024 at 7:54 amReplyJanuary 24, 2024 at 6:11
pmReplyJanuary 24, 2024 at 8:16 [email protected] 26,
2024 at 7:16 pmReplyAdugna TekaJanuary 27, 2024 at 8:38 pmReplyFebruary 20, 2024
at 1:01 pmReplyFebruary 21, 2024 at 2:40 pmReply

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