1. During 2017 the Style Hairdressing Salon paid out Br.41 000 in wages from its bank account.

At
year-end 2017 wages owing but unpaid were Br.2400. The salon uses accrual accounting. How
much would be reported as wages expense for 2017?

a. Br.38 600 d. Br.42 600

b. Br.41 000 e. None of the above
c. Br.43 400
2. Michael purchased two vehicles for his business on 1 January 2018. These vehicles cost
Br.50 000 each and have a useful life of 5 years with an expected residual of Br.20 000 each. The
adjusting entry for depreciation on 31 December 2018, using the straight-line method, is:
a. Dr Accumulated Depreciation Br.6000; Cr Depreciation Expense Br.6000
b. Dr Depreciation Expense Br.6000; Cr Accumulated Depreciation Br.6000
c. Dr Accumulated Depreciation Br.12 000; Cr Depreciation Expense Br.12 000
d. Dr Depreciation Expense Br.12 000 Cr Accumulated Depreciation Br.12 000
e. None of the above
3. The amount of accrued but unpaid expenses at the end of the fiscal period is both an expense
and a(n):
a. liability c. deferral
b. asset d. revenue
4. Which of the following is correct about overtime earning?
a. Payment for additional work other than the regular/normal working hours

b. Payment in excess of forty hours per week

c. Under any circumstance, a worker cannot be compelled to work overtime
d. None of the above
5. One of the following is not required to calculate overtime earning:
a. Overtime pay rate c. Overtime hours worked
b. Allowance d. Regular hourly salary rate

6. Which of the following is true about bad climate allowance?

a. Does not vary from one employer to another employer
b. All the hot regions of the country are entitled to this type of allowance
c. May vary from one temperature area to another temperature area
d. Does not vary from one temperature area to another temperature area
7. _____ is payment for carrying out a particular office responsibility in addition to normal work
a. Representation allowance c. Per-diem
b. Position allowance d. None of the above

8. One of the following is not true about basic salary (wage):

a. A fixed amount payable regularly on a certain interval
b. Doesn’t change from one payroll period to the other
c. The base for calculating overtime earning, allowance, per-diem, bonus, severance pay, etc

d. Not changed based on performance evaluation or position adjustment

9. One of the following is not required to calculate overtime earning:
a. Basic Salary d. Hours worked
b. Overtime Situation e. None of the above
c. Allowances