1. [单选题]18 How should interest charged on partners’ drawings appear in partnership financial statements?
A. As income in the income statement
B. Added to net profit and charged to partners in the division of profit
C. Deducted from net profit and charged to partners in the division of profit
D. Deducted from net profit in the division of profit and credited to partners
2. [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)
3. [单选题]18 Which of the following statements about accounting ratios and their interpretation are correct?
1 A low-geared company is more able to survive a downturn in profit than a highly-geared company. 2 If a company has a high price earnings ratio, this will often indicate that the market expects its profits to rise. 3 All companies should try to achieve a current ratio (current assets/current liabilities) of 2:1.
A. 2 and 3 only
B. 1 and 3 only
C. 1 and 2 only
D. All three statements are correct
4. [单选题]25 What should the minority interest figure be in the group’s consolidated balance sheet at 31 December 2005?
A. $240,000
B. $80,000
C. $180,000
D. $140,000
5. [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
6. [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
7. [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
8. [单选题]In 2014 Mr Yuan inherited an estate of RMB2 million from his uncle who had died two months earlier.
A. What is the correct treatment of the estate income for individual income tax purposes?
B. The estate income is not taxable
C. The estate income will be taxed as occasional (ad hoc) income
D. The estate income will be taxed as other income
E. The estate income will be taxed as service income
9. [单选题]Is the following statement true or false?
B. True
C. False
10. [单选题]13 Which of the following correctly describes the imprest system for operating petty cash?
A. A
B. All expenditure out of petty cash must be supported by a properly authorised voucher.
C. A regular equal amount of cash is transferred into petty cash.
D. The exact amount of expenditure out of petty cash is reimbursed at intervals.
E. A budget is fixed for a period which petty cash expenditure must not exceed.
