New York State Department of Civil ServiceCommitted to Innovation, Quality, and Excellence A Guide to the Written Test for Professional Careers in Accounting and Auditing Andrew M. Cuomo Governor General Accounting: This is a test of general accounting principles and practices used in the preparation of financial statements. A TEST TASK is provided for each subject area. Understanding and Interpreting Written Material: These questions test how well you comprehend written material. 2. The concepts of rate. . The remainder of this test guide explains how you will be tested in each of the subject areas listed above. All the information required to answer the questions will be presented in the selections. ratio. you will not be required to have any special knowledge relating to the subject areas of the selections. and computational speed is not a major factor in the test. analyzing data trends or interrelationships. You will be provided with brief reading selections and will be asked questions about the selections. This is an explanation of how a question is presented and how to correctly answer it. 5. Preparing Reports and Official Documents: These questions test for the ability to prepare reports and other official documents for use within and among governmental agencies. Some questions test for a knowledge of grammar. You may be asked to perform tasks such as completing tables. 4. Understanding and Interpreting Tabular Material: These questions test your ability to understand. This test guide provides the SOLUTION and correct answer to each sample question. the recording and reporting of financial transactions. punctuation. in regulatory settings. and sentence structure. drawing conclusions from them. Knowledge of computerized information systems as it applies to accounting may be required. and to organize paragraphs logically and comprehensibly. The sample question is similar to the type of questions that will be presented on the actual test. Specific questions relating to internal controls applicable to manual and computerized accounting systems may be included. or in the dissemination of information to the public.INTRODUCTION The New York State Department of Civil Service has developed this test guide to familiarize you with the written test for the Professional Careers in Accounting and Auditing Series. The written test for the Professional Careers in Accounting and Auditing Series has an overall time allowance of 3 hours. analyze. You should study each sample question and solution in order to understand how the correct answer was determined. Knowledge of the use of computerized accounting or auditing systems as it pertains to auditing may be required. Read each explanation carefully. Candidates will be required to demonstrate a current knowledge of Generally Accepted Accounting Principles (GAAP). This test guide also provides at least one SAMPLE QUESTION for each subject area. General Auditing: This is a test of the principles and procedures involved in substantiating or examining transactions and financial statements. It will require a knowledge of auditing techniques and Generally Accepted Auditing Standards (GAAS). The test questions will cover the following five subject areas: 1. and use the internal logic of data presented in tabular form. usage. Others test for the ability to present information clearly and accurately. This test guide provides a general description of the subject areas which will be tested and the different types of questions you may see on the test. Mathematical operations are simple. and proportion are tested. to use the proper tone. and revising or combining data sets. and the use of this information in financial decision-making. 3. D. Deferred income (Choice B) is income received during an accounting period. . C. B. or used up during a normal operating cycle or within one year. whichever is longer. whichever is longer. but for which the business has not yet supplied the goods or services as of the end of the period. GENERAL ACCOUNTING SAMPLE QUESTION: A business incurring costs for rent accrued at a balance sheet date on space the business occupies should most properly list the rent cost on the business’s balance sheet as which one of the following? A. Candidates will be required to demonstrate a current knowledge of Generally Accepted Accounting Principles (GAAP). Knowledge of computerized information systems as it applies to accounting may be required. Current assets (Choice A) are cash and other assets that are reasonably expected to be converted into cash. and are included in the operating expenses. TEST TASK: You will be presented with situations and questions to which you must apply your knowledge of Generally Accepted Accounting Principles (GAAP) as it pertains to accounting. sold. Current liabilities (Choice D. current assets deferred income prepaid expenses current liabilities SOLUTION: Choice D is the correct answer. the correct answer) are debts or other obligations that are expected to be paid within an operating cycle or a year. Prepaid expenses (Choice C) are expenditures such as insurance and supplies that are paid for before the benefits obtained from these payments have been received or used. the recording and reporting of financial transactions.SUBJECT AREA 1 GENERAL ACCOUNTING: This is a test of general accounting principles and practices used in the preparation of financial statements. which means it is a current liability. The rent cost that is accruing as an accounts payable will be paid within the operating cycle or within a year. and the use of this information in financial decision-making. Specific questions relating to internal controls applicable to manual and computerized accounting systems may be included. TEST TASK: You will be presented with situations and questions to which you must apply your knowledge of Generally Accepted Auditing Standards (GAAS) as it pertains to auditing. Choices A. C.SUBJECT AREA 2 GENERAL AUDITING: This is a test of the principles and procedures involved in substantiating or examining transactions and financial statements. It will require a knowledge of auditing techniques and Generally Accepted Auditing Standards (GAAS). B and C would afford employees the opportunity to embezzle cash or misappropriate property for personal gain and make record entrees that would make it difficult to identify these transactions. D. . Choice D describes two duties that are separate from each other. GENERAL AUDITING SAMPLE QUESTION: Which one of the following combinations of duties is most likely to be considered an acceptable practice from an internal control viewpoint if the combination of duties described are to be performed by the same employee? A. Neither duty by itself or in conjunction with the other would afford an opportunity for an employee to commit either embezzlement or misappropriation. Knowledge of the use of computerized accounting or auditing systems as it pertains to auditing may be required. B. maintaining the accounts receivable ledger and receiving all cash payments submitted against it receiving all cash payments and depositing the cash payments in the bank maintaining the perpetual inventory records and receiving all supply deliveries maintaining the perpetual inventory records and maintaining the accounts receivable ledger SOLUTION: Choice D is the correct answer. ” is plural and requires a plural verb. In Choice D. More than half of the forms received last month were incomplete. “Every intern and trainee. the subject closer to the verb. the subject. require you to recognize correct or incorrect application of rules for written communication and to judge sentences and paragraphs for correct construction. D. “More than half of the forms. SOLUTION: In Choice A. Every intern and trainee is aware of the security concerns. the subject. B. . usage. content. “Makes” is singular. the subject. C. and sentence structure. therefore. and to organize paragraphs logically and comprehensibly. as a group.” is singular and requires a singular verb. “Has” is singular. GRAMMAR SAMPLE QUESTION: Which one of the following is grammatically incorrect? A. “Were” is plural. makes the manual more readable. “The editorial changes. Some questions test for a knowledge of grammar. The answer to this sample question on subject-verb agreement is D. to use the proper tone. Neither the section head nor the supervisor has signed the evaluation form. In Choice C. “Is” is singular.SUBJECT AREA 3 PREPARING REPORTS AND OFFICIAL DOCUMENTS: These questions test for the ability to prepare reports and other official documents for use within and among governmental agencies. The editorial changes.” is singular and requires a singular verb. in addition to the new font. or in the dissemination of information to the public. “supervisor. in regulatory settings. TEST TASK: You will be presented with questions that. punctuation. In Choice B. Choice D is incorrect. Others test for the ability to present information clearly and accurately. and internal logic.” is plural and requires a plural verb. “adapt” is used correctly in this sentence. In Choice B.) USAGE SAMPLE QUESTION: Which one of the following sentences contains an incorrectly used word or words? A. Something has been done to address the high incidents of error. SOLUTION: In Choice A.” which fits the context of this sentence. “incidents” is mistakenly used for “incidence. working alternate days of the week. “detract” is used correctly in this sentence. In Choice D. D. . C. In Choice C.SUBJECT AREA 3 (cont. B. The answer to this sample question is B. This criticism does not detract from the positive results of the program. Two staff members share the job. “alternate” is used correctly in this sentence. We can adapt the floor plan to better suit our needs. The correct answer to this sample question is A. the name should be separated from the rest of the sentence by commas. Mr. which will process your form is in the next office. D. as it is in this sentence. a telecommunications specialist. B.SUBJECT AREA 3 (cont. C. so this sentence is punctuated incorrectly. The reimbursement unit. we have an example of apposition. Scott.” should be separated from the rest of the sentence by two commas. we have a compound sentence in which the two independent clauses are joined by the conjunction “but. In Choice D. as is the case in this sentence. will be our liaison.” The appropriate punctuation for this construction is the placement of a comma before the conjunction. as it is in this sentence. In Choice C. SOLUTION: In Choice A. we have an example of direct address. Please let us know. When a person (Mr. the relative clause “which will process your form. In Choice B. It is a regularly scheduled audit. When the same individual is described in more than one way (“Dora Porter” and “a telecommunications specialist”). Scott) is addressed directly. The second comma is missing. but some urgent issues will be addressed. Dora Porter.) PUNCTUATION SAMPLE QUESTION: Which one of the following sentences is punctuated incorrectly? A. if the terms are acceptable. the additional information is separated from the rest of the sentence by commas. . Choice C suggests a change that would not be an improvement. “Have” is plural. “Procedures” is plural. “…current intern…previous interns…” Choice B suggests a change that would improve the passage. have found the procedures manual to be an invaluable tool. if anything. C. should be done to improve the following passage? The current intern. no ownership (possession) should be indicated.” Change “have” to “has.) EDITING SAMPLE QUESTION 1: Which one of the suggestions below gives the best advice concerning what. Choice D is not viable since a change in the verb was necessary. The subject of the sentence is “intern.” Make no changes. Change “the two previous” to “the previous two.” Change “procedures” to “procedure’s. unlike the two previous interns. If the word “interns” were missing. The additional information set off by commas.” a singular noun that requires a singular verb. The sentence refers to a manual that contains procedures. it flows better to say. a writer would be more likely to say “the previous two. A. “has” is singular. D. The correct answer to this sample question is B. “unlike the two previous interns. “procedure’s” is singular possessive. B. SOLUTION: Choice A suggests a change that would not be an improvement. .” As the sentence is currently constructed.SUBJECT AREA 3 (cont.” is not part of the subject and has no bearing on the choice of the verb. After the findings had been reviewed by Lee Santo and I. All nouns. It uses “me” as the subject of the sentence (incorrect case of the pronoun).SUBJECT AREA 3 (cont. and verbs are in appropriate form. The correct answer to this sample question is C. Choice B is not an acceptable edited version of the passage. the decision was made to recommend that our unit continues the investigation until the end of the year. A. we recommended that the investigation be continued by our unit until the end of the year. Choice C is the best edited version. after our review of the findings. All of the pertinent information is included. it also presents the verb as “continues” when the sentence construction requires “continue. it also contains an ambiguity regarding the timing of the review. Choice D is not an acceptable edited version of the passage.) EDITING SAMPLE QUESTION 2: Which one of the choices below is the best editing of the following passage? After reviewing the findings. B. the passage states only that the decision to do so was made at that time. SOLUTION: Choice A is not an acceptable edited version of the passage. It states that the recommendation was made when.” . After reviewing the findings. pronouns. After Lee Santo and I reviewed the findings. in fact. C. Lee Santo and I decided to recommend that our unit continue the investigation until the end of the year. making it sound as if it has not yet occurred. D. Lee Santo and me decided to recommend that our unit continue the investigation until the end of the year. It fails to indicate who made the decision. the decision was made by Lee Santo and me to recommend that the investigation is continued by our unit until the end of the year. Martin Wilson failed to take proper precautions that caused a personal injury accident. Martin Wilson’s failure to take proper precautions caused a personal injury accident. Proper precautions were not taken. who failed to take proper precautions. The original information states that Martin Wilson caused a personal injury accident. B. SOLUTION: Choice A conveys the incorrect impression that proper precautions caused a personal injury accident. Choice D states that Martin Wilson was in a personal injury accident.) INFORMATION PRESENTATION SAMPLE QUESTION: Martin Wilson failed to take proper precautions. His failure to take proper precautions caused a personal injury accident. and this failure caused a personal injury accident. but it does not state that Martin Wilson was in a personal injury accident. C. . Martin Wilson. D. was in a personal injury accident. and Martin Wilson caused a personal injury accident. Which one of the following best presents the information above? A. The best answer to this sample question is C. Choice C best presents all of the original information: Martin Wilson failed to take proper precautions.SUBJECT AREA 3 (cont. Choice B omits the detail that it was Martin Wilson who did not take the proper precautions. the steps involved in making such a choice.SUBJECT AREA 3 (cont. probably think about their interests. in logical sequence. Choice B also presents the information in the paragraph out of logical sequence. . they form a connected. 1. but when correctly arranged. In both A and C. Eventually. well-organized paragraph. Before actually deciding upon a job. The key element in the organization of this paragraph is that sentence 3 contains the information to which sentence 1 refers. 3. sentence 1 comes before sentence 3. goals.) PARAGRAPH ORGANIZATION SAMPLE QUESTION: The following question is based upon a group of sentences. and then answer the question about the best arrangement of these sentences. therefore. Which one of the following is the best arrangement of these sentences? A. Sentence 4 introduces the main idea of the paragraph: “choosing an occupation. in so doing. C. Read the sentences. in order. and abilities. 2. They imagine themselves in different situations and. 4.” Sentences 2-3-1 then follow up on this idea by describing. Choosing an occupation is an important decision to make. sentence 3 should come before sentence 1. The sentences are shown out of sequence. they piece all of this information together and make a choice. Choice D is the best answer to this sample question. Choice D presents the information in the paragraph in the best logical sequence. D. SOLUTION: Choices A and C present the information in the paragraph out of logical sequence. 2-4-1-3 2-3-4-1 4-2-1-3 4-2-3-1 The best answer to this sample question is D. B. thereby interrupting the logical sequence of the information in the paragraph. Choice B places sentence 4 in between sentence 3 and sentence 1. people usually think about several possibilities. “Courteous driving contributes to road safety. Being courteous when driving is more important than observing traffic regulations. B.” The written selection does not state that being courteous is more important than observing traffic regulations. “Those who are generally polite are also courteous drivers. the observance of traffic regulations is a matter of habit. “’Fair play’ on the road includes the observance not only of traffic regulations but also of the rules of courtesy. Choice A states.” Choice A is supported by the statement in the written selection that. behavior termed ‘road rage’ is being viewed as a public health issue.” Choice D is not supported by the written selection. Instead. “Being courteous when driving is more important than observing traffic regulations. Courteous driving is based on common sense consideration for other drivers and a strong desire to make the roads safe for everyone. the observance of traffic regulations is a matter of habit. SOLUTION: To answer this question correctly. followed by a question and a set of alternative statements relating to the selection.SUBJECT AREA 4 UNDERSTANDING AND INTERPRETING WRITTEN MATERIAL: These questions test how well you comprehend written material. The written selection states. ‘Fair play’ on the road includes the observance not only of traffic regulations but also of the rules of courtesy. The correct answer to this sample question is A. D. you must evaluate each choice against the written selection and determine the one that is best supported by the written selection. you will be provided with a brief written selection. You will be provided with brief reading selections and will be asked questions about the selections. SAMPLE QUESTION: “Increasingly. Good highway manners should become just as much a matter of habit as other kinds of manners.” Choice B is not supported by the written selection. Choice B is not the correct answer to this question. and it is much less likely to occur if a driver is treated fairly. Courteous driving contributes to road safety. Choice C boldly states. “Unlike driving courtesy. because of the number of deaths and injuries related to it.” Choice C is not the correct answer to this question. TEST TASK: For each question. Those who are generally polite are also courteous drivers C. . the written material mildly suggests that “Good highway manners should become just as much a matter of habit as other kinds of manners. you will not be required to have any special knowledge relating to the subject areas of the selections.” Which one of the following statements is best supported by the above selection? A.” Choice C is not supported by the written selection. NOT on knowledge you may have about the subject from other sources. The written selection makes no such bold statement. Choice B states. All the information required to answer the questions will be presented in the selections.” This is the correct answer. “Courteous driving is based on…a strong desire to make the roads safe for everyone. Your answer should be based on the information found in the selection only. Choice D states. Choice D is not the correct answer to this question. The written selection does not mention “those who are generally polite” at all. Such behavior is often a reaction to the feeling that one has been treated unfairly by another driver. Unlike driving courtesy. You must choose the statement that best answers the question. and proportion are tested. . analyze. and revising or combining data sets. Mathematical operations are simple. and computational speed is not a major factor in the test. followed by a number of questions. analyzing data trends or interrelationships. You may be asked to perform tasks such as completing tables. TEST TASK: The questions in this subject area are contained in two or more sets. ratio. drawing conclusions from them.SUBJECT AREA 5 UNDERSTANDING AND INTERPRETING TABULAR MATERIAL: These questions test your ability to understand. The concepts of rate. in combination with the information given in each question. Population of a City in 2007 by Age and Gender (in Thousands) Age Under 25 25-34 35-44 45-54 55-64 65 and over Total Female 70 ? ? 27 30 85 261 Male 72 27 28 28 ? 75 257 Total 142 ? 53 55 57 160 518 NOTE: Spaces with question marks can be filled in using information given in the table and in the questions. SAMPLE TABLE: DIRECTIONS: Base your answers to the following two questions on the information in the table below. You must use the appropriate data from the tables. and use the internal logic of data presented in tabular form. Each set consists of data presented in one or more tables. in order to answer the questions correctly. which is choice B). you must first note that the numbers in the table represent thousands of people (see the table heading).100386. You must first find the number of females who are aged 35 to 44.000 females aged 35-44). and convert the answer to a percent.000 total population (all ages) total population (all ages except 25-34) population aged 25-34 There are 51. C. You are asked to find the total number of people aged 25-34.000/518. SOLUTION: To answer this question correctly.28. (25. there are 52. SAMPLE QUESTION 2: Most nearly what percent of the total population of the city was female aged 35 to 54? A.000 + 27. You must add the number of people in all of the age groups other than 25-34.000 51.000.467. B. This will then give the number of people aged 25-34. 51 27. You then need to add the number of females aged 35-44 to the number of females aged 45 to 54. it is necessary to calculate it by using other information which is in the table. 142. Since this information is missing from the table.000 = 52.000 + 55.000 + 53. This information is missing from the table.000 51. SOLUTION: To answer this question correctly you must find the number of females aged 35 to 54. (see the solution below). . there are 25. D. This requires you to add the number of females aged 35-44 to the number aged 45-54.000 cannot be determined from the information provided The correct answer to sample question 1 is C. (choice C). and then subtract this sum from the total population of the city. (53. this is nearest to 10%.000 people in the city between the ages of 25 and 34.000 +160. B. D.000 =25. C.000. (52.000 + 57.000 467.000 .000. but you can calculate it by subtracting the number of males who are aged 35 to 44 from the total number of people in that age group.000 under 25 35-44 45-54 55-64 65 and over 518.SUBJECT AREA 5 (cont. 5% 10% 14% 20% The correct answer to sample question 2 is B.) SAMPLE QUESTION 1: How many people in the city in 2007 were between 25 and 34 years old? A.000 females between the ages of 35 and 54). You must then divide this number by the total population of the city.000 = . • Keep track of time. • Do NOT discuss the test material with others. During the test… • Read and follow all directions on your Admission Notice. • Bring your Admission Notice. • Do NOT paraphrase. and any other allowed materials. building. 2 pencils. CONCLUSION Your attitude and approach to the test will influence how well you perform. a quiet lunch or snack. • Follow the Monitor’s instructions. test booklets. reconstruct. At the test site… • Do NOT bring cell phones. headphones. hallways. • Study and review the subject areas that will be covered on the test. other individuals may want to talk with you about the test. grounds. • The use of such devices anywhere on the grounds of the test site (this includes the test room. A positive attitude will help you do your best. . answer sheets. After you take the test. reconstruct. Additionally. After the test… • Do NOT remove any test materials from the test room. candidates may be disqualified from appointment to positions for which the examination is being held and from being a candidate for any civil service examination for five years. You should not discuss the questions and answers. You should be careful that you do not inadvertently violate test security and put yourself at risk.TEST SECURITY The test you will be taking is the property of the New York State Department of Civil Service. • Do NOT bring this test guide to the test site. two No. and parking lots) could result in your disqualification. even in general terms. beepers. On the day of the test… • Arrive at the test site on time. restrooms. or discuss the test content with others. or reproduce the test material in any way. Unauthorized possession or disclosure of the test material is prohibited by law and punishable by imprisonment and/or a fine. or any electronic or other communication devices to the test site. Candidates may not remove test material from the test site and may not reproduce. and Candidate Directions. Before the test… • Study and review this guide to become familiar with what the test will cover. a photo ID containing your signature. It is the policy of the New York State Department of Civil Service to provide reasonable accommodation to ensure effective communication of information to individuals with disabilities. please contact the New York State Department of Civil Service Public Information Office at (518) 457-9375. . If you need an auxiliary aid or service to make the information available to you. Visit the New York State Department of Civil Service web site www.cs.ny.gov New York State Department of Civil Service Albany. NY 12239 2011 .