COLLEGE OF PRIVATE ACCOUNTANTS OF COSTA RICA

NOTE:

DELIVERY OF RESULTS:

From www.contador.co.cr in the CECAP information or by phone: 2217-89-29 with Grettel

Campos.

APPEALS:
in the CECAP administration.
(Only personal attention will be given)

Nombre: ________________________________________________

Firma:__________________________________________________

Took the Incorporation Examination on July 18, 2009.

Signature of the Court:________________________________________

This test consists of 12 pages

Page 1 of 12
College of Private Accountants of Costa Rica.
Date: July 18, 2009

College of Private Accountants of Costa Rica.

Examining Board.
Professional Suitability Test.
Indications
1- You must keep your ID card and the cancellation receipt on your desk. in
addition to a pen, calculator (do not use concealer)
2- Listen carefully to the instructions, and do not open the test until instructed
to do so.
3- Read each question and each case carefully. if you have any doubts about the
wording or legibility of the same, raise your hand, and you will be attended
to.
4- Write in a clear and orderly manner, on the sheets created for this purpose.
(otherwise, we reserve the right not to check what is not understood in your
answers).
5- Appeals on answers and procedures written in pencil will not be accepted.
6- You have four hours to perform your test. After notice, evidence is collected
immediately (if late, no extensions will be granted).
7- Please remember to sign the report, as this is the only proof that you have
taken this test.
8- Of the four possible answers: A) B) C) D), presented in each item. only one is
correct.
9- In the practical part, you must present the complete development of the
exercise.
10- All appeals must be submitted to CECAP, in writing and on the form.
11- Please check that your exam consists of 12 pages including cover pages.
12- Passed exams are valid for 1 year.

Applicant's name: _______________________________________________

Cedula No.: _________________________No. Recibo:_____________________.

Firma de aspirante:_______________________________________________________

FOR USE BY THE EXAMINING BOARD

RATING RATING NAME OF SIGNATUR

OF THE TEST AFTER DELEGATE E OF
APPEAL DELEGATE
THEORETICAL

PART

PRACTICAL PART

ENDNOTE

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College of Private Accountants of Costa Rica.
 THEORETICAL SECTION

PART I.- GENERAL ACCOUNTING

Associate. 10 points. Points Obtained: __________

Instruction: Associate the concepts on the Left with the definitions on the Right.

CONCEPT DEFINITION

Management's statement regarding identification,

Relative Importance ( ) recording, presentation and disclosure in the Financial Statements

Systematic and Chronological Record of Transactions

2. Active ( ) of a company

Financial statement that measures the performance of a business,

3. Bank Reconciliation ( ) in terms of Profit and Loss

The Business remains in constant operation, except for

4. Provision ( ) that there are losses that would prevent it from continuing to operate

Registration which is done annually so that the accounts of

5. Income Statement ( ) Results remain at ZERO

Transactions are recorded by their economic substance

6. Balance Sheet ( ) over its legal form

It is recorded when there is certainty that an exit will occur.

7. Going Concern ( ) of resources in the short term

Procedure used to check for differences

between the balance of the bank account and the balance expressed on
8. Accrual ( ) auxiliary record of the bank account

Events are material if their omission or representation

9. Accounting Policies ( ) erroneous, causes an effect on financial statement decisions.

Revenues and expenses are recorded on a time-dependent basis.

10. Journal Entry ( ) and not by the inflow or outflow of resources.

11. Seat Closure

12. Essence over form

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College of Private Accountants of Costa Rica.
PART II.- COST ACCOUNTING

False and True. 8 points. Points Obtained: ___________

Instruction: Indicate whether the text is true or false by using an "F" if it is False and a "V"
if it is true. One point for each correctly solved option. If you make a mistake, cross out the
letter with a vertical line and place the correct answer next to it.

1. _____ A peculiarity of Fixed Costs is that they remain constant during the
production period, regardless of whether more or fewer units are produced.

2. _____ The two methods used to account for inventory are Permanent or Perpetual
and Periodic.

3. _____ Conversion costs refer to the sum of the cost of materials and labor.

4. _____ The statement of cost of goods manufactured and sold is the statement that
allows the profitability of a product to be analyzed.

5. _____ In a production in process, the concept of Equivalent Units is the result of

multiplying the physical units of each cost component by the degree of progress or
completion of units.

6. _____ The Unit Cost is the result of dividing the Total Cost of Production by the
number of units produced.

7. _____ Cost is directly associated with production as opposed to Expense, which is

accrued to obtain revenue.

8. _____ To obtain the cost of materials used, the net purchases must be added to the
initial inventory of materials and the final inventory must be deducted.

1.

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College of Private Accountants of Costa Rica.
PART III.- LEGISLATION (LABOR, COMMERCIAL AND TAX)

Complete. 7 points. Points Obtained: ______________

Instruction: Complete the following sentences corresponding to concepts of the Economic

Legislation. 1 point for each space duly solved

1. The three types of taxation are, Taxes, Fees and _____________________.

2. When an employee is dismissed with liability, in addition to notice, vacation and

Christmas bonus, ____________________ must be paid.

3. The three elements of the employment relationship are: ____________________,

__________________ y _________________

4. When an officer of any company defames, commits libel and by his actions acts
against a company, the dismissal will be ______________.

5. There are two types of shares, Common Shares and ________________.

6.

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College of Private Accountants of Costa Rica.
PART IV.- FINANCE, CONTROL AND BUDGET

Unique Selection. 5 points Points Obtained: ___________________

Instruction: Select the answer that best fits the question. I point each

1. The financial ratio that measures the average number of days it takes customers to
pay their bills is:
A) Liquidity
B) Indebtedness
C) Working Capital
D) Average Collection Period

2. The financial ratio that measures the number of times inventory is rotated is:
A) Payment Period
B) Inventory turnover
C) Inventory Life Span
D) Cash Cycle

3. A financial ratio that measures the profitability of a business is:

A) Payment Period
B) Yield on income
C) Working Capital
D) Indebtedness

4. The instrument of financial analysis, which allows projecting the cash flow
behavior of a company for a given period is
A) Investment Budget
B) Capital Budget
C) Financing Budget
D) Cash Budget

5. When the accounting information of a company is taken to evaluate statistics and

results, and it is desired to make decisions about the future behavior of the
company, the professional makes an analysis:
A) Financial
B) Economic
C) Operative
D) Administrative

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College of Private Accountants of Costa Rica.
 PEACEFUL SECTION

Part I - General Accounting

Exercise No. 1Financial Information Adjustment Process (14 points)

Points Obtained: _____________

Instruction: From the following information related to the trial balance of Alfa-Omega SA;
as of September 30, 2008, prepare the corresponding Adjustment Entries.

Caja 100,000.00
Bancos 250,000.00
Inversiones 450,000.00
Cuentas por Cobrar 175,000.00
E

General Information for Adjustments:

1. The investments were acquired 25 days ago, and will be paid within 2 months, and
generate a yield of 18% per annum.
2. According to the physical withdrawal of Office Supplies, ¢75,000.00 remains
available.
3. The Machinery is depreciated over 7 years, using the Sum of Digits method, the
residual value is 0.00 (corresponds to the first year of depreciation).
4. The vehicle is depreciated over 5 years, using the straight-line method, with no
residual value (corresponds to the first year of depreciation).
5. As of September 30 ¢350,000.00 of revenues collected in advance have not been
accrued.
6. The insurance paid in advance corresponds to a Labor Risks policy, which was
contracted for 6 months, and 3.5 months have already passed since that date.
7. The document to be paid corresponds to a loan with Banco HSBC (Costa Rica) SA,
which was contracted 15 days ago, and which charges 26% annual interest.

Exercise Evaluation:
a. Calculation Procedures (7 points)
b. Recording of Adjustment Entry (7 points)

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College of Private Accountants of Costa Rica.
Exercise No. 2Bank Reconciliation (16 points)
Points Obtained: _____________

Asesores Econó micos S.A., reported in its accounting bank account a balance of
¢2,491,000.00 as of January 31, 2007 and had received by e-mail, the current bank
account statement for the month of January 2007, with a final balance of ¢3,492,900.00.
When comparing both balances, the following was determined:

The bank charged the amount of ¢25,000.00 for excess commission on checks issued by
the company.

The entries as of January 31, 2007 for ¢975,000.00, were not deposited during the day,
but in a night cashier, for which the bank would credit it in the following month.

There are checks pending to be cashed, issued as of January 31, 2007 for a total of
¢1,750,900.00.

The bank rebated the following payments for services received by the company in
January 2007: electricity ¢253,000.00, potable water ¢45,500.00, telephone service
¢98,500.00, internet service ¢32,000.00, paging service ¢10,000.00.

By means of a note attached to the bank statement, the bank notified the company that a
document for the amount of ¢500,000.00, had been charged in its favor and interest for
¢75,000.00 for a consultancy provided months before.

The accountant discovered two errors made by the Bank:

The first one is due to a debit of a check from another company, which caused a decrease
in the current account in the amount of ¢310,000.00.
The second occurred when the bank credited a deposit made by another company in the
amount of ¢640,000.00.

A check for the payment of the monthly payroll of the company's employees, in the
amount of ¢3,759,750.00, was recorded in the accounting with an amount of
¢3,579,750.00.

On January 29, 2007, the accountant. recorded in a journal entry a check drawn for
¢359,750.00 payable to Distribuidora Avila Sancho S.A. for payment of office supplies in
the amount of ¢389,750.00.

With the above information Prepare

a. A Bank Reconciliation by the Adjusted Balance method (8 points).
b. Journal Entries necessary to record missing information and correct incorrect
information (8 points).

The evaluation will take into account:

Conciliation Procedure: 2 points
Correct balances 6 points

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College of Private Accountants of Costa Rica.
Part II - Cost Accounting

Exercise 1. Cost Calculation (5 points)

LA POZUELO manufacturing company had no units on January 1.

On December 31, there were 100,000 finished units available.
During the year, 25,000 units were sold. Materials costing ¢375,000.00 were used
in the process, 80% of which were direct materials. Labor costs were ¢400,000.00,
65% of which was direct labor. Additional indirect manufacturing costs were as
follows:
Heating, light and power ¢160,000.00
Depreciation 45,000.00
Property taxes 85,000.00
Repair and maintenance 20,000.00
Selling expenses were ¢1,250,000.00 colones; general and administrative expenses
were ¢80,000.00 colones.

Calculate the following:

A- Prime costs.
B- Indirect Costs.
C- Manufacturing costs.
D- Unit Cost
E- Cost of Units Sold

Exercise 2. Cost-Volume-Utility Analysis (6 points)

CIA Sirena manufactures desks, which it expects to sell at a 20% margin. The CIA
produced 20,000 desks, consuming ¢1,200 each in materials. Direct labor ¢3,200
each. Manufacturing charge ¢800c/u, selling expenses ¢10,000,000.00.
Requested:
1. Calculate Total Production Costs and Expenses (4 points).
2. Calculate the Selling Price (2 points)
3. Elaborate an income statement (4 points).

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College of Private Accountants of Costa Rica.
Part III - Business Legislation

Solve the following exercises. 15 points.

Exercise No. 1: Salary withholdings (10 points)

Points Obtained: ___________

The company Alfa y Omega SA; has 5 employees, one of the employees who earns
¢750,000.00 has a salary embargo; this employee reported the birth certificates of 3
children and his spouse. Take into account that the salary of a domestic worker is
¢168,429.06 (including 50%).

You are requested to:

1. Wage Tax Calculation (2 points)
2. Embargo (6 points), broken down into:
a. Net Salary (1 point)
b. Unseizable Salary (1 point)
c. Garnishable Wages (1 point)
d. Garnishable amounts ONE and TWO (2 points)
e. Total to be Levied (1 point)
3. Retention of 9% (1 point)
4. Net amount payable (total amount) (1 point)

Exercise No.2: Tax Return (5 points)

Points Obtained: ___________

Mr. Eduardo Lizano, is an independent professional, and requests you to prepare his
Income Tax Return (Individual with Lucrative Activity), Mr. Eduardo reports income of
¢5,200,000.00; he has no expenses so you will apply the single deduction of 25%; Mr.
Eduardo is also an employee and earns a monthly salary of ¢2,000,000.00.

You are requested to:

1. Individual Income Tax Calculation (3 points)
2. Filling out the form (2 points)

Original sections:

To ¢2,599,000.00 Exempt
Excess of ¢2,599,000.00 – 3,880,000.00 10%
Excess of ¢3,880,000.00 – 6,473,000.00 15%
Excess of ¢6,473,000.00 – 12,972,000.00 20%
Excess of ¢12,972,000.00 25%

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College of Private Accountants of Costa Rica.
Part IV - Finance and Budgetary Control

Single Exercise. Cash Flow Formulation (5 points)

Points Obtained: _______________

Instruction: From the following Balance Sheet as of May 31, 2007 and the associated
assumptions for Fusell SA, prepare a Cash Flow (Cash Budget) for the six months ended
June 30, 2007.

Assets
Current Assets
Banks ¢ 1.500.000,00
Accounts Receivable 3.000.000,00
Ending Inventory 8.500.000,00
Total Current Assets ¢13.000.000,00
Long-term assets
Document Receivable ¢10.000.000,00
Total Long-Term Assets ¢10.000.000,00
Property, Plant and Equipment
Building ¢ 15.000.000,00
Accumulated Depreciation 4.900.000,00 ¢10.100.000,00
Furniture ¢ 12.450.000,00
Accumulated Depreciation 4.000.000,00 8.450.000,00
Terrain 3.000.000,00
Total Property, Plant and Equipment
21.550.000,00
Total Assets ¢44.550.000,00

Liabilities and Shareholders' Equity

Liabilities
Current Liabilities
Income Tax ¢ 1.015.500,00
Accounts Payable 4.500.000,00
Total Current Liabilities ¢ 5.515.500,00
Long-Term Liabilities
Notes Payable ¢ 15.000.000,00
Total Long-Term Liabilities 15.000.000,00
Total Liabilities ¢20.515.500,00
Heritage
Capital Stock ¢16.895.000,00
Net income 7.139.500,00
Total Equity 24.034.500,00
Total Liabilities plus Shareholders' Equity
¢44.550.000,00

Exercise Assumptions:
Monthly sales are ¢5,000,000.00 per month and are estimated to increase by 5% per
month.
The recovery period for Sales is 30 days, therefore, take into account that there are
Accounts Receivable on the Balance Sheet as of May 31.
Monthly purchases are ¢1,200,000.00 and are made one month in advance of sales, with
no monthly increase.
Please note that the payment period is 30 days after the purchase is made, therefore, take
into account that there are Accounts Payable in the Balance Sheet as of May 31.
Income tax was paid in three equal and successive installments, payable in the first three
months of the semester.
The plan is to have a minimum cash balance in the bank account of ¢600,000.00.
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College of Private Accountants of Costa Rica.
You are asked for accuracy in the calculations for the six months, according to the
following detail:
Total income per month (1 point)
Total Expenses per month (1 point)
Net Cash Flow (1 point)
Final Box (1 point)
Surplus or Deficit (1 point)

Part V - Financial Mathematics

Solve the following exercises. 5 points Points Obtained: _____________

1. Calculate the amount (principal + interest) to be received for an investment of

¢3,000,000.00 that is capitalized quarterly, with an interest rate of 12%, and a
term of 3 years (2 points).

2. Calculate the amount of the loan received by the company Alfa SA; whose interest
at 20% caused it to pay after 8 months, the sum of ¢5,000,000.00 (1 point).

3. Calculate the average time that an investment whose amount is ¢5,000,000.00 and
that produced a final value of ¢5,750,000.00 was maintained; the interest rate is
20%. (1 point).

4. Calculate the interest rate charged to a businessman for a loan he received for the
amount of ¢1,500,000.00; and for which after 3 months he had to pay
¢1,700,000.00 (1 point).

FORMULAS

I=C*i*t

C=I/i*t i=I/C*t

t=I/C*i S = C ( 1 + i * t) or S = C + I

I=S- C C = S / ( 1 + i * t)

S = C * (1+i)n C = S (1+i)-n

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College of Private Accountants of Costa Rica.