1. [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
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]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
4. [单选题]12 At 1 July 2004 a company had prepaid insurance of $8,200. On 1 January 2005 the company paid $38,000 for
insurance for the year to 30 September 2005. What figures should appear for insurance in the company’s financial statements for the year ended 30 June 2005? Income statement Balance sheet
A. $27,200 Prepayment $19,000
B. $39,300 Prepayment $9,500
C. $36,700 Prepayment $9,500
D. $55,700 Prepayment $9,500
5. [单选题]17 A company sublets part of its office accommodation. In the year ended 30 June 2005 cash received from tenants
was $83,700. Details of rent in arrears and in advance at the beginning and end of the year were: In arrears In advance $ $ 30 June 2004 3,800 2,400 30 June 2005 4,700 3,000
A. $84,000
B. $83,400
C. $80,600
D. $85,800
6. [单选题]19 Which of the following statements about intangible assets in company financial statements are correct according
to international accounting standards? 1 Internally generated goodwill should not be capitalised. 2 Purchased goodwill should normally be amortised through the income statement. 3 Development expenditure must be capitalised if certain conditions are met.
A. 1 and 3 only
B. 1 and 2 only
C. 2 and 3 only
D. All three statements are correct
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]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
9. [单选题]17 A business income statement for the year ended 31 December 2004 showed a net profit of $83,600. It was later
found that $18,000 paid for the purchase of a motor van had been debited to motor expenses account. It is the company’s policy to depreciate motor vans at 25 per cent per year, with a full year’s charge in the year of acquisition. What would the net profit be after adjusting for this error?
A. $106,100
B. $70,100
C. $97,100
D. $101,600
10. [单选题]10 Which of the following costs should be included in valuing inventories of finished goods held by a manufacturing
company, according to IAS2 Inventories? 1 Carriage inwards. 2 Carriage outwards. 3 Depreciation of factory plant. 4 Accounts department costs relating to wages for production employees.
A. All four items
B. 2 and 3 only
C. 1, 3 and 4 only
D. 1 and 4 only
