1. [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
2. [单选题]15 Which of the following statements about intangible assets are correct?
1 If certain criteria are met, research expenditure must be recognised as an intangible asset. 2 Goodwill may not be revalued upwards. 3 Internally generated goodwill should not be capitalised.
A. 2 and 3 only
B. 1 and 3 only
C. 1 and 2 only
D. All three statements are correct
3. [单选题]Hindberg is a car retailer. On 1 April 2014, Hindberg sold a car to Latterly on the following terms:
A. Latterly paid $12,650 (half of the cost) on 1 April 2014 and would pay the remaining $12,650 on 31 March 2016 (two years after the sale). Hindberg’s cost of capital is 10% per annum.
B. What is the total amount which Hindberg should credit to profit or loss in respect of this transaction in the year ended 31 March 2015?
C. $23,105
D. $23,000
E. $20,909
F. $24,150
4. [单选题]A company predicted that the learning rate for production of a new product would be 80%. The actual learning rate was 75%. The following possible reasons were stated for this:
A. (i) The number of new employees recruited was lower than expected
B. (ii) Unexpected problems were encountered with production
C. (iii) Unexpected changes to Health and Safety laws meant that the company had to increase the number of breaks during production for employees
D. Which of the above reasons could have caused the difference between the expected rate of learning and the actual rate of learning?
E. All of the above
F. (ii) and (iii) only
G. (i) only
H. None of the above
5. [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
