Test 2

Time: 90p
Câu hỏi 1 (1 điểm):
Which of the following is not one of the four basis financial statements?

o The balance Sheet

o The audit Report
o The income statement
o The statement of cash flows

Câu hỏi 2 (1 điểm):

An inventory record card shows the following details.
February

1 50 units in stock at a cost of $40 per unit

7 100 units purchase at a cost of $45 per unit

14 80 units sold

21 50 units purchased at a cost of $50 per unit

28 60 units sold

Which is the value of inventory at 28 February using FIFO method?

o $2,450
o $2,700
o $2,950
 o $3,000

Câu hỏi 3 (1 điểm):

In preparing its financial statements for the current year, a company's closing inventory
was understated by $300,000.
What will be the effect of this error if it remains uncorrected?

o The current year's profit will be overstated and next year's profit will be
understated.
o The current year's profit will be understated but there will be no effect on next
year's proft.
o The current year's profit will be understated and next year's profit will be
overstated.
o The current year's profit will be overstated but there will be no effect on next year's
profit.

Câu hỏi 4 (1 điểm):

What is the purpose of charging depreciation?

o To allocated the cost less residual value of a non-current asset over the accounting
periods expected to benefit from its use
o To ensure that funds are available for the eventual replacement of the asset
o To reduce the cost of the asset in the statement of financial position to its
estimated market value
o To comply with the consistency principle

Câu hỏi 5 (1 điểm):

A company brought a property four years ago on 1 January for $170,000. Since then
property prices have risen substantialy and the property has been revalued at
$210,000. The property was estimated as having a useful life of 20 years when it was
purchased.
What is the balance on the revaluation surplus reported in the statement of financial
position on 1 January ?

o $210,000
o $136,000
o $74,000
o $34,000

Câu hỏi 6 (1 điểm):

Which of the following best expains what is meant by 'capital expenditure' ?

o Expenditure on non-current assets, including repairs and maintenance

o Expenditure on expensive assets
o Expenditure relating to the issue of share capital
o Expenditure relating to the acquisition or improvement of non-current assets

Câu hỏi 7 (1 điểm):

Joan's draft final accounts were prepared including a prepayment for rent of $970. The
prepayment should have been $1,170.
When the error is corrected, how will the next profit be affected?

o Net profit will decrease by $200

o Net profit will increase by $200
o Net profit will decrease by $1,170
o Net profit will increase by $1,170
Câu hỏi 8 (1 điểm):
When posting an invoice for car repairs, $870 was entered on the correct side of the motor
expenses account. The invoice was for $780.
What correction should be made to the motor expense account?

o Debit $90
o Credit $90
o Debit $1,650
o Credit $1,650

Câu hỏi 9 (1 điểm):

The balance on Jane's payables ledger control account is $31,554. Jane has discovered that
she has not recorded:
A settlement discount of $53 received from a supplier; and A supplier's invoice for $622.
What amount should be reported for payables on Jane's statement of financial position?

o $30,879
o $30,985
o $32,123
o $32,229

Câu hỏi 10 (1 điểm):

Sally keeps records identifying those business debts she has met personally and those
debts met using business assets. By doing this Sally is trying to make sure that when she
prepares her accounts she does so in accordance with which principle or concept :

o Accruals
o Business entity
o Going concern
 o Historycal cost
Câu hỏi 11 (1 điểm):
"Which of the following would normally be a debit balance on the ledger account ?
(i) Sales
(ii) Rent
(iii) Drawings
(iv) Capital "

o and (iii)
o and (iii)
o and (iv)
o and (iv)

Câu hỏi 12 (1 điểm):

"A business had a net assets at 1 January and 31 December 20X9 of $75,600 and $73,800
respectively. During the year, the proprietor introduced addtional capital of $17,700 and
withdrew cash and goods to the value of $16,300.
What was the profit or loss made by the business in 20X9? "

o $3,200 loss
o $3,200 profit
o $400 loss
o $400 profit

Câu hỏi 13 (1 điểm):

At 1 May 2010 Lim owed his suppliers $17,822. At 30 April 2011 he owed $16,385. During
the year to 30 April 2011 he paid his suppliers $131,740 and made a contra entry with the
receivables ledger of $800.
What was the value of his purchases for the year to 30 April 2011?

o $133,977
o $131,103
o $130,303
o $129,503

Câu hỏi 14 (1 điểm):

How should the balance on the receivables ledger control account be reported in the
final accounts?

o As an expense account
o As a non-current asset
o As a current asset
o As a current liability

Câu hỏi 15 (1 điểm):

Your Cash book at 31 December 20X3 shows a bank balance of $565 overdrawn. On
comparing this with your bank statement at the same date, you discover the following.
1. A cheque for $57 drawn by you on 29 December 20X3 has not yet been presented for
payment.
2. A cheque for $92 from customer, which was paid into the bank on 24 December 20X3,
has been dishonoured on 31 December 20X3.
What is the correct bank balance to be shown in the statement of financial position at 31
December 20X3?

o $714 overdrawn
 o $657 overdrawn
o $473 overdrawn
o $53 overdrawn

Câu hỏi 16 (1 điểm):

For which class of the classes of assets should a company disclose in the notes to the
financial statement a reconciliation of the opening carrying amount to the closing
carrying amount, showing the movements in the period?
1. Cash
2. Intangible assets
3. Tangible non-current assets
4. Trade receivables

o 3 only
o 2 and 3 only
o 1 and 4 only
o 1 only

Câu hỏi 17 (1 điểm):

Evergreen Co owns 35% the ordinary shares of Deciduous. What is the correct accounting
treatment of the revenues and costs of Deciduous for reporting period in the
consolidated statement of profit or loss of the Evergreengroup?

o The revenues and costs of Deciduous are added to the revenues and costs of
Evergreen on a line by line basis
o 35% of the profit after tax of Deciduous should be added to Evergreen's
consolidates profit before tax
o 35% of the revenues and costs of Deciduous are added to the revenues and costs of
Evergreen on a line by line basis
 o The revenues and costs of Deciduous are added to the revenues and costs of
Evergreen Co on a line by line basis, then 65% of the profit after tax is deducted so
that only Evergreen Co's share remains in the consolidated financial statements.
Câu hỏi 18 (1 điểm):
"A certain IFRS repuires that the following disclosure is made in a note to the financial
statements:
(i) A brief description of its nature
(ii) Where praticable an esrimate of the financial effect
(iii) An indication of the uncertainties ralating to the amount or timing of any outflow
(iv) The possibility of any reimbursement
Which of the following close the above disclosure apply to?"

o Provisions
o Contingent liabilities
o Contingent assets
o Events after the reporting period

Câu hỏi 19 (1 điểm):

Which of the following would be on the credit side of the receivables ledger control
account?
1.Cash recieved
2.Irrecoverable debts
3. Credit note issued
4. Sales

o 1 and 4 only
o 1, 2 and 3 only
o 2 and 4 only
o 1, 2, 3 and 4
Câu hỏi 20 (1 điểm):
Which journal entry correctly records the credit purchase of plant and equipment?

o "Dr Plant and equiptment; Cr Cash"

o "Dr Purchase ledger control account; Cr Plant and equiptment"
o "Dr Cash; Cr Plant and equiptment"
o "Dr Plant and equiptment; Cr Purchase ledger control account"

Câu hỏi 21 (1 điểm):

An example of an assurance engagement is

o audit of financial statements of a medium size company

o regulator's questionnaire on business ethics and conduct
o insurance claims data
o all of the above

Câu hỏi 22 (1 điểm):

An auditor must be independent in appearance and fact.
Which of the following is not an aspect of practical independence?

o auditor has complete control over assigning personnel to audit

o management cooperates in allowing auditor access to all evidence
o client negotiates a lower adjustment to financial statements
o auditors show no loyalty to client when preparing their report

Câu hỏi 23 (1 điểm):

During the audit of XYZ Co. client management informs the auditor that they have two
bank accounts both with a minimal balance in them. As the auditor you should

o believe the client as a minimal balance is too small to worry about

o tell management they are being dishonest, last year there were three accounts
o ask the client staff that reconciles the bank accounts if they agree with management
o prepare a bank confirmation and have the bank confirm the number of accounts

Câu hỏi 24 (1 điểm):

Which of the following is not considered to be a principal management assertion?

o Existence
o Integrity
o Completeness
o Presentation and Disclosure

Câu hỏi 25 (1 điểm):

An auditor discovers that ABC Company is not following GAAP in the accounting for their
capital assets. The amount is material however, not extremely material. They find that
everything else in the statements is in accordance with GAAP. The auditor should give
which type of report?

o Standard unqualified report

o Qualified opinion
o Adverse opinion
o Denial of opinion

Câu hỏi 26 (1 điểm):

Which of the following information gathering activities or attention directing activity is
not a form of analytical procedure?

o reading and studying the company minutes

o review of prior year file for adjustments made
o comparing current year salaries to prior year salaries
o recalculating the amortisation of equipment

Câu hỏi 27 (1 điểm):

Which of the following audit risk model statements can occur?

o IR = AR x CR x DR
o CR = AR / (IR x DR)
o DR = IR x CR / AR
o AR = IR x DR / CR

Câu hỏi 28 (1 điểm):

Sampling risk is defined as:

o The probability that an owner would override internal controls and influence the
books of account.
o The probability that an auditor's conclusion based on a sample might be different
from the conclusion based on an audit of the entire population.
o The probability that sufficient controls are not in place within transaction streams
to prevent material misstatements from occurring.
o None of the above.

Câu hỏi 29 (1 điểm):

The following account is not considered in the production cycle:
 o Inventory
o Cost of Goods Sold
o Amortisation Expense
o Sales

Câu hỏi 30 (1 điểm):

"Off the balance sheet" means that:

o Obligations and commitments are not recorded in the accounts of the company
o Obligations and commitments are recorded, but in the income statement accounts
o Obligations and commitments are recorded, but in the Statement of Changes in
Financial Position
o Capital Budgets are properly authorized and approved.

Câu hỏi 31 (1 điểm):

An emphasis of a matter paragraph is an extra paragraph in what type of audit report?

o Qualified report – departure from GAAP

o Qualified report – scope limitation
o Standard unqualified report
o Qualified report – departure from GAAP – adverse opinion

Câu hỏi 32 (1 điểm):

Select the term which best describes a departure from a prescribed internal control
procedure in a particular case.

o Sampling Unit
o Occurrence
 o Walk-through
o Non-sampling risk

Câu hỏi 33 (1 điểm):

A computer based system does not include which of the following?

o systems programs
o control procedures
o computer terminals
o sales invoices

Câu hỏi 34 (1 điểm):

Typical source documents involved in the Revenue and Collection cycle does not include

o Sales Invoice
o Shipping documents
o A/R Master File
o Vendor Invoice

Câu hỏi 35 (1 điểm):

The Control Objective associated with selecting a sample of inventory receiving reports and
tracing them to the entry of receipt on the perpetual inventory record is:

o Authorisation
o Completeness
o Valuation
o A and B
Câu hỏi 36 (1 điểm):
In March 2018, DPN Co, a Vietnamese company, disposed of a machine for VND2,200
million. The machine was purchased in January 2017 for VND3,600 million with an
estimated useful life of three years. DPN Co’s policy (which is acceptable for tax
depreciation) is to provide for a full month’s depreciation in the month of purchase and no
depreciation in the month of disposal. What is the taxable gain on the disposal of the
machine which DPN Co must declare for corporate income tax (CIT) purposes for its
financial year ended 30 June 2018?

o VND100 million
o VND2,200 million
o VND 0 million
o VND 800 million

Câu hỏi 37 (1 điểm):

Ms Dung Nguyen is a Vietnamese citizen with three registered dependants. During 2017,
she received a gross monthly salary of VND96 million, plus a bonus equal to two months’
salary in April 2017, relating to her work performance in 2016. Her employer also paid rent
for a car for her to travel from home to work and vice versa at an annual cost of VND240
million. Dung is responsible for her own social, health and unemployment insurance. What
is Ms Dung Nguyen’s annual personal income tax (PIT) liability (in VND millions – to be
rounded only in the final PIT calculations) in the year 2017?

o VND 320 million

o VND 387 million
o VND 303 million
o VND 236 million

Câu hỏi 38 (1 điểm):

Ms Ngoc Huong was the chief accountant of SBC JSC, with contractual gross-of-tax salary of
VND48 million per month. Ngoc Huong terminated her employment on 31 October 2017.
Upon termination, she received VND15 million from SBC JSC. This payment is the residual
amount of her 13th month salary (pro-rata to the months of service in the year), after SBC
JSC withheld provisional personal income tax and deducted the costs for the company’s
laptop which Ngoc Huong was allowed to keep for her personal use after the termination.
What is the amount of Ms Ngoc Huong’s taxable bonus in 2017?

o VND 0 million
o VND 15 million
o VND 40 million
o VND 48 million

Câu hỏi 39 (1 điểm):

Mr Hung Duong, a Vietnamese tax resident, is 45 years old and has three dependants. He is
the director of HLB Co, a company incorporated in Vietnam. In 2019, he earned a gross
monthly salary of VND 300 million plus an annual bonus equal to four-months salary. Hung
is responsible for his own social, health and unemployment insurance.
What is Mr Hung Duong's monthly personal income tax liability (rounded to the nearest
VND million only in the final PIT calculations) in the fiscal year 2019?

o VND 122 million

o VND 87 million
o VND 126 million
o VND 92 million

Câu hỏi 40 (1 điểm):

Related party transactions are those transactions occuring between related parties in
respect of their production and business processes (Decree 20/2017/ND-CP)
Which of the following transactions between a parent company and a subsidiary fall
within the definition of related party transactions under Decree 20/2017?
(1) The parent company provides a guarantee to the subsidiary for a loan from a
commercial bank.
(2) The subsidiary borrows equipment from the parent company.
(3) The parent company and the subsidiary enter into an agreement to share costs for a
research and development project to be conducted by the parent company.

o 1 and 2 only
o 1, 2 and 3
o 2 and 3 only
o 1 and 3 only

Câu hỏi 41 (1 điểm):

Which of the following are benefits of the return on capital employed method of
investment appraisal?
1 It considers the whole project
2 It is cash flow based
3 It is a percentage which, being meaningful to non-finance professionals, helps
communicate the benefits of investment decisions.

o A 1, 2 and 3
o B 1 and 3 only
o C 1, and 2 only
o D 2 and 3 only

Câu hỏi 42 (1 điểm):

Which of the following are advantages of the internal rate of return (IRR) approach to
investment appraisal?
1 Clear decision rule
2 Takes into account the time value of money
3 Assumes funds are re-invested at the IRR
4 Considers the whole project
 o 1, 2 and 4 only
o 2, 3 and 4 only
o 2 and 4 only
o 1, 2 and 3 only

Câu hỏi 43 (1 điểm):

According to the creditor hierarchy, list the following from high risk to low risk:
1 Ordinary share capital
2 Preference share capital
3 Trade payables
4 Bank loan with fixed and floating charges

o 1,2,3,4
o 2,1,4,3
o 1,2,4,3
o 4,1,2,3

Câu hỏi 44 (1 điểm):

ELW Co recently paid a dividend of $0.50 a share. This is $0.10 more than 3 years ago.
Shareholders have a required rate of return of 10%. Using the dividend valuation model
and assuming recent dividend growth is expected to continue, what is the current value of
a share?

o A $23.41
o B $5.00
o C $38.48
o D $10.48
Câu hỏi 45 (1 điểm):
The following information relates to the ordinary shares of G Co.
Earnings per share 60c
Dividend cover 2.5
Published dividend yield 4.8%
What is the price of G Co’s ordinary shares implied by the data above?

o 24c
o 115c
o 313c
o 500c

Câu hỏi 46 (1 điểm):

If yesterday was tomorrow, then today would be Friday. What day is today?

o Monday
o Tuesday
o Wednesday
o Thursday

Câu hỏi 47 (1 điểm):

FISCAL, SCRIBE, SELECT, INSIDE, MAYHEM, PURIFY, FLANGE
Logically, what word comes next?

o GUILTY
o RHYTHM
o OXYGEN
 o PENCIL

Câu hỏi 48 (1 điểm):

ABCDEFGH
What letter is three to the right of the letter immediately to the left of the letter three to
the left of the letter two to the right of the letter F?

oE
oF
oG
oH

Câu hỏi 49 (1 điểm):

What is the longest river in the world?

o Nile
o Amazon
o Yangtze
o Mekong

Câu hỏi 50 (1 điểm):

Who painted the Mona Lisa?

o Sandro Botticelli
o Caravaggio
o Michelangelo
o Leonardo da Vinci
Câu hỏi 51 (1 điểm):
Nowadays online shopping becomes more popular than in-store shopping. Is it a positive or
a negative development? Give our reasons and examples