GWL - Revenue Manual Quiz – GWL

How are the bills consolidated before they are sent to the Clearing House for settlement?

By individual regional managers

By the Chief Manager (Commercial) on a quarterly basis

By the Ministry of Finance

By the Chief Manager (Finance) monthly

If an asset has been fully depreciated but is still in use, what is the appropriate accounting treatment?

Continue to use the asset with no further depreciation

Write off the asset

Charge residual depreciation annually

Revalue the asset

What percentage of receivables does GWCL estimate as uncollectable for debts not due (1–60 days)?

0.1

0.05

0.02

0.01

What is the accounting treatment for interest income received but not yet recorded by GWCL?

DR Cash; CR Interest Income

DR Interest Receivable; CR Interest Income

DR Bank Account; CR Interest Income

DR Cash; CR Interest Receivable

What is the primary function of the Payroll system at GWCL?

Managing employee attendance

Calculating and processing salaries and deductions

Handling customer service requests

Managing supplier payments

What is the first step in processing payroll after receiving information from Human Resources?

Issuing cheques

Distributing pay slips

Preparing an Accrual Journal Voucher

Pre-auditing the payroll

What does an aging schedule help GWCL determine?

The likelihood of collecting various receivables

The proper allocation of expenses

The amount of cash available for operations

The value of inventory on hand

When preparing financial statements, what entry should GWCL make if the Provision for Doubtful Debts needs to be adjusted upwards by GH₵7,000?

DR Cash GH₵7,000; CR Provision for Bad Debts GH₵7,000

DR Accounts Receivable GH₵7,000; CR Provision for Bad Debts GH₵7,000

DR Provision for Bad Debts GH₵7,000; CR Bad Debts Expense GH₵7,000

DR Provision for Bad Debts Expense GH₵7,000; CR Provision for Bad Debts GH₵7,000

If a cash difference (shortage) of GH₵500 is discovered, what should be the correct entry?

DR Cash; CR Receivables

DR Cash; CR Cash Differences Account

DR Cash Differences Account; CR Cash

DR Receivables; CR Cash

Which of the following is NOT a method of stock control mentioned in the GWCL accounting manual?

Re-order quantity method

Just-In-Time (JIT) method

Demand and supply method

Perpetual inventory

Which statement is true about the management of loans maturity by the Treasury section?

Loans should be managed by continuously monitoring and adjusting amortization schedules

Loans should be ignored until maturity

Loans should be recorded but not actively managed

Loans should be paid off as quickly as possible, regardless of terms

According to IAS 21, how should a transaction in a foreign currency be recorded initially?

At a rate agreed upon by management

At the exchange rate on the date of the transaction

At the exchange rate on the reporting date

At the average exchange rate for the period

Which of the following payroll actions requires a Journal Voucher entry?

Issuing a new employee contract

Making salary advances

Transferring an employee between regions

Accounting for employer's SSF contribution

How should GWCL account for cash collections that have not been deposited by the end of the day?

As part of cash in hand

As accounts receivable

As a liability

If an aging schedule shows GH₵20,000 in receivables past due by 121–180 days, what is the estimated uncollectable amount according to GWCL’s policy?

10000

2000

4000

5000

Which document is used for both temporary and permanent changes in salaries, allowances, or deductions?

Employee Transfer Form

Payroll Deduction Form

Appointment Letter

Salary Change Advice Form

Which method does GWCL use to determine the new unit price when additional stock is received?

Specific Identification Method

Last-In-First-Out (LIFO)

First-In-First-Out (FIFO)

Weighted Average Method

What basis of accounting is used in GWCL’s revenue accounting system?

Accrual basis

Modified cash basis

Single-entry basis

Cash basis

In accounting for contingencies, what does GWCL primarily consider?

The current financial position

The probability of occurrence

The past occurrences

The regulatory requirements

What is the correct journal entry for transferring funds from a Region’s remittance account to Head Office?

DR Cross Subsidy Account (Regions); CR Bank Account

DR Bank Account; CR Cross Subsidy Account (Regions)

DR Cash; CR Bank Account

DR Revenue; CR Cross Subsidy Account

What is the function of the Subsidiary Ledger in GWCL’s accounting system?

To detail specific account transactions supporting the General Ledger

To manage payroll and employee benefits

To prepare financial statements

To summarize financial transactions in a condensed form

Which document is essential for recording the receipt of store items in GWCL’s accounting system?

Goods Received Note (GRN)

Purchase Order

Waybill

Stores Requisition Voucher

If a foreign loan of USD 1,000,000 was taken when the exchange rate was GH₵5.0 per USD and the rate increased to GH₵6.0 per USD by the time of payment, what is the exchange loss in Ghana cedis?

6000000

1000000

5000000

What is the correct action if an aged debt has exceeded the statute of limitations for collection?

Attempt to collect it regardless

Reclassify it as long-term debt

Transfer it to another account

Write it off as a bad debt

What is the appropriate journal entry when GWCL capitalizes an exchange difference related to the acquisition of PPE invoiced in foreign currency?

DR PPE Account; CR Other Income

DR Cash Account; CR Exchange Losses

DR Exchange Losses; CR Cash Account

DR PPE Account; CR Appropriate Liability Account

What type of system does the Clearing House use to settle debts?

LIFO System

FIFO System

Weighted Average System

Matrix System

How should GWCL account for a customer overpayment that results in a credit balance of GH₵1,200?

Deduct from the customer’s next invoice

Recognize as other income

Issue a refund to the customer

Disclose separately as a liability if material

Which of the following is NOT considered cash for accounting purposes?

Money orders

Bank drafts

Certified cheques

Postage stamps

When a receivable is partially collected and partially uncollectable, how should GWCL account for it?

Write off the entire receivable

Recognize the collected portion and provide for the uncollectable portion

Ignore the uncollectable portion

Transfer the receivable to another account

If a previously written-off debt of GH₵3,000 is recovered, what is the first accounting entry GWCL should make?

DR Cash GH₵3,000; CR Bad Debt Recovered Account GH₵3,000

DR Accounts Receivable GH₵3,000; CR Bad Debt Recovered Account GH₵3,000

DR Bad Debt Recovered Account GH₵3,000; CR Accounts Receivable GH₵3,000

DR Cash GH₵3,000; CR Accounts Receivable GH₵3,000

What should be the maximum percentage of total deductions from an employee’s gross pay according to GWCL policy?

0.4

0.5

0.3

0.2

When should GWCL write off a debt as bad debt?

When the account is overdue by more than 30 days

When it is certain that the debt is not collectible

When the customer disputes the charges

When the customer requests it

How is a cash payment of salary recorded in the payroll system?

As a bank transaction

Through a direct bank transfer

No record is kept for cash payments

Using a payment voucher signed by the employee

What does the Monetary Unit Assumption in accounting require?

All transactions should be recorded in the local currency

Transactions should be recorded in multiple currencies

Transactions should be adjusted for inflation

Transactions should be recorded in the most stable currency

What should be done with petty cash funds and cash in various regions and cost centers?

Include them as part of cash because they are used for current operating expenses

Transfer them to the main office

Invest them in short-term securities

Exclude them from cash management

What is the role of the Management Accounting Unit in analyzing financial reports at GWCL?

To provide summaries for tax audits

To prepare them for external publication

To analyze variances between budgeted and actual performance

To finalize reports for shareholders

What is the role of the Treasury Section within GWCL's Finance Department?

To manage employee relations

To handle procurement activities

To manage daily accounting records

To plan and administer GWCL’s monetary transactions

Which type of ledger would GWCL use to track customer billing and payments?

Revenue Ledger

General Ledger

Expenditure Ledger

Miscellaneous Ledger

How should GWCL account for the capitalized interest on a foreign loan used for an ongoing project?

Add the interest to the project's Construction-in-Progress account

Offset the interest against future revenues

Expense the interest as it accrues

Defer the interest until project completion

What is the primary purpose of the inter-branch account at GWCL?

To track government subsidies

To manage debts and credits between regions/units which are settled later

To record permanent transactions between Head Office and Regions

To record sales revenue from different regions