GWL - Revenue Manual Quiz – GWL

If GWCL receives a credit note for returned stores worth GH₵5,000, what is the correct entry?

DR Stores Account; CR Cash Account

DR Creditors; CR Stores Account

DR Stores Account; CR Creditors

DR Cash Account; CR Stores Account

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

DR Exchange Losses; CR Cash Account

DR PPE Account; CR Appropriate Liability Account

DR Cash Account; CR Exchange Losses

DR PPE Account; CR Other Income

What is the role of the Project Accounting Unit in processing contractors' payment vouchers?

To approve all project contracts

To ensure accuracy and completeness of payment documents and calculate the net amount payable

To handle contractor disputes

To negotiate payment terms with contractors

How does GWCL classify chemicals within its stores and inventory accounting system?

As non-current assets

As general expenses

As inventory with specific ledger codes for different types of chemicals

As finished goods

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

Cancel all deductions

Adjust the deductions to comply with the 40% limit

Inform the employee but process the full deduction

Deduct the excess in the next payroll period

What does the Provision for Doubtful Debts account represent in GWCL's accounting?

A reserve fund for future bad debts

A contra account to Accounts Receivable to estimate uncollectable debts

An account to track overdue payments

A liability for anticipated future expenses

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

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

When cash is transferred from Head Office to a region

When writing off bad debts

When recording sales revenue

What should be done if a discrepancy is found between the physical stock and the stores ledger at the year-end stock take?

Write off the discrepancy immediately

Recheck and investigate the discrepancy, and report it to management

Ignore the discrepancy

Adjust the ledger to match the physical stock

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

Cash basis

Single-entry basis

Accrual basis

Modified cash basis

What action should be taken if a significant amount of stock is found to be obsolete?

Continue holding the stock until it can be sold

Write off the stock to the Income and Expenditure Account

Transfer the stock to another department

Sell the stock at a reduced price

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

The Managing Director alone

The Regional Finance Manager

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

The Project Accountant alone

What is required before any alterations to payroll can be made?

Approval from the HR department only

Written authorization and initials from responsible officials

Automatic update by the payroll software

Verbal approval from the payroll accountant

If GWCL estimates GH₵10,000 of its receivables will be uncollectable, what is the correct journal entry?

DR Accounts Receivable GH₵10,000; CR Provision for Bad Debts GH₵10,000

DR Bad Debts Expense GH₵10,000; CR Accounts Receivable GH₵10,000

DR Provision for Bad Debts Expense GH₵10,000; CR Provision for Bad Debts GH₵10,000

DR Cash GH₵10,000; CR Bad Debts Expense GH₵10,000

How should a Region account for GH₵10,000 worth of chemicals procured by Head Office on its behalf?

DR Stock; CR Cross Subsidy Account

DR Inter-Branch Account; CR Stock

DR Stock; CR Inter-Branch Account

DR Cross Subsidy Account; CR Stock

What is the primary purpose of recognizing accounts receivable in the financial statements of GWCL?

To manage cash flow

To maximize company profits

To estimate the amount collectible from customers

To comply with tax regulations

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?

6400

1600

4000

8000

What is a key component of an efficient cash management policy at GWCL?

Reducing cash reserves

Increasing fixed asset investments

Minimizing external borrowing

Ensuring timely payments to creditors

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

DR Sales Revenue; CR Stores Account

DR Departmental Account; CR Stores Account

DR Stores Account; CR Departmental Account

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

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

By the Chief Manager (Commercial) on a quarterly basis

By the Ministry of Finance

By the Chief Manager (Finance) monthly

By individual regional managers

Who has the authority to approve Virement proposals at GWCL?

Deputy Managing Director (Finance and Administration)

Board of Directors

Chief Manager (Finance)

Regional Finance Managers

When the Head Office transfers GH₵50,000 to Region D for operational expenses, how should Region D record this in their books?

DR Cross Subsidy Account (Head Office); CR Bank Account

DR Cross Subsidy Account (Regions); CR Expenditure Account

DR Bank Account; CR Cross Subsidy Account (Head Office)

DR Expenditure Account; CR Cross Subsidy Account (Head Office)

What is the primary reason for conducting regular stock counts under the perpetual inventory system?

To reconcile physical stock with recorded stock and identify discrepancies

To calculate the cost of goods sold

To update the unit prices of inventory

To comply with tax regulations

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

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

Loans should be recorded but not actively managed

Loans should be managed by continuously monitoring and adjusting amortization schedules

Loans should be ignored until maturity

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

DR Cash; CR Vendor Refund Account

DR Vendor Payables; CR Cash

DR Cash; CR Expense Account

DR Bank Account; CR Vendor Payables

What does the Monetary Unit Assumption in accounting require?

Transactions should be recorded in the most stable currency

Transactions should be recorded in multiple currencies

Transactions should be adjusted for inflation

All transactions should be recorded in the local currency

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

Bank Account

Expenditure Account

Government Receivables

Cross Subsidy Account (Head Office)

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

By cross-referencing with bank statements

Through manual reconciliation of invoices

Using Journal Vouchers and Cash Books

Through direct cash postings

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

Water consumed by public institutions

Loan servicing costs

Electricity bills for company operations

Fuel costs for company vehicles

How should GWCL account for a bad debt that has been recovered?

Debit Bad Debt Recovered Account, Credit Accounts Receivable

Debit Cash, Credit Bad Debt Recovered Account

Debit Accounts Receivable, Credit Bad Debt Recovered Account

Debit Cash, Credit Accounts Receivable

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

Loan repayments made by Head Office

Payments made by Head Office on behalf of Regions/Units

Cash sales from regions to customers

Transfers of revenue collections to Head Office

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

The loan is written off

The employee is required to repay the loan before transferring

The loan is ignored until the employee returns

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

How is the balance between total debtors and individual customer accounts maintained in GWCL’s revenue accounting system?

By using an automated system with no manual intervention

By conducting monthly reconciliations

By adjusting entries annually

By relying on external audits

What is the correct accounting entry when obsolete stock is identified and written off?

DR Obsolete Stock Account; CR Stores Account

DR Loss on Disposal; CR Stores Account

DR Expense Account; CR Stores Account

DR Stores Account; CR Obsolete Stock Account

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

When the exchange difference affects general revenue

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

When the exchange difference is immaterial

When the exchange difference arises from the translation of financial statements

If a bank reconciliation shows an unrecorded deposit of GH₵8,000, how should this be recorded?

DR Bank Account; CR Receivables

DR Bank Account; CR Cash

DR Cash; CR Receivables

DR Cash; CR Bank Reconciliation

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

DR Bank Account; CR Cross Subsidy Account – Regions

DR Expenditure Accounts; CR Cross Subsidy Account

DR Government Receivables; CR Cross Subsidy Account

DR Cross Subsidy Account – Regions; CR Bank Account

What journal entry should GWCL make when a debt of GH₵5,000 is determined to be uncollectable and written off?

DR Cash GH₵5,000; CR Receivables GH₵5,000

DR Receivables GH₵5,000; CR Bad Debts Account GH₵5,000

DR Bad Debts Account GH₵5,000; CR Receivables GH₵5,000

DR Provision for Bad Debts GH₵5,000; CR Receivables GH₵5,000

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

To provide summaries for tax audits

To finalize reports for shareholders

To analyze variances between budgeted and actual performance

To prepare them for external publication

Who is responsible for the Payroll function within GWCL?

The Finance Department

The IT Department

The Human Resource Administrative Services

The Audit Department