GWL - Revenue Manual Quiz – GWL

What was a significant outcome of the Water Sector Restructuring Project (WSRP) in the 1990s?

Transfer of sanitation responsibilities to District Assemblies

Reduction of water tariffs

Expansion of urban water supply

Privatization of GWSC

What is the significance of maintaining a separate ledger account for each group of store items at GWCL?

To track depreciation of assets

To ensure compliance with government regulations

To accurately monitor the quantity and value of different store items

To allocate costs to different departments

Which of the following transactions would NOT be recorded in the Cross Subsidy account?

Cash sales from regions to customers

Payments made by Head Office on behalf of Regions/Units

Transfers of revenue collections to Head Office

Loan repayments made by Head Office

If an inventory count reveals a stock shortage of GH₵2,000, what is the appropriate action?

Ignore the shortage until the next inventory count

DR Stock Shortage Account; CR Stores Account

Write off the shortage as a loss

DR Stores Account; CR Stock Shortage Account

Who signs the payment voucher after audit certification in GWCL’s project accounting process?

The Regional Finance Manager

The Project Accountant alone

Authorized signatories from GWCL, the sector Ministry, and Ministry of Finance

The Managing Director alone

What should be done when an employee receives a salary advance?

Record it under Other Deductions

Deduct the amount from their gross pay immediately

Wait until the end of the fiscal year to reconcile

Record it as a permanent deduction

What action is taken if an employee’s deductions exceed the 40% limit of their gross pay?

Deduct the excess in the next payroll period

Cancel all deductions

Inform the employee but process the full deduction

Adjust the deductions to comply with the 40% limit

How should GWCL report a credit balance on a customer’s account that is discovered during the annual audit?

Apply it against any outstanding debt

Investigate and, if material, disclose separately as a liability

Refund it to the customer

Ignore it

How are bulk payments received at the Cross Debts Clearing House recorded in Head Office books?

DR Government Receivables; CR Cross Subsidy Account

DR Bank Account; CR Cross Subsidy Account – Regions

DR Expenditure Accounts; CR Cross Subsidy Account

DR Cross Subsidy Account – Regions; CR Bank Account

What does an aging schedule help GWCL determine?

The proper allocation of expenses

The value of inventory on hand

The amount of cash available for operations

The likelihood of collecting various receivables

What is the primary purpose of the Cross Subsidy account in GWCL?

To manage inter-branch transfers

To account for government subsidies

To record transactions between Head Office and Regions/Units without expecting settlement

To record loans taken by the company

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

Issuing a new employee contract

Making salary advances

Accounting for employer's SSF contribution

Transferring an employee between regions

How are items returned to the store after being issued for a specific project accounted for?

As a new receipt into inventory

By creating a new entry for the return

By crediting the stores account and debiting the project account

By reversing the original issuance entry

What is the correct accounting entry when payroll deductions are paid to the appropriate agencies?

Debit Gross Payroll; Credit Payroll Deductions Account

Debit Bank; Credit Payroll Deductions Account

Debit Expenditure; Credit Payroll Deductions Account

Debit Payroll Deductions Account; Credit Bank

How is a sale of store items to another department within GWCL recorded?

What is the correct accounting entry for the inter-branch transfer of stores within GWCL?

DR Sales Revenue; CR Stores Account

DR Departmental Account; CR Stores Account

DR Stores Account; CR Departmental Account

Which of the following is NOT a bill type managed through the Clearing House?

Fuel costs for company vehicles

Electricity bills for company operations

Water consumed by public institutions

Loan servicing costs

What does the Monetary Unit Assumption in accounting require?

Transactions should be recorded in multiple currencies

All transactions should be recorded in the local currency

Transactions should be adjusted for inflation

Transactions should be recorded in the most stable currency

What method does GWCL use to allocate payments received when specific identification is not possible?

Specific Identification Method

Weighted Average Method

Last-In-First-Out (LIFO)

First-In-First-Out (FIFO)

If an employee is on transfer and has an outstanding loan, how is this loan treated in the payroll system?

The loan is ignored until the employee returns

The loan is written off

The employee is required to repay the loan before transferring

The loan balance is transferred through the Inter-Branch Accounts system

If an employee’s salary is adjusted due to a temporary promotion, which form is used to reflect this change?

Payroll Adjustment Form

Salary Change Advice Form

Temporary Assignment Form

Promotion Advice Form

A debt is past due by 181 days and considered 50% uncollectable. If the debt is GH₵8,000, what amount should be provided for in the Provision for Doubtful Debts?

1600

4000

6400

8000

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

Recognize as other income

Disclose separately as a liability if material

Deduct from the customer’s next invoice

Issue a refund to the customer

Under what condition should GWCL apply a change in accounting policy?

If it provides more accurate financial information

Only if it is required by a new standard

If it simplifies the accounting process

When recommended by external auditors

What is the primary control objective of the demand and supply method for stock control at GWCL?

To maximize bulk purchasing discounts

To optimize production scheduling

To ensure that stock-out does not occur and that surplus stocks are not carried

To minimize the cost of holding inventory

Which of the following best describes the Cross Subsidy Account in GWCL's accounting?

It records only cash transfers between Regions.

It is a temporary account used for inter-branch transactions.

It is used to record external debts and subsidies.

It is a permanent account that records intra-company transactions between Head Office and Regions.

What is the primary purpose of the Cash Management (Treasury) function at GWCL?

To manage cash inflows and outflows and maintain liquidity

To maximize company profits

To handle all company investments

To oversee payroll processing

If petty cash is used to make an urgent payment of GH₵200 and receipts total GH₵180, how is the shortage recorded?

DR Petty Cash; CR Cash Differences Account

DR Expense Account; CR Cash

DR Cash Differences Account; CR Petty Cash

DR Cash; CR Petty Cash

Which account is debited in the Region’s books when cash is received from Head Office as a mandate for operations?

Government Receivables

Cross Subsidy Account (Head Office)

Expenditure Account

Bank Account

What is the primary purpose of the Clearing House system at GWCL?

To settle indebtedness among GWCL, ECG, VRA, and the Government of Ghana

To manage inventory levels across regions

To process payroll transactions

To handle customer billing discrepancies

Which of the following is NOT considered a source document in GWCL's Financial Accounting System?

Cash Receipts

Purchase Order

Bank Statements

Daily Cash Report

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

Transfer it to another account

Attempt to collect it regardless

Reclassify it as long-term debt

Write it off as a bad debt

What is the correct entry when SSNIT contributions are paid from the employer's bank account?

Debit Expenditure; Credit SSNIT

Debit Bank; Credit SSNIT

Debit Payroll Deductions Account; Credit Bank

Debit SSNIT; Credit Bank

What should be done with an employee’s cash advance that has not been fully accounted for by the end of the accounting period?

Transfer it to petty cash

Charge it to the employee’s receivables

Write it off as an expense

Record the advance as income

What is the proper accounting entry when GWCL receives an unexpected cash refund of GH₵500 from a vendor?

DR Bank Account; CR Vendor Payables

DR Vendor Payables; CR Cash

DR Cash; CR Expense Account

DR Cash; CR Vendor Refund Account

In which situation is a Debit Note used in the context of inter-branch transactions at GWCL?

When cash is transferred from Head Office to a region

When writing off bad debts

When recording sales revenue

When goods or services are provided by one region to another and payment is deferred

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

Handling customer service requests

Managing supplier payments

Calculating and processing salaries and deductions

Managing employee attendance

When should payroll deductions for taxes and social security be paid over to the appropriate authorities?

At the end of each quarter

By the 14th of the following month

Annually, at the end of the fiscal year

Within two weeks of the payroll run

Under what circumstances can an exchange difference be capitalized according to the accounting manual?

When the exchange difference affects general revenue

When the exchange difference is immaterial

When there is a severe devaluation affecting liabilities on recent asset acquisition

When the exchange difference arises from the translation of financial statements

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

Just-In-Time (JIT) method

Demand and supply method

Re-order quantity method

Perpetual inventory

How does GWCL ensure that all financial transactions are summarized before posting to the General Ledger?

Using Journal Vouchers and Cash Books

By cross-referencing with bank statements

Through direct cash postings

Through manual reconciliation of invoices