1. [单选题]5 An enterprise has made a material change to an accounting policy in preparing its current financial statements.
Which of the following disclosures are required by IAS 8 Accounting policies, changes in accounting estimates and errors in these financial statements? 1 The reasons for the change. 2 The amount of the consequent adjustment in the current period and in comparative information for prior periods. 3 An estimate of the effect of the change on future periods, where possible.
A. 1 and 2 only
B. 1 and 3 only
C. 2 and 3 only
D. All three items
2. [单选题]The following information is available for a manufacturing company which produces multiple products:
A. (i) The product mix ratio
B. (ii) Contribution to sales ratio for each product
C. (iii) General fixed costs
D. (iv) Method of apportioning general fixed costs
E. Which of the above are required in order to calculate the break-even sales revenue for the company?
F. All of the above
G. (i), (ii) and (iii) only
H. (i), (iii) and (iv) only
I. (ii) and (iii) only
3. [单选题]Which of the following statements relating to internal and external auditors is correct?
A. Internal auditors are required to be members of a professional body
B. Internal auditors’ scope of work should be determined by those charged with governance
C. External auditors report to those charged with governance
D. Internal auditors can never be independent of the company
4. [单选题]24 Sigma’s bank statement shows an overdrawn balance of $38,600 at 30 June 2005. A check against the company’s cash book revealed the following differences:
1 Bank charges of $200 have not been entered in the cash book. 2 Lodgements recorded on 30 June 2005 but credited by the bank on 2 July $14,700. 3 Cheque payments entered in cash book but not presented for payment at 30 June 2005 $27,800. 4 A cheque payment to a supplier of $4,200 charged to the account in June 2005 recorded in the cash book as a receipt. Based on this information, what was the cash book balance BEFORE any adjustments?
A. $43,100 overdrawn
B. $16,900 overdrawn
C. $60,300 overdrawn
D. $34,100 overdrawn
5. [单选题]21 Which of the following statements about contingent assets and contingent liabilities are correct?
1 A contingent asset should be disclosed by note if an inflow of economic benefits is probable. 2 A contingent liability should be disclosed by note if it is probable that a transfer of economic benefits to settle it will be required, with no provision being made. 3 No disclosure is required for a contingent liability if it is not probable that a transfer of economic benefits to settle it will be required. 4 No disclosure is required for either a contingent liability or a contingent asset if the likelihood of a payment or receipt is remote.
A. 1 and 4 only
B. 2 and 3 only
C. 2, 3 and 4
D. 1, 2 and 4
6. [单选题]21 Which of the following items must be disclosed in a company’s published financial statements?
1 Authorised share capital 2 Movements in reserves 3 Finance costs 4 Movements in non-current assets
A. 1, 2 and 3 only
B. 1, 2 and 4 only
C. 2, 3 and 4 only
D. All four items
7. [单选题]C Co uses material B, which has a current market price of $0·80 per kg. In a linear program, where the objective is to maximise profit, the shadow price of material B is $2 per kg. The following statements have been made:
A. (i) Contribution will be increased by $2 for each additional kg of material B purchased at the current market price
B. (ii) The maximum price which should be paid for an additional kg of material B is $2
C. (iii) Contribution will be increased by $1·20 for each additional kg of material B purchased at the current market price
D. (iv) The maximum price which should be paid for an additional kg of material B is $2·80
E. Which of the above statements is/are correct?
F. (ii) only
G. (ii) and (iii)
H. (i) only
I. (i) and (iv)
8. [单选题]8 P and Q are in partnership, sharing profits in the ratio 2:1. On 1 July 2004 they admitted P’s son R as a partner. P
guaranteed that R’s profit share would not be less than $25,000 for the six months to 31 December 2004. The profitsharing arrangements after R’s admission were P 50%, Q 30%, R 20%. The profit for the year ended 31 December 2004 is $240,000, accruing evenly over the year. What should P’s final profit share be for the year ended 31 December 2004?
A. $140,000
B. $139,000
C. $114,000
D. $139,375
9. [单选题]10 What would the company’s profit become after the correction of the above errors?
A. $634,760
B. $624,760
C. $624,440
D. $625,240
10. [单选题]10 Which of the following factors would cause a company’s gearing ratio to fall?
1 A bonus issue of ordinary shares. 2 A rights issue of ordinary shares. 3 An issue of loan notes. 4 An upward revaluation of non-current assets.
A. 1 and 3
B. 2 and 3
C. 1 and 4
D. 2 and 4
