金融英语中级会计学模拟考试3.docx

1、金融英语中级会计学模拟考试3金融英语中级会计学模拟3SECTION ONE Answer all questions in this section.Question 1 Read the following statements and state whether they are True (T) or FalseF. For all false statements, you are required to write the correct statements. Write all answers on the answer sheets.1、Mr. Charles invested

2、 50,000 to commence his business, that means now he can make 50,000 claim on the business.2、Although one accountant mistakes to write down a credit sale as a cash sale, the figure on the debit side of the trial balance is right.3、Provision of Depreciation is the estimated expired cost for the curren

3、t period.4、If the contingent liabilities are probable and the amount of the liabilities can be reasonably estimated, the facts of the contingency should be disclosed.5、Prime costs include direct materials costs, direct labor costs and indirect manufacturing costs.6、A bank reconciliation statement is

4、 prepared to analyze the differences between the ending cash balance on the bank statement and the ending cash balance in the firms accounting records.Question 2 Read the following statements / questions and choose the correct answers by writing the alphabetical letter on the answer sheets.7、If reta

5、ined earnings were understated and liabilities were overstated, which of the following errors could have been the cause? a.Making the adjustment entry for depreciation expenses twice. b.Failure to record interest accrued on a note payable. c.Failure to make the adjusting entry to record revenue whic

6、h had been earned but not yet billed to clients. d.Failure to record the earned portion of fees received in advance.8、The selected data pertain to a company at 31 December 2003 as the following: Quick Assets 208,000 Quick ratio 2.6 to 1 Current ratio 3.5 to 1 Net sales for 2003 1,800,000 Cost of goo

7、d sold for 2003 990,000 Average total assets for 2003 1,200,000 The companys inventory balance at 31 December 2003 is _. a.72,000. b.186,990. c.231,111. d.68,000.9、An accrued expense can best be described as an amount _. a.paid and currently matched with earnings. b.paid and not currently matched wi

8、th earnings. c.not paid but currently matched with earnings. d.None of the above.10、Mr. Wong paid 3,000 in advance for insurance on 1 December 2001 and debited it to Insurance Expense. No entries were made subsequently in 2001 or in 2002. The accounting period ends on December 31. As a result of thi

9、s error _. a.2001 income was understated 2,000. b.2002 income was understated 2,000. c.2001 income was understated 3,000. d.2002 income was understated 3,000.11、Mr. Tings net cash inflow from operating activities for the year ending 30 June is123,000. The following adjustments were included in the s

10、upplementary schedule reconciling cash flow from operating activities with net income: Depreciation 38,000 Increase in net accounts receivable 31,000 Decrease inventory 27,000 Increase in accounts payable 48,000 Increase in interest payable 12,000 Net income is _. a.29,000. b.41,000. c.79,000. d.217

11、,000.12、Which of the following is not a characteristic of the accounting for non-trading organizations? a.They normally provide Receipts and Payments Accounts. b.They have Accumulated Fund, which is more or less the same as capital. c.It is more common to keep all records on a single entry basis. d.

12、They must keep books on a double-entry system.13、Mr. Wong is a small company. And it failed to record every transaction. Now you are provided with the following information: capital at 1 January 2003 is 30,000, capital at 31 December 2003 is 31,000. During 2003, drawings are 2,000. Then the net prof

13、it for the year 2003 is _. a.3,000. b.-1,000. c.1,000. d.-3,000.14、At the beginning of a given period, Mr. Tings inventory was all finished goods. The volume is 600. At file end of this period, 2,000 are completed units and 600 are partly completed. The partly completed units were deemed to be 50% c

14、omplete. The manufacturing cost is 30,000. Then cost per unit is _. a.17.64 b.13.04 c.10.34 d.1515、Basic accounting assumptions include the following except _. a.going concern. b.monetary unit. c.consistency. d.business entity.16、At 1 January 2003, the balance of Billy Companys Provision for Bad Deb

15、ts is 5,000. At 31 December 2003, the balance of trade debtors is 45,000. Billy Companys provision for bad debts equals to 10% of trade debtors. During the year 2003, the bad debt written off is2,000. Then Bad Debt expenses of Billy Company this year must be _. a.2,500. b.1,500. c.-1,500. d.-2,5OO.Q

16、uestion 317、Considering purchasing KH Company, you are evaluating KHs revenue generalizing ability. Then the following inventory valuation errors have been discovered. the 2000 year end inventory was overstated by 23,000 the 2001 year end inventory was understated by 61,000 the 2002 year end invento

17、ry was understated by 17,000 And the report income before taxes for KH was: Year Income before taxes 2000 138,000 2001 254,000 2002 168,000 Required: (a)How much should the reported income before taxes have been for the years 2000, 2001 and 2002? (b)Discuss if 2000 year end inventorys overvaluation

18、will influence file 2002 years report income before taxes or not.Question 418、The following information was extracted from the ledgers of Billy Company for its products for the year ended 31 December 2002: Sales (100,000 units) 500,000 Direct materials 100,000 Direct wages 70,000 Fixed production ov

19、erheads 110,000 Variable production overheads 20,000 Administration expenses (60% fixed, 40% variable) 80,000 Selling expenses (60% fixed, 40% variable) 130,000 Required: (a)Prepare the Profit and Loss Statement by using Absorption Cost method. (b)Prepare the Profit and Loss Statement by using Margi

20、nal Cost method.Question 519、Mr. Wong is a small manufacturer of bicycles in Hong Kong. His business incurred the following costs for the year ended 31 December 2003. Materials (100% variable. 300,000 Labor (25% variable. 200,000 Selling & distribution cost (20% variable. 50,000 Other costs (fixed.

21、170,000 Normally, the business sells 3,000 units at 300 each: Required: a.Calculate the breakeven point in units and dollar sales. b.Calculate the contribution to sales ratio. c.Calculate the margin of safety in percentage.Question 620、ABC Sport acquired equipment at a cost of 200,000 on 1 January 2

22、003. The asset was estimated to have a scrap value of 20,000 and an estimated useful life of 5 years. If you are the accountant of ABC Sport, please compute the annual depreciation expense for each year respectively. Required: a.Using straight-line method. b.Using double-declining-balance method (re

23、ducing balance method. c.Using sum-of-the-years-digits method.SECTION TWO Answer any two questions in this section.Question 721、The summary Balance Sheet of Billy Trading Company on 1 April 2003 was as follows: Equipment (at cost) 180,000 Less: Provision for depreciation (68,400) Stock 38,600 Debtor

24、s 50,000 Total assets Financed by: Share Capital 70,000 Revenue Reserves 50,000 10% debentures 70,000 Proposed dividends 2,200 Bank overdraft 8,000 Additional information: 1. The following sales, purchases and payment transactions are expected to occur in the next three months: Sales Purchases Expenses April 360,000 180,000 60,000 May 370,000 200,000